Exhibit 99.1
FOR RELEASE ON APRIL 23, 2009 at 7:30 a.m. ET
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CONTACT:
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Dan Behrendt
Chief Financial Officer
TASER International, Inc.
(480) 905-2000 |
TASER International, Inc. Reports Results
For First Quarter 2009
Company reports first quarter revenue of $24.6 million, generates $10.5 million in cash
from operations
SCOTTSDALE, Ariz., April 23, 2009 TASER International, Inc. (NASDAQ: TASR), a leading provider
of technology solutions and the market leader in electronic control devices (ECDs) today reported
financial results for the first quarter of 2009.
Q1 Financial Summary
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For the first quarter of 2009 revenues were $24.6 million, an increase of $2.1 million
or 9% over the same quarter of the prior year. |
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Operations continued to demonstrate improvement, as gross margin increased to 59.5% in
the first quarter of 2009, compared to 56.8% in the first quarter of 2008, reflecting the
Companys continued focus on production efficiency and cost controls. Sequentially, gross
margins declined primarily due to a change in sales mix from higher margin ECDs to lower
margin cartridges, mostly driven by a large United Kingdom cartridge order in the first
quarter of 2009. |
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Consistent with the Companys strategy announced last year, research and development
expenses increased by $2.1 million, or 99%, in the first quarter of 2009 compared to the
same period in 2008, reflecting the Companys ongoing commitment to invest in new
technology and product diversification. |
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Non-GAAP income from operations for the first quarter of 2009, which excludes
stock-based compensation charges and depreciation and amortization, was $1.1 million
compared to $2.5 million for the first quarter of 2008. GAAP loss from operations was
$(1.0) million for the first quarter of 2009 compared to income from operations of $1.5
million for the same period in the prior year. |
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Net loss and diluted loss per share for the first quarter of 2009 were $(0.5) million
and $(0.01), respectively. |
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The Company generated $10.5 million from operating activities in the first quarter of
2009 with ending cash and cash equivalents of $58.3 million and zero debt. |
Significant events in the first quarter of 2009 include the following:
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1. |
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International sales represented 37% of total net sales for the quarter, compared to 28%
in the fourth quarter of 2008 and 13% in the first quarter of 2008. Significant shipments
during the quarter included follow on orders for TASER® X26 ECDs and cartridges
to the UK Government and 3,000 TASER ECDs to the Brazilian National Guard. |
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2. |
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The Company unveiled its new integrated digital multi-media evidence management
platform EVIDENCE.com which works in conjunction with TASER® AXON an
on-officer tactical computer and video/audio recorder that captures incidents from the
officers perspective. Together, we believe the AXON and EVIDENCE.com system will
revolutionize the way law enforcement safely and securely captures, stores, analyzes, and
manages digital multi-media evidence collected by officers in the field. |
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3. |
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On March 31, 2009 Company announced it began selling the TASER® Shockwave
area denial system to tactical law enforcement, corrections, homeland security, critical
infrastructure and military customers. |
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Five (5) more product liability suits were dismissed during the quarter, representing
at the end of the quarter a total of eighty-four (84) wrongful death or injury suits that
have been dismissed or judgment entered in favor of the Company. |
Despite the prevailing global economic challenges, TASER International achieved solid sales in the
first quarter of 2009, driven by growth from our international customers, said Rick Smith, Chief
Executive Officer of TASER International. Over the past year, we have recruited a world-class
Internet services and software development team. Together with our proven hardware development
team, they will help transform our company to a full solutions provider, greatly expanding our
total available market opportunities in both revenue and by market segment. EVIDENCE.com signifies
the first step in this evolution providing a secure evidence storage and collaboration network that
will become the network backbone for our future hardware and software products.
The Company will host its first quarter 2009 earnings conference call on Thursday, April 23, 2009
at 11:00 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:
1-866-271-0675 or 1-617-213-8892. The pass code is 84783106 for both numbers.
Non-GAAP Measures
To supplement the Companys Statements of Operations presented in accordance with GAAP, we use
non-GAAP measures of certain components of financial performance, specifically non-GAAP income from
operations. In order for our investors to be better able to compare our current results with those
of previous periods, we have shown a reconciliation of GAAP to non-GAAP financial measures. These
reconciliations adjust the related GAAP financial measures to exclude stock-based compensation,
depreciation and amortization. We use these non-GAAP financial measures for financial and
operational decision making and as a means to evaluate period-to-period comparisons. Our management
believes that these non-GAAP financial measures provide meaningful supplemental information
regarding our performance and liquidity by excluding certain expenses and expenditures that may not
be indicative of our recurring core business operating results, meaning our operating performance
excluding non-cash charges, such as stock-based compensation, depreciation and amortization but
also discrete cash charges that are infrequent in nature. We believe that both management and
investors benefit from referring to these non-GAAP financial measures in assessing our performance
and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also
facilitate managements internal comparisons to our historical performance and liquidity.
About TASER International, Inc. (TASR):
TASER Internationals products protect life, providing advanced Electronic Control Devices for use
in the law enforcement, medical, military, corrections, professional security, and personal
protection markets. TASER® devices use proprietary technology to incapacitate dangerous,
combative, or high-risk subjects who pose a risk
to law enforcement officers, innocent citizens, or themselves in a manner that is generally
recognized as a safer alternative to other uses of force. TASER technology protects life, and the
use of TASER devices dramatically reduces injury rates for police officers and suspects. For more
information about TASER technology, please call (800) 978-2737 or visit our website at
www.TASER.com.
Note to Investors
This press release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities
Exchange Act of 1934, as amended (the Exchange Act), including statements, without limitation,
regarding our expectations, beliefs, intentions or strategies regarding the future. We intend that
such forward-looking statements be subject to the safe-harbor provided by the Private Securities
Litigation Reform Act of 1995. The forward-looking information is based upon current information
and expectations regarding TASER International, Inc. 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. These statements are qualified by important factors that could cause our actual results
to differ materially from those reflected by the forward-looking statements. Such factors include
but are not limited to: (1) market acceptance of our products; (2) our ability to establish and
expand direct and indirect distribution channels; (3) our ability to attract and retain the
endorsement of key opinion-leaders in the law enforcement community; (4) the level of product
technology and price competition for our products; (5) the degree and rate of growth of the markets
in which we compete and the accompanying demand for our products; (6) risks associated with rapid
technological change and new product introductions; (7) competition; (8) litigation including
lawsuits resulting from alleged product related injuries and death; (9) media publicity concerning
allegations of deaths and injuries occurring after use of the TASER device and the negative effect
this publicity could have on our sales; (10) TASER device tests and reports; (11) product quality;
(12) implementation of manufacturing automation; (13) potential fluctuations in our quarterly
operating results; (14) financial and budgetary constraints of prospects and customers; (15) order
delays; (16) dependence upon sole and limited source suppliers; (17) negative reports concerning
the TASER device; (18) fluctuations in component pricing; (19) government regulations and
inquiries; (20) dependence upon key employees and our ability to retain employees; (21) execution
and implementation risks of new technology; (22) ramping manufacturing production to meet demand;
(23) medical and safety studies; (24) field test results; and (25) other factors detailed in our
filings with the Securities and Exchange Commission, including, without limitation, those factors
detailed in the Companys Annual Report on Form 10-K and its Form 10-Qs.
The statements made herein are independent statements of TASER International, Inc. The inclusion
of any third parties does not represent an endorsement of any TASER International products or
services by any such third parties.
For investor relations information please contact Katie Pyra by phone at 480-515-6330 or via email
at IR@TASER.com, or Dan Behrendt, Chief Financial Officer of TASER International, Inc.,
480-905-2002.
- more -
TASER International, Inc.
Statements of Operations
(Unaudited)
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For the Three Months Ended |
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March 31, 2009 |
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March 31, 2008 |
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Net Sales |
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$ |
24,604,780 |
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$ |
22,486,504 |
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Cost of Products Sold: |
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Direct manufacturing expense |
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6,904,667 |
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7,571,497 |
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Indirect manufacturing expense |
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3,070,862 |
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2,151,689 |
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Total Cost of Products Sold |
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9,975,529 |
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9,723,186 |
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Gross Margin |
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14,629,251 |
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12,763,318 |
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Sales, general and administrative expenses |
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11,448,923 |
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9,160,589 |
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Research and development expenses |
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4,197,969 |
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2,111,648 |
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Income (loss) from operations |
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(1,017,641 |
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1,491,081 |
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Interest and other income, net |
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94,675 |
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501,364 |
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Income (loss) before provision (benefit) for income taxes |
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(922,966 |
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1,992,445 |
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Provision (benefit) for income taxes |
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(455,207 |
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775,858 |
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Net income (loss) |
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$ |
(467,759 |
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$ |
1,216,587 |
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Income (loss) per common and common equivalent shares |
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Basic |
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$ |
(0.01 |
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$ |
0.02 |
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Diluted |
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$ |
(0.01 |
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$ |
0.02 |
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Weighted average number of common and common equivalent
shares outstanding |
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Basic |
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61,832,808 |
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63,328,336 |
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Diluted |
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61,832,808 |
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65,784,447 |
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TASER International, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
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For the Three Months Ended |
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March 31, 2009 |
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March 31, 2008 |
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GAAP income (loss) from operations |
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$ |
(1,017,641 |
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$ |
1,491,081 |
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Stock-based compensation expense (a) |
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1,375,036 |
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320,467 |
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Depreciation and amortization |
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715,467 |
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656,879 |
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Non-GAAP income from operations |
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$ |
1,072,862 |
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$ |
2,468,427 |
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| a) |
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Results include stock-based compensation as follows: |
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For the Three Months Ended |
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March 31, 2009 |
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March 31, 2008 |
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Cost of Products Sold |
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$ |
99,388 |
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$ |
58,850 |
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Sales, general and administrative expenses |
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814,074 |
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211,611 |
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Research and development expenses |
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461,574 |
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50,006 |
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$ |
1,375,036 |
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$ |
320,467 |
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TASER International, Inc.
Balance Sheets
(Unaudited)
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March 31, 2009 |
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December 31, 2008 |
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| ASSETS |
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Current Assets |
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Cash and cash equivalents |
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$ |
58,264,462 |
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$ |
46,880,435 |
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Short-term investments |
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2,498,998 |
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Accounts receivable, net |
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12,307,122 |
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16,793,553 |
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Inventory |
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10,327,099 |
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13,467,117 |
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Prepaids and other assets |
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1,942,078 |
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2,528,539 |
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Current deferred income tax asset |
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9,580,234 |
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9,430,073 |
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Total Current Assets |
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92,420,995 |
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91,598,715 |
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Property and equipment, net |
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28,021,672 |
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27,128,032 |
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Deferred income tax asset |
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8,826,778 |
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8,826,778 |
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Intangible assets, net |
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2,497,076 |
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2,447,011 |
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Other long-term assets |
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11,325 |
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14,970 |
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Total Assets |
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$ |
131,777,846 |
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$ |
130,015,506 |
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| LIABILITIES AND STOCKHOLDERS EQUITY |
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Current Liabilities |
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Accounts payable |
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$ |
4,447,071 |
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$ |
3,856,961 |
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Accrued liabilities |
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3,963,962 |
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4,275,907 |
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Current deferred revenue |
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2,708,854 |
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2,510,645 |
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Customer deposits |
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344,347 |
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312,686 |
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Total Current Liabilities |
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11,464,234 |
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10,956,199 |
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Deferred revenue, net of current portion |
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5,161,754 |
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4,840,965 |
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Liability for unrecorded tax benefits |
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1,668,050 |
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1,692,080 |
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Total Liabilities |
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18,294,038 |
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17,489,244 |
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Commitments and Contingencies |
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Stockholders Equity
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Common stock |
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639 |
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638 |
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Additional paid-in capital |
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89,088,433 |
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87,663,129 |
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Treasury stock |
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(14,708,237 |
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(14,708,237 |
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Retained earnings |
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39,102,973 |
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39,570,732 |
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Total Stockholders Equity |
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113,483,808 |
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112,526,262 |
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Total Liabilities and Stockholders Equity |
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$ |
131,777,846 |
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$ |
130,015,506 |
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TASER International, Inc.
Selected Statement of Cash Flows Information
(Unaudited)
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For the Three Months Ended |
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March 31, 2009 |
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March 31, 2008 |
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Net income (loss) |
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$ |
(467,759 |
) |
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$ |
1,216,587 |
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Depreciation and amortization |
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715,467 |
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656,879 |
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Stock-based compensation expense |
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1,375,036 |
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320,467 |
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Net cash provided by operating activities |
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10,528,369 |
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|
659,421 |
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Net cash provided by investing activities |
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805,389 |
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4,085,809 |
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Net cash provided by financing activities |
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50,269 |
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171,229 |
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Cash and Cash Equivalents, end of period |
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$ |
58,264,462 |
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$ |
47,717,920 |
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# # #