SCOTTSDALE, Ariz., Feb. 28, 2017 /PRNewswire/ -- TASER International, Inc. (NASDAQ: TASR), today announced financial results for the fourth quarter and full year ended December 31, 2016.

"We ended 2016 with record fourth quarter revenues, record order bookings and strong momentum across our business lines in both domestic and international markets," commented Rick Smith, TASER CEO and Founder. "We are delighted to see accelerating adoption of our technology platform by our law enforcement customers. Our investments to build the preeminent technology ecosystem in public safety have driven substantial growth by affording our customers greater capabilities with a better user experience. We look forward to continuing the expansion of our ecosystem with our new Fleet in-car system, more sensors like Signal Sidearm, our new Records Management System (RMS) and industry leading analytics with new Axon Artificial Intelligence capabilities in 2017 and beyond."

Fourth Quarter 2016 Financial Highlights:


    --  Net sales increased 46% to $82.1 million in the fourth quarter of 2016
        compared to $56.0 million in the fourth quarter of 2015. International
        sales were $18.6 million in the fourth quarter of 2016 compared to $12.1
        million in the fourth quarter of 2015.
    --  TASER Weapons segment revenues increased 25% to $58.3 million in the
        fourth quarter of 2016 compared to $46.7 million in the fourth quarter
        of 2015.
    --  Axon segment revenues increased 154% to $23.7 million in the fourth
        quarter of 2016 compared to $9.4 million in the fourth quarter of 2015.
    --  Consolidated gross margin was 61% in the fourth quarter of 2016 compared
        to 66% in the fourth quarter of 2015.
    --  TASER Weapons segment gross margin percentage remained relatively
        unchanged at 69% in the fourth quarter of 2016 compared to 70% in the
        fourth quarter of 2015.
    --  Axon segment gross margin percentage was 39% in the fourth quarter of
        2016 compared to 46% in the fourth quarter of 2015. The decrease was
        driven by lower Axon hardware margins partially offset by higher Axon
        service margins.
    --  Net income for the fourth quarter of 2016 was $6.3 million, or $0.12 per
        diluted share, compared to  $5.1 million, or $0.09 per diluted share,
        for the same period in 2015.
    --  Adjusted EBITDA for the fourth quarter of 2016 was $13.1 million
        compared to $11.7 million in the fourth quarter of 2015.
    --  In the fourth quarter of 2016, the Company used $4.0 million in cash
        from operating activities.

Full Year 2016 Financial Highlights:


    --  Net sales increased 36% to $268.2 million for the full year 2016
        compared to $197.9 million for the full year 2015.
    --  TASER Weapons segment revenues increased 25% to $202.6 million for the
        full year 2016 compared to $162.4 million for the full year 2015.
    --  Axon segment revenues increased 85% to $65.6 million for the full year
        2016 compared to $35.5 million for the full year 2015.
    --  Consolidated gross margin was 64% for the full year 2016 compared to 65%
        for the full year 2015.
    --  Net income for the full year 2016 was $17.3 million, or $0.32 per
        diluted share, compared to $19.9 million, or $0.36 per diluted share,
        for the same period in 2015.
    --  Adjusted EBITDA for the full year 2016 was $44.6 million compared to
        $46.1 million for the full year 2015.
    --  For the full year 2016, the Company generated $17.9 million in cash from
        operating activities. Cash, cash equivalents and investments were $89.3
        million at December 31, 2016, down from $118.3 million at December 31,
        2015. During 2016 the Company used $33.7 million to repurchase shares of
        the Company's stock.

Business Highlights:


    --  As of the end of the fourth quarter of 2016, 35 of the 68 major city law
        enforcement agencies have purchased TASER's Axon body-worn cameras
        and/or its digital evidence management solution: Albuquerque, Atlanta,
        Baltimore, Baltimore County, Charlotte-Mecklenburg, Chicago, Cincinnati,
        Cleveland, Dallas, Denver, Fort Worth, Fresno, Kansas City, Los Angeles,
        Las Vegas, Louisville, Memphis, Mesa, Miami, Milwaukee, Minneapolis,
        Montgomery County, New Orleans, Omaha, Philadelphia, Pittsburgh, Salt
        Lake City, San Antonio, San Diego, San Francisco, San Jose, Seattle,
        Tampa, Tucson, Washington, DC, and Wichita.
    --  Axon platform user count continued to grow, extending the Company's
        market leadership. During the three months ended December 31, 2016, the
        Company booked approximately 21,400 seats on its digital evidence
        management platform, Evidence.com, net of renewals. Since inception, the
        Company has booked cumulative Evidence.com licenses of approximately
        132,000.

Quarterly Conference Call:

The Company will host its fourth quarter 2016 earnings conference call on Tuesday, February 28, 2017 at 4:30 p.m. ET. To join the live audio presentation, please dial toll free 877-303-9126, or for international callers, please dial +1-253-237-1156. The passcode is 77335352.

The Company has posted supplemental materials including its key operating metrics on its website to provide additional information about our fourth quarter financial results.

The Company plans to update and post its investor relations presentation to http://investor.taser.com within the next two weeks with the fourth quarter results. Archived presentations from previous quarters can also be found on the website.

Statistical Definitions:


    --  Axon cameras and Evidence.com bookings represent a statistical measure
        defined as the sales price of orders placed in the relevant time period.
        Bookings are an indication of the activity the Company is seeing
        relative to Axon cameras and Evidence.com. We consider bookings to be a
        statistical measure defined as the sales price of orders (not invoiced
        sales) placed in the relevant fiscal period, net of cancellations,
        regardless of when the products or services ultimately will be provided.
        Some bookings might be invoiced in subsequent years.

Due to municipal government funding rules, certain of the future year amounts included in bookings are subject to budget appropriation or other contract cancellation clauses. Although TASER has entered into contracts for the delivery of products and services in the future and anticipates the contracts will be completed, if agencies invoke a cancellation clause or do not appropriate funds in future year budgets, revenue associated with these bookings will ultimately not be recognized, resulting in a future reduction to bookings.

For more information relative to our revenue recognition policies, please reference our SEC filings.

Non-GAAP Measures:

To supplement the Company's financial results presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), we present the non-GAAP financial measures of EBITDA, Adjusted EBITDA and Free Cash Flow. Our management uses these non-GAAP financial measures in evaluating the Company's performance in comparison to prior periods. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance, and when planning and forecasting our future periods. A reconciliation of GAAP to the non-GAAP financial measures is presented at the end of the release.

EBITDA is defined as consolidated net income before interest expense, income taxes and depreciation and amortization. Adjusted EBITDA, as presented herein, is defined as EBITDA before certain other items, including: stock-based compensation; and net gain/loss on write-down/disposal of property, equipment and intangible assets.

Free Cash Flow is defined as cash flows provided by operating activities minus purchases of property, plant and equipment and intangible assets.

Caution on Use of Non-GAAP Measures

Although these non-GAAP financial measures are not consistent with GAAP, management believes investors will benefit by referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:


    --  these non-GAAP financial measures are limited in their usefulness and
        should be considered only as a supplement to the Company's GAAP
        financial measures;
    --  these non-GAAP financial measures should not be considered in isolation
        from, or as a substitute for, the Company's GAAP financial measures;
    --  these non-GAAP financial measures should not be considered to be
        superior to the Company's GAAP financial measures; and
    --  these non-GAAP financial measures were not prepared in accordance with
        GAAP and investors should not assume that the non-GAAP financial
        measures presented in this earnings release were prepared under a
        comprehensive set of rules or principles.

Further, these non-GAAP financial measures may be unique to the Company, as they may be different from similarly titled non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies.

About TASER International, Inc.

TASER International makes communities safer with innovative public safety technologies. Founded in 1993, TASER first transformed law enforcement with its electrical weapons. TASER continues to define smarter policing with its growing suite of technology solutions, including Axon body-worn video cameras and Evidence.com, a secure digital evidence management platform. More than 174,000 lives saved from death or serious injury and countless dollars have been saved with TASER's products and services.

Learn more at www.taser.com and www.axon.io or by calling (800) 978-2737.

TASER® and Axon® are registered trademark of TASER International, Inc., registered in the U.S. All rights reserved. TASER logo, Axon, Axon Body, Axon Body 2, Axon Flex, Axon Interview, Axon Signal, TASER X26, TASER X26P, TASER CAM and TASER X2 are trademarks of TASER International, Inc. All rights are reserved for trademarks of TASER International, Inc.

Note to Investors

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding our expectations, beliefs, intentions or strategies regarding the future. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. The forward-looking information is based upon current information and expectations regarding TASER International, Inc. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. TASER International assumes no obligation to update the information contained in this press release, except as required by law.

We caution that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward looking statements herein. Such factors include, but are not limited to: the adverse effect of the United Kingdom's exit from the European Union; market acceptance of our products; our dependence on sales of our TASER X26P and X2 CEWs; our ability to design, introduce and sell new products; delays in development schedules; rapid technological change and competition; product defects; breach of our security measures resulting in unauthorized access to customer data; outages and disruptions relating to our Evidence.com service; budgetary and political constraints of prospects and customers; the length of our sales cycle and our ability to realize benefits from our marketing and selling efforts; our exposure to cancellations of government contracts due to appropriation clauses; changes in civil forfeiture laws; the long-term revenue recognition cycle for our SaaS Evidence.com product; our reliance on third party cloud-based storage providers; litigation risks resulting from alleged product-related injuries and media publicity concerning allegations of deaths occurring after use of the TASER device and the negative impact this publicity could have on sales; the outcome of pending or future litigation; our ability to protect our intellectual property as well as intellectual property infringement claims and relating litigation costs; our successful identification of existing intellectual property rights that might infringe on our developments; competition in foreign countries relating to our inability to protect our patents; risks of governmental regulations, including regulations of our products by the United States Consumer Product Safety Commission, regulation of our products as a "crime control" product by the Federal government, state and local government regulation and foreign regulation and the adverse effects that could result from our products being classified as firearms by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; regulatory and political challenges presented by international markets; our compliance with regulations governing the environment, including but not limited to, regulations within the European Union; regulations relating to voice, data and communications services; regulations relating to conflict minerals; our dependence on third party suppliers for key components of our products; component shortages; rising costs of raw materials and transportation relating to petroleum prices; that we may experience declines in gross margins due to a shift in product sales from conducted electrical weapons to Axon devices; our ability to manage our growth and increase manufacturing production to meet demand; establishment and expansion of our direct and indirect distribution channels; our ability to pursue sales directly with customers; risks relating to acquisitions and joint ventures; goodwill impairment; catastrophic events; quarterly fluctuations in our operating results; the adverse effects on our operations and financial results from foreign currency fluctuations; fluctuations in our effective tax rate; counter-party risks relating to cash balances held in excess of FDIC insurance limits; employee retention risks; volatility in our stock price; and other factors identified in documents filed by us with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2015 and Forms 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016.

Please visit http://investor.taser.com, www.twitter.com/officialtaser, www.twitter.com/axontechnology and www.facebook.com/TASER.International where TASER discloses information from time to time about the company, its financial information, and its business.

For investor relations information please contact Arvind Bobra via email at IR@taser.com.



                                                                                 TASER INTERNATIONAL, INC.

                                                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                        (Unaudited)

                                                                           (in thousands, except per share data)


                                                 Three Months Ended December 31,                        Twelve Months Ended December 31,

                                                  2016                          2015                             2016                    2015
                                                  ----                          ----                             ----                    ----


    Net sales                                             $82,077                                      $56,041                                $268,245  $197,892

    Cost of products sold and
     services delivered                         32,307                          19,053                             97,709                        69,245

    Gross margin                                49,770                          36,988                            170,536                       128,647
                                                ------                          ------                            -------                       -------

    Operating expenses:

    Sales, general and
     administrative                             30,743                          21,856                            108,076                        69,698

    Research and development                     9,614                           6,622                             30,609                        23,614

    Total operating expenses                    40,357                          28,478                            138,685                        93,312
                                                ------                          ------                            -------                        ------

    Income from operations                       9,413                           8,510                             31,851                        35,335

    Interest income and other
     (expense), net                                106                              14                              (354)                           26
                                                   ---                             ---                               ----                           ---

    Income before provision for
     income taxes                                9,519                           8,524                             31,497                        35,361

    Provision for income taxes                   3,178                           3,420                             14,200                        15,428
                                                 -----                           -----                             ------                        ------

    Net income                                             $6,341                                       $5,104                                 $17,297   $19,933
                                                           ======                                       ======                                 =======   =======

    Net income per common and common equivalent
     shares:

    Basic                                                   $0.12                                        $0.10                                   $0.33     $0.37

    Diluted                                                 $0.12                                        $0.09                                   $0.32     $0.36

    Weighted average number of common and
     common equivalent shares outstanding:

    Basic                                       52,299                          53,665                             52,667                        53,548

    Diluted                                     53,173                          54,523                             53,536                        54,638


                                                                                               TASER INTERNATIONAL, INC.

                                                                                                   SEGMENT REPORTING

                                                                                                      (Unaudited)

                                                                                                (dollars in thousands)


                                 Three Months Ended December 31, 2016                                   Three months ended December 31, 2015

                        TASER                Axon                   Total            TASER                Axon                    Total
                       Weapons                                                      Weapons
                       -------                                                      -------


    Product sales               $58,337                                     $12,491                                    $70,828                              $46,689                 $4,678  $51,367

    Service revenue           -                         11,249                         11,249                                -                     4,674                 4,674
                            ---                         ------                         ------                              ---                     -----                 -----

    Net sales            58,337                          23,740                         82,077                           46,689                      9,352                56,041
                         ------                          ------                         ------                           ------                      -----                ------

    Cost of products
     sold                17,932                          12,432                         30,364                           14,016                      3,509                17,525

    Cost of services
     delivered                -                          1,943                          1,943                                -                     1,528                 1,528

    Gross margin         40,405                           9,365                         49,770                           32,673                      4,315                36,988

    Sales, general and
     administrative      17,222                          13,521                         30,743                           14,171                      7,685                21,856

    Research and
     development          2,114                           7,500                          9,614                            1,052                      5,570                 6,622

    Income (loss) from
     operations                 $21,069                                   $(11,656)                                    $9,413                              $17,450               $(8,940)  $8,510
                                =======                                    ========                                     ======                              =======                =======   ======


    Gross margin %      69.3%                          39.4%                         60.6%                           70.0%                     46.1%                66.0%

    Operating margin %  36.1%                        (49.1)%                         11.5%                           37.4%                   (95.6)%                15.2%


                                 Twelve Months Ended December 31, 2016                          Twelve Months Ended December 31, 2015

                        TASER                 Axon                   Total            TASER       Axon                     Total
                       Weapons                                                       Weapons
                       -------                                                       -------


    Product sales               $202,644                                     $35,929                           $238,573                             $162,375                 $22,855  $185,230

    Service revenue           -                          29,672                         29,672                        -                    12,662                12,662
                            ---                          ------                         ------                      ---                    ------                ------

    Net sales           202,644                           65,601                        268,245                  162,375                     35,517               197,892
                        -------                           ------                        -------                  -------                     ------               -------

    Cost of products
     sold                61,930                           29,606                         91,536                   48,821                     16,201                65,022

    Cost of services
     delivered                -                           6,173                          6,173                        -                     4,223                 4,223

    Gross margin        140,714                           29,822                        170,536                  113,554                     15,093               128,647

    Sales, general and
     administrative      63,617                           44,459                        108,076                   47,640                     22,058                69,698

    Research and
     development          5,887                           24,722                         30,609                    4,470                     19,144                23,614

    Income (loss) from
     operations                  $71,210                                   $(39,359)                           $31,851                              $61,444               $(26,109)  $35,335
                                 =======                                    ========                            =======                              =======                ========   =======


    Gross margin %      69.4%                           45.5%                         63.6%                   69.9%                     42.5%                65.0%

    Operating margin %  35.1%                         (60.0)%                         11.9%                   37.8%                   (73.5)%                17.9%


                                                        TASER INTERNATIONAL, INC.

                                                Axon and Evidence.com Bookings by Quarter

                                                               (Unaudited)

                                                             (in thousands)


             December 31,         September 30,         June 30, 2016             March 31,  December 31,
                     2016                  2016                                                     2015
                                                                                  2016
                                                                                                   ---


    Bookings              $72,509                             $57,491                       $72,034       $52,059 $44,668

Axon cameras and Evidence.com bookings represent a statistical measure defined as the sales price of orders placed in the relevant time period. Bookings are an indication of the activity the Company is seeing relative to Axon cameras and Evidence.com. We consider bookings to be a statistical measure defined as the sales price of orders (not invoiced sales) placed in the relevant fiscal period, net of cancellations, regardless of when the products or services ultimately will be provided. Some bookings might be invoiced in subsequent years.

Due to municipal government funding rules, certain of the future year amounts included in bookings are subject to budget appropriation or other contract cancellation clauses. Although the Company has entered into contracts for the delivery of products and services in the future and anticipates the contracts will be completed, if agencies do not appropriate money in future year budgets or invoke a cancellation clause, revenue associated with these bookings will not ultimately be recognized, resulting in a future reduction to bookings. For more information relative to our revenue recognition policies, please reference our SEC filings.


                   Axon and Evidence.com Future Contracted Revenue

                                     (Unaudited)

                                   (in thousands)


                             December 31,                   September 30,
                                     2016                              2016
                                     ----                              ----

     Cumulative
     Bookings,
     net of
     cancellations                           $464,579                        $392,070

     Cumulative
     Axon &
     Evidence.com
     Recognized
     Revenue                    (113,787)                           (90,047)

    Future
     Contracted
     Revenue                                 $350,792                        $302,023
                                             ========                        ========

Axon and Evidence.com future contracted revenue represent a statistical measure defined as cumulative bookings for Axon and Evidence.com minus cumulative recognized revenue related solely to Axon and Evidence.com. Future contracted revenues are an indication of momentum of longer-term contracts being signed and the expectations of future revenues in the Axon segment.


                                                                           TASER INTERNATIONAL, INC.

                                                                             UNIT SALES STATISTICS

                                                                                  (Unaudited)

                                                                             Units in whole numbers


                        Three Months Ended December 31,                                          Twelve Months Ended December 31,

                   2016       2015                Unit Change     Percent                 2016                      2015          Unit Change       Percent
                                                              Change                                                                          Change
                                                                                                                                                ------

    TASER X26P   20,833                 16,437                       4,396                            26.7%                           79,218                  62,383  16,835   27.0%

    TASER X2     13,003                 12,540                         463                              3.7                            47,700                  38,050   9,650    25.4

    TASER X26       769                    587                         182                             31.0                             2,655                   4,928 (2,273) (46.1)

    TASER Pulse
     and Bolt     3,027                  2,336                         691                             29.6                             9,549                   8,121   1,428    17.6

    Cartridges  554,395                505,332                      49,063                              9.7                         1,979,051               1,694,450 284,601    16.8

    Axon Body    25,177                  2,141                      23,036                          1,075.9                            66,154                  17,522  48,632   277.5

    Axon Flex     3,147                  2,902                         245                              8.4                            14,173                  18,823 (4,650) (24.7)

    Axon Dock     5,747                  1,425                       4,322                            303.3                            16,983                   6,979  10,004   143.3

    TASER Cam     3,106                  2,641                         465                             17.6                             9,566                  11,634 (2,068) (17.8)


                                                                             TASER INTERNATIONAL, INC.

                                                               RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

                                                                                    (Unaudited)

                                                                               Dollars in thousands


                                                     Three Months Ended                                     Twelve Months Ended

                                                      December 31,                                       December 31,

                                              2016                     2015                  2016                     2015
                                              ----                     ----                  ----                     ----


    Net income                                         $6,341                                        $5,104                     $17,297  $19,933

       Depreciation and
        amortization                           914                               981                                3,658          3,291

       Interest expense                          3                                 1                                   13             10

       Provision for income taxes            3,178                             3,420                               14,200         15,428


    EBITDA                                            $10,436                                        $9,506                     $35,168  $38,662
                                                      =======                                        ======                     =======  =======


    Adjustments:

    Stock-based compensation
     expense                                           $2,627                                        $2,177                      $9,369   $7,263

    Net loss on disposal of
     property, equipment and
     intangibles, net                            -                                3                                   61            206

    Adjusted EBITDA                                   $13,063                                       $11,686                     $44,598  $46,131
                                                      =======                                       =======                     =======  =======

    Adjusted EBITDA as a
     percentage of net sales                 15.9%                            20.9%                               16.6%         23.3%


    Composition of stock-based compensation:


                                                   Three Months Ended                                Twelve Months Ended

                                                      December 31,                                       December 31,

                                              2016                     2015                  2016                     2015
                                              ----                     ----                  ----                     ----


    Cost of products sold and
     services delivered                                   $95                                          $126                        $342     $402

    Sales, general and
     administrative                          1,510                             1,303                                5,707          4,285

    Research and development                 1,022                               748                                3,320          2,576
                                             -----                               ---                                -----

                                                       $2,627                                        $2,177                      $9,369   $7,263
                                                       ======                                        ======                      ======   ======


                                                   TASER INTERNATIONAL, INC.

                                             CONDENSED CONSOLIDATED BALANCE SHEETS

                                                        (in thousands)


                                                   December 31, 2016               December 31, 2015
                                                   -----------------               -----------------


                       ASSETS

    Current Assets:

    Cash and cash equivalents                                             $40,651                        $59,526

    Short-term investments                                    48,415                             50,254

    Accounts and notes
     receivable, net                                          39,466                             27,701

    Inventory                                                 34,841                             15,763

    Prepaid expenses and other
     current assets                                           13,858                              8,165
                                                              ------                              -----

    Total current assets                                     177,231                            161,409


    Property and equipment, net                               24,004                             21,848

    Deferred income tax assets,
     net                                                      19,515                             13,719

    Intangible assets, net                                    15,218                              7,588

    Goodwill                                                  10,442                              9,596

    Long-term investments                                        234                              8,525

    Long-term accounts and
     notes receivable, net of
     current portion                                          17,602                              1,227

    Other assets                                              13,917                              5,969

    Total assets                                                         $278,163                       $229,881
                                                                         ========                       ========


        LIABILITIES AND STOCKHOLDERS' EQUITY


    Current Liabilities:

    Accounts payable                                                      $10,736                         $7,333

    Accrued liabilities                                       18,248                              8,643

    Current portion of deferred
     revenue                                                  45,137                             20,851

    Customer deposits                                          2,148                              1,226

    Current portion of business
     acquisition contingent
     consideration                                             1,690                                  -

    Other current liabilities                                     80                                 87
                                                                 ---                                ---

    Total current liabilities                                 78,039                             38,140


    Deferred revenue, net of
     current portion                                          40,054                             30,190

    Liability for unrecognized
     tax benefits                                              1,896                              1,315

    Long-term deferred
     compensation                                              3,362                              2,199

    Business acquisition
     contingent consideration,
     net of current portion                                    1,635                                952

    Other long-term liabilities                                2,289                                 81
                                                               -----                                ---

    Total liabilities                                        127,275                             72,877
                                                             -------                             ------


    Stockholders' Equity:

    Preferred stock                                                -                                 -

    Common stock                                                   1                                  1

    Additional paid-in capital                               187,656                            178,143

    Treasury stock                                         (155,947)                         (122,201)

    Retained earnings                                        118,275                            100,978

    Accumulated other
     comprehensive income                                        903                                 83

    Total stockholders' equity                               150,888                            157,004
                                                             -------                            -------

    Total liabilities and
     stockholders' equity                                                $278,163                       $229,881
                                                                         ========                       ========


                                                              TASER INTERNATIONAL, INC.

                                                            SELECTED CASH FLOW INFORMATION

                                                                     (Unaudited)

                                                                    (in thousands)


                                  Three Months Ended                                       Twelve Months Ended

                                   December 31,                                        December 31,

                           2016                     2015                   2016                    2015
                           ----                     ----                   ----                    ----


    Net income                       $6,341                                        $5,104                        $17,297   $19,933

    Depreciation and
     amortization           914                             2,007                                3,658              3,291

    Stock-based
     compensation         2,627                             2,177                                9,369              7,263

    Net cash provided
     by (used in)
     operating
     activities         (4,034)                           16,131                               17,925             46,445

    Net cash used in
     investing
     activities         (5,330)                          (2,716)                              (3,045)          (36,009)

    Net cash provided
     by (used in)
     financing
     activities           (860)                              174                             (34,661)               603

    Cash and cash
     equivalents, end
     of period           40,651                            59,526                               40,651             59,526



                                Three Months Ended                                  Twelve Months Ended

                                   December 31,                                        December 31,

                           2016                     2015                   2016                    2015
                           ----                     ----                   ----                    ----


    Net cash provided
     by (used in)
     operating
     activities                    $(4,034)                                      $16,131                        $17,925   $46,445

    Purchases of
     property and
     equipment            1,622                             2,164                                4,957              6,003

    Purchases of
     intangible assets    3,156                                99                                3,495                501

    Purchase of
     property and
     equipment and
     intangible assets
     in connection with
     business
     acquisitions         3,500                                 -                               3,500             12,599
                          -----                               ---                               -----             ------

    Free cash flow                $(12,312)                                      $13,868                         $5,973   $27,342
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CONTACT: Arvind Bobra
Investor Relations
TASER International, Inc.
IR@taser.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/taser-reports-2016-fourth-quarter-and-full-year-results-300414808.html

SOURCE TASER International, Inc.