<< Back
TASER International, Inc. Reports Results for First Quarter 2009
Company Reports First Quarter Revenue of $24.6 Million, Generates $10.5 Million in Cash From Operations

SCOTTSDALE, Ariz., April 23, 2009 (GLOBE NEWSWIRE) -- TASER International, Inc. (Nasdaq:TASR), a leading provider of technology solutions and the market leader in electronic control devices (ECDs) today reported financial results for the first quarter of 2009.

Q1 Financial Summary:

-- For the first quarter of 2009 revenues were $24.6 million, an increase of $2.1 million or 9% over the same quarter of the prior year.

-- Operations continued to demonstrate improvement, as gross margin increased to 59.5% in the first quarter of 2009, compared to 56.8% in the first quarter of 2008, reflecting the Company's continued focus on production efficiency and cost controls. Sequentially, gross margins declined primarily due to a change in sales mix from higher margin ECDs to lower margin cartridges, mostly driven by a large United Kingdom cartridge order in the first quarter of 2009.

-- Consistent with the Company's strategy announced last year, research and development expenses increased by $2.1 million, or 99%, in the first quarter of 2009 compared to the same period in 2008, reflecting the Company's ongoing commitment to invest in new technology and product diversification.

-- Non-GAAP income from operations for the first quarter of 2009, which excludes stock-based compensation charges and depreciation and amortization, was $1.1 million compared to $2.5 million for the first quarter of 2008. GAAP loss from operations was $(1.0) million for the first quarter of 2009 compared to income from operations of $1.5 million for the same period in the prior year.

-- Net loss and diluted loss per share for the first quarter of 2009 were $(0.5) million and $(0.01), respectively.

-- The Company generated $10.5 million from operating activities in the first quarter of 2009 with ending cash and cash equivalents of $58.3 million and zero debt.

Significant events in the first quarter of 2009 include the following:

1. International sales represented 37% of total net sales for the quarter, compared to 28% in the fourth quarter of 2008 and 13% in the first quarter of 2008. Significant shipments during the quarter included follow-on orders for TASER(r) X26(tm) ECDs and cartridges to the UK Government and 3,000 TASER ECDs to the Brazilian National Guard.

2. The Company unveiled its new integrated digital multi-media evidence management platform -- EVIDENCE.com -- which works in conjunction with TASER(r) AXON(tm) -- an on-officer tactical computer and video/audio recorder that captures incidents from the officer's perspective. Together, we believe the AXON and EVIDENCE.com system will revolutionize the way law enforcement safely and securely captures, stores, analyzes, and manages digital multi-media evidence collected by officers in the field.

3. On March 31, 2009 the Company announced it began selling the TASER(r) Shockwave(tm) area denial system to tactical law enforcement, corrections, homeland security, critical infrastructure and military customers.

4. Five (5) more product liability suits were dismissed during the quarter, representing at the end of the quarter a total of eighty-four (84) wrongful death or injury suits that have been dismissed or judgment entered in favor of the Company.

"Despite the prevailing global economic challenges, TASER International achieved solid sales in the first quarter of 2009, driven by growth from our international customers," said Rick Smith, Chief Executive Officer of TASER International. "Over the past year, we have recruited a world-class Internet services and software development team. Together with our proven hardware development team, they will help transform our company to a full solutions provider, greatly expanding our total available market opportunities in both revenue and by market segment. EVIDENCE.com signifies the first step in this evolution providing a secure evidence storage and collaboration network that will become the network backbone for our future hardware and software products."

The Company will host its first quarter 2009 earnings conference call on Thursday, April 23, 2009 at 11:00 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: 1-866-271-0675 or 1-617-213-8892. The pass code is 84783106 for both numbers.

Non-GAAP Measures

To supplement the Company's Statements of Operations presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance, specifically non-GAAP income from operations. In order for our investors to be better able to compare our current results with those of previous periods, we have shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, depreciation and amortization. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our "recurring core business operating results," meaning our operating performance excluding non-cash charges, such as stock-based compensation, depreciation and amortization but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity.

About TASER International, Inc. (TASR):

TASER International's products protect life, providing advanced Electronic Control Devices for use in the law enforcement, medical, military, corrections, professional security, and personal protection markets. TASER(r) devices use proprietary technology to incapacitate dangerous, combative, or high-risk subjects who pose a risk to law enforcement officers, innocent citizens, or themselves in a manner that is generally recognized as a safer alternative to other uses of force. TASER technology protects life, and the use of TASER devices dramatically reduces injury rates for police officers and suspects. For more information about TASER technology, please call (800) 978-2737 or visit our website at www.TASER.com.

The TASER International logo is available at http://www.globenewswire.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 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 the TASER device; (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; (24) field test results; and (25) 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 investor relations information please contact Katie Pyra by phone at 480-515-6330 or via email at IR@TASER.com, or Dan Behrendt, Chief Financial Officer of TASER International, Inc., 480-905-2002.



                      TASER International, Inc.
                       Statements of Operations
                              (Unaudited)

                                        For the Three Months Ended
                                        ---------------------------
                                      March 31, 2009   March 31, 2008
                                      --------------   --------------
 Net Sales                               $24,604,780    $22,486,504
                                          ----------     ----------

 Cost of Products Sold:
 Direct manufacturing expense              6,904,667      7,571,497
 Indirect manufacturing expense            3,070,862      2,151,689
                                          ----------     ----------

 Total Cost of Products Sold               9,975,529      9,723,186
                                          ----------     ----------

 Gross Margin                             14,629,251     12,763,318

 Sales, general and administrative
  expenses                                11,448,923      9,160,589
 Research and development expenses         4,197,969      2,111,648
                                          ----------     ----------

 Income (loss) from operations            (1,017,641)     1,491,081

 Interest and other income, net               94,675        501,364
                                          ----------     ----------

 Income (loss) before provision
  (benefit) for income taxes                (922,966)     1,992,445
 Provision (benefit) for income taxes       (455,207)       775,858
                                          ----------     ----------

 Net income (loss)                       $  (467,759)   $ 1,216,587
                                          ==========     ==========

 Income (loss) per common and common
  equivalent shares
 Basic                                   $     (0.01)   $      0.02
 Diluted                                 $     (0.01)   $      0.02

 Weighted average number of common and
  common equivalent shares outstanding
 Basic                                    61,832,808     63,328,336
 Diluted                                  61,832,808     65,784,447



                      TASER International, Inc.
         Reconciliation of GAAP to Non-GAAP Financial Measures
                              (Unaudited)

                                         For the Three Months Ended
                                         --------------------------
                                       March 31, 2009  March 31, 2008
                                       --------------  --------------

 GAAP income (loss) from operations      $(1,017,641)   $ 1,491,081
   Stock-based compensation expense (a)    1,375,036        320,467
   Depreciation and amortization             715,467        656,879
                                          ----------     ----------
 Non-GAAP income from operations         $ 1,072,862    $ 2,468,427
                                          ==========     ==========

 a) Results include stock-based compensation as follows:

                                         For the Three Months Ended
                                         --------------------------
                                       March 31, 2009  March 31, 2008
                                       --------------  --------------

 Cost of Products Sold                   $    99,388    $    58,850
 Sales, general and administrative
  expenses                                   814,074        211,611
 Research and development expenses           461,574         50,006
                                          ----------     ----------
                                         $ 1,375,036    $   320,467
                                          ==========     ==========



                      TASER International, Inc.
                            Balance Sheets
                              (Unaudited)


                                          March 31,      December 31,
                                            2009             2008
                                         -----------     -----------
                                ASSETS

 Current Assets
 Cash and cash equivalents              $ 58,264,462    $ 46,880,435
 Short-term investments                           --       2,498,998
 Accounts receivable, net                 12,307,122      16,793,553
 Inventory                                10,327,099      13,467,117
 Prepaids and other assets                 1,942,078       2,528,539
 Current deferred income tax asset         9,580,234       9,430,073
                                         -----------     -----------
 Total Current Assets                     92,420,995      91,598,715

 Property and equipment, net              28,021,672      27,128,032
 Deferred income tax asset                 8,826,778       8,826,778
 Intangible assets, net                    2,497,076       2,447,011
 Other long-term assets                       11,325          14,970
                                         -----------     -----------

 Total Assets                           $131,777,846    $130,015,506
                                         ===========     ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities
 Accounts payable                       $  4,447,071    $  3,856,961
 Accrued liabilities                       3,963,962       4,275,907
 Current deferred revenue                  2,708,854       2,510,645
 Customer deposits                           344,347         312,686
                                         -----------     -----------
 Total Current Liabilities                11,464,234      10,956,199

 Deferred revenue, net of current portion  5,161,754       4,840,965
 Liability for unrecorded tax benefits     1,668,050       1,692,080
                                         -----------     -----------

 Total Liabilities                        18,294,038      17,489,244
                                         -----------     -----------

 Commitments and Contingencies

 Stockholders' Equity
 Common stock                                    639             638
 Additional paid-in capital               89,088,433      87,663,129
 Treasury stock                          (14,708,237)    (14,708,237)
 Retained earnings                        39,102,973      39,570,732
                                         -----------     -----------

 Total Stockholders' Equity              113,483,808     112,526,262
                                         -----------     -----------

 Total Liabilities and
  Stockholders' Equity                  $131,777,846   $ 130,015,506
                                         ===========     ===========




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


                                            For the Three Months Ended
                                              March 31,     March 31,
                                                2009          2008
                                             ----------    ----------

 Net income (loss)                          $  (467,759)  $ 1,216,587
 Depreciation and amortization                  715,467       656,879
 Stock-based compensation expense             1,375,036       320,467
 Net cash provided by operating activities   10,528,369       659,421
 Net cash provided by investing activities      805,389     4,085,809
 Net cash provided by financing activities       50,269       171,229
 Cash and Cash Equivalents, end of period   $58,264,462   $47,717,920

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

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding TASER International, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.