Taser reports profit increase

NEW YORK - Stun gun maker Taser International on Wednesday posted better-than-expected third-quarter earnings, sending its shares up 10 per cent, as it recovers from a slew of lawsuits over the safety of its products.

Net profit increased to $2.4 million, or 4 cents per share, from US$374,880 ($572,412), or 1 cent per share, a year earlier. The results topped analysts' expectations of 3 cents per share, according to Reuters Estimates.

CEO Rick Smith said: "The third quarter tends to be our slowest quarter of the year and we are pleased to be able to report such solid results."

"With the strong growth in both new and existing TASER system deployments during the quarter we have continued the momentum established in the first half of the year and look forward to the results of our initiatives into the federal, military and foreign markets both in the fourth quarter and into 2007."

Eric Wold, an analyst with Merriman Curhan Ford said Taser was "finally getting some leverage on the bottom line".

"They've got a lot of upside potential, especially on the international front," he said.

Taser has battled an onslaught of lawsuits and an investigation by the US Securities and Exchange Commission into statements by executives on the safety of its guns.

The SEC investigation, which hurt sales, was eventually dropped without charges, and the lawsuits have largely been dismissed or settled.

Revenues rose 57 per cent to US$18.3 million. Sales were boosted by orders from the French government and US police departments.

- REUTERS / NZ HERALD STAFF