TASER International Q2 2009 Earnings Transcript

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2009-07-30 01:34:11.0

Tags: Upgrade, TASER International Inc., X26, Taxes, Personal Finance, Free Trade, Operational Accounting, Financial Planning, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). We have a question from the line Eric Wold of Merriman Curhan Ford. Please proceed.

Eric Wold - Merriman Curhan Ford & Co.

Thank you. Good morning guys.

Rick Smith

Good morning.

Eric Wold - Merriman Curhan Ford & Co.

I apologize Dan, you read off the numbers, can you just give me the number for the X26 units again?

Daniel Behrendt

Yeah, the X26 units were 15,275.

Eric Wold - Merriman Curhan Ford & Co.

Okay. Then just one more quick number of questions I got you. Looking at the tax rate of past couple of quarters is popped up to nearly 50%, is that a decent level going forward?

Daniel Behrendt

Yeah, I mean its kind of it really depends on obviously the second half results. But our effective tax rate tends to be a little bit higher on a year like this when things like the ISO, stock options and also things like any other payment and the lobbying and of being add backs or tax income ends up being higher than book income, which drives that rate up from the -- basically a sort of a normal rate about 39.5%. It goes up like 50% we have some of these add backs. But that's probably additional rates as long as we're on track, in our call your numbers that we projected.

Eric Wold - Merriman Curhan Ford & Co.

And then I guess one, if anyone could take it, thinking about the upgrade offer as you're doing, thinking back to the when you have the X26 and came out the M26, what was kind of the experience back then of upgrades from departments and as we are now in a traffic analysis situation or what not, you think they are more likely to want to spend money on an upgrade or you think they will be more likely who want to spend money on a new product or what is your thinking there?

Rick Smith

Well, back to 2003 when we introduced the X26, in its first four quarter of production, it blew right half the employee M26 in sales. So we do tend to see that law enforcement agencies, they tend to buy the best equipment because their lives are on the line.

So we had actually at the time popped the price of the X26. We had actually designed it to blend demand. So we would have time to ramp production and cash demand. It is best actually to now work, demand just dropped. The total number of upgrades was less than we had expected. Agencies, when their on the M26, the main picture at that point was officer convenience, then it is lighter and its nicer to carry, and that final thing, which is to compelling to managers.

 

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