Previous Statements by TASR
» TASER's CEO Discusses Q2 2011 Results - Earnings Call Transcript
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» TASER International CEO Discusses Q3 2010 Results - Earning Call Transcript
We caution that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements herein. Such factors include, but are not limited to, market acceptance of our products, establishment and expansion of our client and indirect distribution channels, attracting and retaining the endorsement of key opinion leaders in the law enforcement community, the level of product technology and price competition for our products, the degree and rate of growth of the markets in which we compete and accompanying demand for our products, potential delays in international and domestic orders, implementation risk for manufacturing automation, risks associated with rapid technological change, execution and implementation risk of new technology, new product introduction risk, ramping manufacturing production to meet demand, litigation resulting from alleged product related injuries and deaths, media publicity concerning product uses and allegations of injury and death and the negative impact this could have on sales, product quality risks, potential fluctuations in quarterly operating results, competition, negative reports concerning TASER device uses, financial and budgetary constraints of prospects and customers, dependence upon sole and limited source suppliers, fluctuations in component pricing, risks of governmental investigations and regulations, TASER product tests and reports, dependence upon key employees, employee retention risks and other factors detailed in the company’s filings with the Securities and Exchange Commission.With that, I’ll turn it back over to Rick Smith. Rick Smith Thanks Dan. Okay, so I’m sure everyone has seen the release this morning. Pretty happy with the results; up 16% over the same quarter last year, with $24.4 million in revenue and the business generating $5.3 million in cash from operations, or that’s 22% of revenue in cash generation. One of the key drivers there was the introduction of the X2 from the second quarter. So this was the first full quarter that the X2 was available to our customers that accounted for about 15% of revenue, which is close to 20% of bookings. And the disparity there is we had a very high attachment rate of extended warranties and training services that are deferred and recognized over time. As we look into next year, we see a run of $300 million upgrade opportunity if we’re successful in helping our customers to upgrade X26 units that are more than five years old.
One other point about the X2 is, in our surveys with instructors who teach electronic control devices, we’ve seen 96% of them select the X2 as their preferred full-time carry weapon even over the X26 which was a huge number, a huge achievement actually, because the X26 was such a hit in law enforcement. But the rigorous voice of the customer development process where we put hundreds and hundreds of officers through surveys and focus groups to identify the right feature matrix for the X2 really seems to be paying off. It looks like we do have the next-generation ECD, which should be able to drive growth in the future.This quarter, we also saw international sales continue to grow. It was up over the prior year by $4.4 million year-to-date, up $2.3 million in the third quarter, with large portion of that coming from strong cartridge sales to our install base overseas. And, finally, before I turn over to Dan to go through the numbers in detail, we’ve continued to return cash to shareholders. As of the end of the quarter, we had executed a total of $12.4 million out of our $20 million buyback. But let me give you more current numbers. Through last Friday, we have completed $17.77 million of the buyback, leaving $2.3 million left to go. Those are in dollar terms. If we add that up, this year-to-date, we have returned $30.27 million to shareholders. And just to put that in perspective, the company we took public in 2001 had a pre-money market capitalization of right around $10 million. So we’ve returned multiples of the value we took public a decade ago just this year in cash to our shareholders. Something we’re pretty proud of that. Read the rest of this transcript for free on seekingalpha.com