TASER International, Inc. Reports Record First Quarter Earnings
Basic per share calculations for the March 31, 2002 quarter are based on approximately 2.8 million weighted average shares outstanding, compared with 1.5 million shares in the first quarter of 2001.
The increase in net income is a result of the higher ADVANCED TASER unit sales to the law enforcement market, which continues to show robust growth quarter to quarter, and increased AIR TASER sales to the consumer retailers during the first quarter. Included in these figures were an initial order from another major U.S. airline and follow-on orders from the Los Angeles Police Department.
Gross margin increased to $1.3 million in the first quarter of 2002, or 55.7% of revenues, compared with $609,000 or 50.5% of revenues, for the same period in 2001. The increase in gross margin is attributed to the higher level of ADVANCED TASER and AIR TASER product sales and reduced manufacturing expenses.
Commenting on the first quarter results, Rick Smith, chief executive officer said, "We are excited that our first quarter performance not only showed significant growth over last year, but revenues exceeded our guidance by 9% ($2.4 million actual vs. $2.2 million guidance) and earnings exceeded guidance by 150% ($0.05 per share actual vs. $0.02 guidance). We continue to see steady growth in the law enforcement sector of our market, with 195new departments adding our products to their less-lethal arsenal. This trend includes increased follow-on orders from departments currently deploying our weapon system.
"We are also focused on obtaining further airline sales. A major international carrier became the sixth airline to purchase ADVANCED TASERS to protect their aircraft. We received their purchase order in early April, and expect to ship this product by the end of the month. Additionally, during our first quarter, we executed a sale of our ADVANCED TASER products to another major U.S. commercial airline. This is the fourth U.S. carrier to commit to our products, with many others evaluating deployment following the FAA approval for their use onboard aircraft.
"During the first quarter 2002, we also launched our introduction into the consumer retail market. Although we probably will not see substantial results from this campaign until later this year, we are developing the marketing materials and training programs for the retail distributors across the U.S. These programs are adding additional overhead costs to our sales and marketing department, as originally forecasted, and impacting our net profit figures for 2002. However, this investment in our sales program is instrumental to initiate this product into the forefront of homeland defense in the coming years," said Smith.
About TASER International, Inc.
TASER International, Inc. provides advanced less-lethal weapons for use in the law enforcement, private security, and personal defense markets. Its flagship ADVANCED TASER® product uses proprietary technology to incapacitate dangerous, combative, or high-risk subjects that may be impervious to other less-lethal means. This technology reduces injury rates to suspects and officers, thereby lowering liability risk and improving officer safety. The ADVANCED TASER is currently in testing or deployment at over 1,400 law enforcement and correctional agencies in the U.S. and Canada.
For actual statically balance sheet figures, please see www.TASER.com Company News section.
CONTACT: Phil Smith
Chairman of the Board
April 22, 2002
TASER International, Inc.