Taser International posts 3rd-quarter loss

Taser International posts 3Q loss as research and development costs soar

• On 4:54 pm EDT, Thursday October 22, 2009

SCOTTSDALE, Ariz. (AP) -- Taser International Inc., an electric-shock weapons company, said Thursday it posted a third-quarter loss amid sharply higher research and development expenses for new products.

For the quarter ended Sept. 30, Taser reported a loss of $3.2 million, or 5 cents per share, compared with a profit of $650.4 million, or a penny per share, last year.

Adjusted operating income -- which excludes revenue deferral, stock-based compensation, depreciation and amortization and litigation expense -- was $600,000, compared with $2.8 million a year ago.

Sales rose 2 percent to $23.4 million from $22.9 million a year ago.

Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, expected a 3-cent loss and revenue of $20.9 million.

Research and development expenses of $6.7 million rose by $3.3 million as the company rolled out new products, including the new TASER X3 and the AXON Tactical Computer.

The company said research and development costs will return to "more normal" levels in the fourth quarter.

Shares of the company declined 6 cents to $4.50.