EXHIBIT 99.1
FOR RELEASE ON
July 20, 2005 at 7:30 a.m. E.S.T.
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CONTACT:
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Dan Behrendt |
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Chief Financial Officer |
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TASER International, Inc. |
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(480) 905-2000 |
NEWS RELEASE
TASER International, Inc. Reports $13.2 million of Revenue for 2nd Quarter 2005
SCOTTSDALE, Ariz., July 20, 2005 — TASER International, Inc. (Nasdaq: TASR)
a market leader in advanced non-lethal devices reported today that revenues for the second quarter of 2005 were $13.2 million,
with income from operations of $0.6 million, net income of $0.5 million and basic and diluted earnings per share of $0.01.
Compared to the second quarter of 2004, sales decreased by $3.1 million and net income decreased by $4.0 million.
However, sequentially the business improved as revenues in the second quarter of 2005 increased by $3.0 million over
the first quarter of 2005 and net income increased by $0.3 million over the first quarter of 2005.
During the second quarter of 2005 TASER International achieved several significant milestones including:
1. Foreign sales were $1.7 million for the second
quarter, with shipments to the United Kingdom totaling $1.4 million, following completion of extensive studies by the UK Defense,
Scientific and Technical Laboratories (DSTL), within the Ministry of Defense, and the Home Office Scientific Development Branch.
This study is available at http://publications.psdb.gov.uk/docs/Taser%20Report%202005%20Release%20V1Screen2.pdf. Year to date
international sales were over $2.5 million, which exceeds total year 2004 international sales.
2. The Company received a follow on order of $1.4 million
from the United States Military following the completion of the Human Effects Risk Characterization study conducted by the Human Effects
Center of Excellence within the Department of Defense. This study is available at http://www.iacp.org/research/CuttingEdge/HECOEReport.pdf
3. The Company completed construction and moved into its state-of-the-art 100,000 square foot manufacturing facility and corporate headquarters.
4. A
human cardiac safety study concerning TASER™ technology
was published in a supplemental edition of Academic Emergency Medicine. This study is available at http://www.aemj.org/cgi/content/abstract/12/5_suppl_1/71
5. A Canadian national study supportive of TASER technology was released. This study is available at http://www.cprc.org/docs/bcopcc_final.pdf
6. The completion of the Wisconsin Department of Justice,
Law Enforcement Standards Board's recommendations for training for employment of an electronic control devices, including TASER
brand devices, by law enforcement officers in Wisconsin. This study is available at https://wilenet.org/html/taser/TSReport.pdf
“We are pleased that, despite a challenging environment, we achieved improvements
in both sales and net income compared to the first quarter of 2005,” said Rick Smith, Chief Executive Officer of TASER International,
Inc. “In the second quarter, we invested significant resources defending our product safety record against what we believe
to be misleading information in the public domain. Accordingly, sales general and administrative expenses increased significantly,
particularly in the areas of legal services and public education campaigns. In addition to these efforts, we have remained focused on key
operating priorities such as improving efficiencies and capitalizing on growth opportunities abroad. I am pleased to report we increased
profitability and top-line sales over the prior quarter, and we remain optimistic about the future of our revolutionary, life-saving
technology,” concluded Smith.
The Company will be hosting its second quarter earnings conference call on Wednesday, July 20, 2005
at 10:00 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:
866-831-6270 or 617-213-8858 and use the passcode: 73556575.
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-Qs and its Annual Report on Form 10-KSB/A.
TASER International, Inc.
Statements of Income
(Unaudited)
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For the Three Months Ended |
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June 30, 2005 |
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June 30, 2004 |
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Net Sales |
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$ |
13,206,659 |
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$ |
16,322,007 |
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Cost of Products Sold: |
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Direct manufacturing expense |
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3,525,670 |
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4,105,537 |
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Indirect manufacturing expense |
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1,290,429 |
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1,354,247 |
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Total Cost of Products Sold |
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4,816,099 |
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5,459,784 |
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Gross Margin |
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8,390,560 |
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10,862,223 |
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Sales, general and administrative expenses |
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7,458,533 |
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3,359,395 |
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Research and development expenses |
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351,441 |
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212,910 |
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Income from Operations |
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580,586 |
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7,289,918 |
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Interest income |
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347,837 |
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55,118 |
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Interest expense |
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(15 |
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(392 |
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Other income (expense), net |
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(59,360 |
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5,788 |
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Income before income taxes |
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869,048 |
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7,350,432 |
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Provision for income tax |
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360,000 |
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2,860,000 |
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Net Income |
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$ |
509,048 |
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$ |
4,490,432 |
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Income per common and common equivalent shares |
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Basic |
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$ |
0.01 |
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$ |
0.08 |
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Diluted |
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$ |
0.01 |
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$ |
0.07 |
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Weighted average number of common and common
equivalent shares outstanding |
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Basic |
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61,319,959 |
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57,558,688 |
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Diluted |
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63,951,739 |
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64,437,526 |
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TASER International, Inc.
Statements of Income
(Unaudited)
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For the Six Months Ended |
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June 30, 2005 |
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June 30, 2004 |
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Net Sales |
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$ |
23,410,820 |
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$ |
29,458,561 |
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Cost of Products Sold: |
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Direct manufacturing expense |
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6,635,876 |
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7,278,059 |
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Indirect manufacturing expense |
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2,708,248 |
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2,714,227 |
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Total Cost of Products Sold |
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9,344,124 |
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9,992,286 |
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Gross Margin |
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14,066,696 |
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19,466,275 |
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Sales, general and administrative expenses |
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12,710,697 |
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5,928,683 |
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Research and development expenses |
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698,804 |
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480,005 |
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Income from Operations |
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657,195 |
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13,057,587 |
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Interest income |
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546,712 |
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93,786 |
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Interest expense |
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(103 |
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Other income (expense), net |
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(59,735 |
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6,085 |
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Income before income taxes |
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1,144,069 |
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13,157,458 |
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Provision for income tax |
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467,000 |
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5,116,000 |
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Net Income |
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$ |
677,069 |
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$ |
8,041,458 |
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Income per common and common equivalent shares |
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Basic |
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$ |
0.01 |
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$ |
0.14 |
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Diluted |
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$ |
0.01 |
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$ |
0.13 |
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Weighted average number of common and common
equivalent shares outstanding |
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Basic |
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61,209,420 |
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55,477,972 |
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Diluted |
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64,152,543 |
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62,513,808 |
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TASER International, Inc.
Balance Sheets
(Unaudited)
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June 30, 2005 |
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December 31, 2004 |
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Assets
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Current Assets |
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Cash and cash equivalents |
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$ |
16,461,623 |
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$ |
14,757,159 |
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Short-term investments |
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2,006,782 |
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17,201,477 |
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Accounts receivable, net |
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6,525,683 |
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8,460,112 |
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Inventory |
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9,162,411 |
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6,840,051 |
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Prepaids and other assets |
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1,372,913 |
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1,639,734 |
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Income tax receivable |
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56,966 |
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52,973 |
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Current deferred income tax asset |
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10,493,116 |
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11,083,422 |
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Total Current Assets |
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46,079,494 |
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60,034,928 |
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Long-term investments |
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25,535,643 |
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18,071,815 |
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Property and Equipment, net |
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20,764,653 |
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14,756,512 |
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Deferred income tax asset |
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16,600,142 |
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15,310,207 |
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Intangible assets, net |
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1,298,859 |
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1,279,116 |
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Total Assets |
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$ |
110,278,791 |
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$ |
109,452,578 |
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Liabilities and Stockholders’ Equity
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Current Liabilities |
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Current portion of capital lease obligations |
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$ |
— |
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$ |
4,642 |
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Accounts payable and accrued liabilities |
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7,207,537 |
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8,827,132 |
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Customer deposits |
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209,853 |
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102,165 |
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Total Current Liabilities |
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7,417,390 |
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8,933,939 |
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Deferred Revenue |
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650,808 |
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607,856 |
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Total Liabilities |
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8,068,198 |
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9,541,795 |
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Stockholders’ Equity |
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Common Stock |
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613 |
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609 |
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Additional Paid-in Capital |
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77,473,547 |
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75,850,810 |
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Retained Earnings |
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24,736,433 |
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24,059,364 |
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Total Stockholders’ Equity |
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102,210,593 |
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99,910,783 |
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Total Liabilities and Stockholders’ Equity |
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$ |
110,278,791 |
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$ |
109,452,578 |
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Other Selected Data:
TASER International, Inc.
Selected Cash Flows Information
(Unaudited)
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For the Six Months Ended |
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June 30, 2005 |
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June 30, 2004 |
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Net income |
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$ |
677,069 |
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$ |
8,041,458 |
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Depreciation and amortization |
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706,055 |
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255,364 |
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Net cash (used) provided by operating activities |
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(795,644 |
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13,174,102 |
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Net cash provided (used) by investing activities |
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2,061,147 |
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(2,081,791 |
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Net cash provided by financing activities |
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438,961 |
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7,595,761 |
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Cash and Cash Equivalents, end of period |
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16,461,623 |
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34,566,398 |
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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., +1-480-905-2002. Visit the company’s web-site at www.TASER.com for facts and video.
Nasdaq: TASR | Legal Info | Privacy Statement | Feedback?
Copyright © 2004 TASER International, Inc. All rights reserved
Main: 800.978.2737 Direct: 480.905.2000 Fax: 480.991.0791