NEW ZEALAND – & Axon being trialed in New Zealand and US police forces (2010-08-28)

Published on August 28 2010 by admin

TASER International, Inc. Q2 2010 Earnings Call Transcript – This is from a media corporate research post – interview with Rick Smith of Taser Intrernational.

Question-and-Answer Session


(Operator Instructions) Your first question comes from the line of Mr. Paul Coster of J.P. Morgan. Please proceed.

Mark Strouse – J.P. Morgan

Good morning. It’s Mark Strouse for Paul. Just starting with EVIDENCE.COM and AXON, I guess, can you just give us an update as to how many pilots are being currently run and what are the size of those pilots? And I guess how are they being funded? Is TASER paying for those or are the customers paying for them?

Rick Smith

We have about eight pilots that are currently on going. We do have paying customers in several of them. So for example, as we talked about, the country of New Zealand is a paying customer where they’ve done a national implementation of EVIDENCE.COM for handling all their TASER films and the TASER data. They’re not yet piloting the AXON.

We have two major agencies of more than 1,000 men each, where we’ve got approximately 10 to 20 AXON units in the field. We’ve got about five or six smaller agencies where we’ve got roughly five to ten AXONs in the field, would get two paying customers that have deployed purchased the units in the smaller agencies. Frankly, at this point our focus between now and the end of the year is going to be on the under 200 man agency size for a couple reasons.

Those agencies were able to make decisions very quickly. That’s where we really grew our business with the TASER devices because they’re not – they don’t have the long decision making cycle. They also tend to have – frankly acknowledge the fully developed of an IT infrastructure. They’re less likely to have an existing solution that we may be coming in and displacing with our products. So traditionally so far we’ve gone in and we’ve supported most of these initially where we’ve gone in and put these equipment with some trial and then focus on converting them into paying customers.

Mark Strouse – J.P. Morgan

Okay. And I might have missed this and I apologize if I did. But with protector, can you just remind us with the go to market strategy is going to be there? If you’re going to be marketing it yourself or carriers will be doing it?

Rick Smith

Yeah, with the Protector, we’re really focusing initially on the distraction management portion of that product line, frankly just because we were such a fevered pitch and there’s sort of a number of folks that are looking into getting into that space about how to manage distractions while driving. So that’s the first product that will come to market.

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