Digital Ally Inc. (DGLY)

[Captain_Chaos]

Q1 - DGLY quality issues hurting sales

maybe this is the reason cities are buying from others
This information is sure to be in the lawsuit

http://www.sec.gov/Archives/edgar/data/1342958/000149315215001921/ex99-1.htm

Gross profit declined to $1,653,740 (38.9% of revenue) in the most recent quarter, versus $2,320,939 (59.4% of revenue) a year earlier. The sharp increase in cost of goods sold was partially due to the 9% revenue increase, but the Company also incurred substantial production costs in hiring and training new production personnel to launch a split production shift. In addition, the Company encountered some printed circuit board issues that significantly increased rework and scrap rates on the FirstVU HD, and it increased inventory reserves due to changes in the sales mix to the DVM-800 platform, which resulted in higher levels of excess component parts of older versions of legacy products. Management’s goal is to achieve gross profit margins of 60% of sales or better during the balance of 2015.