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Taser Profit Down Sharply

Sales also decline from a year ago.
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Sales and earnings plunged in



fourth quarter and the company's profit failed to match Wall Street estimates.

Taser earned $92,697, or nothing per share, in the latest quarter, compared with $4.7 million, or 7 cents a share, a year ago. Sales were $12.6 million, down from $19.2 million. On average, analysts surveyed by Thomson First Call were expecting a profit of 1 cent a share on sales of $12.5 million.

The company said it generated $1.4 million of cash from operations in fourth quarter of 2005, raising its cash and investment balance to $43.9 million.

Taser shares closed Tuesday at $10.40, up from a recent low of about $5.37 reached in early October 2005. The stock was above $30 as recently as December 2004, but fell steadily last year amid a probe by the

Securities and Exchange Commission

and concerns about the company's growth. The SEC investigation into Taser has since been terminated with no finding of wrongdoing.

"The challenges of 2005 have only made us stronger as a company," Taser said. "We faced these challenges, improved our core business operations, furthered our industry-leading research and development programs, and remained profitable. Qualitatively, we are feeling a shift in momentum in our favor.

"Additionally, new products such as the Taser Cam (from which we expect significant revenue contribution starting in the second quarter of 2006) and the newly announced wireless Extended Range Electronic Projectile (expected to enter production in 2007) provide significant new upside to our business going forward," the company said.

The stock was unchanged in premarket trading.