In a new development that must have come as a massive boost to DGLY stock investors, Digital Ally, Inc. (NASDAQ:DGLY) today announced that it has signed the biggest contract in its history. This morning, the company announced that it has managed to bag a contract for an initial order of 5,000 body cameras as well as its web-based software infrastructure service.
Big Boost
More importantly, the company has won the contract from a national police force. If the products prove to be efficient, then it could lead to even bigger contracts in the future.
The Chief Executive Officer of Digital Ally, Stanton E. Ross, spoke about the deal in the press release. He stated that the contract is an encouraging indicator of the company’s ability to scale its operations considerably.
Ross explained, “The award of this international contract is an important milestone for Digital Ally because the size and complexity of the deployment prove the scalability of the Company’s body camera hardware and its web-based software services.”
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The market reacted positively to the news, and DGLY stock soared by as much as 72% in opening trade to touch $1.66 a share.
Investors, no doubt, hope that such a contract will lead to more contracts throughout the year.
It has also been announced that this contract is going to generate in excess of $4 million in projected revenue for Digital Ally. The company will get the first payment once it delivers the initial purchase order due next month; all future payments will be received with each completed order. It is a significant development for the company, and the reaction of the market to the news is completely understandable.
However, it remains to be seen how long the rally will be sustained, so investors would do well to keep an eye on DGLY stock for the rest of the week.
Featured image: DepositPhotos © kapustin_igor
