Exhibit 99.1
TASER International, Inc. Reports Record 177% Revenue Growth in 2004 over 2003
Company Reports $67.7 Million Revenue, $50 Million Cash and Investments,
45.6% Operating Income, and $0.33 Basic EPS for 2004
SCOTTSDALE, Ariz., February 8, 2005 — TASER International, Inc. (NASDAQ: TASR) a market leader in advanced non-lethal devices reported today that revenues for the year 2004 were a record $67.7 million, with operating income of $30.9 million, net earnings of $19.1 million and basic and diluted earnings per share of $0.33, and $0.31, respectively. For the fourth quarter of 2004, revenues were a record $19.2 million, with earnings of $5.0 million and both basic and diluted earnings per share of $0.08. Revenues increased by 78.6% and net income increased by 76.9% over the fourth quarter of 2003. As of December 31, 2004, the Company’s cash and investment balances were approximately $50 million, an increase of $34.2 million from December 31, 2003. During 2004, stockholder’s equity improved by 254% from $27.4 million to $97.1 million and total assets were over $105 million as of December 31, 2004.
During the fourth quarter of 2004 TASER International achieved several significant milestones including:
1. Receipt of our single largest order ever from the City of Houston for $3.5 million
2. Receipt of our largest government research contract for our next generation technology
3. Approval by the Transportation Security Administration (TSA) of Taser Devices for use by Airline crews
4. Approvals for field-testing of TASER devices in Finland, Sweden and South Korea
5. The completion of the US Department of Defense Human Effects Center of Excellence (HECOE) Report on TASER technology; concluded that, while future research will be useful in increasing confidence, the application of TASER devices for temporary incapacitation does not appear to pose significant risk to the recipients.
6. Publication of two independent university studies confirming TASER devices reduce injuries and save lives
“At the beginning of 2004, we predicted 100% top line revenue growth – a number which we significantly surpassed by year end,” said Rick Smith, Chief Executive Officer of TASER International, Inc. “We are pleased to look back at a year where our growth exceeded expectations as our customer base embraced our life-saving technology. 2004 was a pivotal year for us and we are delighted with our operating performance and balance sheet strength at year-end. As we look forward to 2005, we see significant opportunities to continue to grow our core business, particularly in the international markets. While we see a certain degree of short term uncertainty, we remain optimistic about our long term business prospects and we continue to receive affirmation of the life-saving value of our products from our existing customers. We look forward to a challenging and exciting 2005 as we move into our new state of the art 100,000 square foot manufacturing facility and continue our mission to advance both the technology and deployment of the world’s leading non-lethal weapons. We would like to invite our customers and shareholders to celebrate this next chapter in the TASER story by attending our annual stockholder meeting in our new headquarters on April 22 at 12:00 noon,” concluded Mr. Smith.
The Company will be hosting its fourth quarter earnings conference call on Tuesday, February 8, 2005 at 9:00 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: 866-761-0749 or 617-614-2707 and use the passcode: 72040755.
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-QSBs and its Annual Report on Form 10-KSB.
TASER International Inc.
Statements of Income
(Unaudited)
| Three Months Ended December 31, | ||||||||
| 2004 | 2003 | |||||||
Net sales |
$ | 19,249,207 | $ | 10,780,446 | ||||
Cost of products sold: |
||||||||
Direct manufacturing expense |
5,155,259 | 2,588,808 | ||||||
Indirect manufacturing expense |
1,587,834 | 921,317 | ||||||
Total cost of products sold |
6,743,093 | 3,510,125 | ||||||
Gross margin |
12,506,114 | 7,270,321 | ||||||
Sales, general and administrative |
4,492,234 | 2,348,024 | ||||||
Research and development |
200,121 | 85,698 | ||||||
Income from operations |
7,813,759 | 4,836,599 | ||||||
Interest income |
255,143 | 26,539 | ||||||
Interest expense |
(1,485 | ) | (2,890 | ) | ||||
Other income (expense) |
(10,108 | ) | (248,188 | ) | ||||
Income before income taxes |
8,057,309 | 4,612,060 | ||||||
Income tax |
3,100,000 | 1,810,238 | ||||||
Net Income |
$ | 4,957,309 | $ | 2,801,822 | ||||
Income per share: |
||||||||
Basic |
$ | 0.08 | $ | 0.06 | ||||
Diluted |
$ | 0.08 | $ | 0.05 | ||||
Weighted average number of
common and common equivalent
shares outstanding: |
||||||||
Basic |
59,998,892 | 47,737,140 | ||||||
Diluted |
63,453,274 | 59,695,152 | ||||||
TASER International Inc.
Statements of Income
(Unaudited)
| Year ended December 31, | ||||||||
| 2004 | 2003 | |||||||
Net sales |
$ | 67,655,316 | $ | 24,455,506 | ||||
Cost of products sold: |
||||||||
Direct manufacturing expense |
16,906,059 | 6,973,757 | ||||||
Indirect manufacturing expense |
5,556,937 | 2,428,859 | ||||||
Total cost of products sold |
22,462,996 | 9,402,616 | ||||||
Gross margin |
45,192,320 | 15,052,890 | ||||||
Sales, general and administrative |
13,485,256 | 6,973,721 | ||||||
Research and development |
823,593 | 498,470 | ||||||
Income from operations |
30,883,471 | 7,580,699 | ||||||
Interest income |
439,450 | 50,375 | ||||||
Interest expense |
(1,485 | ) | (9,307 | ) | ||||
Other income (expense) |
(5,628 | ) | (254,476 | ) | ||||
Income before income taxes |
31,315,808 | 7,367,291 | ||||||
Income tax |
12,191,000 | 2,913,601 | ||||||
Net Income |
$ | 19,124,808 | $ | 4,453,690 | ||||
Income per share: |
||||||||
Basic |
$ | 0.33 | $ | .12 | ||||
Diluted |
$ | 0.31 | $ | .10 | ||||
Weighted average number of
common and common equivalent
shares outstanding: |
||||||||
Basic |
57,232,329 | 37,889,640 | ||||||
Diluted |
62,319,590 | 46,598,312 | ||||||
TASER International Inc.
Balance Sheets
| (Unaudited) | ||||||||
| December 31, 2004 |
December 31, 2003 | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 24,757,159 | $ | 15,878,326 | ||||
Short-term investments |
7,201,477 | 0 | ||||||
Accounts receivable, net |
8,460,112 | 5,404,333 | ||||||
Inventory, net |
6,840,051 | 3,125,974 | ||||||
Prepaids and other assets |
1,639,734 | 536,815 | ||||||
Income tax receivable |
52,973 | 292,321 | ||||||
Deferred income tax asset |
23,259,030 | 1,137,196 | ||||||
Total current assets |
72,210,536 | 26,374,965 | ||||||
Long-term investments |
18,071,815 | 0 | ||||||
Property and equipment, net |
14,756,512 | 3,946,881 | ||||||
Intangible assets, net |
1,279,116 | 1,122,844 | ||||||
Total assets |
$ | 106,317,979 | $ | 31,444,690 | ||||
Liabilities and stockholders’ equity: |
||||||||
Notes payable |
$ | 0 | $ | 250,000 | ||||
Current portion of capital lease
obligations |
4,642 | 15,223 | ||||||
Accounts payable and accrued
liabilities |
9,039,922 | 3,522,439 | ||||||
Customer deposits |
102,165 | 185,802 | ||||||
Total current liabilities |
9,146,729 | 3,973,464 | ||||||
Capital lease obligations, net of
current portion |
0 | 3,655 | ||||||
Deferred income tax liability |
31,843 | 40,121 | ||||||
Total liabilities |
9,178,572 | 4,017,240 | ||||||
Stockholders’ equity: |
||||||||
Common stock |
609 | 507 | ||||||
Additional paid in capital |
72,836,368 | 22,249,321 | ||||||
Retained earnings |
24,302,430 | 5,177,622 | ||||||
Total stockholders’ equity |
97,139,407 | 27,427,450 | ||||||
Total liabilities and stockholders’
equity |
$ | 106,317,979 | $ | 31,444,690 | ||||
Other Selected Data:
TASER International, Inc.
Selected Cash Flows Information
| (Unaudited) | ||||||||
| December 31, 2004 | December 31, 2003 | |||||||
Net Income |
$ | 19,124,808 | $ | 4,453,690 | ||||
Depreciation & Amortization |
551,793 | 393,568 | ||||||
Net cash provided by
operating activities |
30,304,180 | 4,366,546 | ||||||
Net cash used in investing
activities |
(36,790,988 | ) | (4,216,220 | ) | ||||
Net cash provided by
financing activities |
15,365,641 | 12,151,063 | ||||||
Ending Cash Balance |
$ | 24,757,159 | $ | 15,878,326 | ||||
TASER International, Inc.
Key Operating Ratios
(Unaudited)
| Description | December 31, 2003 | March 31, 2004 | June 30, 2004 | |||||||||
Working Capital |
$22.4 Million | $40.6 Million | $48.7 Million | |||||||||
Current Ratio |
6.64 | 11.0 | 10.45 | |||||||||
Profit Margin |
26.1 | % | 27.0 | % | 27.5 | % | ||||||
Quarterly Net Sales |
$10.8 Million | $13.1 Million | $16.3 Million | |||||||||
Quarterly Net Sales
per Employee |
$ 71,394 | $ 66,013 | $ | 76,991 | ||||||||
Number of Employees |
151 | 199 | 212 | |||||||||
| Description | September 30, 2004 | December 31, 2004 | ||||||
Working Capital |
$53.6 Million | $63.1 Million | ||||||
Current Ratio |
9.64 | 7.89 | ||||||
Profit Margin |
32.3 | % | 25.8 | % | ||||
Quarterly Net Sales |
$18.9 Million | $19.2 Million | ||||||
Quarterly Net Sales
per Employee |
$ 76,711 | $ 77,306 | ||||||
Number of Employees |
247 | 249 | ||||||
For further information contact Marcy Rigoni, Manager of Investor Relations at Marcy@TASER.com or call 800-978-2737 ext. 2011. Visit the company’s web-site at www.TASER.com for facts and video.
SOURCE TASER International, Inc.
Dan Behrendt, Chief Financial Officer of TASER International, Inc., +1-480-905-2002
http://www.taser.com