EX-99.1 2 p73749exv99w1.htm EX-99.1 exv99w1
 

EXHIBIT 99.1
     
CONTACT:
  Dan Behrendt
 
  Chief Financial Officer
 
  TASER International, Inc.
 
  (480) 905-2000
TASER International, Inc. Reports Record First Quarter Revenue
$15.3 Million of Revenue, $0.3 Million Operating Income,
$0.5 Million Net Income and $0.01 Basic and Diluted EPS for First Quarter 2007
SCOTTSDALE, Ariz., April 25, 2007 — TASER International, Inc. (Nasdaq: TASR) a market leader in advanced electronic control devices today reported financial results for first quarter of 2007.
For the first quarter of 2007 revenues were $15.3 million, the highest first quarter in the Company’s history and a 10% increase over the same quarter of the prior year. Income from operations for the first quarter was $0.3 million. Net income and basic and diluted earnings per share for the first quarter of 2007 were $0.5 million and $0.01, respectively.
Significant events in the first quarter of 2007 include:
  1.   We successfully debuted the TASER® C2 personal protector at the Consumer Electronics Show in January 2007. This new device is a compact system that provides the same proven Neuro-Muscular Incapacitation (NMI) effectiveness as our market leading TASER X26C but in a form factor and at a price point that will be more attractive to private citizens. The TASER C2 also promotes responsible ownership and aims to prevent misuse with the introduction of a background check system whereby the device remains inactive until the owner has successfully completed a background check either online or via a toll-free telephone number. In addition the TASER C2 cartridges each have a unique serial number and are equipped with Anti-Felon Identification tags, which are dispersed upon deployment and which would allow the police to track a potential misuse. We expect to begin shipments of the TASER C2 in the second quarter of 2007.
 
  2.   Fourteen more product liability suits were dismissed during the quarter representing a total of forty-four wrongful death or injury suits that have been dismissed or judgment entered in favor of the Company since 2004.
 
  3.   A landmark medical study published in the Society for Academic Emergency Medicine found that the prolonged exposure from a TASER X26 Electronic Control Device has no abnormal respiratory effects on human subjects. This study can be viewed at: http://www.aemj.org/cgi/content/full/14/3/197
“We believe the first quarter results with the highest first quarter revenues in our Company’s history, have given us a solid start to 2007, ” commented Tom Smith, Chairman of TASER International, Inc. “We are continuing to build on the momentum generated in 2006, and we believe the investments we have made in developing new products during 2006 and in the first quarter of 2007 will provide us with the platform to further enhance our position as a market leader in advanced personal protection devices. In particular, we believe the commencement of sales of the TASER C2 in the second quarter will provide the consumer with next generation, life protecting technologies which are designed to maximize public safety and minimize the potential for misuse.”
The Company hosts its first quarter 2007 earnings conference call on Wednesday, April 25, 2007 at 10:00 a.m. ET. 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: 1-800-599-9816 or 1-617-847-8705 for international callers. The pass code is 45846998 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.

 


 

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.
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TASER International, Inc.
Statements of Income
(Unaudited)
                 
    For the Three Months Ended  
    March 31, 2007     March 31, 2006  
 
               
Net Sales
  $ 15,301,815     $ 13,893,563  
 
           
 
               
Cost of Products Sold:
               
Direct manufacturing expense
    4,608,569       3,529,401  
Indirect manufacturing expense (including stock-based compensation expense of $31,698 and $31,834, respectively)
    1,804,217       1,409,468  
 
           
 
               
Total Cost of Products Sold
    6,412,786       4,938,869  
 
           
 
               
Gross Margin
    8,889,029       8,954,694  
 
               
Sales, general and administrative expenses (including stock-based compensation expense of $187,773 and $267,144 respectively)
    7,581,908       7,254,312  
Research and development expenses (including stock-based compensation expense of $42,692 and $63,022, respectively)
    970,786       663,810  
 
           
 
               
Income from Operations
    336,335       1,036,572  
 
               
Interest income
    507,869       367,435  
Interest expense
    (1,500 )     (2,007 )
Other income (expense), net
          (112 )
 
           
 
               
Income before provision for income taxes
    842,704       1,401,888  
Provision for income taxes
    348,150       595,909  
 
           
 
               
Net Income
  $ 494,554     $ 805,979  
 
           
 
               
Income per common and common equivalent shares
               
Basic
  $ 0.01     $ 0.01  
Diluted
  $ 0.01     $ 0.01  
 
               
Weighted average number of common and common equivalent shares outstanding
               
Basic
    62,010,198       61,947,048  
Diluted
    64,692,636       64,053,031  

 


 

TASER International, Inc.
Balance Sheets
(Unaudited)
                 
    March 31, 2007     December 31, 2006  
ASSETS
 
               
Current Assets
               
Cash and cash equivalents
  $ 16,073,479     $ 18,773,685  
Short-term investments
          3,557,289  
Accounts receivable, net
    7,493,522       10,068,049  
Inventory
    10,311,705       9,257,746  
Prepaids and other assets
    2,248,299       2,164,002  
Current deferred income tax asset
    9,794,566       12,295,493  
 
           
 
               
Total Current Assets
    45,921,571       56,116,264  
Long-term investments
    25,483,105       25,477,574  
Property and equipment, net
    21,344,706       20,842,632  
Deferred income tax asset
    17,851,764       15,868,719  
Intangible assets, net
    1,698,812       1,532,500  
 
           
 
               
Total Assets
  $ 112,299,958     $ 119,837,689  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
               
Current Liabilities
               
Current portion of capital lease obligations
  $ 45,774     $ 45,214  
Accounts payable and accrued liabilities
    6,056,758       6,789,474  
Current deferred revenue
    1,105,871       1,037,441  
Deferred insurance settlement proceeds
    476,139       509,067  
Customer deposits
    208,653       171,492  
Litigation settlement liabilities
    1,750,000       9,750,000  
 
           
 
               
Total Current Liabilities
    9,643,195       18,302,688  
Capital lease obligations, net of current portion
    19,314       30,974  
Deferred revenue, net of current portion
    2,072,223       1,975,489  
Other liabilities
          199,999  
 
           
 
               
Total Liabilities
    11,734,732       20,509,150  
 
           
 
               
Commitments and Contingencies
           
 
               
Stockholders’ Equity Common stock
    623       622  
Additional paid-in capital
    81,371,791       80,629,659  
Treasury stock
    (2,208,957 )     (2,208,957 )
Retained earnings
    21,401,769       20,907,215  
 
           
 
               
Total Stockholders’ Equity
    100,565,226       99,328,539  
 
           
 
               
Total Liabilities and Stockholders’ Equity
  $ 112,299,958     $ 119,837,689  
 
           

 


 

TASER International, Inc.
Selected Statement of Cash Flows Information
(Unaudited)
                 
    For the Three Months Ended
    March 31, 2007   March 31, 2006
 
               
Net income
  $ 494,554     $ 805,979  
Depreciation and amortization
    569,324       516,740  
Stock-based compensation expense
    262,163       362,000  
Net cash provided (used) by operating activities
    (5,483,124 )     1,962,862  
Net cash provided (used) by investing activities
    2,314,048       (4,135,742 )
Net cash provided by financing activities
    468,870       88,430  
Cash and Cash Equivalents, end of period
  $ 16,073,479     $ 14,267,459