10-QPeriod: Q1 FY2011

AXON ENTERPRISE, INC. Quarterly Report for Q1 Ended Mar 31, 2011

Filed May 9, 2011For Securities:AXON

Summary

TASER International, Inc. (now Axon Enterprise, Inc.) reported a net income of $19,732 for the first quarter of 2011, a significant improvement from a net loss of $492,605 in the same period of 2010. This turnaround was driven by a 3% decrease in net sales to $23.1 million, coupled with a reduction in operating expenses, particularly in sales, general, and administrative (SG&A) and research and development (R&D). While overall sales declined slightly, the company saw positive contributions from new products like AXON/EVIDENCE.com and XREP. Financially, the company maintained a healthy liquidity position with $41.6 million in cash, cash equivalents, and investments as of March 31, 2011. Operating activities generated $4.3 million in cash, which, along with existing cash reserves, was sufficient to fund operations, strategic initiatives like a $12.5 million stock repurchase program, and capital expenditures. The company also reported no outstanding debt, with access to a $10 million line of credit.

Financial Highlights

27 data points
Beta

Revenue

$23.12M

0.5% Gross Margin

Net Income

$20K

0.0% Net Margin

EPS (Diluted)

$0.00

Cash & Equivalents

$31.81M

Free Cash Flow

$4.03M

Financial Statements
Beta
Revenue$23.12M
Cost of Revenue$10.91M
Gross Profit$12.21M
R&D Expenses$2.75M
SG&A Expenses$9.35M
Operating Income$110K
Net Income$20K
Shares Outstanding (Basic)62.41M
Shares Outstanding (Diluted)63.25M

Key Highlights

  • 1Achieved profitability in Q1 2011 with a net income of $19,732, a significant improvement from a net loss of $492,605 in Q1 2010.
  • 2Net sales slightly decreased by 3.0% to $23.1 million, impacted by fewer large international orders and the tapering of federal stimulus funding that boosted prior-year sales.
  • 3Operating expenses were reduced, with SG&A down 9.3% and R&D expenses down 33.5%, contributing to the improved profitability.
  • 4The company launched new products like AXON/EVIDENCE.com and XREP, which contributed $0.5 million in sales in Q1 2011.
  • 5Maintained a strong liquidity position with $41.6 million in cash, cash equivalents, and investments as of March 31, 2011.
  • 6Initiated a $12.5 million stock repurchase program, having repurchased $5.1 million worth of shares by the end of Q1 2011.
  • 7No outstanding debt at quarter-end, with $4.1 million available under a $10 million line of credit.

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