AXON ENTERPRISE, INC. Quarterly Report for Q1 Ended Mar 31, 2014

Summary

TASER International, Inc. (now Axon Enterprise, Inc.) reported solid revenue growth in the first quarter of 2014, with net sales increasing by 18.9% year-over-year to $36.2 million. This growth was primarily driven by strong performance in the TASER Weapons segment, notably the TASER X26P Smart Weapon, and significant expansion in the EVIDENCE.com & Video segment, which saw a 52.6% increase in net sales. The company also experienced a substantial increase in international sales, representing 29.3% of total net sales, up from 10.3% in the prior year. Net income saw a modest increase to $3.4 million, or $0.06 per diluted share. The company ended the quarter with a healthy cash position of $45.1 million, demonstrating strong liquidity.

Key Highlights

• 1Net sales grew 18.9% year-over-year to $36.2 million, driven by strong TASER product adoption and EVIDENCE.com & Video segment growth.
• 2The TASER Weapons segment saw a 16.0% increase in net sales, primarily due to the successful launch and adoption of the TASER X26P.
• 3The EVIDENCE.com & Video segment experienced significant growth, with net sales up 52.6% to $3.7 million, indicating positive traction for their software and video solutions.
• 4International sales more than tripled, accounting for 29.3% of total net sales, up from 10.3% in the prior year.
• 5Net income increased slightly to $3.4 million, maintaining $0.06 diluted earnings per share.
• 6The company maintained a strong liquidity position with $45.1 million in cash and cash equivalents as of March 31, 2014.
• 7Research and development expenses significantly increased by 79.1%, reflecting continued investment in product development, particularly within the EVIDENCE.com & Video segment.

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