DGLY - Earnings call transcript Q2 2018

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Operator

This conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words believe, expect, anticipate, intend, estimate, may, should, could, will, plan, future, continue and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. These forward-looking statements are based largely on our expectation or forecast of future events, can be affected by inadequate assumptions and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control. Therefore, actual results could differ materially from the forward-looking statements contained in this document and readers are cautioned not to place undue reliance on such forward-looking statements. Digital Ally will undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. factors adversely or flows impact needs. of differences to and variety could and revenues, wide could contribute cause such capital A profitability, cash can be accurate. contained forward-looking in There transpire assurance document fact to this will statements prove or no be in that morning. Good Chelon My today. name your operator I and is be will conference Conference like At would everyone the to this time, XXXX Call. to welcome I Second Quarter Results noise. on been lines placed mute to any have background All prevent speakers’ remarks, be there session. the After a will question-and-answer you. Thank Instructions] [Operator over now to Stan like to would call the I CEO, turn Ross. Please go ahead.

Stanton Ross

Thank for Heckman, us will I the turned dive give today. company’s little quarter Tom the and into out. a you today. you joining everybody how have little the numbers CFO Tom with do understanding in-depth me

have the a areas, Axon what on litigation are plans the different and control of cost the made our and in matters. Tom? I with very current headway We pleased will especially lot with WatchGuard And some look those areas. then of of touch like and future status we our the

Tom Heckman

appreciate and morning. Thank you, everyone. this us you welcome joining Stan I

Form you our we have this morning. seen, have filed might As XX-Q

So, on into in-depth the what’s the and to suggest going you for dive a numbers company. that I that do more with refer

sure take in to had Financial, financing and disclosed time was a the for the we recognized at tranche to the did least for that with back on might than have extension, You and and also the have it reason file the at an extension. fully more financial the recently extension things it was we Management finalized a time according some we X we a we our statement. make little look Brickell filing Asset but are extension are quarter, Brickell we And Key so financing X-day wanted of step a nothing late here,

couple So things. at catch days breath nothing just that, to extra we and other of wanted our look

know you say saw the smaller but guess in And and progress in what second steps, I direction swing the we is let’s I here. to the what quarter. right sometimes quarter Now, would take really that’s

trends and have We and reversed EBITDA steps reach, all, have here of we in hopefully breakeven the near-term. EBITDA some first we positive necessary good and in then some to continued that are bad the trends taking with

If look numbers our of at revenues revenue figure roughly is quarter, best the the million reached quarter you for XXXX. the for our QX since $X.X that

hope later recorded I So our a that’s step good that, continues It XXXX certainly think into for that in higher XXXX. the we got right million things balance what $X we and is over on tend we here us will than to in the on little of about nice talk direction have for some improve and QX. that to revenues

obviously good and our to So, That was step. showing was XXXX. QX Year-over-year, revenue our XXXX. is it big it a gross step best since sequentially best of reported since margins of XX.X%. improved margins QX our importantly, in Also a gross

here. So are right for to reach good steps a taking important again us profitability showing very in the and we some progress that’s way metric and

or SG&A. our as particularly importantly good, trends very look are in importantly More cost to continuing

in actually you a Xst did putting and it started containment cost finalized minimization our of As might of headcount reduction QX QX the XXXX. around recall major in look the we at then and and SG&A the year implementing

right that We now. are seeing the fruits of

based depreciation we million compensation, you $X.X well the SG&A spend. expenses over our year-over-year in non-cash and If stock are co-op which better total

throughout do XXXX. So that’s that expect huge continue improvement a to and we

that in And improvement also very and $X expend million last we so that our a have good pedal on made year less continue. improvement we obviously the foot – quarter $X about SG&A roughly that on seeing expect forecasted are we to and cash trying and the We and the we are other pedal in there keep would to containment there. thought keeping good trend cost run and we than QX we QX, per million, have some

enforcement and our soon. that area here continuing large been very and revenues that areas growing able a those especially principally hopefully are push talking important the they non-law also large new FleetVU.com far. I out In good recurring partner we contract, partners with also zTrip so am we We nature. want much I share that very potentially a did to will that company very regard, very announce we in and branching some contract, to into be contract are with to have into be

yield are very NASCAR that The I what beyond contract. So benefits pleased had we to with way imagined. affiliation continues even

what would it’s Cruise ships I are way beyond so continue do us, very maybe very for affiliation to been I and sure. good that stand in back situation we sure, that good imagine life. for plan for to a Now coming

inroads cruise make As to others, we provider results the we hope also lines you trying and might some are would to we have Caribbean recall for so into Royal good are there.

but also know these will that and shortly some We here pilots to well-known things organizations it several very accelerate recurring much come non-law with trend fruition established have into revenue. unnamed, the if enforcement should we

the think about continue. very just Obviously, WatchGuard. So speak that with are happy our briefly nicely. and there we I with will push litigation Axon progressing we it’s and will

not courtroom quite nothing, this in for thing any And side both moving are series stand to us we the clear to the had of type wins have it’s that against of case. this there going and and magistrate waiting whitewash we WatchGuard in that trial of and won’t frankly certainly to be This but forward delays years tracking Axon progress of talking with have the WatchGuard hopefully action. We and been and Axon is that a that which anymore. will

a moving or year, both like have is lifted both are away now closes month in are WatchGuard litigation on Axon and what this than been trial been hopefully since at has progressing closes. to What it’s we out cases both know we so company swiftly less are discovery of the a month do – the you lifted. lawsuits a track discovery mid-September, so fact later fact As stay to so fast in this closes talking cases of to litigation. is early XXXX, nicely I the clarify and this point. those wants away would

that Ferguson, that right We technology. was If the that I the you and small when time put business were on based prior out, in anybody our fair share back the auto-activation that have of which X in of were came really at then good the market making patent else or terms of in patent years XXXX the a we there the but our cam number knew obviously that ahead that technology everybody we wins, think including the And our we auto getting were out at events of to there. did a Axon us Ferguson, technology in years offering in competitors, as business. regardless ago we look copied big X were as issued police. happened marketplace and anybody probably point, body way WatchGuard activation It unfortunate was our

they were that took court. at left in fight point, we to and off So

want at stop. We the have patented to technology. but had technology this. exactly way activity. over X using own their should basically marketplace. competitors what And especially all and is X out both mean, bigger against litigation not understand an and this do Axon proceeding We the had to I we injunction on Axon and to I is what the our that have compete in that’s here the stop against or want WatchGuard direction will it, our Board’s So with WatchGuard the is And infringing we us being years. hopefully last and have than point, from

the lot to both infringing field awarded and and but activities will sits that, And is the have big our at owner There in as get this the as side our contract lot believe So we marketplace if then of level ranges obviously rightful today could and you and technology think discussions stupid what do damages appropriate to then adjust damages the if it and we playing tilted and we of that playing are auto-activation least the infringing for technology I because towards recognize we of be. a the the a moving want we superior will field activity internally not that we been who potential to of obviously, externally, numbers numbers and to-date. assure ultimately, and will this a be of infringing feature. has of stop

excited. So we are

and very it First, who cleaning willful technology receiving the marketplace, clear already occurred. making infringement damages the that’s for then the owns up

overall guess good I right in was direction. step a quarter the this So guys,

satisfied the bottom not with are We line.

obviously, and help could our some as things very the a the never loss, going You very hopefully are good steps, trends that litigation way when swing very the good really but see quickly in also numbers well. will are have do pilots and swing our numbers you on we

So that, I Stan, you. back will turn to it with

Stanton Ross

Sounds of Yes, sort litigation to of side things. want bit a a good. to lot, I the add Tom. just Thanks in regards little

that going, we did idea of call are we we a at but are that announcements see have patent have really of company the where is, significance have the lot great in of we office. an I is where of are been and last the And recently, think that a you expectations Tom are seeing and our since success to in sort of we job our courtroom. maybe our announcements from the more seen wins announcements the made just and giving our the what starting

are their timelines. courts very And are so with been the fact have we is up They the stepping that enough saying enough. pleased

discovery I As be Axon September think got Tom XX. to said, by we have the completed, on

able sure will of your that January conference then your that You submitted. in duction issues on actually will be point actually to be there that face-to-face outstanding a talking and seriously no have a another have jury. which expert courtroom we XX a a that line depositions picking date the is and all witnesses from And pre-trial in additional we moving get and and is regards to and XX. about your the make be forward This scheduled, to will trial start a days have

So at we pretty we about light the are tunnel. the see excited fact the do of that end the

be that putting as we to where if If we we would as where that’s the clear left like Taser, we advantage that place. to have formerly to selected they with like much could and to the then back in a the the this would or jury known got patents a Axon judgment. an be it position have or need a they all well Tom get evidence as in their summary field feel real and because for to regards electronic a even where court would But will company playing we want said, that had being also file damages. possibly be weapons in all could we recognize We ourselves fact elect, the

slapped while so their those got hands move was tried this And they And under to and on. to had no patents, different. walk their

If play you that game, got it you are to going to from sides. both play

the though position, and even pretty clear trying seven a court ago challenged are in some really some we they in regards the two last the were accept we to pleased or us. language. announcements of patent So by won that odds I have times the during fact get win to these to a against guess companies been excited were the seven office we defenses with had our real times real puts wrinkle that We and in announcement in all regards two courtroom approximately to that

but only agreed the so not ruled that construction about so that’s as we to be ruling Axon, bound well, favor. ruling claims that by talking WatchGuard are in our affect And did what

continues sides the business. it about mean that to core mentioned both thrilled are starting as we improve. to I I So look are

been And then the law understand some candidate continues go therefore elect as are, enforcement they they were the and not were have who on and to pleased right had maybe so there some now rightful who are did we been that to have the we they contracts strongly. us, owners starting commercial are that be that may with awarded have We division path. the understand owners ideal and are see grow departments very that. to heading But down that we

Q&A for questions So we we can address up out you have any see will it there. if go ahead and open that and

Operator

from first Your comes Instructions] Faruk. [Operator Ishfaque Thanks. question

Ishfaque Faruk

morning. good Hi,

Stanton Ross

morning Good Ish.

Ishfaque Faruk

Axon contract prepared the VieVu Yes. a there what earlier bit termination this you the is termination, since remarks promise – In was the your mentioned behind about them little contract acquired year?

Stanton Ross

of Axon contracts sort the think those I the the larger is be acquired of of with through the walk question. best and that alongside they it But a tear wrinkling that at away of answered to one decided interested probably is some and documents. of sides Well, bit I in were our it’s and it’s looked mean just interest VieVu the in so and you there that both little throughout both one had things country. of things them. to willingness working we in there up

Ishfaque Faruk

Alright.

Okay.

In as like half so both looks of parties terms settling opposed trials the expenses of either trial the trials legal your it are the both year? in two the the headed supposed move to as – a headed in one advance, for lawsuits to are second the higher of are

Stanton Ross

out, be the try and are those half at sides of I to-date. have of want a today look from wear they the crucial both And it to discovery. probably to as look getting understanding and to good been the point same they days second of year. and time discovery both on discovery as you going got the the in of at that them power events they and out, less are will to to in Yes. probably doing all have we we have higher both get And us XX over stretch wouldn’t listening in some some than learn will been you thing to And call, That to little to the where They this at things occur. of would status that this pretty at may They ready table. sides of the far then from have the of unsuccessful next everything got be the table. hope to can

is up the the have IACP year of here which We the tradeshow biggest October. coming in

plays how we public perception, So in owners sure clearly knows we that technology. this industry it there rightful be would that because of the to see are be the interesting out making will

to And as XX will the approximately the the case mentioned discovery be days from things. Axon coming witnesses I be that in October. So up even expert need that on then least here at of side completed

to ruling to X you table, just down got as are out go So are am we to that very going But keep have hopefully the a same WatchGuard want going looking court��s that’s where I to and be Ally. you an becomes at the have about coming of utilizing to in try to side time, to forward on days XX other technologies. information knowledge to if Digital to we direction happy sitting can behind as our moving the the I I I I the talk want am going lot case our injunction of is favor and the so against them think before The if and at Axon. make much

set the and experiencing precedent to So their a already again, of rulings possible sorry very case. will down But timelines. in lot probably maybe Axon close regards case the is am has and has that seen – WatchGuard seen as Axon experiencing, I handed a is in

as as Axon to. to has able may they have fight ability not what strongly the been So

So here. to few interesting it’s months going be

Ishfaque Faruk

And reasonably Okay. proceeds to Jan this has been trial? to set conference for trial date XXXX, if expect you the it thing when go to pre-trial do the

Stanton Ross

been laid going I can that you enough. had on were, tight, what is you guidelines tight she the her this and magistrate All see that tell comments already has the as down said can long scheduling

about go a but we I strong you to summary are have to And asking feel stated move possible then in got a if they so very we too we be rather going that for straight I judgment. anticipate as remember, everything, will position it’s may quickly, enough to

far have office of the and courtroom so sort X And had so – position. the wins you rulings our in have courts in recognized the far the patent have

a don’t to know to that judge rules are So, is I and don’t – to would in there I a then be damages. jury willing favor our going and take is trial I you and out know sits that doing figure all chance

lot of the there at end happen So January. is a to going

Ishfaque Faruk

– and so premise a the raise Okay, in to like are it the Brickell financing? patent or is did, you additional behind that the question, is you it was that, my okay. Yes financing investing last what

Stanton Ross

sort Yes, of it a consolidation was of financing.

got We As working note there. a you needed know, we some out capital. have additional

finish them have do partner was the them this. as us. throughout first working that having to investment timing fund So, continuing some to of good due They and tranche that fund but for with an be be to also seem they would that good are diligence, would a someone be

Ishfaque Faruk

Alright. Thank you.

Stanton Ross

Thank you.

Operator

Your question from next comes of Lubitz. line the Bryan

Bryan Lubitz

guys. morning, Good

Stanton Ross

Good morning, Bryan.

Bryan Lubitz

and foremost, you Tom, my with are and just family. first your thoughts

Tom Heckman

Thanks, Bryan.

Bryan Lubitz

million. made last and piggyback $X.X trial. in used $X.X on for I BKI, of regards moving any the in type I proceeding the stepped Ish of possibly this am obviously, towards assuming No us million for tranche Is problem. work this to was with tranche what point second regards kind for? that to just legal in want fees, also first the etcetera to they financing is that will the of that

Stanton Ross

working shot the but company, and arm company with also will there, in ahead transition will get and me tranche, litigation. then the whole see only for and would we we capital, don’t capital to We the through in we consolidated note working on nice move not out all to sorts the a obviously, would wrong, able they take if it growth of utilize first second the be making additional and holders sit litigation, proceeds but get to in the including us the are would the to go like be that the the forward that assisting of regards

Bryan Lubitz

negotiating terms in Okay. out of I we of us kind gives versus of say cash obviously position negotiate weakness? not Taser do And strength if would of that

Stanton Ross

Correct.

Bryan Lubitz

XX settlement you with saw stay court mediation the case, to seen that November guys to it, correct? be mention I in the well, the haven’t talks, court held with Wanted but on as is I Okay.

Stanton Ross

opening it on that done days. a that days so expert that’s than is for XX less in mean obviously witnesses Bryan, have findings XX I that my both touched here have but the one days good following point, remarks, we then call from of their have in Yes. I sides will all things. And discovery the should the now. XX will presented

and sort we that because a felt don’t see think behind that made courts for sense date, they at get agreed table earlier enough courtroom it point that time resolve position could of sides bring at to some we this time. have the more had And it to each for prior but the the number. the if at least in point originally asking us we to why So around to in I and other’s schedule understood an well both are really substance not

asking should believe be why are saying the would for what that We they worth. may numbers and be it they

both to this they ahead expert with So available schedule witnesses, discovery they went that. parties and and information did

around time apart is I see we date at November are. again how and So XX that table we the point so and think the in will be

Bryan Lubitz

of [ph], of hurrah get kind So that ever the we if the that’s thing trial, before we this to to last date, X% see to less that’s bed cases pre-trial is? than these really what are put going

Stanton Ross

walking a they think office that to company you a attempted it’s I we the there sudden, into going know office tremendous may that Possible, mean real doesn’t closer is is courtroom get that that wait number small don’t they all been thinking will the go courtroom of every courtroom. there, X%, and taking. the I a risk and X%, because heck a anyway can infringing you it’s are the we X%, And have amount is think but doing. now on I you the you of and what to know patent a virtually say well, patent when have fashion have patent unsuccessful someone’s to were in are Especially till in

And understand is so that why so small. I I would now number –

And we game clearly greatly. – damaged been a of had we bit did explaining, been longer, little So mean as one of we look have a advanced great have they I department were officer may for superior There body turn Tom but again clearly its officers we have the And that able camera. technology, largest their job the feel play is having be camera thing activation. I another body to for stressing, without thing to one that own to technology a and have mean a not a it forgot to on. and

answer there by stuff down reason of For and all activating in that whatever and is thinking the that. comes woodworks goes what to sorts out regards he an of was not

And litigation talking we quite with. it that have don’t So wrong, people two the far are could we you mentioned get about, me so get exciting.

what’s for there got am to our are there Panasonic, in to You becoming aware of door. sure because industry they the LX, as also well some are I other names much very and realize money Motorola, this that substantial get putting are on, make in market going

people. keeping and So open we are talking to a our ears of lot

Bryan Lubitz

Okay.

things looking got cameras I first right So or in since cameras? I of will over and quarters have have foremost, begun, to million have at I you will you products billion amount and body far has two regards this so the reports and body $XXX of they three if left, them they that questions am case in two sold Taser’s $X it’s at – get to Axon sold

Stanton Ross

bookings. regards those it’s throughout them I have kind the of in numbers heard

So contract. they X-year mean have I will X-year a X-year, X-year, contracts,

booked that out thrown to they future in So is yes. regards have of the have kind were they those they revenue contracts anticipating, that which numbers,

Bryan Lubitz

themselves against the XX%? royalty Taser they also was case Stan Okay. won a have rate And that just now

Stanton Ross

Yes, it was.

Bryan Lubitz

Okay.

guys you can So to requesting? are judge booked you that this is least be precedent something know the Will else for damages, I $X.XX and that they put treble billion. XX% own is that their you that forth are going for guys have the going injunction, you at

Stanton Ross

so to if violated it. so. hell long. try you a against think our you and think for invalidate so And why think I didn’t patent, they have it I I argument you hard strongly mean, the

still clearly were knew care. and trying bully big the were violate didn’t they doing to opinion, you they what it, playground. If don’t clearly our big after be knew the So, just They business, the deal? They they they the in boys. are the buy they could – what’s in

Bryan Lubitz

thing And I get the this last will is at.

potential So I math When number exploration. that if know guys at it or have strategic or Roth booked you number? people to that XX% are you go is $XXX Capital ballpark guys I here. a are is a is having realistic for without you that told and damages? sure real you, that to simple $XXX conversations I the guys are whatever roughly that’s of right for the treble the is, future mean with fighting number Roth is looking or million you you million. the want in make hired I am just

Stanton Ross

we not aware talking damages. that you be are as kind of we is we And are the believe about is of the of only thing much yet. in damages are could numbers obviously we associated looking to that number potential tell any allowed what The So the board again with. such I as for very disclose could

entertain. on well someone solid us, be if or not a to the that informed so And came at should would or we a board whether deal deal was least it

Tom Heckman

standard I have large. Yes, our the Tom. for feature stupid doubt Brian, we them the those mean, dictated been won The own having if technology some not marketplace before, numbers would our I are about as I time. quite auto our quite against we mean, it. no to a but marketplace activation revenues, in compete has should were those that’s damages. I in big contracts. And this is And reality, think have called

have to at in us. So, and were Taser what they Axon they technology, they stole didn’t you backed I mean, and do? the They going the from corner. it are look so

that are damages. but numbers is large, the our quite So,

Bryan Lubitz

you to decide guys they I with of see go twice. just I this it I or And who favor Got not whether just to your are see last is I not ruling in a multibillion am go court, Again, my you obviously the thing, company knows they away. that dollar said I you know USPTO in thinking. don’t make thing. to trying sure pay to they it. it, against want logic. have guys logic guys what last don’t see don’t

gone margins have So, up.

potential down, at to up. XX. to touched of the with to be are Do of XX. that in I not being guys industry up, warning out terms bids we earlier, to and You the the on the in going margins they know take the know for want past numbers up? sort SG&A litigation the revenues one patent you Is attribute getting Tom have in we reasons you wins close the rest said is of are attribute of those word if us? on we that put I why

Stanton Ross

going improvements am seen the as on have are I We all levels. not there. to go making that far you as statement

a been done the of margins have think that of I cost efforts lot we the stuff have containments in that lines. our and because along those

injunction little all out long well? lead of aggressively traction listening this the are educated We starting getting could and they are will and the and departments different tell these and that some recognize feel recognize are on looking Again, our in stealing secondly, taxpayers’ to money products. and anyways, stuff Why technology. are are don’t this items. things And out. industry it’s closer you call that of people look decision, we to we know though some the make chiefs that hear an deal on word understand China with get especially us more, more as these an to we that that some from at so here watch wanting are that We about there. right is now I very industry these see a and aggressively stressing certain to home and So the with we

right in products like in said are Phoenix bids laws. see So be starting now copyright we not recently, there of do just patent that violate that backyard, a U.S. to the bullet some and put Axon’s submitting

all them will stance So, that taking appreciate take as well. departments hopefully and the right stance

Bryan Lubitz

the quarter guys with better luck with will Well soon. and see I look than you the settlement litigation and continuing talk to quarter glad and good much last

guys day. You great a have

Stanton Ross

you. Thank Alright.

Operator

[indiscernible]. the line question of comes next Steve Your from

Unidentified Analyst

Hello.

Stanton Ross

Hi, Steve.

Unidentified Analyst

that on morning How are thing. I Good going touch Phoenix you? to guys. was

got it? You is any kind of process yet of the evidence Axon of answered there because bidding that but it, shutout

Stanton Ross

aware Not that have Again, package I that am me. of of. I don’t front in

that know the decide So, care. leave or what They are sometime to – I that going I don’t again submit I realistic, whether ones I I therefore, getting challenged time been timelines could out departments could releases, out probably have stance. said, have that go throw let’s take the them the and stood these be patents are they departments offices smarter. still think forget and I it them. behind that patent to be know, company. may times with X were, and still they up each mean, crucial or like had there not for have another been indemnifying to the these they they press they agencies but just But see going the They read to don’t are And

our now And in a got even claims very favor have so courtroom ruled regards that in you strongly very, the to construction.

know fact they some and So back, those as decisions, if be writing our be What’s don’t heck? would they worst worst make a may evidence of – but no are – favor may they and be, are in them I to what that case the got the I more what getting yet. case? buying continuing the just the the should large indemnified, to they have got but They say of so mean,

Unidentified Analyst

the say couple last coming quick we months or should more say? solid vigorous I in anymore NDAs one one please. Is And will

Stanton Ross

repeat sorry, could am that? you I

Unidentified Analyst

the in I April company bunch more a people in, at March, come NDAs had of closely, anyone... you know looking

Stanton Ross

helping I and The anything Roth a – bringing has they trickle know know to more don’t so with know substance majority forth us few don’t things but board, know of that’s They and to is being by been talking to been But get continue we want belt. that them, they I to aware the right there our even obviously what have am couple NDAs. to that’s underneath up to that of handled from now. any us are letting of a number I I in

Unidentified Analyst

to in get could or more injunction happen just anytime you one into it great. And case? the or meet until the just more, of been please Okay, are an waiting at has filed

Stanton Ross

case. I the am attorney, I of got have to not till you wait meet again, Steve, think an the

I think I pop up before something to how could we there that discovery, really that until that’s January don’t maybe we unless is have works. think are in it something significant that wait to attempt but going like would date that’s

think until have January got in I wait to – we the end sometime.

Unidentified Analyst

thank Alright, you.

Stanton Ross

Thank you.

Operator

[ph]. next Your Goldberg from line Stuart question of the comes

Stuart Goldberg

Good gentlemen. morning,

question, quick confused a little VIEVU. I Just was on a

being with a VIEVU your that paid you agreement, So by for royalty were technology?

Stanton Ross

like of Nothing a were that. – no. more it just was distribution No, They agreement. actually

license would work lines to regards agreed assisting we them but So, anything device their that with with auto to product or or a in activation, them no sell along royalty. those

Stuart Goldberg

Okay.

is And they using and that so are it are field means there has Axon the they they and product – that that and – that in now are any... obviously

Stanton Ross

No.

Tom Heckman

they No, the product which termination, the think agreed Stuart, of of was XX agreement, recall. marketing to and date I our I selling using as July stop the as

termination. the of and provisions survive So they part stopped that. confidentiality are have The

longer are So they products, we no literature, theirs to are But our that access Taser/Axon/VIEVU to proprietary sell to everything our cut going has reality, well. product. in all as we VuLink and off. returning return

Stuart Goldberg

But your in does deployed was that – that contracts of product VIEVU had? the but any

Stanton Ross

he that an one really And on that upon can don’t cover day. it, wired thing See, but a we know Axon was WatchGuard, was Ally on Axon could in look one or you hack companies. equipment I was the VIEVU printed termination five he their I the gentleman Digital able video. only at manipulate may other and of that, looked that and X, different he to at the have companies even not. X other magazine they think had at and that even into three the and that the Ally he commented but looked And article agreement Digital based didn’t seen but just

they we therefore to deploy. that so their know to to just been product know And tried at on not – improvements I look don’t or they and what if continuing had deploy

Stuart Goldberg

Okay, Thank great. you.

Stanton Ross

had some it’s everyone paying thank today. dividends. to your and Listen, tough, had but real to patience as looks it time appreciate to it. our fight, in Thank want we their a getting have tough the close nice like interest Really with real appreciate Really for you, Stuart. you road us I company

the growth awards also only in as improvements we be well. to of would sectors And excited through most not additional we but any significant is are next down few We about forward are office looking very our you from have that continued the abreast if we there, keep months. the patent and and there courtrooms will that coming the we landing orders

all much you thank time. So, your so for

Operator

conference. This concludes today’s

disconnect. now may You

Digital Ally (DGLY) 21 Aug 182018 Q2 Earnings call transcript