TASER International (TASR) has been gaining a lot of traction in the law enforcement equipment industry, having notched big orders for body cameras and smart weapons. TASER International, founded in 1992, has been a pioneer in transforming law enforcement with electrical weapons. On its website, the company claims that, “more than 165,000 lives have been saved from death or serious injury with TASER's products and services.” The demand for products like those of TASER is rising and the company is surely well positioned to dominate and benefit from this rising trend.
A Good Start To 2016
TASER International reported net sales of $55.5 million during the first quarter 2016, an increase of 24.1% year-over-year. The company reported international sales of $13.1 million during the quarter. Taser’s weapons segment constituted 82.52% of its revenue during the first quarter while the Axon segment contributed the remaining 17.48%. The Axon segment witnessed an increase of 51% in its quarterly revenue while the weapons segment grew at 19.5%. That’s not all, the booking for Axon and Evidence.com bookings reach new quarterly record of $52.1 million rising 126.86% year-over-year.
The net income of the company took a toll as its operating expenses have been substantially rising, driven by more spending on research and development as well as marketing, sale and administrative spending--especially due to international expansion.
"We are off to a strong start in 2016 with double-digit Weapons growth, record Axon and Evidence.com bookings, and record international revenues," said Rick Smith, TASER CEO and co-founder. "We continue to extend our technology leadership position in each of our business segments domestically while gaining traction in new international markets. As we progress throughout the year, we plan to further enhance our comprehensive platform offering and service delivery capabilities to law enforcement."
Body-Worn Camera (BWC) Pilot Partnership Program
A year back, the Department of Justice announced a Body-Worn Camera (BWC) Pilot Partnership Program worth $20 million to cater to the needs of law enforcement organizations. The $20 million is split into three categories: $17 million in competitive grants for the purchase of body-worn cameras, $2 million for training and technical assistance and $1 million for the development of evaluation tools to study best practices. According to the DOJ, “The pilot program is part of President Obama’s proposal to invest $75 million over three years to purchase 50,000 body-worn cameras for law enforcement agencies.” (Related reading, see: TASER Floods Market With More Police Body Cams (TASR))
The Bottom Line
Body-worn cameras hold tremendous promise for enhancing transparency, promoting accountability, and advancing public safety for law enforcement officers and the communities they serve” are the words of Attorney General Loretta E. Lynch.
With more and more law enforcement agencies embracing sophisticated technology like body camera’s, TASER’s body-worn cameras and its digital evidence management solution will be its drivers of growth going forward. At the end of the first quarter 2016, TASER's had 32 major city law enforcement agencies on its list of clients, like Chicago, Washington, DC, San Francisco, Las Vegas, Baltimore County, and Minneapolis among others. It’s now eying the New York Police Department.
