Nothing fills my email box faster than saying anything good about weapons manufacturer Taser (NASDAQ:TASR). Well, the box is empty and ready for the deluge.

Taser reported today that its third-quarter revenue increased 211% and net income grew 469% over the comparable quarter last year. The news sent the stock up 10%.

The skeptics will note that sales are slowing -- from up roughly 290% in the first two quarters. They will also chuckle that four-digit percentage gains in net income have passed, too. But even they have to admit that the stock is trading at less than 50 times 2005 analyst estimates. That's hardly an extraordinary multiple given the sales and earnings momentum.

Taser's cash has increased by $25.6 million since the end of 2003. More importantly, the company continues to build evidence to blunt charges by Viacom's (NYSE:VIA) CBS News that its weapons are not nonlethal.

The debt-free company is also making sales progress on multiple fronts. While Dow Jones (NYSE:DJ) weekly Barron's said it thought sales were limited based on equipping U.S. police forces, Taser has won approval for use of its weapons by armed officers in the U.K. Its weapons are being evaluated by U.S. military forces in Iraq, and a weapon for personal defense is now available to the U.S.'s 117 million households.

Taser is hardly a one-trick pony. The company is working with General Dynamics (NYSE:GD) on less lethal devices, including anti-personnel munitions. The company has a highly visible research and development effort to develop a wireless projectile -- increasing the weapon's range and its potential uses.

Don't forget, too, that over time, cartridges (the Taser equivalent to ammunition) will provide a stream of income the way high-margin razor blades do for Gillette (NYSE:G). Although this revenue may be small, it will be highly profitable add-on revenue.

Taser is an extremely expensive stock because the expectations are extremely high. While rapid growth will continue, the stock's meteoric rise (it's up 400% over the last 52 weeks) may not. Like Amgen (NASDAQ:AMGN) and Dell Computer (NASDAQ:DELL), the day will come when rapid growth is replaced by more moderate growth -- and lower earnings multiples.

Also supporting this stock's price is the lack of competition. The company's high margins will certainly attract attention. When they do, expect margins to contract. But, until then, expect more stellar earnings reports.

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Fool contributor W.D. Crotty does not own stock in any of the companies mentioned.