Taser’s Shockwave technology
Taser International (NASDAQ: TASR) shares have been sliding over the last few weeks, trading intraday recently as low as $5.80 per share. With First quarter 2010 results coming into focus, there are many financial questions which need answering. Will the company show it has exercised some restraint in R&D costs? Have there been any significant developments regarding the new Protector line or with AXON or Evidence.com, other than a small police force purchase for which there was a press release recently as seen here: http://phx.corporate-ir.net/phoenix.zhtml?c=129937&p=RssLanding&cat=news&id=1399854
Certainly the company has lots of work to do in becoming more aggressive with the Protector software they have developed, which allows parents to monitor their children’s phone habits and ensure they are not victimized by predators via phone or text. There has been far too little news regarding this particular part of the company puzzle. The hope is that this particular technology will begin providing significant revenue from retail purchasers of the application, however, that will require some forward looking partnerships…..perhaps with AT&T and Verizon, and the sooner the better for both the company and for parents.
Additionally, the company has been particularly quiet regarding its recent TASER shockwave application for Military/crowd control application. Shockwave is the company’s first generation TASER Remote Area Denial™ (TRAD) technology. The Shockwave deploys multiple TASER cartridges across an area arc with the push of a button. The concept allows the user to be able to control multiple targets from one source. This product seems tailor made for law enforcement crowd control, military checkpoints and even possibly Dept of corrections applications. The actual deployable unit is not very big (about 3 feet high when fully stacked) and not very heavy, making the Shockwave easy to transport. Each cartridge is deployed in a 20 degree arc with a distance of 25 feet. The system can be operated from a distance of up to 330 feet away from the actual device via a Control Box. The NMI lasts for the standard five-seconds and can be reinitiated using the Re-Energize Button if need be.
TASER AXON and EVIDENCE.com were critical components to the exoneration of a Ft. Smith, Arkansas officer involved in fatal shooting last year. Corporal Brandon Davis, wearing a TASER AXON as part of the Ft. Smith Police Department’s pilot program, recorded clear audio and video evidence of the events leading up to and after a shooting in which he was involved. Sebastian County Prosecutor Daniel Shue then reviewed the unedited video of the event that had been securely uploaded to EVIDENCE.com and determined that Officer Davis acted appropriately in the situation. Officer Davis credits the evidence captured by his AXON with bringing the investigative process to a close quickly and sparing him much of the anxiety that officers feel when faced with a potentially lengthy and career-altering investigation.
Taser International seems to be very much a company on the rise, shedding its cocoon of self containment and preservation from the economic collapse of recent memory. As the economy continues to right itself, albeit slowly and methodically, it would appear that TASER is poised to reap some benefits. Military weapons programs, and many more Police and other law affiliated agencies continue to review and explore non lethal weapons and methods of enforcement and restraint. If TASER International can continue to exploit these methods and can attain a following for its retail products, the stock price will undoubtedly rise as a result. Currently, TASER stock seems to be at an attractive price, with nice potential upside on any significant positive developments. A further pullback only heightens the attractiveness should it occur.
Disclosure: Currently hold a position in TASR
I agree completely about establishing a partnership with a carrier such as Verizon or AT&T. I think it’s very important that the option of adding a service such as Protector.com, be offered at the point of sale.
As for the subject of spending on R&D; yes, perhaps it’s time to show a little restraint on that end, at least until earnings return to a healthier level, but all in all…I’ve always been pleased that the company has chosen to re-invest in itself rather than taking on debt.
A well written as well as compelling case to buy near term. The protector software is something that seems to have a huge potential if they can get a partnership with a Verizon or similar carrier. My biggest concern with this company continues to be the potential liability issues which could be huge…and on going but, I am watching always watching…. Thanks for the nice update, Steve…
Boomer, Taser has in the past, and continues to defend themselves well against law suits. The following is taken from their Investor Relation page, under the legal section
http://www.taser.com/SiteCollectionDocuments/Controlled%20Documents/Legal/TASER%20Device%20Liability%20and%20Litigation%20Risk.pdf
“TASER Product Liability Litigation Risk
While TASER International, Inc. has been named in a number of product liability lawsuits arising
from law enforcement use of the TASER ECD, TASER International is also successful in getting
dismissals, summary judgment or favorable jury verdicts in 51 lawsuits to date with more
expected. The suspect injury or death lawsuits are frivolous and the plaintiffs have been unable
to prove that the TASER ECD is defective or was an unjustified cause of any injury or death,
both of which are essential elements to establish product liability. Autopsy reports and medical
experts have determined that the cause of in-custody deaths have been due to complications
from drug intoxication or pre-existing medical conditions and not from the TASER ECD.”
Great link…thanks Sheree!
Boomer,
Lawsuits come and go…but the company does respond and pretty much has the data in their favor. Several lawsuits have wound up pointing to other health issues and not the actual Taser incident as the issue.
Good article. What I find the most exciting is the AXON system. I think this could be huge, as big as the “Taser” itself.