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TASER International's CEO Discusses Q2 2012 Results - Earnings Call Transcript

If we look at the SG&A expenses coming down, the result of a continuous focus on efficiency and cost control, research and development also decreased by $800,000 to $2.0 million. I'm sure people are wondering is TASER investing sufficiently in research and development and as I always tell you the decreases are really about this continued streamlining of our research and development efforts. We are more efficient than we have ever been. This is largely attributable to reduction in professional consulting fees, basically some of the bulk resources when you've got to go out and bring an external consultant's when you are finishing up a major project. So I say at this point we are innovating at a much more efficient and better pace and we've also moved to an OEM model looking to insource technology from other providers rather than building it ourselves. For example if you look at the AXON Flex, in our partnership with Looksie [ph] we were able to buy the major components of the AXON Flex and then only focus on engineering that is required to customize for our marketplace is a far more efficient and faster way to get to market than if you look at the previous AXON Pro product we've developed where we develop the computer, the communications hub and the camera all from the ground up in house. That's a longer slower more extensively developed product. So I'm very proud of what we've accomplished in our R&D segment. Again I'd say we're getting better, we're doing more with less and we believe that we are right sized in terms of how we're approaching R&D.

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