Digital Ally Inc. Announces Significant Progress in Backlog Reduction and Notable Contract Wins

Rhea-AI Summary

Digital Ally (NASDAQ: DGLY) reports significant operational improvements, successfully reducing its backlog to $1.7 million from $2.2 million at the end of Q1 2025. The company, which specializes in advanced video surveillance products for law enforcement, homeland security, and commercial applications, has secured seven new contracts worth over $800,000 collectively. CEO Stanton Ross emphasized the company's progress in streamlining operations while maintaining business growth. Digital Ally's focus remains on further backlog reduction, operational efficiency improvements, and faster turnaround times to enhance customer satisfaction.

Positive

• Reduced backlog by $500,000 from Q1 2025 levels
• Secured seven new contracts worth over $800,000
• Successfully maintaining operational improvements while securing new business

Negative

• Still maintaining a significant backlog of $1.7 million

Insights

Financial Analyst

Digital Ally improved operational efficiency by reducing backlog 23% while securing $800K in new contracts, signaling positive execution momentum.

Digital Ally has demonstrated meaningful operational progress by reducing its order backlog by $500,000 (from $2.2 million to $1.7 million) since Q1 2025 while simultaneously securing seven new contracts valued at over $800,000. This dual achievement indicates the company is successfully balancing new business acquisition with improved fulfillment capabilities.

The backlog reduction of approximately 23% suggests significant improvements in manufacturing efficiency and supply chain management. For a smaller tech company like Digital Ally, maintaining a healthy backlog-to-new-orders ratio is crucial for cash flow management and customer satisfaction.

The seven new contracts demonstrate continued market demand for Digital Ally's surveillance products across its target sectors. With these contracts representing nearly 47% of the current backlog value, the company appears to be maintaining a healthy sales pipeline that could support sustainable revenue generation.

Looking at the broader picture, Digital Ally's ability to simultaneously reduce backlog while securing new business contradicts the typical pattern where growing sales leads to increased backlogs. This suggests the company has made structural improvements to its operational capacity that could translate to improved margins and customer satisfaction metrics in upcoming quarters.

However, investors should note that at $800,000 in new contracts against a market that spans law enforcement, homeland security, and commercial applications, the absolute dollar value remains modest. The company will need to continue scaling both operational efficiency and contract acquisition to demonstrate meaningful growth trajectory.

OVERLAND PARK, KS, June 17, 2025 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) ("Digital" or the "Company"), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, is pleased to announce continued progress in reducing its backlog while securing several high-value contract orders.

As part of its ongoing operational improvements, Digital Ally has successfully lowered its backlog to $1.7 million from the $2.2 million noted at the end of the First Quarter 2025. These results reflect the company’s commitment to optimizing its processes and meeting the evolving needs of its customers.

In addition, Digital Ally has recently finalized at least seven notable contracts, collectively expected to generate revenues exceeding $800,000, while still managing to reduce its backlog to $1.7 million. These agreements reinforce the company’s industry leadership and highlight the growing demand for its cutting-edge technology across multiple sectors.

Looking ahead, Digital Ally remains focused on continued backlog reduction, building on recent progress to further streamline production. By enhancing operational efficiency, the company aims to ensure faster turnaround times and improved customer satisfaction, reinforcing its dedication to delivering high-quality solutions.

“We are proud of the strides we’ve made in streamlining operations while securing key business opportunities,” said Stanton Ross, CEO of Digital Ally. “This progress enables us to better serve our clients and further strengthen our market presence.”

Digital Ally remains dedicated to advancing its portfolio of innovative safety solutions and driving sustainable growth. For more information about the company’s latest developments, please visit www.DigitalAlly.com.

About Digital Ally, Inc.

Digital Ally Companies (NASDAQ: DGLY) through its subsidiaries, are engaged in video solution technology, healthcare revenue cycle management, ticket brokering and marketing and event production. Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential, innovation and organizational synergies.

For additional news and information please visit www.digitalally.com

Forward-Looking Statements

Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today’s date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company’s periodic filings with the U.S. Securities and Exchange Commission, including, without limitation, the risks described in the Company’s 2024 Annual Report on Form 10-K under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.

For Additional Information, Please Contact:

Stanton E. Ross, CEO at (913) 814-7774

FAQ

What is Digital Ally's (DGLY) current backlog value in 2025?

Digital Ally's current backlog stands at $1.7 million, reduced from $2.2 million at the end of Q1 2025.

How many new contracts did Digital Ally (DGLY) secure in their latest announcement?

Digital Ally secured seven new contracts, collectively valued at over $800,000.

What is Digital Ally's (DGLY) main business focus?

Digital Ally develops, manufactures, and markets advanced video surveillance products for law enforcement, homeland security, and commercial applications.

Who is the CEO of Digital Ally (DGLY)?

Stanton Ross is the CEO of Digital Ally.

How much has Digital Ally (DGLY) reduced its backlog in Q2 2025?

Digital Ally reduced its backlog by $500,000, from $2.2 million at the end of Q1 2025 to $1.7 million.