Digital Ally gets first camera order since Ferguson shooting

Reuters News
Posted: Aug 28, 2014 7:55 AM

(Reuters) - Digital Ally Inc said the Michigan police force placed an order for the company's flagship video cameras for its fleet, highlighting the spike in demand for surveillance systems since a policeman fatally shot an unarmed teenager in Ferguson, Missouri on Aug. 9.

The fallout has led to protests and a clamor to find ways to hold law enforcement officials accountable, which in turn has led to a spike in interest in companies such as Digital Ally and Taser International Inc.

Digital Ally, which also makes cameras compact enough to be pinned to shirts, belts or eyeglasses, said on Thursday it received an order of more than $1.1 million from Michigan state police.

The company's shares jumped 20 percent in premarket trading on Thursday, adding to the 200 percent spike in their value since the shooting.

Michigan police ordered Digital Ally's DVM-800 video camera which are fitted in the rear view mirrors of patrol cars, the company said.

These and the company's miniature, body-worn audio-video systems together generated about 45 percent of Digital Ally's total revenue of $3.5 million in the quarter ended June 30.

The company said the order will ship in the current quarter and brings the total value of its contract with the State of Michigan to $6.5 million.

Digital Ally's shares were up 19 percent at $13.65 in premarket trading. Shares of Taser, best known for its stun guns, was down 1.25 percent at $15.75.

Up to Wednesday's close, Taser's shares had gained about 29 percent.

(Reporting by Ankit Ajmera in Bangalore; Editing by Savio D'Souza)