Press Releases
TASER International Reports Third Quarter 2009 Results SCOTTSDALE, Ariz ., Oct. 22, 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 third quarter ended September 30, 2009 .
During the third quarter, the Company announced a trade-in program to enable agencies to easily upgrade to the newly announced semi-automatic TASER X3. As required by applicable accounting principles, the Company deferred
Q3 Financial Summary:
* Adjusted revenues for the third quarter of 2009 were
* Adjusted gross margin, which excludes the impact of the X26 to X3 trade-in credit program, improved to 62.5% in the third quarter of 2009, compared to 60.8% in the third quarter of 2008. On a GAAP basis, gross margin for the third quarter was 56.9%, compared to 60.8% in the third quarter of 2008.
* Research and development expenses of
* Adjusted operating income for the third quarter of 2009, which excludes the X26 to X3 trade-in revenue deferral, stock-based compensation charges, depreciation and amortization and litigation judgment expense, was
* Net loss and diluted loss per share for the third quarter of 2009 were $(3.2) million and $(0.05), respectively.
* The Company generated
Significant events in the third quarter of 2009 include the following:
1. International sales represented 19% of net sales and 16% of adjusted revenues for the third quarter (including the impact of revenue deferred for GAAP purposes relating to the X26 to X3 trade-in program). Significant shipments during the third quarter included follow-on orders for 1962 TASER® X26 ECDs, 1962 TASER CAMs and related accessories to
2. Sales to our Federal and military customers significantly increased during the quarter, partly due to the first order for TASER® X26 ECDs and cartridges shipped under an indefinite delivery, indefinite quantity (IDIQ) contract from the U.S. Customs and Border Protection (CBP).
3. On
4. Six (6) product liability suits were dismissed during the quarter, representing at the end of the quarter a total of ninety-six (96) wrongful death or injury suits that have been dismissed or judgment entered in favor of the Company.
"I am extremely proud of our team, which was able to turn in one of the strongest sales quarters in our Company's history despite the challenging economic environment," said
The Company will host its third quarter 2009 earnings conference call on
Non-GAAP Measures
To supplement the Company's Statements of Operations presented in accordance with GAAP, we are presenting non-GAAP measures of certain components of financial performance. We have presented these measures for our investors to be better able to compare our current results with those of previous periods and have shown a reconciliation of GAAP to the non-GAAP financial measures in the tables at the end of this release. These non-GAAP measures include: (1) for adjusted revenue and adjusted gross margin, the impact of sales that were made during the third quarter pursuant to our X26 to X3 trade-in credit program that for GAAP purposes the resulting revenues were deferred until the sooner of when the offer is redeemed or the trade-in upgrade period expires, which will be no later than
Caution on Use of Non-GAAP Measures
As noted previously, these non-GAAP financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and the impact of other non-cash charges. Management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:
* these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company's GAAP financial measures;
* these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company's GAAP financial measures;
* these non-GAAP financial measures should not be considered to be superior to the Company's GAAP financial measures; and
* these non-GAAP financial measures were not prepared in accordance with GAAP and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principles.
Further, these non-GAAP financial measures may be unique to the Company, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies.
A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure or measures appears at the end of this press release.
About
The
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
For investor relations information please contact Katie Pyra by phone at 480-515-6330 or via email at IR@TASER.com, or
TASER International, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
--------------------------
Sept. 30, 2009 Sept. 30, 2008
-------------- --------------
Net Sales $ 23,310,456 $ 22,859,459
-------------- --------------
Cost of Products Sold:
Direct manufacturing expense 7,372,090 6,286,067
Indirect manufacturing expense 2,672,554 2,677,850
-------------- --------------
Total Cost of Products Sold 10,044,644 8,963,917
-------------- --------------
Gross Margin 13,265,812 13,895,542
Sales, general and administrative
expenses 11,419,526 9,055,060
Research and development expenses 6,656,538 3,331,697
-------------- --------------
Income (loss) from operations (4,810,252) 1,508,785
Interest and other income, net 19,995 269,718
-------------- --------------
Income (loss) before provision
(benefit) for income taxes (4,790,257) 1,778,503
Provision (benefit) for income taxes (1,614,240) 1,128,126
-------------- --------------
Net income (loss) $ (3,176,017) $ 650,377
============== ==============
Income (loss) per common and common
equivalent shares
Basic $ (0.05) $ 0.01
Diluted $ (0.05) $ 0.01
Weighted average number of common
and common equivalent shares
outstanding
Basic 61,937,769 61,714,889
Diluted 61,937,769 63,313,702
TASER International, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Nine Months Ended
-------------------------------
Sept. 30, 2009 Sept. 30, 2008
-------------- --------------
Net Sales $ 69,748,635 $ 66,447,272
-------------- --------------
Cost of Products Sold:
Direct manufacturing expense 20,081,221 19,877,521
Indirect manufacturing expense 8,033,623 6,306,617
-------------- --------------
Total Cost of Products Sold 28,114,844 26,184,138
-------------- --------------
Gross Margin 41,633,791 40,263,134
Sales, general and administrative
expenses 33,689,688 27,925,704
Research and development expenses 15,246,764 8,463,231
Litigation judgment expense -- 5,200,000
-------------- --------------
Loss from operations (7,302,661) (1,325,801)
Interest and other income, net 162,044 1,492,448
-------------- --------------
Income (loss) before provision
(benefit) for income taxes (7,140,617) 166,647
Provision (benefit) for income taxes (2,773,438) 315,419
-------------- --------------
Net Loss $ (4,367,179) $ (148,772)
============== ==============
Loss per common and common
equivalent shares
Basic $ (0.07) $ (0.00)
Diluted $ (0.07) $ (0.00)
Weighted average number of common
and common equivalent shares
outstanding
Basic 61,891,638 62,568,846
Diluted 61,891,638 62,568,846
TASER International, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
----------- ------------ ----------- -----------
GAAP net sales $23,310,456 $22,859,459 $69,748,635 $66,447,272
Trade-in
program
revenue
deferral 3,465,650 -- 3,465,650 --
----------- ----------- ----------- -----------
Adjusted
revenues $26,776,106 $22,859,459 $73,214,285 $66,447,272
=========== =========== =========== ===========
GAAP gross
margin $13,265,812 $13,895,542 $41,633,791 $40,263,134
Trade-in
program
revenue
deferral 3,465,650 -- 3,465,650 --
----------- ----------- ----------- -----------
Adjusted gross
margin $16,731,462 $13,895,542 $45,099,441 $40,263,134
=========== =========== =========== ===========
GAAP income
(loss) from
operations $(4,810,252) $ 1,508,785 $(7,302,661) $(1,325,801)
Trade-in
program
revenue
deferral 3,465,650 -- 3,465,650
Stock-based
compensation
expense (a) 1,022,863 665,259 3,782,181 1,396,116
Depreciation
and
amortization 923,722 646,775 2,408,539 1,945,526
Litigation
judgment
expense -- -- -- 5,200,000
----------- ----------- ----------- -----------
Adjusted
operating
income $ 601,983 $ 2,820,819 $ 2,353,709 $ 7,215,841
=========== =========== =========== ===========
a) Results include stock-based compensation as follows:
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
----------- ------------ ----------- -----------
Cost of
Products
Sold $ 62,154 $ 72,370 $ 260,517 $ 182,838
Sales, general
and
administrative
expenses 814,159 442,892 2,441,178 932,018
Research and
development
expenses 146,550 149,997 1,080,486 281,260
----------- ----------- ----------- -----------
$ 1,022,863 $ 665,259 $ 3,782,181 $ 1,396,116
=========== =========== =========== ===========
TASER International, Inc.
Consolidated Balance Sheets
(Unaudited)
Sept. 30, Dec. 31,
2009 2008
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 45,414,569 $ 46,880,435
Short-term investments -- 2,498,998
Accounts receivable, net 16,318,653 16,793,553
Inventory 13,227,387 13,467,117
Prepaids and other assets 1,771,469 2,528,539
Current deferred income tax assets, net 9,430,073 9,430,073
------------ ------------
Total current assets 86,162,151 91,598,715
Property and equipment, net 35,631,871 27,128,032
Deferred income tax assets, net 12,584,846 8,826,778
Intangible assets, net 2,624,384 2,447,011
Other long-term assets 116,245 14,970
------------ ------------
Total Assets $137,119,497 $130,015,506
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 7,704,600 $ 3,856,961
Accrued liabilities 3,847,560 4,275,907
Current deferred revenue 6,267,807 2,510,645
Customer deposits 293,510 312,686
------------ ------------
Total Current Liabilities 18,113,477 10,956,199
Deferred revenue, net of current portion 4,821,519 4,840,965
Liability for unrecorded tax benefits 2,135,401 1,692,080
------------ ------------
Total Liabilities 25,070,397 17,489,244
------------ ------------
Commitments and Contingencies
Stockholders' Equity
Common stock 641 638
Additional paid-in capital 91,553,138 87,663,129
Treasury stock (14,708,237) (14,708,237)
Retained earnings 35,203,553 39,570,732
------------ ------------
Total Stockholders' Equity 112,049,095 112,526,262
------------ ------------
Total Liabilities and Stockholders'
Equity $137,119,492 $130,015,506
============ ============
TASER International, Inc.
Selected Consolidated Statement of Cash Flows Information
(Unaudited)
For the Nine Months Ended
Sept. 30, Sept. 30,
2009 2008
------------ ------------
Net loss $ (4,367,179) $ (148,772)
Depreciation and amortization 2,408,539 1,945,526
Stock-based compensation expense 3,782,181 1,396,113
Net cash provided by operating activities 5,461,095 4,611,061
Net cash (used) provided by investing
activities (7,034,792) 7,266,023
Net cash provided (used) by financing
activities 107,831 (12,179,256)
Cash and cash equivalents, end of period $ 45,414,569 $ 42,499,289
CONTACT:
(480) 905-2000