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The Honolulu Advertiser
Posted on: Sunday, June 8, 2008

Stun-gun maker refocuses, increasing its sales

By Andrew Johnson
Arizona Republic

Hawaii news photo - The Honolulu Advertiser

A Taser spokesman demonstrates the voltage on a stun gun at Taser International Inc.'s headquarters in Scottsdale, Ariz.

MARK W. LIPCZYNSKI | Arizona Republic via GNS

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PHOENIX — For a time, marketing Taser's stun guns appeared as appealing as getting jolted by one of them.

Taser International Inc.'s name makes headlines seemingly every time someone dies after being struck by one of its devices.

Executives have battled numerous product-liability and wrongful-injury lawsuits. Some domestic and foreign governments even have outlawed the use of the devices.

Taser's earnings suffered, and the company had to lay off a few dozen employees because of the plunge in orders.

Still, the Scottsdale, Ariz., company has experienced a financial turnaround of sorts in recent quarters, and its management team is bullish on its ability to gain market share.

Taser executives credit the turnaround to product-design changes, stronger efforts to educate customers and an emphasis on seeking key law-enforcement and military markets. They also have renewed efforts to go after a potentially wide-open customer: the consumer.

The company still faces challenges, including a weakening economy, which could hurt orders from municipal police agencies, and persistent concerns about the safety of its stun guns.

The company's redesigned consumer stun gun, which it began selling last summer, has fueled recent growth. Sales grew by about 47 percent and profit more than doubled in the first quarter of 2008, spurred by numerous orders from domestic and foreign law-enforcement agencies.

"I think we've captured the household-name (status)," said Kathy Hanrahan, president. "I think every person has a right to protect themselves, and this is a great option for that."

Taser's resurgence has brought the company full circle to where it began 15 years ago, when brothers Rick and Tom Smith founded the company under the name Air Taser Inc. with a product geared toward consumers.

Early sales were sluggish, partly because the device's design resembled a traditional handgun. From a marketing perspective, many people considered it counterproductive for a firm trying to sell a gun alternative.

The company shifted its focus to domestic and overseas law-enforcement agencies, changing its name in 1998 to Taser International.

To capture more of those markets, the company in 2006 formed an advisory group comprised of former military, Secret Service and police officials to help expand its business into military and government agencies.

International orders at Taser have risen. In 2007, international sales accounted for 15 percent of overall revenue, compared with 13 percent two years ago. More than 12,500 police agencies use the product in more than 45 countries, Hanrahan said.