Segment Data

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Data

Segment Data

The Company’s operations are comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the video business, which includes the TASER Cam, Axon products, Evidence.com, and MediaSolv (the “Axon” segment). The Company includes only revenues and costs directly attributable to the Axon segment in that segment. Included in Axon segment costs are: costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the Axon sales team, Axon product management expenses, trade shows and related expenses, and research and development for products included in the Axon segment. All other costs are included in the TASER Weapons segment. The CODM does not review assets by segment as part of the financial information provided; therefore, only limited asset information is provided in the following tables.

Information relative to the Company’s reportable segments is as follows (in thousands):

	Three Months Ended March 31, 2016							Three Months Ended March 31, 2015
	TASER Weapons		Axon			Total		TASER Weapons		Axon			Total
Product sales	$	45,834	$	4,841		$	50,675	$	38,341	$	4,502		$	42,843
Service revenue	—		4,855			4,855		—		1,919			1,919
Net sales	45,834		9,696			55,530		38,341		6,421			44,762
Cost of products sold	14,077		3,378			17,455		11,081		3,148			14,229
Cost of services delivered	—		1,173			1,173		—		665			665
Gross margin	31,757		5,145			36,902		27,260		2,608			29,868
Sales, general and administrative	15,272		9,561			24,833		10,705		3,860			14,565
Research and development	1,120		5,807			6,927		1,190		3,368			4,558
Income (loss) from operations	$	15,365	$	(10,223	)	$	5,142	$	15,365	$	(4,620	)	$	10,745
Purchase of property and equipment	$	1,071	$	209		$	1,280	$	347	$	77		$	424
Purchase of intangible assets	62		36			98		46		4			50
Depreciation and amortization	572		329			901		530		87			617