UPDATE 2-Taser International Q2 loss widens

Tue Jul 27, 2010 1:04pm EDT

* Q2 loss/shr $0.02 vs loss/shr $0.01 a year ago

* Q2 rev down 3 pct (Adds conference call comments, share movement)

BANGALORE, July 27 (Reuters) - Taser International Inc (TASR.O) posted a wider quarterly loss, hurt by a delay in completion of large international orders, but the stun-gun maker said it expects to see one or two significant orders in the second half of 2010.

"We do believe that we will get at least one or two of those significant orders in the back half of the year, which could have a significant impact on the business," Chief Executive Rick Smith said on a conference call with analysts.

"We remain positive on those. Unfortunately we could not bring them in this quarter," he said.

Early this month, the company had said its second-quarter revenue would be hurt by the push back of a number of large international orders, which were originally scheduled to be completed during the quarter.

The company also said it experienced weakness in its domestic law enforcement business as the impact of stimulus-driven spending was reduced from first quarter 2010 levels.

Taser -- whose guns are bought not only by the police, military and correction facilities, but also by individuals and casinos -- has plans to expand its product portfolio into areas involving driving and mobile usage safety.

Taser is currently working on brands such as Protector -- an application that gives parents the ability to supervise their children's mobile phone usage and monitor driving behavior.

CEO Smith said the company expects to soft-launch the distracted driving management part of its Protector device in the fall of 2010.

"we will be doing a more consumer direct launch and positioning those products for a wider channel of distribution in 2011," he said.

Axon, another Taser device, is an audio-video tool that can be connected to stun guns to grab footage of incidents.

For the second quarter, the company reported net loss of $1.4 million, or 2 cents a share, compared with a loss of $723,403, or 1 cent a share, a year ago.

Revenue fell 3 pct to $19.1 million.

Analysts on average were expecting a loss of 3 cents a share, on revenue of $18.6 million, according to Thomson Reuters I/B/E/S.

The Scottsdale, Arizona-based company's shares, which rose as much as 6 percent to $4.62 in morning trade, pared most of their gains and were trading flat in afternoon trade on Nasdaq. (Reporting by Bijoy Koyitty in Bangalore; Editing by Don Sebastian)

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