| CONTACT: | Dan Behrendt | |||
| Chief Financial Officer | ||||
| TASER International, Inc. | ||||
| (480) 905-2000 |
| 1. | The Company commenced shipping of its first TASER Cam™ production units following a BETA test and evaluation of field results. |
| 2. | Maricopa County Sheriff’s Office in Arizona announced plans to arm 1,900 of 2,200 officers with the TASER® X26 as well as the TASER Cam, which will represent both the first major TASER system deployment in a correctional facility and the first large deployment of the TASER Cam in the U.S. The Company received orders for and shipped approximately $0.5 million worth of product to the Maricopa County Sheriff’s office in the second quarter after the first order in the planned roll out was received. |
| 3. | The Company received sizeable orders from San Diego Police Department, Charlotte-Mecklenburg Police in North Carolina and export re-orders from international customers demonstrating continuing momentum in demand for TASER devices. |
| 4. | Ten more product liability suits were dismissed representing a total of twenty-two wrongful death or injury lawsuits that have been dismissed, or judgment entered in favor of the Company in the past 24 months. |
| 5. | The Company received notification from the United States Securities and Exchange Commission (SEC) that its investigation has been terminated in its entirety with no recommendation for enforcement action. |
| For the Three Months Ended | ||||||||
| June 30, 2006 | June 30, 2005 | |||||||
Net Sales |
$ | 16,225,197 | $ | 13,206,659 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
4,229,384 | 3,525,670 | ||||||
Indirect manufacturing expense (including
stock-based compensation expense of $30,711
and $0, respectively) |
1,605,190 | 1,489,466 | ||||||
Total Cost of Products Sold |
5,834,574 | 5,015,136 | ||||||
Gross Margin |
10,390,623 | 8,191,523 | ||||||
Sales, general and administrative expenses
(including stock-based compensation expense
of $233,236 and $0, respectively) |
7,603,035 | 7,110,265 | ||||||
Research and
development expenses (including
stock-based compensation expense of $47,701
and $0, respectively) |
562,991 | 395,541 | ||||||
Income from Operations |
2,224,597 | 685,717 | ||||||
Interest income |
430,593 | 347,837 | ||||||
Interest expense |
(1,883 | ) | (15 | ) | ||||
Other income (expense), net |
(116 | ) | (59,360 | ) | ||||
Income (loss) before income taxes |
2,653,191 | 974,179 | ||||||
Provision (credit) for income taxes |
1,135,610 | 477,062 | ||||||
Net Income (loss) |
$ | 1,517,581 | $ | 497,117 | ||||
Income per common and common
equivalent shares |
||||||||
Basic |
$ | 0.02 | $ | 0.01 | ||||
Diluted |
$ | 0.02 | $ | 0.01 | ||||
Weighted average number of common and
common equivalent shares outstanding |
||||||||
Basic |
62,035,485 | 61,319,959 | ||||||
Diluted |
64,137,109 | 63,951,739 | ||||||
| For the Six Months Ended | ||||||||
| June 30, 2006 | June 30, 2005 | |||||||
Net Sales |
$ | 30,118,760 | $ | 23,410,820 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
7,758,785 | 6,635,876 | ||||||
Indirect manufacturing expense (including
stock-based compensation expense of $62,545
and $0, respectively) |
3,014,658 | 3,018,281 | ||||||
Total Cost of Products Sold |
10,773,443 | 9,654,157 | ||||||
Gross Margin |
19,345,317 | 13,756,663 | ||||||
Sales, general and administrative expenses
(including stock-based compensation expense
of $500,380 and $0, respectively) |
14,857,347 | 12,517,642 | ||||||
Research and
development expenses (including
stock-based compensation expense of $110,723
and $0, respectively) |
1,226,801 | 742,904 | ||||||
Income from Operations |
3,261,169 | 496,117 | ||||||
Interest income |
798,028 | 546,712 | ||||||
Interest expense |
(3,890 | ) | (103 | ) | ||||
Other income (expense), net |
(228 | ) | (59,735 | ) | ||||
Income (loss) before income taxes |
4,055,079 | 982,991 | ||||||
Provision (credit) for income taxes |
1,731,519 | 480,481 | ||||||
Net Income (loss) |
$ | 2,323,560 | $ | 502,510 | ||||
Income per common and
common equivalent shares |
||||||||
Basic |
$ | 0.04 | $ | 0.01 | ||||
Diluted |
$ | 0.04 | $ | 0.01 | ||||
Weighted average number of common and
common equivalent shares outstanding |
||||||||
Basic |
61,990,714 | 61,209,420 | ||||||
Diluted |
64,089,746 | 64,152,543 | ||||||
| June 30, 2006 | December 31, 2005 | |||||||
| ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 15,419,832 | $ | 16,351,909 | ||||
Short-term investments |
5,110,858 | — | ||||||
Accounts receivable, net |
7,807,840 | 5,422,027 | ||||||
Inventory |
9,605,618 | 10,105,336 | ||||||
Prepaids and other assets |
1,271,303 | 2,795,576 | ||||||
Insurance settlement proceeds receivable |
— | 575,000 | ||||||
Income tax receivable |
1,754 | 44,454 | ||||||
Current deferred income tax asset |
7,125,482 | 6,955,500 | ||||||
Total Current Assets |
46,342,687 | 42,249,802 | ||||||
Long-term investments |
28,612,203 | 27,548,120 | ||||||
Property and equipment, net |
21,034,034 | 21,061,754 | ||||||
Deferred income tax asset |
18,284,488 | 20,040,788 | ||||||
Intangible assets, net |
1,421,697 | 1,340,783 | ||||||
Total Assets |
$ | 115,695,109 | $ | 112,241,247 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Current portion of capital lease obligations |
$ | 44,137 | $ | 43,111 | ||||
Accounts payable and accrued liabilities |
6,064,541 | 6,315,654 | ||||||
Current deferred revenue |
722,590 | 561,165 | ||||||
Deferred insurance settlement proceeds |
439,226 | 476,515 | ||||||
Customer deposits |
203,233 | 190,256 | ||||||
Total Current Liabilities |
7,473,727 | 7,586,701 | ||||||
Capital lease obligations, net of current portion |
53,856 | 76,188 | ||||||
Deferred revenue, net of current portion |
1,164,777 | 839,983 | ||||||
Total Liabilities |
8,692,360 | 8,502,872 | ||||||
Commitments and Contingencies |
— | — | ||||||
Stockholders’ Equity |
||||||||
Common stock |
620 | 619 | ||||||
Additional paid-in capital |
79,683,675 | 78,742,862 | ||||||
Retained earnings |
27,318,454 | 24,994,894 | ||||||
Total Stockholders’ Equity |
107,002,749 | 103,738,375 | ||||||
Total Liabilities and Stockholders’ Equity |
$ | 115,695,109 | $ | 112,241,247 | ||||
| For the Six Months Ended | ||||||||
| June 30, 2006 | June 30, 2005 | |||||||
Net income |
$ | 2,323,560 | $ | 502,510 | ||||
Depreciation and amortization |
1,043,069 | 706,055 | ||||||
Stock-based compensation expense |
673,648 | — | ||||||
Net cash provided (used) by operating activities |
6,093,267 | (714,791 | ) | |||||
Net cash provided (used) by investing activities |
(7,271,204 | ) | 1,980,294 | |||||
Net cash provided by financing activities |
245,860 | 438,961 | ||||||
Cash and Cash Equivalents, end of period |
15,419,832 | 16,461,623 | ||||||