Summary
TASER International, Inc. (now Axon Enterprise, Inc.) in its 2011 10-K filing, highlights its core mission of protecting life and preventing conflict through advanced Electronic Control Devices (ECDs). The company primarily serves law enforcement, military, and corrections markets, emphasizing the safety and effectiveness of its TASER products based on numerous independent studies. A significant strategic initiative involves expanding its technology offerings beyond ECDs into integrated hardware and software solutions for digital evidence management, exemplified by the AXON tactical computer and EVIDENCE.COM platform. Financially, 2010 presented challenges with a 17% decrease in net sales compared to 2009, primarily due to reduced international and federal orders and ongoing budget constraints for domestic law enforcement agencies. Despite the revenue decline, the company focused on cost management, reducing SG&A expenses. The introduction of new product lines like AXON and EVIDENCE.COM contributed to sales, signaling a strategic pivot towards broader technology solutions. The company maintained a strong balance sheet with significant cash reserves and no long-term debt, positioning itself for future growth initiatives.
Financial Highlights
48 data points| Revenue | $86.93M |
| Cost of Revenue | $41.56M |
| Gross Profit | $45.37M |
| R&D Expenses | $11.41M |
| SG&A Expenses | $39.02M |
| Operating Expenses | $50.51M |
| Operating Income | -$5.14M |
| Net Income | -$4.38M |
| EPS (Basic) | $-0.07 |
| EPS (Diluted) | $-0.07 |
| Shares Outstanding (Basic) | 62.52M |
| Shares Outstanding (Diluted) | 62.52M |
Key Highlights
- 1TASER International's primary revenue driver is the sale of TASER Electronic Control Devices (ECDs), particularly the TASER X26 model, which accounted for a significant portion of net sales.
- 2The company is strategically expanding into the video evidence management market with its AXON tactical computer and EVIDENCE.COM platform, aiming to offer a comprehensive solution for law enforcement.
- 3Net sales decreased by 17% to $86.9 million in 2010, largely due to fewer large international and federal orders and budget constraints faced by domestic law enforcement agencies.
- 4Despite revenue challenges, the company actively managed costs, reducing Sales, General, and Administrative (SG&A) expenses by 10% in 2010.
- 5Consumer product sales, such as the TASER C2, also saw a decline due to the adverse impact of the economic downturn on consumer spending.
- 6The company reported a net loss of $4.4 million in 2010, a significant increase from a negligible net loss in 2009, reflecting the challenging sales environment.
- 7TASER International continues to invest in Research and Development (R&D), though R&D expenses decreased by 43% in 2010 compared to 2009, as major development phases for new products were nearing completion.