CONTACT:
|
Dan Behrendt | |
| Chief Financial Officer | ||
| TASER International, Inc. | ||
| (480) 905-2000 |
| 1. | The Company received an order for and shipped 1,000 TASER® X26s and 1,000 TASER CAM™ systems to France. The advancement of the TASER program in France follows a lengthy trial and evaluation process and represents the first shipment authorized under a tender awarded to the Company’s distributor which authorizes the French Government to purchase up to 5,000 TASER systems. | ||
| 2. | The Company received and shipped significant orders from San Bernardino County (CA) Sherriff’s Office, Broward County (FL) Sherriff’s Office, the Nevada Department of Public Safety and the Miami-Dade Police Department. These supplemental orders demonstrate the continuing trend of agencies within the Company’s existing customer base expanding the use of TASER devices to their first responders. | ||
| 3. | A further product liability suit was dismissed representing a total of twenty-three wrongful death or injury lawsuits that have been dismissed, or judgment entered in favor of the Company. The Company also substantively won two additional business related lawsuits, and reached a settlement of the shareholder class action and derivative lawsuits. | ||
| 4. | The Company formed a Senior Executive Advisory Board to advise the Company as it begins initiatives into the military and federal government / homeland security markets to expand beyond its current domestic revenue base in municipal, county and state law enforcement agencies. |
| For the Three Months Ended | ||||||||
| September 30, 2006 | September 30, 2005 | |||||||
Net Sales |
$ | 18,311,543 | $ | 11,675,611 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
5,099,381 | 2,932,791 | ||||||
Indirect manufacturing expense (including
stock-based compensation expense of $33,419
and $0, respectively) |
1,580,182 | 1,002,919 | ||||||
Total Cost of Products Sold |
6,679,563 | 3,935,710 | ||||||
Gross Margin |
11,631,980 | 7,739,901 | ||||||
Sales, general and administrative expenses
(including stock-based compensation expense
of $194,885 and $0, respectively) |
7,125,408 | 6,724,899 | ||||||
Research and development expenses (including
stock-based compensation expense of $46,388
and $0, respectively) |
772,976 | 360,689 | ||||||
Income from Operations |
3,733,596 | 654,313 | ||||||
Interest income |
483,371 | 306,761 | ||||||
Interest expense |
(1,760 | ) | — | |||||
Other income (expense), net |
— | — | ||||||
Income (loss) before income taxes |
4,215,207 | 961,074 | ||||||
Provision (credit) for income taxes |
1,819,309 | 586,194 | ||||||
Net Income (loss) |
$ | 2,395,898 | $ | 374,880 | ||||
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 |
62,031,850 | 61,385,863 | ||||||
Diluted |
64,717,904 | 63,694,740 | ||||||
| For the Nine Months Ended | ||||||||
| September 30, 2006 | September 30, 2005 | |||||||
Net Sales |
$ | 48,430,303 | $ | 35,086,431 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
12,858,166 | 9,568,667 | ||||||
Indirect manufacturing expense (including
stock-based compensation expense of $83,965
and $0, respectively) |
4,594,840 | 4,021,200 | ||||||
Total Cost of Products Sold |
17,453,006 | 13,589,867 | ||||||
Gross Margin |
30,977,297 | 21,496,564 | ||||||
Sales, general and administrative expenses
(including stock-based compensation expense
of $707,265 and $0, respectively) |
21,982,755 | 19,242,541 | ||||||
Research and development expenses (including
stock-based compensation expense of $157,110
and $0, respectively) |
1,999,777 | 1,103,593 | ||||||
Litigation settlement expenses |
17,650,000 | — | ||||||
Income from Operations |
(10,655,235 | ) | 1,150,430 | |||||
Interest income |
1,281,399 | 853,473 | ||||||
Interest expense |
(5,650 | ) | (103 | ) | ||||
Other income (expense), net |
(228 | ) | (59,735 | ) | ||||
Income (loss) before income taxes |
(9,379,714 | ) | 1,944,065 | |||||
Provision (credit) for income taxes |
(2,975,007 | ) | 1,066,675 | |||||
Net Income (loss) |
$ | (6,404,707 | ) | $ | 877,390 | |||
Income per common and common equivalent shares |
||||||||
Basic |
$ | (0.10 | ) | $ | 0.01 | |||
Diluted |
$ | (0.10 | ) | $ | 0.01 | |||
Weighted average number of common and common
equivalent shares outstanding |
||||||||
Basic |
62,003,727 | 61,266,387 | ||||||
Diluted |
62,003,727 | 63,951,621 | ||||||
| September 30, 2006 | December 31, 2005 | |||||||
| ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 15,833,820 | $ | 16,351,909 | ||||
Short-term investments |
5,638,637 | — | ||||||
Accounts receivable, net |
10,387,944 | 5,422,027 | ||||||
Inventory |
8,531,385 | 10,105,336 | ||||||
Prepaids and other assets |
2,330,459 | 2,795,576 | ||||||
Insurance settlement proceeds receivable |
4,538,852 | 575,000 | ||||||
Income tax receivable |
66,511 | 44,454 | ||||||
Current deferred income tax asset |
8,209,718 | 6,955,500 | ||||||
Total Current Assets |
55,537,326 | 42,249,802 | ||||||
Long-term investments |
29,028,942 | 27,548,120 | ||||||
Property and equipment, net |
20,794,976 | 21,061,754 | ||||||
Deferred income tax asset |
21,828,408 | 20,040,788 | ||||||
Intangible assets, net |
1,492,672 | 1,340,783 | ||||||
Total Assets |
$ | 128,682,324 | $ | 112,241,247 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Current portion of capital lease obligations |
$ | 44,669 | $ | 43,111 | ||||
Accounts payable and accrued liabilities |
6,604,931 | 6,315,654 | ||||||
Current deferred revenue |
930,152 | 561,165 | ||||||
Deferred insurance settlement proceeds |
660,824 | 476,515 | ||||||
Customer deposits |
259,351 | 190,256 | ||||||
Litigation settlement liabilities |
21,750,000 | — | ||||||
Total Current Liabilities |
30,249,927 | 7,586,701 | ||||||
Capital lease obligations, net of current portion |
42,485 | 76,188 | ||||||
Deferred revenue, net of current portion |
1,580,598 | 839,983 | ||||||
Total Liabilities |
31,873,010 | 8,502,872 | ||||||
Commitments and Contingencies |
— | — | ||||||
Stockholders’ Equity |
||||||||
Common stock |
619 | 619 | ||||||
Additional paid-in capital |
80,427,462 | 78,742,862 | ||||||
Treasury stock |
(2,208,954 | ) | — | |||||
Retained earnings |
18,590,187 | 24,994,894 | ||||||
Total Stockholders’ Equity |
96,809,314 | 103,738,375 | ||||||
Total Liabilities and Stockholders’ Equity |
$ | 128,682,324 | $ | 112,241,247 | ||||
| For the Nine Months Ended | ||||||||
| September 30, 2006 | September 30, 2005 | |||||||
Net income / loss |
$ | (6,404,707 | ) | $ | 877,930 | |||
Depreciation and amortization |
1,548,115 | 1,185,374 | ||||||
Stock-based compensation expense |
948,340 | — | ||||||
Net cash provided (used) by operating activities |
9,539,435 | (363,956 | ) | |||||
Net cash provided (used) by investing activities |
(8,552,685 | ) | 2,270,515 | |||||
Net cash provided (used) by financing activities |
(1,504,839 | ) | 469,987 | |||||
Cash and Cash Equivalents, end of period |
15,833,820 | 17,133,705 | ||||||