EX-99.1 2 p70930exv99w1.htm EX-99.1 exv99w1
 

EXHIBIT 99.1

FOR RELEASE ON July 20, 2005 at 7:30 a.m. E.S.T.

         
 
  CONTACT:   Dan Behrendt
 
      Chief Financial Officer
 
      TASER International, Inc.
 
      (480) 905-2000

(TASER INTERNATIONAL LOGO)

NEWS RELEASE

TASER International, Inc. Reports $13.2 million of Revenue for 2nd Quarter 2005

SCOTTSDALE, Ariz., July 20, 2005 — TASER International, Inc. (Nasdaq: TASR) a market leader in advanced non-lethal devices reported today that revenues for the second quarter of 2005 were $13.2 million, with income from operations of $0.6 million, net income of $0.5 million and basic and diluted earnings per share of $0.01. Compared to the second quarter of 2004, sales decreased by $3.1 million and net income decreased by $4.0 million. However, sequentially the business improved as revenues in the second quarter of 2005 increased by $3.0 million over the first quarter of 2005 and net income increased by $0.3 million over the first quarter of 2005.

During the second quarter of 2005 TASER International achieved several significant milestones including:

     1. Foreign sales were $1.7 million for the second quarter, with shipments to the United Kingdom totaling $1.4 million, following completion of extensive studies by the UK Defense, Scientific and Technical Laboratories (DSTL), within the Ministry of Defense, and the Home Office Scientific Development Branch. This study is available at http://publications.psdb.gov.uk/docs/Taser%20Report%202005%20Release%20V1Screen2.pdf. Year to date international sales were over $2.5 million, which exceeds total year 2004 international sales.

     2. The Company received a follow on order of $1.4 million from the United States Military following the completion of the Human Effects Risk Characterization study conducted by the Human Effects Center of Excellence within the Department of Defense. This study is available at http://www.iacp.org/research/CuttingEdge/HECOEReport.pdf

     3. The Company completed construction and moved into its state-of-the-art 100,000 square foot manufacturing facility and corporate headquarters.

     4. A human cardiac safety study concerning TASER™ technology was published in a supplemental edition of Academic Emergency Medicine. This study is available at http://www.aemj.org/cgi/content/abstract/12/5_suppl_1/71

     5. A Canadian national study supportive of TASER technology was released. This study is available at http://www.cprc.org/docs/bcopcc_final.pdf

     6. The completion of the Wisconsin Department of Justice, Law Enforcement Standards Board's recommendations for training for employment of an electronic control devices, including TASER brand devices, by law enforcement officers in Wisconsin. This study is available at https://wilenet.org/html/taser/TSReport.pdf

 

 

“We are pleased that, despite a challenging environment, we achieved improvements in both sales and net income compared to the first quarter of 2005,” said Rick Smith, Chief Executive Officer of TASER International, Inc. “In the second quarter, we invested significant resources defending our product safety record against what we believe to be misleading information in the public domain. Accordingly, sales general and administrative expenses increased significantly, particularly in the areas of legal services and public education campaigns. In addition to these efforts, we have remained focused on key operating priorities such as improving efficiencies and capitalizing on growth opportunities abroad. I am pleased to report we increased profitability and top-line sales over the prior quarter, and we remain optimistic about the future of our revolutionary, life-saving technology,” concluded Smith.

The Company will be hosting its second quarter earnings conference call on Wednesday, July 20, 2005 at 10:00 a.m. ET. The conference call is available via webcast and can be accessed on the “Investor Relations” page at www.TASER.com. To access the teleconference, please dial: 866-831-6270 or 617-213-8858 and use the passcode: 73556575.

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. For more information on TASER life-saving technology, please call TASER International at (480) 444-4000 or visit our website at www.TASER.com.

Note to Investors

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. The forward-looking information is based upon current information and expectations regarding TASER International. 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 assumes no obligation to update the information contained in this press release. TASER International’s future results may be impacted by risks associated with rapid technological change, new product introductions, new technological developments and implementations, execution issues associated with new technology, ramping manufacturing production to meet demand, litigation resulting from alleged product related injuries, media publicity concerning allegations of deaths occurring after use of the TASER device and the negative impact this could have on sales, product quality, implementation of manufacturing automation, potential fluctuations in quarterly operating results, competition, financial and budgetary constraints of prospects and customers, international order delays, dependence upon sole and limited source suppliers, fluctuations in component pricing, government regulations, dependence upon key

 

 

employees, and its ability to retain employees. TASER International’s future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company’s Form 10-Qs and its Annual Report on Form 10-KSB/A.

TASER International, Inc.
Statements of Income
(Unaudited)

                 
    For the Three Months Ended  
    June 30, 2005     June 30, 2004  
 
                
Net Sales
   $ 13,206,659     $ 16,322,007  
 
            
Cost of Products Sold:
                
Direct manufacturing expense
     3,525,670       4,105,537  
Indirect manufacturing expense
     1,290,429       1,354,247  
 
            
Total Cost of Products Sold
     4,816,099       5,459,784  
 
            
Gross Margin
     8,390,560       10,862,223  
Sales, general and administrative expenses
     7,458,533       3,359,395  
Research and development expenses
     351,441       212,910  
 
            
Income from Operations
     580,586       7,289,918  
Interest income
     347,837       55,118  
Interest expense
     (15 )     (392 )
Other income (expense), net
     (59,360 )     5,788  
 
            
Income before income taxes
     869,048       7,350,432  
Provision for income tax
     360,000       2,860,000  
 
            
Net Income
   $ 509,048     $ 4,490,432  
 
            
Income per common and common equivalent shares
                
Basic
   $ 0.01     $ 0.08  
Diluted
   $ 0.01     $ 0.07  
Weighted average number of common and common equivalent shares outstanding
                
Basic
     61,319,959       57,558,688  
Diluted
     63,951,739       64,437,526  

 

 

TASER International, Inc.
Statements of Income
(Unaudited)

                 
    For the Six Months Ended  
    June 30, 2005     June 30, 2004  
 
                
Net Sales
   $ 23,410,820     $ 29,458,561  
 
            
Cost of Products Sold:
                
Direct manufacturing expense
     6,635,876       7,278,059  
Indirect manufacturing expense
     2,708,248       2,714,227  
 
            
Total Cost of Products Sold
     9,344,124       9,992,286  
 
            
Gross Margin
     14,066,696       19,466,275  
Sales, general and administrative expenses
     12,710,697       5,928,683  
Research and development expenses
     698,804       480,005  
 
            
Income from Operations
     657,195       13,057,587  
Interest income
     546,712       93,786  
Interest expense
     (103 )     —  
Other income (expense), net
     (59,735 )     6,085  
 
            
Income before income taxes
     1,144,069       13,157,458  
Provision for income tax
     467,000       5,116,000  
 
            
Net Income
   $ 677,069     $ 8,041,458  
 
            
Income per common and common equivalent shares
                
Basic
   $ 0.01     $ 0.14  
Diluted
   $ 0.01     $ 0.13  
Weighted average number of common and common equivalent shares outstanding
                
Basic
     61,209,420       55,477,972  
Diluted
     64,152,543       62,513,808  

 

 

TASER International, Inc.
Balance Sheets
(Unaudited)

                 
    June 30, 2005     December 31, 2004  
Assets
 
                
Current Assets
                
Cash and cash equivalents
   $ 16,461,623     $ 14,757,159  
Short-term investments
     2,006,782       17,201,477  
Accounts receivable, net
     6,525,683       8,460,112  
Inventory
     9,162,411       6,840,051  
Prepaids and other assets
     1,372,913       1,639,734  
Income tax receivable
     56,966       52,973  
Current deferred income tax asset
     10,493,116       11,083,422  
 
            
Total Current Assets
     46,079,494       60,034,928  
Long-term investments
     25,535,643       18,071,815  
Property and Equipment, net
     20,764,653       14,756,512  
Deferred income tax asset
     16,600,142       15,310,207  
Intangible assets, net
     1,298,859       1,279,116  
 
            
Total Assets
   $ 110,278,791     $ 109,452,578  
 
            
 
                
Liabilities and Stockholders’ Equity
 
                
Current Liabilities
                
Current portion of capital lease obligations
   $ —     $ 4,642  
Accounts payable and accrued liabilities
     7,207,537       8,827,132  
Customer deposits
     209,853       102,165  
 
            
Total Current Liabilities
     7,417,390       8,933,939  
Deferred Revenue
     650,808       607,856  
 
            
Total Liabilities
     8,068,198       9,541,795  
 
            
Stockholders’ Equity
                
Common Stock
     613       609  
Additional Paid-in Capital
     77,473,547       75,850,810  
Retained Earnings
     24,736,433       24,059,364  
 
            
Total Stockholders’ Equity
     102,210,593       99,910,783  
 
            
Total Liabilities and Stockholders’ Equity
   $ 110,278,791     $ 109,452,578  
 
            

 

 

Other Selected Data:

TASER International, Inc.
Selected Cash Flows Information
(Unaudited)

                 
    For the Six Months Ended  
    June 30, 2005     June 30, 2004  
Net income
   $ 677,069     $ 8,041,458  
Depreciation and amortization
     706,055       255,364  
Net cash (used) provided by operating activities
     (795,644 )     13,174,102  
Net cash provided (used) by investing activities
     2,061,147       (2,081,791 )
Net cash provided by financing activities
     438,961       7,595,761  
Cash and Cash Equivalents, end of period
     16,461,623       34,566,398  

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., +1-480-905-2002. Visit the company’s web-site at www.TASER.com for facts and video.

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Main: 800.978.2737          Direct: 480.905.2000          Fax: 480.991.0791