CONTACT:
|
Dan Behrendt | |
| Chief Financial Officer | ||
| TASER International, Inc. | ||
| (480) 905-2000 |
| 1. | We successfully debuted the TASER® C2 personal protector at the Consumer Electronics Show in January 2007. This new device is a compact system that provides the same proven Neuro-Muscular Incapacitation (NMI) effectiveness as our market leading TASER X26C but in a form factor and at a price point that will be more attractive to private citizens. The TASER C2 also promotes responsible ownership and aims to prevent misuse with the introduction of a background check system whereby the device remains inactive until the owner has successfully completed a background check either online or via a toll-free telephone number. In addition the TASER C2 cartridges each have a unique serial number and are equipped with Anti-Felon Identification tags, which are dispersed upon deployment and which would allow the police to track a potential misuse. We expect to begin shipments of the TASER C2 in the second quarter of 2007. | ||
| 2. | Fourteen more product liability suits were dismissed during the quarter representing a total of forty-four wrongful death or injury suits that have been dismissed or judgment entered in favor of the Company since 2004. | ||
| 3. | A landmark medical study published in the Society for Academic Emergency Medicine found that the prolonged exposure from a TASER X26 Electronic Control Device has no abnormal respiratory effects on human subjects. This study can be viewed at: http://www.aemj.org/cgi/content/full/14/3/197 |
| For the Three Months Ended | ||||||||
| March 31, 2007 | March 31, 2006 | |||||||
Net Sales |
$ | 15,301,815 | $ | 13,893,563 | ||||
Cost of Products Sold: |
||||||||
Direct manufacturing expense |
4,608,569 | 3,529,401 | ||||||
Indirect manufacturing expense (including
stock-based compensation expense of $31,698
and $31,834, respectively) |
1,804,217 | 1,409,468 | ||||||
Total Cost of Products Sold |
6,412,786 | 4,938,869 | ||||||
Gross Margin |
8,889,029 | 8,954,694 | ||||||
Sales, general and administrative expenses
(including stock-based compensation expense
of $187,773 and $267,144 respectively) |
7,581,908 | 7,254,312 | ||||||
Research and development expenses (including
stock-based compensation expense of $42,692
and $63,022, respectively) |
970,786 | 663,810 | ||||||
Income from Operations |
336,335 | 1,036,572 | ||||||
Interest income |
507,869 | 367,435 | ||||||
Interest expense |
(1,500 | ) | (2,007 | ) | ||||
Other income (expense), net |
— | (112 | ) | |||||
Income before provision for income taxes |
842,704 | 1,401,888 | ||||||
Provision for income taxes |
348,150 | 595,909 | ||||||
Net Income |
$ | 494,554 | $ | 805,979 | ||||
Income per common and common equivalent shares |
||||||||
Basic |
$ | 0.01 | $ | 0.01 | ||||
Diluted |
$ | 0.01 | $ | 0.01 | ||||
Weighted average number of common and common
equivalent shares outstanding |
||||||||
Basic |
62,010,198 | 61,947,048 | ||||||
Diluted |
64,692,636 | 64,053,031 | ||||||
| March 31, 2007 | December 31, 2006 | |||||||
| ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 16,073,479 | $ | 18,773,685 | ||||
Short-term investments |
— | 3,557,289 | ||||||
Accounts receivable, net |
7,493,522 | 10,068,049 | ||||||
Inventory |
10,311,705 | 9,257,746 | ||||||
Prepaids and other assets |
2,248,299 | 2,164,002 | ||||||
Current deferred income tax asset |
9,794,566 | 12,295,493 | ||||||
Total Current Assets |
45,921,571 | 56,116,264 | ||||||
Long-term investments |
25,483,105 | 25,477,574 | ||||||
Property and equipment, net |
21,344,706 | 20,842,632 | ||||||
Deferred income tax asset |
17,851,764 | 15,868,719 | ||||||
Intangible assets, net |
1,698,812 | 1,532,500 | ||||||
Total Assets |
$ | 112,299,958 | $ | 119,837,689 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Current portion of capital lease obligations |
$ | 45,774 | $ | 45,214 | ||||
Accounts payable and accrued liabilities |
6,056,758 | 6,789,474 | ||||||
Current deferred revenue |
1,105,871 | 1,037,441 | ||||||
Deferred insurance settlement proceeds |
476,139 | 509,067 | ||||||
Customer deposits |
208,653 | 171,492 | ||||||
Litigation settlement liabilities |
1,750,000 | 9,750,000 | ||||||
Total Current Liabilities |
9,643,195 | 18,302,688 | ||||||
Capital lease obligations, net of current portion |
19,314 | 30,974 | ||||||
Deferred revenue, net of current portion |
2,072,223 | 1,975,489 | ||||||
Other liabilities |
— | 199,999 | ||||||
Total Liabilities |
11,734,732 | 20,509,150 | ||||||
Commitments and Contingencies |
— | — | ||||||
Stockholders’ Equity
Common stock |
623 | 622 | ||||||
Additional paid-in capital |
81,371,791 | 80,629,659 | ||||||
Treasury stock |
(2,208,957 | ) | (2,208,957 | ) | ||||
Retained earnings |
21,401,769 | 20,907,215 | ||||||
Total Stockholders’ Equity |
100,565,226 | 99,328,539 | ||||||
Total Liabilities and Stockholders’ Equity |
$ | 112,299,958 | $ | 119,837,689 | ||||
| For the Three Months Ended | ||||||||
| March 31, 2007 | March 31, 2006 | |||||||
Net income |
$ | 494,554 | $ | 805,979 | ||||
Depreciation and amortization |
569,324 | 516,740 | ||||||
Stock-based compensation expense |
262,163 | 362,000 | ||||||
Net cash provided (used) by operating activities |
(5,483,124 | ) | 1,962,862 | |||||
Net cash provided (used) by investing activities |
2,314,048 | (4,135,742 | ) | |||||
Net cash provided by financing activities |
468,870 | 88,430 | ||||||
Cash and Cash Equivalents, end of period |
$ | 16,073,479 | $ | 14,267,459 | ||||