TASER's Surprising Margins: Fool by Numbers

On Thursday, Rule Breakers selection TASER International (Nasdaq: TASR  ) released earnings for the fourth quarter ended Dec. 31.

  • Gross margin fell slightly, but stabilizing administrative expenses -- probably due to lower legal expenses -- gave a double-digit boost to both operating and net margins.
  • Meanwhile, cash from operations improved by 600%, suggesting that higher-margin products such as the TASER Cam are starting to take hold.
  • TASER is a two-star stock in Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$19,288

$12,608

53.0%

Net Profit

$2,317

$179

1,193.7%

EPS

$0.04

$0.00

N/A

Diluted Shares

64,752

63,222

2.4%



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

63.26%

64.26%

(1.00)

Operating Margin

19.70%

3.09%

16.61

Net Margin

12.01%

1.42%

10.59

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$22,331

$16,352

36.6%

Accounts Rec.

$10,068

$5,422

85.7%

Inventory

$9,258

$10,105

(8.4%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$6,790

$6,316

7.5%

Long-Term Debt

$76

$119

(36.1%)



Learn the ways of the balance sheet.

Cash Flow Checkup

Q4 2006

Q4 2005

Change

Cash From Ops.

$7,482

$1,068

600.7%



Find out why Fools always follow the money.

Related companies:

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

Related Foolishness:

TASER is a Motley Fool Rule Breakers pick. David Gardner and his analysts have unearthed six stocks that have more than doubled in the first two years of this market-beating service. Test-drive Rule Breakers for 30 days to see what they are.

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 checkFool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers is ranked 1,569 out of more than 23,000 in our Motley Fool CAPS database. Tim didn't own shares in any of the companies mentioned in this story at the time of publication. His holdings can be found at his profile. His thoughts on Foolishness and investing in general may be found in his blog. The Motley Fool's disclosure policy always adds up.


Read/Post Comments (0) | Recommend This Article (16)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 522453, ~/Articles/ArticleHandler.aspx, 10/1/2014 6:55:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement