TASER International Inc.’s (TASR - Snapshot Report) subsidiary, Axon has received an order for 250 Axon Body 2 cameras and 393 TASER X26P Smart Weapons to El Paso County Sheriff's Office (“EPSO”).
The order includes a five-year subscription of EVIDENCE.com – TASER’s cloud-based digital evidence management platform – under the Axon Officer Safety Plan (“OSP”), which provides unlimited storage, and solutions for handling and sharing of data from the body cameras and other digital sources. The OSP covers camera upgrades every 2.5 years, TASER Smart Weapons’ upgrades every 5 years and full hardware warranties.
The company received the order in the third quarter and expects to roll out shipments this quarter itself.
Axon Body 2 Cameras
Introduced in Oct 2015, Axon Body 2 is part of the growing Axon platform that connects cloud, mobile and wearable technologies. The deployment of body cameras is aimed to render police agencies a distinct transparency. The new Axon Body 2 takes the powerful simplicity of its predecessor to the next level with its single-unit design, which is equipped with more advanced capabilities like unlimited HD video recording and industry leading security enhancements.
TASER Smart Weapon
TASER also develops, assembles and markets less lethal, conducted energy weapons primarily for use by the law enforcement and corrections bodies. The advanced TASER Smart Weapon offers improved performance over other options used by law enforcement agencies. It can temporarily incapacitate virtually any individual regardless of pain tolerance, drug use or body size – factors that often affect the efficiency of other less lethal options.
What’s Driving Demand for Body Cameras?
Growing demand for AXON body cameras and EVIDENCE.com reflect law enforcement agencies’ shift in focus toward accountability and trust. Demand for TASER’s products and services have seen an impressive rise, particularly in the U.S., following increasing tensions between law enforcement officials and the public.
Police departments of many major cities like Chicago, Dallas, Los Angeles and New York are thus deploying Axon Body cameras on their officers.
TASER enjoys steady flow of orders for its products from various police departments. Last week, the company received an order for 850 TASER X2 Smart Weapons from the Florida Fish and Wildlife Conservation Commission. The order includes the upgrade of aged TASER weapons to the new X2 Smart Weapon. (Read more: TASER International Gets Order for X2 Smart Weapon)
During the same week, Axon won an order for 1,015 Axon Flex and Body 2 cameras from the Atlanta Police Department. The order includes a five-year unlimited subscription of EVIDENCE.com. (Read more: TASER Secures Order for 1,015 Axon Flex & Body 2 Cameras)
TASER develops, assembles and markets less lethal, conducted energy weapons primarily for use in the law enforcement and corrections markets. Its advanced TASER weapon offers better performance than other less lethal options used by law enforcement agencies. As a result, the company is now leading the body camera segment.
However, the company has been going through a volatile phase due to stiff competition in the space and cyclical sales of its products.
We believe that the company has bright prospects ahead due to continued growth in global demand for body cameras. The latest contract should give a boost to the company’s bottom line in the short term. Over the long haul, it could be one of many contracts that enable TASER to continually dominate the market for body cameras for law enforcement officers.
Zacks Rank & Key Picks
TASER currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Lakeland Industries Inc. (LAKE - Snapshot Report) , Alarm.Com Holdings, Inc. (ALRM - Snapshot Report) and Allegion Plc (ALLE - Analyst Report) .
Lakeland Industries’ shares witnessed a 1.2% gain in the last trading session. On an average, the company has delivered a positive earnings surprise of 19.06% in the trailing four quarters. Lakeland sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alarm.Com carries a Zacks Rank #2 (Buy). The stock gained 1.5% during the last trading session. On an average, the company has delivered a positive earnings surprise of 450.56% in the trailing four quarters.
Allegion, a Zacks Rank #2 stock, has seen its shares gain 0.8% over the last five days. On an average, the company has delivered a positive earnings surprise of 11.58% in the trailing four quarters.
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