Digital Ally Clocks 25% Decline In Q1 Revenues On Weakness In Entertainment Segment - Digital Ally (NASDAQ:DGLY)

Digital Ally, Inc DGLY reported a first-quarter FY23 revenue decline of 25.2% year-on-year to $7.70 million.
The video solutions firm reported an EPS loss of $(2.22) versus $(2.59) in the prior year.
The primary reason for the overall revenue decrease is the weakness in service revenues in the Entertainment Segment due to the reduction in ticket purchases.
Service revenue fell by 33.5% Y/Y to $5.24 million. Product revenue grew by 1.8% Y/Y to $2.45 million.
Gross profit decreased 20.4% Y/Y to $1.54 million. The margin stood at 20.1%.
Digital Ally clocked an operating loss of $(6.17) million versus $(6.80) million a year ago.
Digital Ally held $2.86 million in cash and equivalents.
"The numerous acquisitions we have already completed of medical billing companies demonstrates our roll-up strategy is effective and attractive to potential targets. We look forward to seeing the growth potential of this venture come to fruition and continue throughout 2023 and beyond," said CEO Stanton E. Ross.
Price Action: DGLY shares traded lower by 4.7% at $3.27 on the last check Tuesday.