Taser stock slips on accounting, sales worries

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NewsStand - Thursday, January 06, 2005

USA TODAY
Thor Valdmanis
NEW YORK -- Stun gun maker Taser, one of the hottest stocks of 2004, has seen its share price cut by almost 10% since the beginning of the new year as concerns grow about its accounting, legal liabilities and slumping sales.

Taser's accounting has triggered scrutiny after a little-noticed Dec. 20 announcement that firearms distributor Davidson's had placed a $1.5 million order for 1,000 consumer stun guns and other law enforcement weapons and accessories.

''We always look at large end-of-quarter deals with a degree of skepticism because of the increased likelihood of more aggressive revenue recognition,'' analyst Rob Miceli of Gradient Analytics writes in a research note.

''Excluding the $1.5 million associated with the deal, Taser's Q4 revenues would come in at approximately $18.8 million -- an amount that is under current guidance,'' he said. <snip>

http://www.menafn.com/qn_news_story.asp?StoryId=CqDZf0eiendG4m1rHC2vYC3rVy2TZBgLWCW


Stinger Stock Up; Company Says Rival’s Suit ‘Irresponsible’
Special To LTW

CHARLOTTE – Shares in Stinger Systems soared another $4.30 on Wednesday as the provider of stun gun and other non-lethal security equipment responded to a lawsuit filed by a competitor.

Stinger (Pink sheets: STIY) shares closed at $22.30, just off a 52-week high of $23. It’s low is $1.25. The stock has skyrocketed in value over the past four months as the company has announced new products and up to $17 million in capital investment from undisclosed investors.

Taser, an Arizona-based company, has filed suite against Stinger, alleging false advertising and other claims. <snip>

For information about the suit, see: www.taser.com/litigation

http://www.localtechwire.com/article.cfm?u=10322

http://www.localtechwire.com/article.cfm?u=10322

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1. SEC probes safety study claims made by maker of stun guns

PHOENIX (AP) -- Federal authorities have launched an inquiry into claims Taser International Inc. has made about safety studies for its stun guns. Its shares plunged nearly 18 percent Friday.

The Securities and Exchange Commission also is looking into a $1.5 million, end-of-year sale of stun guns by Taser International to a Prescott firearms distributor that some stock analysts have questioned because it appears to inflate sales to meet annual projections. <snip>

Although Taser has repeatedly said its stun guns have never caused a death or serious injury, reports in The Arizona Republic have linked the stun gun to 11 deaths and to several injuries involving police officers. <snip>

However, questions about safety have already caused some police departments around the country to back off purchases of Tasers. <snip>

http://www.azdailysun.com/non_sec/nav_includes/story.cfm?storyID=101358