Summary
Axon Enterprise, Inc. (formerly TASER International, Inc.) reported a net loss of $1.85 million for the first six months of 2010, a widening from the $1.19 million loss in the same period of 2009. This was driven by a 7.5% decrease in net sales to $42.96 million, impacted by a significant drop in international orders and reduced sales of key products like the TASER X26 and single cartridges. Despite the revenue decline, the company saw some positive signs, including an increase in domestic sales in the first quarter of 2010, potentially linked to federal stimulus funding. The company is also investing in new product lines and technology, such as EVIDENCE.com, which contributed to a decrease in R&D expenses due to capitalization of software development costs. While the company's cash position decreased, it maintains a strong liquidity position with $40.6 million in cash and cash equivalents and an undrawn $10 million line of credit, suggesting it is adequately resourced to fund its operations and strategic initiatives.
Financial Highlights
25 data points| Revenue | $19.12M |
| Cost of Revenue | $9.49M |
| Gross Profit | $9.63M |
| R&D Expenses | $3.06M |
| SG&A Expenses | $9.99M |
| Operating Income | -$3.44M |
| Net Income | -$1.36M |
| EPS (Basic) | $-0.02 |
| EPS (Diluted) | $-0.02 |
| Shares Outstanding (Basic) | 62.33M |
| Shares Outstanding (Diluted) | 62.33M |
Key Highlights
- 1Net sales declined by 7.5% to $42.96 million for the first six months of 2010 compared to $46.44 million in the prior year period.
- 2The company reported a net loss of $1.85 million for the six months ended June 30, 2010, an increase from the $1.19 million net loss in the same period of 2009.
- 3Gross margin decreased to 53.8% from 61.1% due to increased cost of products sold as a percentage of net sales, driven by product mix, new product yields, and higher operational costs.
- 4Sales, General, and Administrative (SG&A) expenses decreased by 8.8% to $20.31 million, reflecting cost-control measures and reduced legal and consulting fees.
- 5Research and Development (R&D) expenses decreased by 16.2% to $7.20 million, with a portion of software development costs for EVIDENCE.com being capitalized.
- 6Cash and cash equivalents stood at $40.6 million at June 30, 2010, a decrease of $4.9 million from year-end 2009, primarily due to cash used in operations and investments.
- 7The company had no outstanding borrowings on its $10 million revolving credit facility, which was renewed through June 30, 2011.