TASER Stuns the Street: Fool by Numbers

On Wednesday, Motley Fool Rule Breakers pick TASER International (Nasdaq: TASR  ) released Q3 2006 earnings for the period ended Sept. 30.

  • A 14% increase in general and administrative expenses for the stun-gun maker was far outweighed by a 56.8% rise in sales. That helped to boost the operating margin by nearly 15 points and suggests that legal costs may finally be coming under control.
  • Huge gains in cash from operations helped TASER grow its short-term cash balance by roughly 25% year over year.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$18,010

$18,312

$11,676

56.8%

Net Profit

--

$2,396

$375

539.2%

EPS

$0.03

$0.04

$0.01

300.0%

Diluted Shares

64,718

63,695

1.6%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

63.52%

66.29%

(2.77)

Operating Margin

20.39%

5.60%

14.79

Net Margin

13.08%

3.21%

9.87

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$21,472

$17,134

25.3%

Accounts Rec.

$10,388

$7,305

42.2%

Inventory

$8,531

$9,215

(7.4%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$6,605

$6,188

6.7%

Long-Term Debt

$0

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Not provided. (Whatever.)

Find out why Fools always follow the money.

Related Companies:

  • Law Enforcement Associates (AMEX: AID  )
  • Stinger Systems

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

TASER is a Motley Fool Rule Breakers selection. Get more insight on the company with David Gardner's no-holds-barred interview with new company chairman Tom Smith. All that's required is a 30-day tryout of the Rule Breakers service. There's no obligation to buy, and it's easy to get started. Just click here now.

Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.


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