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TASER International Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 9, 2012 04:33PM

TASER International Inc. (TASR) filed Quarterly Report for the period ended 2012-06-30. Taser International, Inc. has a market cap of $305.2 million; its shares were traded at around $5.69 with a P/E ratio of 68.7 and P/S ratio of 3.4.



Highlight of Business Operations:

Net sales were $28.2 million and $21.2 million for the three months ended June 30, 2012 and 2011, respectively, an increase of $7.0 million, or 33.1%. The increase in net sales for the second quarter of 2012 compared to 2011 was primarily driven by the continued adoption of the TASER X2, which contributed $7.1 million of sales for the second quarter of 2012 compared to $1.4 million for the same period in the previous year. Sales of our X26 ECDs decreased $1.4 million for the second quarter of 2012 compared to the same period in the previous year as a result of the upgrade cycle to the X2 ECD. Sales relative to our Video segment increased $0.5 million to $1.3 million for the three months ended June 30, 2012. During the second quarter of 2012, we began shipments of our AXON Flex on-officer camera, with our EVIDENCE.com SAAS. We continue to generate traction with a number of new agencies adopting the platform, including upgrades from the first generation AXON camera.

Cost of products sold were $11.7 million and $9.0 million for the three months ended June 30, 2012 and 2011, respectively, an increase of $2.7 million, or 30.9%. As a percentage of net sales, cost of products sold decreased to 41.5% in the second quarter of 2012 compared to 42.3% in the second quarter of 2011. The decrease in overall cost of products sold as a percentage of sales was driven by improvements to our Video segment margins, which relates to additional leverage provided from the increased Video segment sales as we continued to generate traction in this business. Cost of products sold for our ECD segment were $9.8 million for the three months ended June 30, 2012, or 36.3% of ECD segment sales, compared to $7.2 million for the three months ended June 30, 2011, or 35.2% of ECD segment sales. The overall increase in cost of products sold for the ECD segment corresponds to the increased revenues discussed above, with margins remaining relatively consistent for the second quarters of 2012 and 2011.

Sales, general and administrative expenses were $8.4 million and $9.1 million for the three months ended June 30, 2012 and 2011, respectively, a decrease of $0.7 million, or 7.3%. As a percentage of net sales, sales, general and administrative expenses decreased to 29.8% for the second quarter of 2012 compared to 42.8% for the second quarter of 2011. The overall decrease for the second quarter of 2012 compared to the same period in 2011 is attributable to general declines in sales and marketing costs, depreciation and amortization and expert witness fees totaling $0.6 million. These declines were driven in part by ongoing cost reduction efforts and were offset by increases in legal and professional fees and travel expenses of $0.2 million. Stock-based compensation expense also decreased by $0.2 million as previously granted options became fully vested throughout 2011. The decrease in selling, general and administrative expenses as a percentage of sales is attributable to higher sales levels coupled with the general decreases discussed above.

Cost of products sold were $22.1 million and $19.9 million for the six months ended June 30, 2012 and 2011, respectively, an increase of $2.3 million, or 11.3%. As a percentage of net sales, cost of products sold decreased to 41.1% in the first six months of 2012 compared to 44.8% in the first six months of 2011. The increase in overall cost of products sold can be attributed to the overall increase in sales. The decrease in cost of products sold as a percentage of sales was driven by improved margins in our ECD segment. Cost of products sold for our ECD segment were $18.4 million for the six months ended June 30, 2012, or 35.6% of ECD segment sales, compared to $16.2 million for the six months ended June 30, 2011, or 38.1% of ECD segment sales. These improvements primarily relate to manufacturing efficiencies, increased leverage resulting from increased sales levels, and a favorable change in product mix.

Sales, general and administrative expenses were $17.3 million and $18.4 million for the six months ended June 30, 2012 and 2011, respectively, a decrease of $1.1 million, or 6.2%. As a percentage of net sales, sales, general and administrative expenses decreased to 32.0% for the first half of 2012 compared to 41.5% for the first half of 2011. The overall decrease for the first half of 2012 compared to the same period in 2011 is primarily attributable general declines in consulting and lobbying costs, depreciation and amortization and sales and marketing expenses totaling $0.7 million. These declines were driven in part by ongoing cost reduction efforts and were offset by increases in legal, professional and expert witness fees of $0.4 million. Stock-based compensation expense also decreased by $0.4 million as previously granted options became fully vested throughout 2011. The decrease in selling, general and administrative expenses as a percentage of sales is attributable to higher sales levels coupled with the general decreases discussed above.

Read the The complete Report



Stocks Discussed: TASR,
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