SCOTTSDALE, Ariz., April 25, 2007 (PRIME NEWSWIRE) -- 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(r) 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.
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.
TASER International, Inc. Statements of Income (Unaudited) For the Three Months Ended -------------------------- March 31, March 31, 2007 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 Sheet (Unaudited) March 31, December 31, 2007 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 Statements of Cash Flows Information (Unaudited) For the Three Months Ended March 31, March 31, 2007 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 ---------------------------------------------------------------------