EXHIBIT 99.1
FOR RELEASE ON October 26, 2005 at 7:30 a.m. E.S.T.
| CONTACT: |
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Dan Behrendt
Chief Financial Officer
TASER International, Inc.
(480) 905-2000 |
NEWS RELEASE
TASER International, Inc. Reports $11.7 million of Revenue for 3rd Quarter 2005
SCOTTSDALE, Ariz., October 26, 2005 — TASER International, Inc. (Nasdaq: TASR) a market leader in
advanced electronic control devices reported today that revenues for the third quarter of 2005
were $11.7 million, with income from operations of
$0.5 million, and net income of $0.3 million. Compared to the third quarter of 2004, sales
decreased by $7.3 million and net income decreased by $5.9 million. However, gross margins in the third quarter
of 2005 increased by 4.3
percentage points over the second quarter of 2005 due to improved operating efficiencies and
changes in product mix. The Company also enjoyed lower selling, general and administrative
expenses in the third quarter, with expenses $0.4 million lower than the second quarter of 2005.
The combination of higher gross margins and lower selling, general
and administrative expenses
allowed the Company to remain profitable despite lower sales levels.
Significant events in the third quarter of 2005 include:
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1. |
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The Company had two wrongful death suits dismissed during the quarter. The Company
received a summary judgment in the Torres, et al. v. City of Madera, et al. case. The
Company also had a favorable outcome in the Madrigal, et al. v. Taser International, et al.
case, with the case dismissed with prejudice. |
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2. |
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The Company filed a lawsuit against the parent company of USA Today and the Arizona
Republic for libel, false light invasion of privacy,
injurious falsehood and tortious interference with business relations. |
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3. |
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The Major City Chiefs Association, Major County Sheriffs’ Association, and the FBI National Institute Associates Passed a Resolution Supporting Use of
Electronic Control Devices. |
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4. |
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The Canadian Police Research Centre Issued Guidance on Use of Conducted Energy Devices.
The report found that when used properly, TASER devices save lives and reduce injuries. In
addition, the Georgia Association of Chiefs of Police Issued Recommendations on Use of
Electronic Control Weapons that generally support their use. |
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5. |
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TASER International Demonstrated the TASER Cam™ audio-video recording system for
TASER ™ X26 at the 112th Annual International Association of Chiefs of Police (IACP)
Conference in Miami. The TASER Cam (VDPM™) leverages the modular design of the TASER X26
adding yet another layer of accountability to the TASER system. |
“We are pleased that, despite a challenging environment, we continued to remain profitable with
positive cash flow from operations for the third quarter,” said Rick Smith, Chief Executive Officer of TASER
International, Inc. “In the third quarter, we have remained focused on key operating priorities
such as improving efficiencies and continuing new product development. I am pleased to report we
increased operating cash flow over the prior quarter, and we remain
optimistic about the future of our revolutionary, life-saving technology. We are particularly
excited about the upcoming production launch of the TASER Cam system, which will provide not only a
significant incremental revenue opportunity in 2006, but offer our
customers enhanced accountability. We believe the powerful
new capability to provide audio-video documentation of each use will provide a powerful defense for
police agencies against unfounded allegations of excessive use of force, as well as provide an
additional tool to both deter potential misuse and provide valuable training information,”
concluded Smith.
The Company will be hosting its third quarter earnings conference call on Wednesday, October 26,
2005 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: 866-271-5140
or 617-213-8893 for international callers. The passcode is 81121552 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. 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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September 30, 2005 |
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September 30, 2004 |
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Net Sales |
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$ |
11,675,611 |
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$ |
18,947,548 |
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Cost of Products Sold: |
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|
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|
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Direct manufacturing expense |
|
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2,932,791 |
|
|
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4,472,606 |
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Indirect manufacturing expense |
|
|
823,363 |
|
|
|
1,295,706 |
|
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|
|
|
|
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Total Cost of Products Sold |
|
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3,756,154 |
|
|
|
5,768,312 |
|
|
|
|
|
|
|
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Gross Margin |
|
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7,919,457 |
|
|
|
13,179,236 |
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Sales, general and administrative expenses |
|
|
7,041,837 |
|
|
|
3,062,422 |
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Research and development expenses |
|
|
404,789 |
|
|
|
105,239 |
|
|
|
|
|
|
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Income from Operations |
|
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472,831 |
|
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10,011,575 |
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Interest income |
|
|
306,761 |
|
|
|
88,463 |
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Interest expense |
|
|
— |
|
|
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— |
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Other income (expense), net |
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— |
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|
1,000 |
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Income before income taxes |
|
|
779,592 |
|
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10,101,038 |
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Provision for income tax |
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508,647 |
|
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3,975,000 |
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Net Income |
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$ |
270,945 |
|
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$ |
6,126,038 |
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Income per common and common equivalent shares |
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Basic |
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$ |
— |
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$ |
0.11 |
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Diluted |
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$ |
— |
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$ |
0.09 |
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Weighted average number of common and common
equivalent shares outstanding |
|
|
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Basic |
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61,385,863 |
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57,954,454 |
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Diluted |
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63,694,740 |
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64,541,234 |
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TASER International, Inc.
Statements of Income
(Unaudited)
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For the Nine Months Ended |
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September 30, 2005 |
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September 30, 2004 |
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Net Sales |
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$ |
35,086,431 |
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$ |
48,406,109 |
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Cost of Products Sold: |
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Direct manufacturing expense |
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9,568,667 |
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11,750,800 |
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Indirect manufacturing expense |
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3,531,611 |
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3,969,103 |
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Total Cost of Products Sold |
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13,100,278 |
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15,719,903 |
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Gross Margin |
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21,986,153 |
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32,686,206 |
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Sales, general and administrative expenses |
|
|
19,752,534 |
|
|
|
8,993,022 |
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Research and development expenses |
|
|
1,103,593 |
|
|
|
623,472 |
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|
|
|
|
|
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Income from Operations |
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|
1,130,026 |
|
|
|
23,069,712 |
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Interest income |
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|
853,473 |
|
|
|
184,307 |
|
Interest expense |
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|
(103 |
) |
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— |
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Other income (expense), net |
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(59,735 |
) |
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4,480 |
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Income before income taxes |
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1,923,661 |
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23,258,499 |
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Provision for income tax |
|
|
975,647 |
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|
9,091,000 |
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Net Income |
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$ |
948,014 |
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$ |
14,167,499 |
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Income per common and common equivalent shares |
|
|
|
|
|
|
|
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Basic |
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$ |
0.02 |
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$ |
0.25 |
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Diluted |
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$ |
0.01 |
|
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$ |
0.23 |
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|
|
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|
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|
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Weighted average number of common and common
equivalent shares outstanding |
|
|
|
|
|
|
|
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Basic |
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|
61,266,387 |
|
|
|
56,309,278 |
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Diluted |
|
|
63,951,621 |
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|
|
62,912,386 |
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TASER International, Inc.
Balance Sheets
(Unaudited)
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September 30, 2005 |
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December 31, 2004 |
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Assets
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Current Assets |
|
|
|
|
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|
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Cash and cash equivalents |
|
$ |
17,133,705 |
|
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$ |
14,757,159 |
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Short-term investments |
|
|
— |
|
|
|
17,201,477 |
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Accounts receivable, net |
|
|
7,305,378 |
|
|
|
8,460,112 |
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Inventory |
|
|
9,215,133 |
|
|
|
6,840,051 |
|
Prepaids and other assets |
|
|
1,471,285 |
|
|
|
1,639,734 |
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Income tax receivable |
|
|
42,376 |
|
|
|
52,973 |
|
Current deferred income tax asset |
|
|
5,539,350 |
|
|
|
11,083,422 |
|
|
|
|
|
|
|
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Total Current Assets |
|
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40,707,227 |
|
|
|
60,034,928 |
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Long-term investments |
|
|
25,555,785 |
|
|
|
18,071,815 |
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Property and Equipment, net |
|
|
21,000,653 |
|
|
|
14,756,512 |
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Deferred income tax asset |
|
|
21,144,068 |
|
|
|
15,310,207 |
|
Intangible assets, net |
|
|
1,340,772 |
|
|
|
1,279,116 |
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Total Assets |
|
$ |
109,748,505 |
|
|
$ |
109,452,578 |
|
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Liabilities and Stockholders’ Equity
|
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Current Liabilities |
|
|
|
|
|
|
|
|
Current portion of capital lease obligations |
|
$ |
— |
|
|
$ |
4,642 |
|
Accounts payable and accrued liabilities |
|
|
6,187,843 |
|
|
|
8,827,132 |
|
Customer deposits |
|
|
218,518 |
|
|
|
102,165 |
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
|
6,406,361 |
|
|
|
8,933,939 |
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Deferred Revenue |
|
|
730,773 |
|
|
|
607,856 |
|
|
|
|
|
|
|
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Total Liabilities |
|
|
7,137,134 |
|
|
|
9,541,795 |
|
|
|
|
|
|
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Stockholders’ Equity |
|
|
|
|
|
|
|
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Common Stock |
|
|
614 |
|
|
|
609 |
|
Additional Paid-in Capital |
|
|
77,603,379 |
|
|
|
75,850,810 |
|
Retained Earnings |
|
|
25,007,378 |
|
|
|
24,059,364 |
|
|
|
|
|
|
|
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Total Stockholders’ Equity |
|
|
102,611,371 |
|
|
|
99,910,783 |
|
|
|
|
|
|
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Total Liabilities and Stockholders’ Equity |
|
$ |
109,748,505 |
|
|
$ |
109,452,578 |
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Other Selected Data:
TASER International, Inc.
Selected Cash Flows Information
(Unaudited)
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For the Nine Months Ended |
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September 30, 2005 |
|
|
September 30, 2004 |
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Net income |
|
$ |
948,014 |
|
|
$ |
14,167,499 |
|
Depreciation and amortization |
|
|
1,185,374 |
|
|
|
335,626 |
|
Net cash (used) provided by operating activities |
|
|
(339,109 |
) |
|
|
22,274,147 |
|
Net cash provided (used) by investing activities |
|
|
2,245,668 |
|
|
|
(18,903,408 |
) |
Net cash provided by financing activities |
|
|
469,987 |
|
|
|
9,483,002 |
|
Cash and Cash Equivalents, end of period |
|
|
17,133,705 |
|
|
|
28,732,067 |
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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
