TASER International Inc.
) sustained its steady performance in the first quarter of 2014.
It reported earnings of 6 cents per share during the quarter, at
par with the year-ago level. The reported figure surpassed the
Zacks Consensus Estimate by 2 cents. The beat was driven by
record international sales and higher bookings of EVIDENCE.com
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Highlights of the Quarter
In the first quarter, the company booked revenues of $36.2
million, beating the Zacks Consensus Estimate by $2.2 million.
The reported number also increased 18.9% from $30.4 million in
the first quarter 2013. The solid results were attributable to
the TASER X26P upgrades implemented by numerous law enforcement
agencies besides robust international orders. During the quarter,
TASER's international revenue reached a record $10.6 million, an
increase of 241.9% year over year.
The company's gross margin expanded 80 basis points year over
year to 61.4% in the quarter, driven by higher sales leveraging
better overhead expenses. The company also benefited from
increased sales prices and lower depreciation cost for
Sales, general and administrative expenses increased 22.9% year
over year to $13.7 million in the first quarter of 2014.
Quarterly Segmental Details
TASER Weapons segment revenues surged 16.0% year over year to
$32.5 million in the first quarter of 2014.
EVIDENCE.com & Video segment revenues saw a 52.6% improvement
to $3.7 million in the first quarter of 2014. Segment bookings
improved 321.4% from the year-ago level to $5.9 million in the
The company had $77.5 million of cash and cash equivalents as of
Mar 31, 2014 versus $63.4 million at 2013 end. The company
generated $4.3 million in cash from operating activities during
the quarter under review.
TASER continues its booking trajectory with over $5 million in
EVIDENCE.com and AXON bookings.
The company revealed several new orders for its conducted
electrical weapons (CEWs) and next generation Smart Weapons. The
company is seeing increasing uptake on the back of its new Smart
Weapons platforms, as customers are eager to follow this market
transition. The majority of these orders were for its
next-generation electroshock Smart Weapons, which totaled over
5,000 from local, state and federal agencies. The company's new
Smart Weapon platforms offer significant improvements in safety,
effectiveness and accountability.
Apart from drawing significant revenues from domestic orders, the
company is also focused on international sales. TASER invests
considerably in upgrading existing and producing new products
that make life safer in public places. During the first quarter
2014, research and development expenses were $3.6 million, up
79.1% year over year due to additional personnel expense
associated with EVIDENCE.com & Video segment product
TASER International currently has a Zacks Rank #2 (Buy). Some
better-ranked stocks in the sector include
Alliant Techsystems Inc.
B/E Aerospace Inc.
Esterline Technologies Corp.
), all with a Zacks Rank #2 (Buy).