TASER International (NASDAQ:TASR) Shows Solid Quarter of Performance

Taser International (NASDAQ: TASR) reported solid if unspectacular first quarter 2010 results yesterday. Net sales were $23.8 million in the quarter, a decrease of $0.8 million or 3% compared to the first quarter of 2009.  The company stated that the decrease was driven primarily by fewer significant orders from international customers.  This result was partially offset by an improvement in the domestic law enforcement side of the business.  According to the company; The domestic law enforcement side of the business has continued to show strong growth, as evidenced by significant orders from several police departments including an order for 150 TASER(R) X3(TM) Electronic Control Devices (ECDs) and their related accessories for the Lakeland Police Department in Florida.

Among some significant events in the first quarter of 2010 were the following:

• International sales represented 25% of net sales for the first quarter of 2010.  Significant shipments during the quarter included follow on orders from the U.K.
• The Company announced the first domestic sale(March 8, 2010)of its revolutionary new evidence capturing and management platform to the Aberdeen Police Department (SD).  AXON(TM), the on-officer tactical computer, records audio and visual evidence from the perspective of the officer, which is then transferred, stored and managed using EVIDENCE.COM (TM).
• The Company introduced (January 2010) a groundbreaking new family safety platform called PROTECTOR(TM) during the International Consumer Electronics Show (CES).  The PROTECTOR Platform is a revolutionary toolset that allows parents to supervise their children’s mobile phone usage and driving behaviors.  Parents can manage the contact lists and content of their child’s mobile phone (calls, texts, emails, photos and video) and can automatically limit phone functionality to prevent dangerous habits such as distractions while driving (texts and phone calls). PROTECTOR uses integrated GPS, allowing parents to track their child’s location, monitor driving habits, and release vital records to the authorities in emergency situations.  It is anticipated that these products will be commercially available in the third quarter of 2010.
• Go to:  http://www.protector.com/for more information on this product.
• Five product liability suits were dismissed during the first quarter of 2010.

Finally, Taser International’s markets show they are gradually improving, as with the continued improvement in sales to domestic law enforcement agencies. The company also spoke to anticipated sales from overseas for next fiscal quarter.  Strategic investments in R&D are beginning to show returns on expended capital, highlighted by the first sale of the AXON product and initial signs of some traction in sales of X3(TM) and XREP(TM) devices.  Rick Smith, CEO of TASER International made the following observation: “Looking ahead, we will continue to make strategic investments for growth, while remaining focused on cost control.  We will continue to execute on our strategy to diversify our business and provide customers complete solutions.  TASER is no longer a company only providing defense hardware, but we are bringing innovation to the software space with offerings like PROTECTOR, which has already received tremendous interest and positive feedback.  As market conditions slowly improve, we expect further market penetration of the AXON and X3, along with the unmatched innovation from our R&D team to drive solid top-line growth.”  From all outward appearances it is more than obvious the CEO has his company firmly positioned for future success with both military and civilian sector security products and software applications.  The company moves forward and continues innovating while growing its product line, and stands to reap large benefits from that work.  Victories such as the one against Stinger systems only help strengthen their market position and strategy going forward.

Long TASR