TASER’s Axon platform boosting revenue in 3rd quarter
With more police departments ordering body camera systems for their officers and patrol cars and additional products to the Axon segment line, TASER, the Scottsdale-based company that develops innovative public safety technologies, is realizing a jump in earnings for the 3rd quarter.
Today, the company announced their financial results for 3rd quarter 2015, here are the highlights:
The company recorded a net sales of $50.4 million, an increase of $6 million or 13.6% over the prior year 3rd quarter. International sales were $6.7 million for the 3rd quarter. Net income for TASER was $1.5 million, down from 2014, however, there was an increase in operating expenses this year.
The Axon segment of the business which recently added three new products in October 2015- Axon Interview, Axon Body 2 and Axon Fleet-realized an increase in revenues by $6.5 million or 150.2% to $10.9 million in the 3rd quarter compared to the prior year third quarter.
The TASER Weapons revenue, which consist of their Smart Weapons, X2 and X26P, increased $10.5 million or 10% over the same period in the prior year.
With all the new products in the Axon segment, the company reported an increase in R&D expenses of $6.5 million for the third quarter 2015 and intends to continue spending in this segment to support headcount and new capabilities to the platform as they roll into the 4th quarter.
With many contracts and invoices coming in from all the police department orders, the company reports Future Contracted Revenue at $122.4 million.
On the business front, TASER has received orders from 28 major city law enforcement agencies, including Tucson, Mesa, and other cities in Arizona. As of September 30, 2015, the company has 33,000 total active, paid users of the EVIDENCE.com platform with 12,800 more coming online, but it’s not yet recognized in the monthly service revenue. Out of all the customers of the Axon body-worn video cameras, 79 percent of them also purchased TASER’s digital evidence management solution. As for the Smart Weapons segment, TASER announced a total of 66 significant orders for the X26P and X2, equalling 9,900 weapons.
TASER’s CEO Rick Smith said in a statement, “Our team delivered once-again, outstanding top-line revenue and Axon bookings growth in the third quarter surpassing even internal expectations. The expansion of our Axon product portfolio has furthered our position as a market leader and put us in a positive position to capture market share. We believe the potential global Total Available Market (TAM) for our Axon solutions is approximately $3 billion annually, hence our significant investments in this space. These investments are paying off, not only in the record third quarter sales and bookings results, but in our expectation for increased bookings in the fourth quarter, as well as a strong 2016.”