TASER Q4 Revenues Up More Than 50% to $32.1 Millio TASER Q4 Revenues Up More Than 50% to $32.1 Million
Company Reports Record Annual Revenue of $114.8 Million
SCOTTSDALE, AZ -- (Marketwire) -- 02/21/13 -- TASER International, Inc. (NASDAQ: TASR), today announced financial results for the fourth quarter of 2012 ended December 31, 2012.
Financial Summary:
•Net sales were $32.1 million in the quarter, an increase of $10.8 million, or 50.6% compared to fourth quarter 2011 sales of $21.3 million. The increase in sales versus the prior year was primarily driven by agencies upgrading to the new TASER® X2™ Conducted Electrical Weapon (CEW). The TASER Protection Plan supplemented the upgrade program allowing the Company to offer financing to agencies allowing them to accelerate the upgrade of their fleet of TASER devices.
•Revenues in the CEW segment grew $9.6 million or 46.6% in the fourth quarter of 2012 when compared to the fourth quarter of 2011.
•Revenues in the Video segment grew $1.2 million, or 170%, to $1.8 million in the fourth quarter of 2012.
•Gross margin in the fourth quarter of 2012 was 59.7%, compared to 32.7% in the same period last year. Negatively affecting gross margin in the fourth quarter of 2011 was a $3.7 million charge for excess inventory of the X3 product line and first generation of AXON video products. The remaining improvement in gross margin in 2012 was driven by the increase in sales of the X2 which has a more favorable margin profile, more direct sales which increased our average selling price, and a reduction in expenses in our Video segment due to our decision to utilize third party cloud services along with on-going manufacturing and operational efficiencies.
•Sales, general and administrative (SG&A) expenses of $12.5 million in the fourth quarter of 2012 increased 23.3%, from $10.1 million in the fourth quarter of 2011. This increase was partially a result of higher variable selling expenses associated with increased direct sales and internet marketing initiatives. Personnel costs also increased as a result of additional strategic hires and increases to commission and bonus expense. The quarter was also impacted by a stock compensation true-up for performance-based stock. The Company continues to make strategic investments in SG&A expenses to grow its international and video product sales. We are encouraged by the early results of these investments which will continue in 2013.
•Research and development (R&D) expenses of $2.0 million for the fourth quarter of 2012 are consistent with the prior-year and previous quarters.
•Operating income improved $11.9 million to $4.7 million in the fourth quarter of 2012 from an operating loss of $7.2 million in the prior-year quarter, largely due to the increased sales and an improved gross margin discussed above.
•Adjusted EBITDA was $7.7 million for the fourth quarter of 2012, a significant increase from Adjusted EBITDA of $1.2 million in the fourth quarter of 2011. The increase is due to higher sales and improved margins.
•Income taxes for the fourth quarter of 2012 were $1.0 million. The income tax expense in the fourth quarter was favorably impacted by the reversal of our valuation reserve for deferred tax assets. The strong operating results in 2012, coupled with a favorable forecast led the Company to conclude that it is more likely than not that its deferred tax assets will be realized.
•Net income for the fourth quarter of 2012 was $3.8 million, or $0.07 per share on a basic and diluted basis.
•In the fourth quarter of 2012, the Company generated $3.3 million in cash from operating activities. The Company generated $26.5 million in cash from operating activities during the full year of 2012.
•Cash, cash equivalents and investments were $37.8 million at the end of the fourth quarter of 2012, after completing $20.0 million of stock repurchases during the year. The Company has no debt, other than a capital lease, recorded on its balance sheet.
https://investor.taser.com/releasedetail.cfm?ReleaseID=742058
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