Profile: TASER International, Inc. (TASR.O)

TASER International, Inc. (TASER), incorporated in September 1993, develops and manufactures advanced electronic control devices (ECDs) designed for use in the law enforcement, military, corrections, private security and personal defense markets. The Company makes ECDs for two main types of market segments: the law enforcement, military, corrections and professional security markets, and the consumer market. Its products use a replaceable cartridge containing compressed nitrogen to deploy and propel two small probes that are attached to the ECD by insulated conductive wires with lengths ranging from 15 to 35 feet. The Company’s ECDs transmit electrical pulses along the wires and into the body affecting the sensory and motor functions of the peripheral nervous system. The energy can penetrate up to two cumulative inches of clothing, or one inch per probe. The initial effect lasts five seconds for its law enforcement, military and corrections products and up to thirty seconds for its consumer market models. This effect can be extended, if necessary, by the operator.

TASER manufactures two product lines for the law enforcement, military, corrections and professional security markets. Its primary product is the TASER X26 with shaped pulse technology. Shaped pulse technology is a refined energy pulse that concentrates a small portion of energy to first penetrate any barriers, while the majority of the energy flows into the target freely after the barrier has been penetrated. The TASER X26 product line consists of the TASER X26, various cartridges, a battery system, a digital power magazine, download software and equipment, extended warranties, and a number of holstering options and accessories. The TASER X26 product line (excluding individual cartridge sales) accounted for approximately 55% of TASER's net sales, for the year ended December 31, 2008.

TASER's second law enforcement product line is the ADVANCED TASER M26. The ADVANCED TASER M26 product line consists of the ADVANCED TASER M26, various cartridges, rechargeable batteries, a battery charging system, data download software and equipment, extended warranties, and a number of holstering options and accessories.

The Company’s primary product for the personal defense market is TASER C2 consumer product. This device is a compact system that provides the neuro-muscular incapacitation (NMI) effectiveness as the Company's TASER X26 but in a less intimidating, more compact form. The Company also manufactures the TASER X26C, ADVANCED TASER M18 and ADVANCED TASER M18L, devices for use by consumers. The X26C was developed in conjunction with the law enforcement TASER X26 version, however, its effect lasts longer allowing the owner more time to escape danger. The ADVANCED TASER M18 and ADVANCED TASER M18L are designed after the law enforcement ADVANCED TASER M26 version, however, the electrical pulse rate is lower. The ADVANCED TASER M18 and ADVANCED TASER M18L are identical except that the ADVANCED TASER M18L has an integrated laser-aiming device. These three product lines consist of the units themselves, air cartridges, batteries and digital power magazines, and a number of holstering options and accessories.

TASER manufactures six cartridge types, including a 15 inches cartridge, a 21 inches cartridge, a 25 inches experience (XP) cartridge, a 35 inches cartridge, a 21 inches training cartridge and a 15 inches cartridge for the costlink controller (C2). The 15 inches cartridge is capable of firing a distance of 15 inches and is sold primarily to the law enforcement market for training and the consumer market for use in the ADVANCED TASER M18, ADVANCED TASER M18L, and TASER X26C devices. The C2 15 inches cartridge is designed specifically for use in the TASER C2. The 21 inches, 25 inches XP, 35 inches, and 21 inches training cartridge are sold only to the law enforcement, military, and corrections market. The 25 inches XP cartridge is different from the 21 inches cartridge in that it has a longer range and its probes are longer and heavier, which allows it to penetrate a thicker clothing barrier. The training cartridge contains non-conductive wiring, which allows law enforcement, military, and corrections trainers to use the cartridge during training role-playing scenarios. All of the Company's cartridges, with the exception of the training cartridge, contain colored, confetti-like tags bearing the cartridge’s serial number. These tags, referred to as anti-felon identification tags (AFIDs) are scattered when one of TASER's cartridges is fired. In many cases, the Company can use AFIDs to identify the registered owner of cartridges fired.

TASER has launched an accessory to the X26 called the TASER Cam. The TASER Cam is a video recording device that captures both video and audio of potential and actual TASER use incidents. The device captures video and audio before, during and after a TASER deployment, which provides law enforcement with a level of accountability to support their use of TASER devices against a resistant subject. The TASER Cam is capable of recording in zero light conditions through the use of an infrared illuminator. A non-audio version of the device is also available for agencies operating in states where legislation prohibits the use of audio recordings. In addition, the Company has introduced an accessory to the X26 that allows the X26 electronic control device to be attached to military and law enforcement rifles through a Picatinny rail giving the user lethal and non-lethal options on the same weapon.

The Company competes with Armor Holdings, Inc. and Pepperball.