TASER International, Inc. Reports 23% Revenue Growth in Second Quarter 2006 $16.2 Million of Revenue and 13.7% Operating Margin
SCOTTSDALE, Arizona, July 26, 2006 - TASER International, Inc. (Nasdaq: TASR) a market leader in advanced electronic control devices reported today that revenues for the second quarter of 2006 were $16.2 million, a 23% increase over the same quarter of the prior year. Operating income for the quarter was $2.2 million, or a 224% increase compared with $686,000 in the prior year period. Net income and basic and diluted earnings per share for the second quarter were $1.5 million which rounds down to $0.02 per share. Business also continued to improve sequentially as revenues in the second quarter of 2006 increased by $2.3 million over the first quarter of 2006 and operating income improved from 7.5% to 13.7% of revenue as the Company continues to improve its operating leverage. The Company generated $4.1 million of cash from operations in the second quarter of 2006 which increased the total cash, cash equivalents and investments balance to $49.1 million.
Significant events in the second quarter of 2006 include:
1. The Company commenced shipping of its first TASER Cam(tm) 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.
"We are pleased with the continuing momentum of product acceptance in the market place evidenced by the continued growth in net sales and the fulfillment of some significant law enforcement agency and international orders during the quarter," commented Rick Smith, Chief Executive Officer of TASER International, Inc.
The Company will be hosting its second quarter 2006 earnings conference call on July, 26, 2006 at 10:00 a.m. E.D.T. 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: 800-706-7745 or 617-614-3472 for international callers. The pass code is 49381522 for both numbers.
About TASER International, Inc.
TASER International, Inc. provides advanced non-lethal devices for use in the law enforcement, military, private security and personal defense markets. TASER devices use proprietary technology to safely incapacitate dangerous, combative, or high-risk subjects who pose a risk to law enforcement officers, innocent citizens or themselves. TASER technology saves lives every day, and the use of TASER devices dramatically reduces injury rates for police officers, and suspects.
For further information contact Marcy Rigoni, Manager of Investor Relations at Marcy@TASER.com or call 800-978-2737 ext. 2011, or Dan Behrendt, Chief Financial Officer of TASER International, Inc., +1-480-905-2002. Visit the company's web-site at www.TASER.com for facts and video.
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Steve Tuttle
Vice President of Communications
TASER International, Inc. (NASDAQ: TASR)
17800 N. 85th St.,
Scottsdale,
AZ 85255
Steve@TASER.com
* Media Hotline: 480-444-4000 * Fax 480-991-0791
For details please visit www.TASER.com.
CONTACT:
Dan Behrendt
Chief Financial Officer
TASER International, Inc.
(480) 905-2000
