TASER International Inc. announced the receipt of multiple orders from international customers amounting to $5.8 million. The orders are for TASER brand conducted electrical weapons (CEWs) and next generation Smart Weapons. The shipment will be completed by the end of 2013.
The value of the contract is quite significant for TASER International, considering the fact that its total revenue at the end of the third quarter was only $35.2 million.
Given the threat of U.S. defense budget cuts, the defense operators are relying more on international contracts. These foreign contracts help the U.S. operators to mitigate some of the loss resulting from the decline in domestic orders.
Most of TASER’s foreign orders came in from the Middle East and Asia at large. The political turbulence in these regions has increased the concern for personal safety. TASER International’s unique technology will help to lower the possibility of injuries and save civilian lives.
TASER International invests considerably in upgrading and producing new products that make life safer in public places. During the third quarter the company invested $2.4 million in research and development expenses, up 22.9% from the year-ago comparable period.
The market also reacted positively to this news with the shares gaining 18 cents or 1.08%, ending the trading session at $16.91 yesterday.
TASER International currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Net 1 Ueps Technologies Inc. (UEPS - Free Report) , Command Security Corp. and Alliant Techsystems Inc. . While Alliant Techsystems and Command Security carry a Zacks Rank #1 (Strong Buy), UEPS holds a Zacks Rank #2 (Buy).