CONTACT:
|
Dan Behrendt | |
| Chief Financial Officer | ||
| TASER International, Inc. | ||
| (480) 905-2000 |
| 1. | Seven more product liability suits were dismissed during the quarter representing a total of thirty wrongful death or injury lawsuits that have been dismissed, or judgment entered in favor of the Company since 2004. The dismissals in the fourth quarter included the Alvarado litigation which was the first in-custody death trial for TASER International. This central Los Angeles jury verdict was an important win for both TASER International as well as the City of Los Angeles Police Department. Statistics from current customers show that TASER® Electronic Control Devices (ECDs) significantly reduce use of force claims and litigation. As such, TASER believes the jury verdict in the Alvarado case is an important indication that juries are seeing the life-saving benefits of law enforcement using TASER technology in the dangerous situations they face every day. | ||
| 2. | The Company saw continued growth of TASER deployments in France with $1.6 million in orders received in fourth quarter. | ||
| 3. | The National Board of Directors of the League of United Latin American Citizens (LULAC) unanimously passed a motion stating that LULAC should continue to work with TASER International to establish best practice guidelines for the proper use of TASER systems. The Company’s outreach and education campaigns to key public interest groups have helped to build support for our technology. | ||
| 4. | The National League of Cities approved a resolution from the league’s public safety committee encouraging the federal government to provide adequate funding to local governments for the purchase of state-of-the-art non-lethal technologies such as ECDs and for the development and promulgation of policies governing appropriate training, use, and placement of ECDs in the local use of force continuum. | ||
| 5. | The Company announced the new TASER Remote Area Denial (T-RAD) concept along with a networking solution concept, the TASERNETTM system, which may open a whole new market space for area denial and military applications as early as 2008. |
| For the Three Months Ended | ||||||||
| December 31, 2006 | December 31, 2005 | |||||||
Net Sales |
$ | 19,287,548 | $ | 12,607,749 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
5,437,873 | 3,275,149 | ||||||
Indirect manufacturing expense (including stock-based compensation
expense of $35,121 and $0, respectively) |
1,647,912 | 1,231,270 | ||||||
Total Cost of Products Sold |
7,085,785 | 4,506,419 | ||||||
Gross Margin |
12,201,763 | 8,101,330 | ||||||
Sales, general and administrative expenses (including stock-based
compensation of $113,077 and $0, respectively) |
7,698,008 | 7,240,943 | ||||||
Research and development expenses (including stock-based compensation of
$42,307 and $0, respectively) |
704,744 | 470,455 | ||||||
Income from Operations |
3,799,011 | 389,932 | ||||||
Interest income |
599,008 | 375,570 | ||||||
Interest expense |
(1,631 | ) | (4,105 | ) | ||||
Other income (expense), net |
(253 | ) | (36 | ) | ||||
Income before provision for income taxes |
4,396,135 | 761,361 | ||||||
Provision for income taxes |
2,079,107 | 582,235 | ||||||
Net Income |
$ | 2,317,028 | $ | 179,126 | ||||
Income per common and common equivalent shares |
||||||||
Basic |
$ | 0.04 | $ | 0.00 | ||||
Diluted |
$ | 0.04 | $ | 0.00 | ||||
Weighted average number of common and common equivalent shares outstanding |
||||||||
Basic |
61,928,730 | 61,419,984 | ||||||
Diluted |
64,752,109 | 63,222,162 | ||||||
| For the Year Ended | ||||||||
| December 31, 2006 | December 31, 2005 | |||||||
Net Sales |
$ | 67,717,851 | $ | 47,694,181 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
18,296,039 | 12,843,816 | ||||||
Indirect manufacturing expense (including stock-based compensation
expense of $131,086 and $0, respectively) |
6,242,751 | 5,252,470 | ||||||
Total Cost of Products Sold |
24,538,790 | 18,096,286 | ||||||
Gross Margin |
43,179,061 | 29,597,895 | ||||||
Sales, general and administrative expenses (including stock-based
compensation of $808,341 and $0, respectively) |
29,680,764 | 26,483,485 | ||||||
Research and development expenses (including stock-based compensation of
$199,418 and $0, respectively) |
2,704,521 | 1,574,048 | ||||||
Litigation settlement expenses |
17,650,000 | — | ||||||
Income (Loss) from Operations |
(6,856,224 | ) | 1,540,362 | |||||
Interest income |
1,880,407 | 1,229,044 | ||||||
Interest expense |
(7,281 | ) | (4,208 | ) | ||||
Other income (expense), net |
(481 | ) | (59,772 | ) | ||||
Income
(loss) before provision for income taxes |
(4,983,579 | ) | 2,705,426 | |||||
Provision
(credit) for income taxes |
(895,900 | ) | 1,648,910 | |||||
Net Income (Loss) |
$ | (4,087,679 | ) | $ | 1,056,516 | |||
Income (loss) per common and common equivalent shares |
||||||||
Basic |
$ | (0.07 | ) | $ | 0.02 | |||
Diluted |
$ | (0.07 | ) | $ | 0.02 | |||
Weighted average number of common and common equivalent shares outstanding |
||||||||
Basic |
61,984,240 | 61,303,939 | ||||||
Diluted |
61,984,240 | 63,556,246 | ||||||
| December 31, 2006 | December 31, 2005 | |||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 18,773,685 | $ | 16,351,909 | ||||
Short-term investments |
3,557,289 | — | ||||||
Accounts receivable, net |
10,068,049 | 5,422,027 | ||||||
Inventory |
9,257,746 | 10,105,336 | ||||||
Prepaids and other assets |
2,161,971 | 2,795,576 | ||||||
Insurance settlement proceeds receivable |
— | 575,000 | ||||||
Income tax receivable |
2,031 | 44,454 | ||||||
Current deferred income tax asset |
12,295,493 | 6,955,500 | ||||||
Total Current Assets |
56,116,264 | 42,249,802 | ||||||
Long-term investments |
25,477,574 | 27,548,120 | ||||||
Property and equipment, net |
20,842,632 | 21,061,754 | ||||||
Deferred income tax asset |
15,868,719 | 20,040,788 | ||||||
Intangible assets, net |
1,532,500 | 1,340,783 | ||||||
Total Assets |
$ | 119,837,689 | $ | 112,241,247 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Current portion of capital lease obligations |
$ | 45,214 | $ | 43,111 | ||||
Accounts payable and accrued liabilities |
6,789,474 | 6,315,654 | ||||||
Current deferred revenue |
1,037,441 | 561,165 | ||||||
Deferred insurance settlement proceeds |
509,067 | 476,515 | ||||||
Customer deposits |
171,492 | 190,256 | ||||||
Litigation settlement liabilities |
9,750,000 | — | ||||||
Total Current Liabilities |
18,302,688 | 7,586,701 | ||||||
Capital lease obligations, net of current portion |
30,974 | 76,188 | ||||||
Deferred revenue, net of current portion |
1,975,489 | 839,983 | ||||||
Other
liabilities |
199,999 | — | ||||||
Total Liabilities |
20,509,150 | 8,502,872 | ||||||
Commitments and Contingencies |
— | — | ||||||
Stockholders’ Equity |
||||||||
Common stock |
619 | 619 | ||||||
Additional paid-in capital |
80,629,659 | 78,742,862 | ||||||
Treasury stock |
(2,208,954 | ) | — | |||||
Retained earnings |
20,907,215 | 24,994,894 | ||||||
Total Stockholders’ Equity |
99,328,539 | 103,738,375 | ||||||
Total Liabilities and Stockholders’ Equity |
$ | 119,837,689 | $ | 112,241,247 | ||||
| For the Year Ended | ||||||||
| December 31, 2006 | December 31, 2005 | |||||||
Net income
(loss) |
$ | (4,087,679 | ) | $ | 1,056,516 | |||
Depreciation and amortization |
2,096,596 | 1,712,738 | ||||||
Stock-based compensation expense |
1,138,845 | — | ||||||
Net cash provided by operating activities |
7,481,823 | 1,067,704 | ||||||
Net cash used by investing activities |
(3,555,934 | ) | (191,114 | ) | ||||
Net cash provided (used) by financing activities |
(1,504,113 | ) | 718,160 | |||||
Cash and Cash Equivalents, end of period |
$ | 18,773,685 | $ | 16,351,909 | ||||