TASER International Inc. TASR has taken the spotlight once again and for all the good reasons. According to a report released by the San Diego Police Department, the use of TASER’s AXON body-worn video cameras led to an impressive 41% decline in complaints, 60% in allegations and 47% in the use of physical force by officers. The report also stated a 31% reduction in the use of pepper spray.
TASER’s user-friendly AXON cameras are conveniently small in size but visible to onlookers. They may be attached to accessories like sunglasses, caps, shirt collar or a head mount, and come with a pocketsize battery pack to ensure uninterrupted recording through an entire shift. Other features of the camera include a 130° lens for wider range of visibility, and Retina Low-Light technology to enhance night vision. Moreover, the recorded footage gets automatically uploaded to EVIDENCE.com, a cloud-based storage and management system, through a docking station, which cannot be tampered by any end-user.
TASER has already been witnessing robust demand for AXON cameras in the wake of the President’s call to maximize transparency and accountability between the law enforcing agencies and public following the incident in Ferguson.
Last December, President Obama proposed a funding of $263 million for the purchase of 50,000 body-worn cameras for law enforcement agencies. The funding includes $75 million over three years to be spent by the police for purchasing cameras. It also includes provisions for additional training of police officers. The White House plans to equip 50,000 officers with cameras, thereby doubling the number of cameras presently in use in the country.
Bookings at the AXON segment skyrocketed 371.6% to $24.6 million in the fourth quarter of 2014 from the year-ago level of $5.2 million.
The San Diego Police Department currently has 600 AXON body and flex cameras in use. On account of positive results, the Department now intends to equip about 1000 officers with body cameras by 2015-end.
On account of rising incidents of police violence leading to deaths of unarmed citizens and a resultant unrest growing among common people, police departments have been forced to use weapons that are less lethal and ensure increased accountability on part of the officers. With the shift toward body cameras and less lethal weapons, TASER will likely gain immense traction, going forward.
That being said, higher operating costs as a result of the company’s higher research and development expenses and selling, general and administrative expenses to meet the market’s changing needs led to a 10% year over year decline in its quarterly earnings.
TASER currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the same sector are ASSA ABLOY AB ASAZY, Napco Security Technologies, Inc. NSSC and Net 1 Ueps Technologies Inc. UEPS, each carrying a Zacks Rank #2 (Buy).
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