TASER Reports $32.2 Million Revenue and $0.08 EPS

TASER Reports $32.2 Million Revenue and $0.08 EPS 
AXON and EVIDENCE.com Bookings Increase 47% Sequentially to $2.0
Million 
SCOTTSDALE, AZ -- (Marketwired) -- 07/31/13 --  TASER International,
Inc. (NASDAQ: TASR), today announced financial results for the second
quarter of 2013 ended June 30, 2013. 
Financial Summary: 


 
--  Net sales were $32.2 million in the quarter, an increase of $4.0
    million, or 14.0%, compared to second quarter 2012 sales of $28.2
    million. Driving the increase in sales was the upgrade by numerous law
    enforcement agencies to the new TASER(R) X26P(TM) Smart Weapon.
    These upgrades, as well as restocking orders from distributors, also
    resulted in higher cartridge sales in comparison to the second quarter
    of 2012.
    
    
--  Conducted Electrical Weapon (CEW) segment revenues grew $3.3 million,
    or 12.4%, to $30.3 million in the second quarter of 2013, compared to
    second quarter 2012 revenues of $26.9 million.
    
    
--  Video segment revenues increased by $0.6 million year-over-year, or
    47.4%, to $1.9 million in the second quarter of 2013. Loss from
    operations in the Video segment increased from $2.5 million in the
    second quarter of 2012 to $2.7 million in the second quarter of 2013.
    Reduced cost of services delivered in the 2013 quarter, primarily due
    to the migration to third-party cloud storage, were more than offset
    by higher personnel and support to grow the Video segment in the
    current-year quarter, as compared to the second quarter of 2012.
    
    
--  Gross margin in the second quarter of 2013 was 61.4%, compared to
    58.5% in the same period last year. The improvement in gross margin in
    the second quarter of 2013 was primarily driven by the 14.0% increase
    in sales which resulted in leverage of overhead expense. Gross margin
    also continues to benefit from the Company's decision to utilize third
    party cloud services in its Video segment.
    
    
--  Sales, general and administrative (SG&A) expenses of $10.9 million
    in the second quarter of 2013 increased 30.2%, from $8.4 million in
    the second quarter of 2012. As a percentage of revenue, SG&A was
    34.0% in the second quarter 2013 compared to 29.8% in the prior year.
    Personnel expenses increased $1.3 million year-over-year due to the
    Company's strategic effort to enhance its front-end, customer facing
    capabilities in roles such as account management and telesales, in
    addition to some incremental administrative functions. Expenses
    related to the defense of product and commercial litigation increased
    $0.7 million compared to the second quarter of 2012. To support our
    initiatives internationally and in the video market, there were higher
    selling and marketing expenses of approximately $0.4 million that
    contributed to the increase in SG&A.
    
    
--  Research and development (R&D) expenses of $2.0 million for the
    second quarter of 2013 are consistent with the prior-year and previous
    quarters.
    
    
--  Income from operations increased $0.8 million, or 12.4%, to $6.8
    million in the second quarter of 2013 compared to the second quarter
    of 2012.
    
    
--  Adjusted EBITDA was $9.5 million for the second quarter of 2013, an
    increase from Adjusted EBITDA of $8.5 million in the second quarter of
    2012. The increase is due to increased sales and margins.
    
    
--  Net income for the second quarter of 2013 was $4.5 million, or $0.09
    per basic share and $0.08 per diluted share.
    
    
--  In the second quarter of 2013, the Company generated $7.7 million in
    cash from operating activities. Cash, cash equivalents and investments
    were $31.7 million at the end of the second quarter of 2013, down from
    $37.8 million at December 31, 2012. The Company completed $19.6
    million of stock repurchases during the quarter, and received $3.7
    million in cash related to the exercise of stock options.
    
    
--  The Company has no debt, other than a capital lease, recorded on its
    balance sheet.

  
"Our second quarter represents TASER's highest revenue in the past two
and a half years, and the second highest quarterly revenue in TASER's
history," said Rick Smith, CEO of TASER International, Inc. "The new
X26P Smart Weapon continues to be well received by our customers,
accounting for 28.6% of law enforcement CEW unit sales in its first
full quarter of availability. We see this, coupled with the
increasing number of customers upgrading their aging weapons fleet,
as evidence of the strength of the CEW platform that we have built
over the last two years. We expect to continue to see growth across
our new SMART CEW products going forward as we've still only upgraded
a small fraction of the legacy product at this stage."  
"Sales bookings for the AXON flex(TM) on-officer cameras and the
EVIDENCE.com service more than tripled during the second quarter of
2013 compared to the same quarter in the prior year and grew by over
47% compared to the first quarter of 2013. We continue to work
towards expanding our customer base in the Video segment. Given the
product's growing momentum, we will continue to prudently invest in
the business to strengthen our sales force and infrastructure to
execute our strategy and drive profitable growth and value for our
stakeholders," concluded Smith.  
Other Significant Events:  


 
--  The Company announced a number of significant orders for its Smart
    Weapons, the new TASER X26P and the TASER X2 that occurred during the
    second quarter, including:
    --  Charles County Sheriff's Office (MD) purchased 166 X2s
    --  Columbus Police Department (OH) purchased 62 X26Ps and 8 X2s
    --  Durham Police Department (NC) purchased 55 X2s
    --  El Dorado County Sheriff's Office (CA) purchased 78 X2s with 50
        TASER CAM HD recorders
    --  Grand Junction Police Department (CO) purchased 69 X26Ps
    --  Kansas Highway Patrol (KS) purchased 386 X26Ps
    --  Kern County Sheriff's Office (CA) purchased 210 X26Ps and 60 X2s
    --  Louisiana State Police (LA) purchased 943 X2s
    --  Major U.S. law enforcement agency purchased 100  X26Ps
    --  Major U.S. law enforcement agency purchased 700 X26Es
    --  Manatee County Sheriff's Office (FL) purchased 200 X26Ps
    --  Metropolitan Nashville Police Department (TN) purchased 400 X26Ps
    --  Oakland Police Department (CA) purchased 170 X26Ps
    --  Oregon Department of Corrections (OR) purchased 40 X26Ps with 40
        TASER CAM HD recorders
    --  Oregon State Police (OR) purchased 38 X2s
    --  San Diego County Sheriff's Department (CA) purchased 1,200 X2s
    --  Sarasota Police Department (FL) purchased 100 X2s
    --  Toledo Police Department (OH) purchased 100 X2s
    --  Washington State Patrol (WA) purchased 218 X26Ps
    --  West Palm Beach Police (FL) purchased 150 X2s
        
        
--  The Company continued to see new agencies adopt the new AXON Flex
    on-officer camera and EVIDENCE.com management service during the
    second quarter. AXON Flex and EVIDENCE.com deployments included
    significant orders from:
    --  Chesapeake Police Department
    --  Oglala Sioux Tribe Department of Public Safety
    --  LaPlata County Sheriff's Office
    --  Truckee Police Department
        
        
--  The Company also announced plans to take questions relating to the
    second quarter results via social media. For the first time, TASER
    management will entertain questions during the call asked via Twitter,
    in addition to questions from those logged into the webcast.
    Individuals may submit questions via Twitter using hashtag
    #TASR_Earnings to the @TASER_IR handle. TASER management regrets that
    due to time considerations, not all questions may be answered during
    the call.

  
The Company will host its second quarter 2013 earnings conference call
on Wednesday, July 31, 2013 at 11:00 am ET. To join the live audio
presentation, please dial toll free at (877) 303-9126, or for
international callers, please dial (253) 237-1156. The pass code is
14532186.  
Non-GAAP Measures  
To supplement the Company's financial results presented in accordance
with GAAP, we are presenting the non-GAAP financial measures of
EBITDA and Adjusted EBITDA. Our management uses these non-GAAP
financial measures in evaluating the Company's performance in
comparison to prior periods and as a measure of liquidity. We believe
that both management and investors benefit from referring to these
non-GAAP financial measures in assessing our performance and when
planning and forecasting our future periods. A reconciliation of GAAP
to the non-GAAP financial measures is presented at the end of the
release. 
EBITDA is defined as consolidated net income (loss) before interest
expense, income taxes and depreciation and amortization. Adjusted
EBITDA as presented herein is defined as EBITDA before certain other
items, including: stock-based compensation; loss on
write-down/disposal of property, equipment and intangibles, net;
provision for obsolete and excess inventory; litigation judgment
(reversal) expense; loss on impairment; and interest income and other
(income) expense. 
Caution on Use of Non-GAAP Measures 
These non-GAAP financial measures are not consistent with GAAP, and
management believes investors will benefit by referring to these
non-GAAP financial measures when assessing the Company's operating
results, as well as when forecasting and analyzing future periods.
However, management recognizes that:  


 
--  these non-GAAP financial measures are limited in their usefulness and
    should be considered only as a supplement to the Company's GAAP
    financial measures;
    
    
--  these non-GAAP financial measures should not be considered in
    isolation from, or as a substitute for, the Company's GAAP financial
    measures;
    
    
--  these non-GAAP financial measures should not be considered to be
    superior to the Company's GAAP financial measures; and
    
    
--  these non-GAAP financial measures were not prepared in accordance with
    GAAP and investors should not assume that the non-GAAP financial
    measures presented in this earnings release were prepared under a
    comprehensive set of rules or principles.

  
Further, these non-GAAP financial measures may be unique to the
Company, as they may be different from non-GAAP financial measures
used by other companies. As such, this presentation of non-GAAP
financial measures may not enhance the comparability of the Company's
results to the results of other companies.  
A reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure or measures appears within
this press release.  
About TASER International, Inc.  
TASER International, Inc. (NASDAQ: TASR) is a global provider of
safety technologies that protect life and prevent conflict. More than
16,000 public safety agencies in 100 countries rely on TASER(R)
conducted electrical weapons and AXON on-officer camera systems to
help protect and serve. Today, the use of TASER CEWs has saved more
than 110,000 lives from potential death or serious injury while TASER
innovations benefit individuals and families too, providing personal
protection and accountability while maintaining regard for life.
Since 1994, more than 251,000 individuals have relied on TASER
technology as a means for effective personal safety. Learn more about
TASER International and its solutions at www.TASER.com and
www.EVIDENCE.com or by calling (800) 978-2737. Be a part of the TASER
community by joining us on Facebook, LinkedIn, Twitter, and YouTube.  
TASER(R) is a registered trademark of TASER International, Inc.,
registered in the U.S. All rights reserved. TASER logo, AXON, AXON
Flex, TASER CAM HD, X26, X26P and X2 are trademarks of TASER
International, Inc. 
Note to Investors  
To review the TASER International Safe Harbor Statement, please
visit: investor.taser.com/safeHarbor.cfm. 
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), including statements regarding
our expectations, beliefs, intentions or strategies regarding the
future; that we expect to see upgrades to our CEW platform going
forward; that we will expand our customer base in the Video segment;
and that we are well positioned to execute our strategy. We intend
that such forward-looking statements be subject to the safe-harbor
provided by the Private Securities Litigation Reform Act of 1995. The
forward-looking information is based upon current information and
expectations regarding TASER International, Inc. These estimates and
statements speak only as of the date on which they are made, are not
guarantees of future performance, and involve certain risks,
uncertainties and assumptions that are difficult to predict. 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. 
TASER International assumes no obligation to update the information
contained in this press release. These statements are qualified by
important factors that could cause our actual results to differ
materially from those reflected by the forward-looking statements.
Such factors include, but are not limited to: market acceptance of
our products; our dependence on sales of our TASER X26, X26P and X2
CEWs; the acceptance of our EVIDENCE.com software model; our ability
to design, introduce and sell new products; delays in development
schedules; rapid technological change and competition; product
defects; breach of our security measures resulting in unauthorized
access to customer data; outages and disruptions relating to our
EVIDENCE.com service; budgetary and political constraints of
prospects and customers; the length of our sales cycle and our
ability to realize benefits from our marketing and selling efforts;
litigation risks resulting from alleged product-related injuries and
media publicity concerning allegations of deaths occurring after use
of the TASER device and the negative impact this publicity could have
on sales; the outcome of pending or future litigation; our ability to
protect our intellectual property; intellectual property infringement
claims and relating litigation costs; competition in foreign
countries relating to foreign patents; our successful identification
of existing intellectual property rights that might infringe on our
developments; risks of governmental regulations, including
regulations of our products by the United States Consumer Product
Safety Commission, regulation of our products as a "crime control"
product by the Federal government, state and local government
regulation and foreign regulation; the adverse effects that could
result from our products being classified as firearms by the United
States Bureau of Alcohol and Firearms; our compliance with
regulations governing the environment, including but not limited to,
regulations within the European Union; new regulations relating to
conflict minerals; our dependence on third party suppliers for key
components of our products; component shortages, including our
dependence on foreign suppliers for key components; rising costs of
raw materials and transportation relating to petroleum prices; our
ability to manage our growth; our ability to increase manufacturing
production to meet demand; establishment and expansion of our direct
and indirect distribution channels; our ability to pursue sales
directly with customers; risks relating to acquisitions and joint
ventures; catastrophic events; fluctuations in quarterly operating
results; foreign currency fluctuations; counterparty risks relating
to cash balances held in excess of FDIC insurance limits; employee
retention risks and other factors identified in documents filed by us
with the Securities and Exchange Commission, including those set
forth in our Form 10-K. 
Please visit http://investor.taser.com, http://blog.taser.com,
www.twitter.com/taser_ir, www.twitter.com/officialtaser and
www.facebook.com/taser where TASER discloses information from time to
time about the company, its financial information, and its business. 
For investor relations information please contact Erin Curtis by
phone at (480) 515-6330 or via email at IR@TASER.com, or Dan
Behrendt, Chief Financial Officer of TASER International, Inc., (480)
905-2002. 


 
                                                                            
                         TASER International, Inc.                          
                   Consolidated Statements of Operations                    
                                (Unaudited)                                 
                                                                            
                                                                            
                     Three Months Ended June 30,  Six Months Ended June 30, 
                     --------------------------- -------------------------- 
                          2013          2012         2013          2012     
                     ------------- ------------- ------------  ------------ 
                                                                            
Net sales            $  32,175,797 $  28,222,443 $ 62,609,449  $ 53,863,835 
Cost of products                                                            
 sold and services                                                          
 delivered              12,433,434    11,720,070   24,416,082    22,120,203 
                     ------------- ------------- ------------  ------------ 
Gross margin            19,742,363    16,502,373   38,193,367    31,743,632 
                                                                            
Sales, general and                                                          
 administrative                                                             
 expenses               10,940,085     8,404,611   22,122,025    17,258,633 
Research and                                                                
 development                                                                
 expenses                1,992,064     2,038,830    4,004,620     4,171,050 
Litigation judgment                                                         
 recovery                        -             -            -    (2,200,000)
                     ------------- ------------- ------------  ------------ 
                                                                            
Income from                                                                 
 operations              6,810,214     6,058,932   12,066,722    12,513,949 
                                                                            
Interest and other                                                          
 income (expense),                                                          
 net                        18,677         7,133       (4,084)       14,127 
                     ------------- ------------- ------------  ------------ 
                                                                            
Income before                                                               
 provision for                                                              
 income taxes            6,828,891     6,066,065   12,062,638    12,528,076 
                                                                            
Provision for income                                                        
 taxes                   2,371,357     2,623,818    4,307,283     5,282,011 
                                                                            
                     ------------- ------------- ------------  ------------ 
Net income           $   4,457,534 $   3,442,247 $  7,755,355  $  7,246,065 
                     ============= ============= ============  ============ 
                                                                            
                                                                            
Income per common                                                           
 and common                                                                 
 equivalent shares                                                          
                                                                            
Basic                $        0.09 $        0.06 $       0.15  $       0.12 
Diluted                       0.08          0.06         0.14          0.12 
                                                                            
Weighted average                                                            
 number of common                                                           
 and common                                                                 
 equivalent shares                                                          
 outstanding                                                                
                                                                            
Basic                   51,109,060    54,520,889   51,923,097    58,849,010 
Diluted                 52,853,166    55,166,644   53,698,787    59,482,674 
                                                                            
                                                                            
                                                                            
TASER International, Inc.  
    Segment Reporting      
       (Unaudited)         
                                                                            
                                                                            
                                 Three Months Ended June 30, 2013           
                       ---------------------------------------------------- 
                              CEW              Video             Total      
                       ----------------  ----------------  ---------------- 
                                                                            
Product sales          $     30,272,853  $      1,569,551  $     31,842,404 
Service revenue                       -           333,393           333,393 
                       ----------------  ----------------  ---------------- 
Net sales                    30,272,853         1,902,944        32,175,797 
                       ----------------  ----------------  ---------------- 
                                                                            
Cost of products sold        10,410,910         1,355,699        11,766,609 
Cost of services                                                            
 delivered                            -           666,825           666,825 
                       ----------------  ----------------  ---------------- 
Gross margin                 19,861,943          (119,580)       19,742,363 
                                                                            
Sales, general &                                                            
 administrative               9,417,473         1,522,612        10,940,085 
Research & development          977,508         1,014,556         1,992,064 
                                                                            
                       ----------------  ----------------  ---------------- 
Income (loss) from                                                          
 operations            $      9,466,962  $     (2,656,748) $      6,810,214 
                       ================  ================  ================ 
                                                                            
Operating margin %                   31%             -140%               21%
                                                                            
 
                                                                           
                                                                           
                                Three Months Ended June 30, 2012           
                      ---------------------------------------------------- 
                             CEW              Video             Total      
                      ----------------  ----------------  ---------------- 
                                                                           
Product sales         $     26,931,727  $      1,164,128  $     28,095,855 
Service revenue                      -           126,588           126,588 
                      ----------------  ----------------  ---------------- 
Net sales                   26,931,727         1,290,716        28,222,443 
                      ----------------  ----------------  ---------------- 
                                                                           
Cost of products sold        9,783,886           736,924        10,520,810 
Cost of services                                                           
 delivered                           -         1,199,260         1,199,260 
                      ----------------  ----------------  ---------------- 
Gross margin                17,147,841          (645,468)       16,502,373 
                                                                           
Sales, general &                                                           
 administrative              7,668,654           735,957         8,404,611 
Research & development         922,084         1,116,746         2,038,830 
                                                                           
                      ----------------  ----------------  ---------------- 
Income (loss) from                                                         
 operations           $      8,557,103  $     (2,498,171) $      6,058,932 
                      ================  ================  ================ 
                                                                           
Operating margin %                  32%             -194%               21%
                                                                           
                                                                            
                                                                            
                                  Six Months Ended June 30, 2013            
                       ---------------------------------------------------- 
                              CEW              Video             Total      
                       ----------------  ----------------  ---------------- 
                                                                            
Product sales          $     58,275,475  $      3,749,607  $     62,025,082 
Service revenue                       -           584,367           584,367 
                       ----------------  ----------------  ---------------- 
Net sales                    58,275,475         4,333,974        62,609,449 
                       ----------------  ----------------  ---------------- 
                                                                            
Cost of products sold        20,627,577         2,543,545        23,171,122 
Cost of services                                                            
 delivered                            -         1,244,960         1,244,960 
                       ----------------  ----------------  ---------------- 
Gross margin                 37,647,898           545,469        38,193,367 
                                                                            
Sales, general &                                                            
 administrative              19,491,138         2,630,887        22,122,025 
Research & development        1,966,189         2,038,431         4,004,620 
Litigation judgment                                                         
 recovery                             -                 -                 - 
                                                                            
                       ----------------  ----------------  ---------------- 
Income (loss) from                                                          
 operations            $     16,190,571  $     (4,123,849) $     12,066,722 
                       ================  ================  ================ 
                                                                            
                       ----------------  ----------------  ---------------- 
Income (loss) from                                                          
 operations,                                                                
 normalized (a)        $     16,190,571  $     (4,123,849) $     12,066,722 
                       ================  ================  ================ 
                                                                            
Operating margin %                   28%              -95%               19%
                                                                            
 
                                                                         
                                                                         
                                Six Months Ended June 30, 2012           
                      -------------------------------------------------- 
                             CEW             Video            Total      
                      ---------------- ---------------- ---------------- 
                                                                         
Product sales         $     51,689,401 $      1,936,259 $     53,625,660 
Service revenue                      -          238,175          238,175 
                      ---------------- ---------------- ---------------- 
Net sales                   51,689,401        2,174,434       53,863,835 
                      ---------------- ---------------- ---------------- 
                                                                         
Cost of products sold       18,395,306        1,530,772       19,926,078 
Cost of services                                                         
 delivered                           -        2,194,125        2,194,125 
                      ---------------- ---------------- ---------------- 
Gross margin                33,294,095       (1,550,463)      31,743,632 
                                                                         
Sales, general &                                                         
 administrative             15,755,151        1,503,482       17,258,633 
Research & development       1,762,436        2,408,614        4,171,050 
Litigation judgment                                                      
 recovery                   (2,200,000)               -       (2,200,000)
                                                                         
                      ---------------- ---------------- ---------------- 
Income (loss) from                                                       
 operations           $     17,976,508 $     (5,462,559)$     12,513,949 
                      ================ ================ ================ 
                                                                         
                      ---------------- ---------------- ---------------- 
Income (loss) from                                                       
 operations,                                                             
 normalized (a)       $     15,776,508 $     (5,462,559)$     10,313,949 
                      ================ ================ ================ 
                                                                         
Operating margin %                  35%            -251%              23%
                                                                         
(a) Income from operations excluding litigation judgment recovery           
                                                                            
                          TASER International, Inc.                         
                AXONFlex and EVIDENCE.COM Bookings by Quarter               
                                 (Unaudited)                                
                                                                            
                                                                            
                                 For the Quarter ended,                     
            ----------------------------------------------------------------
              June 30,    March 31,     Dec. 31,    Sept. 30,     June 30,  
                2013         2013         2012         2012         2012    
            ------------ ------------ ------------ ------------ ------------
                                                                            
                                                                            
Bookings    $  2,045,938 $  1,387,199 $  1,670,813 $  1,318,107 $    451,183
                                                                            
                                                                            
                                                                            
AXON Flex and EVIDENCE.com Bookings is a statistical measure defined as the 
sales price of orders placed in the relevant time period. Bookings are an   
indication of the activity the Company is seeing relative to AXON Flex and  
EVIDENCE.com. The Company has deliverables to meet prior to recognizing     
revenue related to many of the orders. These statistics represent orders and
not invoiced sales. Once invoiced, the revenue related to EVIDENCE.com is   
recognized over the requisite service period of one to five years. For more 
information relative to our revenue recognition policies, please reference  
our SEC filings.                                                            
                                                                            
                          TASER International, Inc.                         
                            Unit Sales by Product                           
                                 (Unaudited)                                
                                                                            
               Three Months Ended June 30,      Six Months Ended June 30,   
             ------------------------------- -------------------------------
                   2013            2012            2013            2012     
             --------------- --------------- --------------- ---------------
                                                                            
X26                    8,047          10,224          17,101          23,639
X26P                   6,021               -          10,336               -
X2                     7,016           8,338          11,962          12,116
M26                      508             767           1,136           1,641
X3                        71              19             271              33
C2                     2,030           2,708           4,325           5,762
TASER Cam              2,693           1,858           5,006           3,489
Cartridges           412,132         368,560         778,462         733,086
AXON Flex              1,081             755           2,363             755
                                                                            
                                                                            
                                                                            
                                                                            
                         TASER International, Inc.                          
           Reconciliation of GAAP to Non-GAAP Financial Measures            
                                (Unaudited)                                 
                                                                            
                     For the Three Months Ended   For the Six Months Ended  
                     --------------------------  -------------------------- 
                       June 30,      June 30,      June 30,      June 30,   
                         2013          2012          2013          2012     
                     ------------  ------------  ------------  ------------ 
                                                                            
Net income           $  4,457,534  $  3,442,247  $  7,755,355  $  7,246,065 
  Depreciation and                                                          
   amortization         1,529,507     1,728,933     2,948,266     3,395,443 
  Interest expense          3,134        (2,399)        5,531         4,074 
  Provision for                                                             
   income taxes         2,371,357     2,623,818     4,307,283     5,282,011 
                     ------------  ------------  ------------  ------------ 
EBITDA               $  8,361,532  $  7,792,599  $ 15,016,435  $ 15,927,593 
                     ============  ============  ============  ============ 
                                                                            
Adjustments:                                                                
  Stock-based                                                               
   compensation                                                             
   expense              1,019,300       589,608     1,942,641     1,347,662 
  Loss on write                                                             
   down/disposal of                                                         
   property,                                                                
   equipment and                                                            
   intangibles, net        15,493       104,949        82,033       178,175 
  Provision for                                                             
   excess and                                                               
   obsolete                                                                 
   inventory              122,496        58,059       168,973       197,468 
  Litigation                                                                
   judgment recovery            -             -             -    (2,200,000)
  Interest income                                                           
   and other                                                                
   (income) expense       (21,811)       (4,734)       (1,447)      (18,201)
                     ------------  ------------  ------------  ------------ 
Adjusted EBITDA      $  9,497,010  $  8,540,481  $ 17,208,635  $ 15,432,697 
                     ============  ============  ============  ============ 
Adjusted EBITDA as a                                                        
 percentage of net                                                          
 sales                       29.5%         30.3%         27.5%         28.7%
                                                                            
                                                                            
                                                                            
Composition of                                                              
 stock-based                                                                
 compensation:                                                              
                     For the Three Months Ended   For the Six Months Ended  
                     --------------------------  -------------------------- 
                       June 30,      June 30,      June 30,      June 30,   
                         2013          2012          2013          2012     
                     ------------  ------------  ------------  ------------ 
                                                                            
Cost of products                                                            
 sold                $     49,436  $     28,748  $     83,868  $     95,892 
Sales, general and                                                          
 administrative                                                             
 expenses                 826,735       426,231     1,557,239       973,364 
Research and                                                                
 development                                                                
 expenses                 143,129       134,629       301,534       278,406 
                     ------------  ------------  ------------  ------------ 
                     $  1,019,300  $    589,608  $  1,942,641  $  1,347,662 
                     ============  ============  ============  ============ 
                                                                            
                                                                            
                                                                            
                                                                            
                         TASER International, Inc.                          
                        Consolidated Balance Sheets                         
                                (Unaudited)                                 
                                                                            
                                             June 30,        December 31,   
                                               2013              2012       
                                         ----------------  ---------------- 
                 ASSETS                                                     
                                                                            
Current Assets:                                                             
  Cash and cash equivalents              $     19,079,341  $     36,126,791 
  Short-term investments                       10,733,249         1,680,958 
  Accounts and notes receivable, net           16,889,785        18,101,240 
  Inventory                                    13,200,436        10,993,209 
  Prepaid expenses and other current                                        
   assets                                       6,579,742         2,754,331 
  Deferred income tax assets, net               9,395,987         9,395,987 
                                         ----------------  ---------------- 
    Total current assets                       75,878,540        79,052,516 
                                                                            
  Property and equipment, net                  20,032,085        21,952,201 
  Deferred income tax assets, net              11,686,195        11,605,812 
  Intangible assets, net                        3,332,521         3,317,169 
  Long-term investments                         1,875,723                 - 
  Other assets                                    203,122           308,553 
                                                                            
                                         ----------------  ---------------- 
Total assets                             $    113,008,186  $    116,236,251 
                                         ================  ================ 
                                                                            
  LIABILITIES AND STOCKHOLDERS' EQUITY                                      
                                                                            
Current Liabilities:                                                        
  Accounts payable                       $      5,897,846  $      6,222,904 
  Accrued liabilities                           7,425,604         7,065,085 
  Current portion of deferred revenue           5,371,520         4,287,305 
  Customer deposits                             1,235,186           500,018 
  Current portion of capital lease                                          
   payable                                         35,004            33,947 
                                         ----------------  ---------------- 
    Total current liabilities                  19,965,160        18,109,259 
                                                                            
  Deferred revenue, net of current                                          
   portion                                     10,219,802         7,835,767 
  Liability for unrecognized tax                                            
   benefits                                     3,072,863         2,902,896 
  Long-term portion of capital lease                                        
   payable                                         85,515           103,283 
                                                                            
                                         ----------------  ---------------- 
Total liabilities                              33,343,340        28,951,205 
                                         ----------------  ---------------- 
                                                                            
                                                                            
                                                                            
Stockholders' Equity:                                                       
  Preferred stock                                       -                 - 
  Common stock                                        672               661 
  Additional paid-in capital                  121,349,015       111,661,393 
  Treasury stock                              (92,202,810)      (67,203,043)
  Retained earnings                            50,638,422        42,883,067 
  Accumulated other comprehensive loss           (120,453)          (57,032)
                                                                            
                                         ----------------  ---------------- 
Total stockholders' equity                     79,664,846        87,285,046 
                                         ----------------  ---------------- 
                                                                            
Total liabilities and stockholders'                                         
 equity                                  $    113,008,186  $    116,236,251 
                                         ================  ================ 
                                                                            
                                                                            
                                                                            
                         TASER International, Inc.                          
         Selected Consolidated Statement of Cash Flows Information          
                                (Unaudited)                                 
                                                                            
                     For the Three Months Ended   For the Six Months Ended  
                     --------------------------  -------------------------- 
                       June 30,      June 30,      June 30,      June 30,   
                         2013          2012          2013          2012     
                     ------------  ------------  ------------  ------------ 
                                                                            
Net income           $  4,457,534  $  3,442,247  $  7,755,355  $  7,246,065 
Depreciation and                                                            
 amortization           1,529,507     1,728,933     2,948,266     3,395,443 
Stock-based                                                                 
 compensation                                                               
 expense                1,019,300       589,608     1,942,641     1,347,662 
Net cash provided by                                                        
 operating                                                                  
 activities             7,703,685     9,721,831    12,223,269    13,384,506 
Net cash used in                                                            
 investing                                                                  
 activities           (13,231,366)     (324,072)  (12,004,259)     (968,175)
Net cash used in                                                            
 financing                                                                  
 activities           (13,951,585)  (15,756,295)  (17,271,486)  (15,741,666)
Cash and cash                                                               
 equivalents, end of                                                        
 period                19,079,341    17,970,019    19,079,341    17,970,019 

  
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CONTACT: 
Dan Behrendt 
Chief Financial Officer
TASER International, Inc.
(480) 905-2000 
 
 
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