DGLY - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Others

Bryan Lubitz – Registered Representative, Aegis Capital

Operator

Good morning, and thank you for standing by. At this time, I’d like to welcome everyone to the Digital Ally 2018 Third Quarter Results Conference Call. [Operator Instructions] 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 or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. risks basically-based can our assumptions which be subject various are of or and are statements unknown to events, and future affected business beyond forward-looking our largely number expectations on forecast are uncertainties, control. These a known of and by inaccurate statements forward-looking cautioned actual place not Therefore, forward-looking undue could statements. document this reliance materially differ in results such to and the on from contained readers are statements forward-looking as Digital or update undertake or of Ally information, a no publicly new any will result to otherwise. obligation revise whether future events A wide impact contribute and needs. variety revenues, of such adversely or factors capital could could and to cause profitability, flows cash differences be statements There in transpire will this accurate. can document to fact no be that forward-looking contained in prove assurance or

the to and over like Now Stan begin. turn I’d Sir, Chairman. to CEO may you Ross, call

Stan Ross

come recap Then Thanks, me With do going do? us place Tom Holly, is What we’ve during and had transactions Tom take on that and it Heckman, little our the joining have everybody to I we’re session. will back – thanks for we patent regards against status to company’s litigation ahead back quarter. CFO. the infringement some current and of address case to against of today. going the quarterly numbers a for Q&A a the we’ll of And go our Axon. the in up open a

So moving. Tom let’s this keep thing

Tom Heckman

joining you our I everyone. file EDGAR you to this We the welcome us website, to XX-Q I SEC website. and Stan, Form appreciate you, Thank morning. the do today. Okay. want refer did

numbers that, company dive and operational trends a on have would deeper to and remarks XX-Q and of my developments it’s the I’ll significant in itself. myself the what’s here. much a the limit to going the guys at in look with into you hopefully, some So chance

of the strategic say on like and se, numbers some really developments per the show very that the very, was during the certainly but first from I important a I a guess, what of XXXX. happened things. all, standpoint are is quarter very basis So into to that Couple didn’t of in go-forward and quarter third up that important

the First all of debt during all, we our quarter. interest-bearing repay did

that You or the on what we’ve I in and require derivative last so short-term remember is debt features on several year basis, so probably a two that that done financings call primarily somewhat and toxic accounting guys forth. have and

we sheet that get one noncash the So normal P&L, get based level and all big the a have in quarter-to-quarter the events. fluctuations don’t balance and where on derivatives – to was of our off from of primarily primarily more priorities to this to P&L, in and paid the funding and

interest-bearing paid that, a and we below-the-line at QX we off. of debt get had the we off So alone, $X.XX did standpoint all have paid below from this It line, related effect charges to million. an our that did in debt

ended million. the So significant very to And months below-the-line to had amounting QX charges year-to-date, XX, nine September XXXX, the $X.X then we quarter.

really we it were into see that to that can our off quarter, able getting the you importance books, and funding. So debt and help the with do toxic P&L should of during the XXXX us

new the proceeds no used the are about has outstanding, an structured the from Axon until been reasons ongoing that’s investment off there litigation, time. payments WatchGuard is we debt litigation the of that "proceeds" for obligation, the some It was which both but it funding. to is is – of million and pay funding that’s $XX the One the to BKI amounted obligation,

release no type company. So BKI, to proceeds do settlement there that of award cash but have really is nothing, repay jury happens the brings nothing into we time, cash until a there at is some And flow-wise then that or really necessarily they get obligations quarter-to-quarter, do payments before how not repayments, is year-to-year this get it a their the all, so and on return from date long specified structured a based debt. proceeds maturity They structured out. at

So there not it’s has the it and it’s down an be to – road. structured is repaid, obligation, but it

of a were $X.X used which the working our And the completed million position. quarter, end and the you notice was we million. cash Towards underwritten the also offering, might at end that cash capital bolster public quarter, to balances of $X.X

that at to balance the the it’s sitting have So of our sheet quarter. end liquidity nice of on kind

satisfy at offering, the net public least we in NASDAQ in disclosed As of us equity. that to a that million result to $X.X have letter deficiency the were that, earlier underwritten able year, we required

looking As tell we’re million. balance now sheet, the at from can you at $X.X

that achieved keeping a we’re go-forward to on basis. that minimum, under that we be hopefully control going monitoring and So and

During make progress significant in the to all continue litigation. quarter, across-the-board we

very mediation Markman of discovery in at on If significant July are XXXX, Federal October you the submitting issued the look the and X. that later and that’s points rapidly. very that to was were court. across-the-board Ally January basically a judge Court, the event they to and court closed now, Axon, the to order three District that’s on in November, as Digital happens approaching disputed is In three experts pretrial The requires the board the District they continue already lose in so order – well all XXXX. Court. issue that their the evidence scheduling with at all patent at a points. mandated Federal XX, There hopefully, able you as right Fact a same testimony court time, see There were cited conference action. Basically, on you

been It into was on by all the defense face. Federal quite will Court refused moving Federal the insert or District the note invalidity I Axon that also to to are its board by the looked allow ditch a certain effort Axon and new their trial. And minute, defeated last patent a in things also have So basically District recently, rapidly last other defenses because at Court. dismissed

defense denied in were Court trying to and invalidity they judge Federal So a that. new District put the

in by in board what have And at been their has in Axon been rulings. they our or frankly, patent quite already it’s least the their view, – defense. basically So it’s handled

marching like to end are it Axon good. if this towards always has a it guess, don’t a is you So patent conference is say January towards things moving have defendant, now, just to what towards trial the that in XXXX, win, pretrial to been is to. trial, you’re as WatchGuard But don’t time. with That’s trial. well. right of what quickly move the let the trying dated which certain matter, at I you I in case, continues In thing been

District happened the as Axon similar case. of as Federal the many board well you WatchGuard that Court As case on might the recall, rulings patent have on the effect

XXXX December of for the In fact, fact in now is scheduled WatchGuard and on conference the X, pretrial the closes April XXXX. discovery XXth of

So in Axon, the pretrial WatchGuard and is April. conference is in January

is with will put XXXX. be any interesting cases and One goal, status already the that What happening the and community product that’s quickly WatchGuard. the comment both And RFPs, In of the course for goals in say very law we’re suits main that in we sales seems awarded offered products that and Overall, number injunction that’s trial. jury Axon patent of recent note RFPs, is in one, patent happen. the RFPs, of of our will product, XXXX products see and developments that we’ve infringing several patent patent also pleased that the the that hold on reward these damages market. fact, outcome are us of the are And taking of lawsuits I’ll the hopefully being enforcement towards to cases. sale litigation. RFPs delayed again, of infringement our infringing new the moving been seen or more of against stop disclosure is, cases, sold we’re until on the requirements that of been forward by moving for both So in in for these lawsuits the stop have

price It’s with our had compete due really to had primarily clearly, to third law free, and we’ve an VuLink. product, and to case the community to our going, of which So ends inventions the where against patent nicely challenged, standpoint, the is be also it in hard we’ve own enforcement competition. to us. quarter And sees for the XXXX, do. operational hopefully, own this From revenues continue compete the against value our

So We quarter. hurt did revenues. our the into that carry has fourth about $XXX,XXX backlog

by we have than a expenses total to a to on be the year. A recall, to do the quarter expense exclude shipped compensation, regard, would noncash charges by in unfortunately quarter-over-quarter just the undertook year. less that we early actions they if of we and in until also had towards law that, suit. caused So but allow end delay last SG&A had that And move get patent. were clarification didn’t know you SG& – enforcement then year the increase the in SG&A the From than a this decrease including million prior the the the then were year and three large delays In million revenues, side, $X.X the that, date, prior $X.X you we as we year-to- us amounts. backlog and customers There less patent up appears clearing

trial, standpoint, well area because cost So and patent goal our working, that we rulings be of clarification to customers primarily XXXX. SG&A reductions where way $X to moving year-over-year XXXX, law obviously, improvements the patent. of on million XXXX and there’d in in everybody and towards our overall in we’re of an strategy our the is terms meeting of stands of to see From the

that some little that excited moves bit of lateral to continue the and channels markets. to improving, some are have of out ongoing we into we’re and revenues commercial but a new pilots of take the about have there we new new territory Our time move into very develop,

operations damages. the we’ve litigation and position. trial overall, and really up funding our cleaned that, through sheet liquidity balance our hopefully, sustain awarded And and we our So can with patent

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

Stan Ross

what at they reasons want issued would end and industry the if timing- I Yes. completed that address on. the look required look had some much court – Thanks just have the actually us auto-activation because art January. to some and September, our little said, the And patent bit patents is got our affect patent attempts in you of seeing that’s wait fact in additional see the fact we they couple an the believe And at you introduce that things like that that several to Tom. what our that do of the looking of One, a concerning a and going concerning have at litigation issued. of we’re should everything we invalidity by new in has happens of departments what wise, a reiterate to bit lot, little Tom family

to try office, even again, new we continues So to to issued produce situation a they here to the that as present our patent activation. clearly art surrounding is auto technology patents that continue again have

mean, our if on. the their they’ve they’ve state choose. be doing that the But lurk. that to have the to So regards the sell judge evidence is a January, the that have Axon’s a week products customers the It’s at would this at February, not the if which we through summary continue if scheduled the file to say, touching January, judgment, would we our that can we XX, in date. let’s end patent in they to was of our And feel got summary and – position, of and the are they pretrial, service in will put to the Tom just set actual just be products are the have for In continues first that clearly of technology, sort I up XX, contracts the strongly which trial is we’ll that pile point violating we been judgment favor for technology, so January to end anticipating mediation which we that an actually of will real a just got is to and that lot the we injunction. will they time, have the at fact able if what process upgrade in went obviously patents. of

how don’t they were big there in we’ve I there much and are and putting point some they also wrong, with business case, in numbers therefore, themselves, are is good big those excited other on I time a out about a and what everyone out so damages, numbers, I’m which their were They royalty. in customers calls all out been patent know numbers. XX% but lot backfire infringement see and situation And a has again, the them, that could I numbers stressed happens. successful there So that time, really, to me e-mails of Axon litigation point a this there mean, not only day, again, their that is all delay just really unique on the and they’ve coming out the with again. they got fact booked. get

You they’re look – they’re very very, and just the damages, at large.

sales number. what in in you use, I be is industry. But If you number care Ally. it and Digital whole, a large be you their versus, it as – who auto-activation look the does will is owners woken of at if really industry very The it regards it’s a key what rightful to the up don’t regards would to will

our rule challenged, eight approximately out been may art surrounding has courtroom been a remaining again, when submit in there issued, of to little the attempt, riding patents at. prior and the continue as on additional So a you as is in just technology, lot looked And there you September, that’s riding patent is you a they it the invalidity bit to to is art, being lot it. again, this. when that office But challenged We minimal. with on our have been times recently favor, know on of to on try even court the

very were we about So XXXX. optimistic

request, a violates, – that starting but I know. is homework And make would who your inviolatment to what technology. better out law alleged alleged you’ve is tell dollar sure mean, to one decisions inviolating even not thankful you if to done you been are been it product be know be even the I very not lot you, not, We’re has whether is enforcement multimillion want it to making of or it your because there, they that owns and

us. time So sort of exciting for

position, of right then we With more being file a if and to in becoming there actually, summary a devastating and can choose aware, February as quicker the to judgment, first that much for week than so voice far as anticipates everyone us I’m industry lot – potentially, everyone the is, says, But be and will so waiting well, for will know words know a rightful the their it, and their appeal who heard. let I owners trial. they And forth. they will. they’ll industry sure be

think I go So we’ll Q&A. open and this up for Holly, ahead a

Operator

Capital. the line Instructions] [Operator of come first to question right. Bryan All Lubitz, Our Aegis is going from

Bryan Lubitz

Good morning, gentlemen.

Stan Ross

Good morning, Bryan.

Bryan Lubitz

want numbers, into quarter discussing. make touch on get to the first, I’m the to litigation, in are on, of want I the clear sure just terms what and I guys then to you

be First and foremost, significantly, XX% the storage revenue and the warranty XX% business seems up to year-over-year. and

the mix. last to future quarter, XX% roughly that a the compared you XX% jumped at As from because it it’s going year? almost number in do it’s was where Where revenue anticipate guys

Tom Heckman

the of quite about multiples talk there of very in Bryan, but going in very on on the even to And could recurring that with Yes. we this have and current towards out not about commercial side of that Tom. pleased or movement is side. hate stream law piece project revenue significant we’re revenue over mention the the have business, that some frankly, XXXX, Yes, very we’re to projects have some we we revenue. excited I pilots recurring make where enforcement honestly, the is thing the

goes that is high I be pleased a where in and So of focus that everybody’s is number And think it management. with quarter of a and the to going point year-to-date, XXXX.

Bryan Lubitz

the it’s part? that So a on guys revenue very margins the the being business. What margins, part gross with on the you said, number storage of high is that gross warranty

Tom Heckman

handle around what and the we a are. runs very warranty warranties extended frankly, the a warranty XX% we sell quite and have XX%, on – XX%, very our costs number predictable is Well, to the good because that’s margin

but are our quite in healthy area. – that margins So

Bryan Lubitz

Okay.

sticking a for the now? Typically, So whole the XX margins, guys for range. figures, the XX%. running, obviously, the with decreased, the been had expenses the – years, of gross couple last XXs guys in amount seven you margins you lot of XX% cost-cutting, up upper SG&A in Are we’ve went

Tom Heckman

the at margin you about talking level Are XX%? gross

Bryan Lubitz

Yes.

Tom Heckman

costs to that that’s for the I all quarter that’s as as XX% that in recall. of Yes, and good again, beat goal one after is a and been stuff, high warranty us. long-term kind to our past. yes, reserves We’ve level, XX% as the goal is get XX%, in We’ve XX% but

So a hoping number, I’m XX% frankly, goal quite is and to us, it’s that a good net in XXXX. for beat

Bryan Lubitz

so yes, margins Well, you What went in gross this margins were up guys that gross your the quarter? this say quarter XX%.

Tom Heckman

frankly, go-forward XX% on hit or But at for that after stuff. sales, product a XX% look to on we have quite all I’d deductions, about the basis. so. least But should that. reserves, It’s and new warranty that’s all

Bryan Lubitz

Okay.

So a going your costs margins now you and of are you’ve up. cut guys – lot

revenue identical year. attributed of where of shares million. to EPS about mean, ballpark loss Your the fact last in additional year? mostly you to I that million is talking the the the a to almost last were Is you’re $X X.X compared

Tom Heckman

have charges below-the-line heck really bottom and year-to-date quarterly with the figures. Well, line our played

it’s some earlier call. coupled more charges of that dilutive warrants cleaned up, to with noncash of had, been toxic – the said the yes, I and outstanding a that as of the the combination we’ve debt related shares and amount have in that stuff nonrecurring below-the-line So issuances with

Bryan Lubitz

one the the What last current amounts on amount. and the outstanding the float for And share stock? is and earnings

Tom Heckman

I Well, public And XX outstanding. offering, exact million we’re right second. very number. give or outstanding. underwritten you in a recent exact can that’s at so after shares the XX,XXX,XXX is hang a that’s number, the shares the on

Bryan Lubitz

in the now float? And

Tom Heckman

know I exact XX% number. Yes, of that there probably is float. the the in don’t

million in or float. So X probably the there’s so

Bryan Lubitz

right. right, All all

now litigation. the switching to gears just So

guys And rate, and royalty conference they’ve take their big. attach then $X to and number if calls $XXX as what regards on earlier, the and said other number, damages, and one talked Stan, at couple potential foremost, we’ve of $XXX look that last in sold pretty First you you you over million about upwards million. especially if $X.XX that and is had even again, is,

You like at not these have WatchGuard disclosing their any or clue why companies calls discussing quarterly it this with – all all? they’re even or Taser at or conference

Stan Ross

some I don’t. – event charge surprising disclosing I to a a potential clearly it’s I somewhat if a out the your to based upon the we a of mean, shareholders. need anything the that claim. of a know stand they’ve have are along you getting, material that be there to And that damage way, because material based numbers very, very large royalties or to and material had little – that’s upon success that me

And I so didn’t, know. do not why they

I just think very they’ll we they’re own be this unsuccessful shareholders. with it is in the happy. as have as that believe sure, if and number they address to be, won’t could large their I’m

Bryan Lubitz

Okay.

Now said, number cases, actually X% less these go is that in this that the I believe, court. than being to

correct? XXth, guys You the on end of month, mediation a are the in the at

Stan Ross

Well, month. it’s this

couple weeks. So of

Bryan Lubitz

This month.

Stan Ross

Yes.

Bryan Lubitz

Okay.

have Or minimum to months willing prior terms So any we at this nine this being something another in you other trial? caught the of mediation, sense to that in to whether at courts? this six side of the should take the to got least are expect they up

Stan Ross

got We at tell will haven’t you, I other we bit, each put it that quite But let’s way. a that all. part dislike

they even we consider. it’s we would to of the some have launched And that do against be forgiving, I tactics believe proposal what that going say, us, very to that have

far. have day, last the even date. words got even to hat as In they still that can now, that to issued. had patent regards have the you success So they’re other come been we very haven’t to up And right shouldn’t haven’t their the I try say that trying hang to – in something can to invalidity. they on on any the haven’t now mean, but tell,

see the So think, here let’s I happens XXth. in, it’s what

to and that’s to too of getting So that office, played interesting happen. the because we’re they do that the a games XXth, us trial. then because to when continued really recognizes will we so patent their takes would fast on all believe judge judge close the going in very long has probably that And pace it of and continue pretty be the

So we’re pleased on pretty this.

Bryan Lubitz

open the Am good of table assuming being and the in negotiations to – That I said, come to that? they guys Okay. if Stan, are this month. right you faith end in

Stan Ross

Yes.

for fiduciary you look – we’re have be. I all the what’s the We to to shareholders. are and at the best there responsibilities trying company to mean, and

proposal the don’t for it, how along, to therefore, this get our will with But advised do a come come We something an I even never all. something, all to going board, going I position absolutely. expert know the be And they attorneys, out. that a it’ll we’re we’ll mean, be us that at so that open So so to we’re in Rick and if a like a plays they have to by situation mind. by a It’s with be I witnesses. our meetings. fair close our go clearly isn’t come be able and don’t if maybe not mind that’s to resolution. look, consider and puts shareholders, that with into great that going don’t

Bryan Lubitz

figures, and looking And lastly, anything there, out right line? just the bottom just touching put they’ve am on sold over even those And I’m already $XX assuming I But million in at there. at expecting $X of worth you million product? you’re $XXX on that $X.XX guys to not Okay.

Stan Ross

numbers and been sold about, $XXX booked. their talking I in at they’ve look but you they million, if have regards they’ve the that things know Bryan, So to that don’t

years And five-year for whatever, four they’re so a they’ve what the that books. it’s talking about on is or contract from there compensation next get got the we’re to going

are means therefore, we even believe probably by excess was they contracts technology. that number. so of wrong by And therefore, our in got utilizing that what And those the

at. looking – So a they just they that reoccurring got they’re because revenue mentioned million $XXX now already

the to that. hardware valuations costs, in probably case, come that into the reoccurring bigger number regards it’s litigation patent So a than let things alone revenue, even

Bryan Lubitz

going damages? lastly, So a trouble won I’m of very royalty this against PhaZZer. conservative and XX%. now They XX% without is saying

in the rate awarded of that be a – something a that that royalty something if they’ve baseline off a won negotiated? in judge? down forward, a Or or wind your you is you moving of Thereafter, up would Is by have found what would handed set past is guys something cases? that that’s favor deal that’s

Stan Ross

I going damages and there coming forward. pretty would judge, he the and Well, think say the royalty a believe from would I sit be down much too

again, So that. look can we at

Here technology well. to being some to the have that this That of this requested not, accept is fact real whatever industry. like, the we’ll us come believe stress that, of nice. the well, is of they’re to the to Axon got of by like And to successful Matter is thing hurt Bryan. And as be fact, or hearing. I a even Markman’s going there WatchGuard’s for them lot it pulling Axon/Taser ruling if because the at gets, you again, look it defense, it’s right on beat where early people,

thing is department if to is, one so far body for not in technology, very, again. in a very that the and play you for out some It’s that bought from I’ve time body got very favorably to time longer they years now this of and the turn anyways, it angry an there incident. as did face – department. front actually jury on crowd, as this they to capital the product that, another get reason, and said a a it thing for some again, that camera And in stem this the it’s lawsuits buy was a come. a not industry I So a will to have mean, camera,

clearly a is nowadays. requirement anyways auto-activation almost that a feature So is

Tom Heckman

future the think they patent. position call seeing a add trying the themselves and a them as Taser a aggressor, this Axon, would said back that And to and will always now, I couple I I Tom. And plaintiff, the really does aware the is never patent body case We’ve and the I as the guess, looked shock dictate weapon just of their this thing, this believe suit. outcome kind litigation of firmly well. of I for I’ve ever They’ve don’t defendant second Bryan, Stan or competitive been landscape protect been of. recall in that what in thing. always has I’m that cameras. And

So this their shoe they’re they’re a and new with apparently, not them as for feeling that is well. comfortable way

to to I’d say, mean should and business, patents to and day, guess, they I their costly are enforced. build patents that. the what like something, Taser at continue use So of that be end use conducted weapon the

four, companies out you weapon cases, they’ve If won put patents. three their that of on infringed conducted look, or business patent five

same. We expect the

We have patent has our it patent, of we The in repeatedly. Taser’s hopefully, the board protect hurts rolled a conducted business. valid much their hurt want to patent. competitors the as At weapon on it competitors the end as day, the and

Bryan Lubitz

guys. you Thank Well.

been it. to future You’ve appreciate in clear and well. date January the I the meetings court Good and luck you with as

Tom Heckman

Bryan. Thanks,

Operator

WestPark next from Faruk from the Our Ishfaque line question come will of Capital.

Ishfaque Faruk

isn’t DGLY’s growing similar side, guys. crazy. like I’m Taser’s why morning with revenue question quick Good it’s A on a least? me from regards recurring software revenue like level to Taser. revenues at on growing the

Stan Ross

question. Evidence.com their a that’s their recurring Well, revenues. great and back Ish, have growing office that’s They what’s

where Evidence.com. year offered or they they’re remember, X.X and last so the hardware currently Now away one free half a years subscription over in of – trial give

things, of things, do can of of and lot free do very lot Stan our So salesmen can things, competing lot I a is do zero against difficult. a a can but

it’s again, you move they their So office. and to in once do once terms got and them line business – a and product, very, once move something back the and sticky, be of very attractive to the got – very not have you’ve very, it’s on they using

start you guess, business And got fighting, once primarily they with them, charging got they’re where they their giving of product the two. subscription because year hardware free then away, have kind in Ish. that’s They’ve So you away, And then them. and their we’re Evidence.com. did extra, one-year I give

where against. up we’re of kind that’s So

Ishfaque Faruk

do one-year Okay. model And that going hardware, it? adopt at this – think because that Or of free – will software is you DGLY? do the the do is to you do a guys when free hardware how you is the you

Stan Ross

we, – obviously, like as put the what XX next stated to We, depend earlier, we days well-capitalized programs some obviously, I we do. are decide now. may on together could We lots if – going that. a And on may very

in we really summary feel to for injunction go a and February an also week like We a arms position for of flat and look be judgment first get may this. just around

the over releases So press days. have at there’s on where next such next the out a lot we to glad more address and be the are we be be the clearly to that after good probably get with few next a as best will made really are – going in XXXX. to through play We’ll to call indication That days. that going over XX decisions a you XX through

Ishfaque Faruk

And Okay. And to software the question. Axon is revenues of my litigation this going part against not? or be last

Stan Ross

they that giving Yes. damages away like they and they’re that so look packages. I way is it, they’re The at – are do, car. a patent selling the you’d what fact – packages it’s way it’s or Ish, do mean looked the at

the If a drive and car because let’s all-wheel bought you you loved, capabilities, bought say, you let’s it patented. is, which say,

a that’s sale. $X,XXX $X,XXX And was says, someone comes sale. it’s car No, feature, It was only it a a car feature. not a and well, $XX,XXX

the So picture package. at in bigger the they look regards to

lump-sum provided, it software, and a, evaluation. they’ll all let’s if million their when these look hardware, had that say, number everything, they’re contract a at doing got So services they $X

large very be in something be So looking damages. I witnesses at and is their to the that probably percentage are very, utilized say it a will would of expert going that

Ishfaque Faruk

Thank All right. you guys.

Tom Heckman

Ish. Thanks,

Operator

line Patrick of Private question Attorn next [ph] from Our comes Instructions] Investor. the [Operator

Unidentified Analyst

out guys to Axon some morning. of played taking Have guys you putting of from How type it litigation avoid poison or pill kind you other paying prevent in company to even over the results? you or WatchGuard Good doing.

Tom Heckman

check in XX% pass. meeting we get shares annual to I’ll put in feature, kind for way, and all that to XX% did quorum to able those not voted, pass. that reach have have issue we but quorum meeting, you be a for used just blank Tom, that weren’t by voted, outstanding, We year, poison to level the at stock In of the get of pill, majority actually – thing and it is got the of a the of preferred which back not to could was This overwhelming that tried an those that. Yes. address this annual it

have sure that in don’t wish arsenal. we have our We we that. So

we can other of benefit We there. out we have preferred a but check regard, don’t some blank a issues use in this that have

Unidentified Analyst

very Appreciate Okay. Thank you it. much.

Tom Heckman

you. Thank

Operator

conference And the currently, back Tom I’ll over Ross Heckman comments. to we queue. Stan for have questions closing no the turn in and further call

Stan Ross

Thanks, taking listen everybody your to time-out call. today for to our

see, of closer you to lot some can side, As to in things but regards are a getting a not clear resolutions the litigation getting and only the some on are also to significant in numbers. very a be regards us, made that we we our the going And improvements very exciting to company. hopeful and just everybody’s is XXXX appreciate interest for in year we’re lot

as the So for we’ll if anything help your thanks free there’s we to try to Holly, address a feel give at do, call company, well questions here today. us can your then.

Operator

And You’re again, in once call. very welcome. conference today’s thank we’d everyone Ally dialing to for like Digital for

may You disconnect. now

Digital Ally (DGLY) 14 Nov 182018 Q3 Earnings call transcript