SCOTTSDALE, Ariz., Oct. 25, 2006 (PRIMEZONE) -- TASER International, Inc. (Nasdaq:TASR) a market leader in advanced electronic control devices reported today that revenues for the third quarter of 2006 were $18.3 million, a 57% increase over the same quarter of the prior year and the third highest quarterly revenues in the Company's history. Income from operations for the third quarter was $3.7 million, a 471% increase compared with $654,000 in the prior year period. Net income and basic and diluted earnings per share for the third quarter were $2.4 million and $0.04 per share. Business also continued to improve sequentially as revenues in the third quarter of 2006 increased by $2.1 million over the second quarter of 2006 and operating margin improved to 20.4% of revenue as the Company continues to improve its operating leverage. The Company generated $3.4 million of cash from operations in the third quarter of 2006 which increased the total cash, cash equivalents and investments balance to $50.5 million. The Company also repurchased 300,000 shares of its common stock at a cost of $2.2 million in the third quarter.
Significant events in the third quarter of 2006 include:
1. The Company received an order for and shipped 1,000 TASER(r) X26s
and 1,000 TASER CAM(tm) systems to France. The advancement of the
TASER program in France follows a lengthy trial and evaluation
process and represents the first shipment authorized under a tender
awarded to the Company's distributor which authorizes the French
Government to purchase up to 5,000 TASER systems.
2. The Company received and shipped significant orders from San
Bernardino County (CA) Sherriff's Office, Broward County (FL)
Sherriff's Office, the Nevada Department of Public Safety and the
Miami-Dade Police Department. These supplemental orders
demonstrate the continuing trend of agencies within the Company's
existing customer base expanding the use of TASER devices to their
first responders.
3. A further product liability suit was dismissed representing a total
of twenty-three wrongful death or injury lawsuits that have been
dismissed, or judgment entered in favor of the Company. The
Company also substantively won two additional business related
lawsuits, and reached a settlement of the shareholder class action
and derivative lawsuits.
4. The Company formed a Senior Executive Advisory Board to advise the
Company as it begins initiatives into the military and federal
government/homeland security markets to expand beyond its current
domestic revenue base in municipal, county and state law
enforcement agencies.
"The third quarter tends to be our slowest quarter of the year and we are pleased to be able to report such solid results," commented Rick Smith, CEO of TASER International, Inc. "With the strong growth in both new and existing TASER system deployments during the quarter we have continued the momentum established in the first half of the year and look forward to the results of our initiatives into the federal, military and foreign markets both in the fourth quarter and into 2007."
The Company will be hosting its third quarter 2006 earnings conference call on October 25, 2006 at 10 a.m. E.D.T. The conference call is available via web cast and can be accessed on the "Investor Relations" page at www.TASER.com. To access the teleconference, please dial: 866-713-8563 or 617-597-5311 for international callers. The pass code is 85590367 for both numbers.
About TASER International, Inc.
TASER International, Inc. provides advanced non-lethal devices for use in the law enforcement, military, private security and personal defense markets. TASER devices use proprietary technology to safely incapacitate dangerous, combative, or high-risk subjects who pose a risk to law enforcement officers, innocent citizens or themselves. TASER technology saves lives every day, and the use of TASER devices dramatically reduces injury rates for police officers, and suspects.
The TASER International logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2931
Note to Investors
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding our expectations, beliefs, intentions or strategies regarding the future. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. The forward-looking information is based upon current information and expectations regarding TASER International, Inc. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecasted in such forward-looking statements.
TASER International, Inc. assumes no obligation to update the information contained in this press release. These statements are qualified by important factors that could cause our actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) market acceptance of our products; (2) our ability to establish and expand direct and indirect distribution channels; (3) our ability to attract and retain the endorsement of key opinion-leaders in the law enforcement community; (4) the level of product technology and price competition for our products; (5) the degree and rate of growth of the markets in which we compete and the accompanying demand for our products; (6) risks associated with rapid technological change and new product introductions; (7) competition; (8) litigation including lawsuits resulting from alleged product related injuries and death; (9) media publicity concerning allegations of deaths and injuries occurring after use of the TASER device and the negative effect this publicity could have on our sales; (10) TASER device tests and reports; (11) product quality; (12) implementation of manufacturing automation; (13) potential fluctuations in our quarterly operating results; (14) financial and budgetary constraints of prospects and customers; (15) order delays; (16) dependence upon sole and limited source suppliers; (17) negative reports concerning TASER device uses; (18) fluctuations in component pricing; (19) government regulations and inquiries; (20) dependence upon key employees and our ability to retain employees; (21) execution and implementation risks of new technology; (22) ramping manufacturing production to meet demand; (23) medical and safety studies and (24) other factors detailed in our filings with the Securities and Exchange Commission, including, without limitation, those factors detailed in the Company's Annual Report on Form 10-K and its Form 10-Qs.
The statements made herein are independent statements of TASER International, Inc. The inclusion of any third parties does not represent an endorsement of any TASER International products or services by any such third parties.
For further information contact Marcy Rigoni, Manager of Investor Relations at Marcy@TASER.com or call 800-978-2737 ext. 2011, or Dan Behrendt, Chief Financial Officer of TASER International, Inc., 480-905-2002. Visit the company's web-site at www.TASER.com for facts and video.
TASER International, Inc.
Statements of Income
(Unaudited)
For the Three Months Ended
--------------------------
Sept. 30, 2006 Sept. 30, 2005
-------------- --------------
Net Sales $18,311,543 $11,675,611
----------- -----------
Cost of Products Sold:
Direct manufacturing expense 5,099,381 2,932,791
Indirect manufacturing expense
(including stock-based
compensation expense of $33,419
and $0, respectively) 1,580,182 1,002,919
----------- -----------
Total Cost of Products Sold 6,679,563 3,935,710
----------- -----------
Gross Margin 11,631,980 7,739,901
Sales, general and administrative
expenses (including stock-based
compensation expense of $194,885
and $0, respectively) 7,125,408 6,724,899
Research and development expenses
(including stock-based
compensation expense of $46,388
and $0, respectively) 772,976 360,689
----------- -----------
Income from Operations 3,733,596 654,313
Interest income 483,371 306,761
Interest expense (1,760) --
Other income (expense), net -- --
----------- -----------
Income (loss) before income taxes 4,215,207 961,074
Provision (credit) for income taxes 1,819,309 586,194
----------- -----------
Net Income (loss) $ 2,395,898 $ 374,880
=========== ===========
Income per common and common
equivalent shares
Basic $ 0.04 $ 0.01
Diluted $ 0.04 $ 0.01
Weighted average number of
common and common equivalent
shares outstanding
Basic 62,031,850 61,385,863
Diluted 64,717,904 63,694,740
TASER International, Inc.
Statements of Income
(Unaudited)
For the Nine Months Ended
-------------------------
Sept. 30, 2006 Sept. 30, 2005
-------------- --------------
Net Sales $48,430,303 $35,086,431
----------- -----------
Cost of Products Sold:
Direct manufacturing expense 12,858,166 9,568,667
Indirect manufacturing expense
(including stock-based
compensation expense of $83,965
and $0, respectively) 4,594,840 4,021,200
----------- -----------
Total Cost of Products Sold 17,453,006 13,589,867
----------- -----------
Gross Margin 30,977,297 21,496,564
Sales, general and administrative
expenses (including stock-based
compensation expense of $707,265
and $0, respectively) 21,982,755 19,242,541
Research and development expenses
(including stock-based
compensation expense of $157,110
and $0, respectively) 1,999,777 1,103,593
Litigation settlement expenses 17,650,000 --
----------- -----------
Income from Operations (10,655,235) 1,150,430
Interest income 1,281,399 853,473
Interest expense (5,650) (103)
Other income (expense), net (228) (59,735)
----------- -----------
Income (loss) before income taxes (9,379,714) 1,944,065
Provision (credit) for income taxes (2,975,007) 1,066,675
----------- -----------
Net Income (loss) $(6,404,707) $ 877,390
=========== ===========
Income per common and common
equivalent shares
Basic $ (0.10) $ 0.01
Diluted $ (0.10) $ 0.01
Weighted average number of common
and common equivalent shares
outstanding
Basic 62,003,727 61,266,387
Diluted 62,003,727 63,951,621
TASER International, Inc.
Balance Sheets
(Unaudited)
Sept. 30, 2006 Dec. 31, 2005
-------------- -------------
ASSETS
Current Assets
Cash and cash equivalents $ 15,833,820 $ 16,351,909
Short-term investments 5,638,637 --
Accounts receivable, net 10,387,944 5,422,027
Inventory 8,531,385 10,105,336
Prepaids and other assets 2,330,459 2,795,576
Insurance settlement proceeds
receivable 4,538,852 575,000
Income tax receivable 66,511 44,454
Current deferred income tax
asset 8,209,718 6,955,500
------------ ------------
Total Current Assets 55,537,326 42,249,802
Long-term investments 29,028,942 27,548,120
Property and equipment, net 20,794,976 21,061,754
Deferred income tax asset 21,828,408 20,040,788
Intangible assets, net 1,492,672 1,340,783
------------ ------------
Total Assets $128,682,324 $112,241,247
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of capital
lease obligations $ 44,669 $ 43,111
Accounts payable and accrued
liabilities 6,604,931 6,315,654
Current deferred revenue 930,152 561,165
Deferred insurance settlement
proceeds 660,824 476,515
Customer deposits 259,351 190,256
Litigation settlement
liabilities 21,750,000 --
------------ ------------
Total Current Liabilities 30,249,927 7,586,701
Capital lease obligations, net
of current portion 42,485 76,188
Deferred revenue, net of
current portion 1,580,598 839,983
------------ ------------
Total Liabilities 31,873,010 8,502,872
------------ ------------
Commitments and Contingencies -- --
Stockholders' Equity
Common stock 619 619
Additional paid-in capital 80,427,462 78,742,862
Treasury stock (2,208,954) --
Retained earnings 18,590,187 24,994,894
------------ ------------
Total Stockholders' Equity 96,809,314 103,738,375
------------ ------------
Total Liabilities and
Stockholders' Equity $128,682,324 $112,241,247
============ ============
TASER International, Inc.
Selected Statement of Cash Flows Information
(Unaudited)
For the Nine Months Ended
Sept. 30, 2006 Sept. 30, 2005
-------------- --------------
Net income / loss $(6,404,707) $ 877,930
Depreciation and amortization 1,548,115 1,185,374
Stock-based compensation expense 948,340 --
Net cash provided (used) by
operating activities 9,539,435 (363,956)
Net cash provided (used) by
investing activities (8,552,685) 2,270,515
Net cash provided (used) by
financing activities (1,504,839) 469,987
Cash and Cash Equivalents, end
of period 15,833,820 17,133,705