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TASR $21.9

TASR target price
21.90
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Axon Enterprise, Inc.
Type
Public
Traded as NASDAQ: AAXN
S&P 600 Component
Founded 1991
Headquarters Scottsdale, Arizona
Key people
Patrick W. Smith, co-founder, CEO. Thomas P. Smith, co-founder. Doug Klint, president and General Counsel.
Products Electrical weapons, body worn cameras, digital evidence management
Revenue Increase $164.5 million USD (2014)
Number of employees
699 (2016)
Website www.axon.com

Axon (formerly TASER International) is a Scottsdale, Arizona-based company which develops products for the law enforcement market.

Its flagship product and former namesake is Taser, a line of electroshock weapons. The company has since diversified into technology products for law enforcement, including body cameras and digital evidence solutions; as of 2017, body cameras and associated services comprise a quarter of Axon's overall business.

In 1969, NASA researcher Jack Cover began to develop a non-lethal electric weapon to help police officers control suspects, as an alternative to firearms. By 1974, Cover had completed the device, which he named the "Tom Swift Electric Rifle" (TSER), referencing the novel Tom Swift and his Electric Rifle. To make it easier to pronounce as a word, Cover later added an "A" to the acronym to form "TASER". The Taser Public Defender used gunpowder as its propellant, which led the Bureau of Alcohol, Tobacco and Firearms to classify it as a firearm in 1976. This limited sales and Cover's company, Taser Systems Inc., collapsed.

In 1991, Rick and Tom Smith formed AIR TASER, Inc. to, with Cover, design a version of the device that would use compressed nitrogen instead of gunpowder as a propellant. The pursuit began after two of Rick's former high school acquaintances had been murdered in a road rage incident in Scottsdale. During development, the company faced competition from another vendor, Tasertron, whose product had become associated with its alleged ineffectiveness during the police confrontation of Rodney King.

After nearly going bankrupt marketing other products such as an electroshock-based anti-theft system for automobiles known as "Auto Taser", the company, later renamed TASER International, introduced its TASER M26 weapon in 1999. With a $6.8 million deficit in 2001, TASER International took steps to improve sales by offering to pay police officers to train others on how to use their products; this marketing technique helped improve the company's market share, reaching $24.5 million in net sales by 2003, and nearly $68 million in 2004. In May 2001, they filed for an initial public offering and began trading on NASDAQ under the stock symbol TASR.

The company also took significant action against competitors, having acquired the aforementioned Tasertron, and aggressively defending its patents. Patent lawsuits by TASER International led to the shutdown of both Stinger Systems and its successor company, Karbon Arms; both companies were founded by Robert Gruder. Despite the controversies that have centered around the products (including deaths attributed to taser usage), the company maintained its dominant market position.

In 2005, TASER International began to offer an accessory for its taser products, TASER Cam, which adds a grip-mounted camera that is activated after the safety is disengaged, to its battery pack. By October 2010, at least 45,000 TASER Cams had been sold.

In 2008, the company unveiled its first body camera, the Axon Pro. It was designed to be head-mounted, and upload footage for online storage on a web-based service known as Evidence.com. TASER's CEO Rick Smith explained that the products were designed to "help provide revolutionary digital evidence collection, storage and retrieval for law enforcement". The company piloted Axon Pro in various small cities and towns. In 2009, after prosecutor Daniel Shue exonerated Fort Smith police officer Brandon Davis based on footage from an Axon Pro camera, TASER's marketing began to incorporate testimonials by both parties into marketing for the Axon line.

Especially in the wake of the Michael Brown shooting, the company's body camera business saw significant growth. Smith argued that the company was "not just about weapons, but about providing transparency and solving related data problems." In April 2013, the Rialto Police Department released the results of a 12-month study on the impact of on-officer video using Axon Flex cameras. The study found an 88% drop in complaints filed against officers and nearly a 60% reduction in officer use-of-force incidents.

TASER opened an office in Seattle in 2013, and an international office in Amsterdam, Netherlands in May 2014. In June 2015, the company announced the formation of a new Seattle-based division named after the Axon brand, which would encompass the company's technology businesses, including body cameras, digital evidence management, and analytics. Rick Smith explained that the branch was inspired by Microsoft's use of the Xbox brand to branch into entertainment businesses, stating that "Axon was the name that we used for selling cameras historically, but we realized that brand had the room to grow and encompass all of our connected technologies." The Taser brand would still be used for the company's weapons products.

On April 5, 2017, TASER International announced that it had been renamed Axon to reflect its diversification. The company also announced an intent to offer free one-year trials of its body camera products and Evidence.com services to U.S. law enforcement agencies. While the Taser product line still contributes to a significant portion of Axon's revenue, the company's technologies business has seen major gains; as of 2017, Axon's body cameras have been adopted by police departments in 85% of the United States' major cities, and comprise a quarter of the company's business. Smith noted that the "Taser" name had garnered a negative stigma (especially among members of the public that have "negative views of police") due to its association with the weapons, and that when recruiting employees, he noted that there were times "when we're talking about cameras and cloud software that talking about Taser weapon issues can be a bit of a distraction."

There are two primary law enforcement models currently available:

In addition to the law enforcement models, the company also offers devices to civilians and private security, including the TASER Pulse, C2, X26C, X2, and Strikelight.

Taser's original body-worn camera, the Axon Pro, was introduced in 2009. The camera consists of three components, a head-mounted camera, a controller, and a monitor to review video recordings.

The second generation of Axon body cameras were simpler in form and function than the Axon Pro, removing the bulky monitor in favor of pairing with mobile phones. Many of the features introduced in these cameras, such as the pre-event buffer, a method of capturing video from before the record button was pressed, have become common requirements in body-worn camera requests for proposal. The Axon Flex and Body only record video in standard definition (SD).

In addition to body-worn cameras, Axon also offers interview room and in-car video systems, known as Axon Interview and Axon Fleet respectively. These systems, like the body cameras, integrate with the Evidence.com service.

Evidence.com is a cloud-based digital evidence management system that allows police departments to manage, review, and share digital evidence, particularly video evidence captured with Axon-branded cameras. It includes an automated redaction tool, audit trails for chain of custody purposes, and functionality to share evidence with prosecutors and others. A free version is offered specifically for prosecutors to receive and manage incoming digital evidence.

Evidence Sync is a desktop application that allows law enforcement officers to review and upload evidence from hardware devices and local files. It is also used to upload logs from Taser weapons to Evidence.com. Although primarily intended to work with Evidence.com, it can also be used in offline mode to directly access files, if the agency prefers.

Two mobile apps integrate with the Axon cameras and Evidence.com. Axon View can be paired with an Axon body camera to review, tag, and stream videos from the camera. Axon Capture can be used to capture audio, photo, and video evidence and upload it to Evidence.com using an officer's mobile phone.

Axon Signal is a range of products that are designed to automatically trigger recordings on Axon cameras in response to certain events, such as Signal Vehicle (which can trigger after the opening of doors or activation of sirens), Signal Performance Power Magazine (a successor to the TASER Cam accessory that triggers recordings when an Taser is armed), and Signal Sidearm (a sensor for handgun holsters which triggers recording when the gun is removed).

The company has noted that it has lost two product liability lawsuits:

This lawsuit represents the fifty-ninth (59th) wrongful death or injury lawsuit that has been dismissed or judgment entered in favor of TASER International. This number includes a small number of police officer training injury lawsuits that were settled and dismissed in cases where the settlement economics to TASER International were significantly less than the cost of litigation. One of these cases is that on Feb. 15, 2006, one officer Officer accidentally discharged TASER device on his daughter. TASER International has lost two product liability lawsuits.

However, on June 6, 2008, the company lost its first product-liability suit. The damages were reduced in the Court of Appeals in 2011. TASER lost its second product liability suit In late January 2008, the public safety committee of the current Canadian House of Commons launched an investigation into their use, after the death of Robert Dziekanski. The coroner concluded that the death of Robert Dziekanski was a homicide, confirming that the Taser was the cause of death, and has the capacity to kill. The British Columbia government's Braidwood Inquiry is also currently underway.

In 2008, CBC News found that TASER X26 models manufactured before 2005 had a faulty fail-safe system.

In 2015, it was discovered that several TASER International employees, without mentioning their employment status, had left negative reviews on Amazon.com and iTunes Store for Killing Them Safely, a documentary film by Nick Berardini which is critical of the company. The film documents and investigates the major incidents that resulted from taser usage.

In January 2016, TASER International was sued by Digital Ally for infringing its two U.S. patents on the automatic activation of law enforcement body cameras. TASER International considered the suit to be "frivolous and egregious".

Q reports

Period Date Adjusted Actuals EPS GAAP EPS

Ratings

2016-07-12 Reiterated Rating Oppenheimer Holdings Inc. Market Perform
2016-07-06 Upgrade CL King Neutral to Buy $32.00
2016-07-01 Reiterated Rating Ladenburg Thalmann Buy $28.00
2016-06-23 Reiterated Rating Dougherty & Co Buy $23.00
2016-06-01 Upgrade JPMorgan Chase & Co. Neutral to Overweight
2016-05-17 Reiterated Rating JPMorgan Chase & Co. Overweight $25.00 to $26.00
2016-05-17 Reiterated Rating Ladenburg Thalmann Buy $24.00
2016-05-16 Reiterated Rating Oppenheimer Hold
2016-05-16 Reiterated Rating Oppenheimer Holdings Inc. Hold
2016-05-09 Reiterated Rating Oppenheimer Market Perform
2016-05-06 Reiterated Rating Ladenburg Thalmann Buy $24.00
2016-05-05 Boost Price Target Dougherty & Co Buy $21.00 to $23.00
2016-03-29 Reiterated Rating Dougherty & Co Buy $21.00
2016-03-01 Reiterated Rating Oppenheimer Market Perform
2016-02-29 Reiterated Rating JPMorgan Chase & Co. Buy
2016-01-20 Reiterated Rating JPMorgan Chase & Co. Buy
2016-01-06 Upgrade JPMorgan Chase & Co. Neutral to Overweight $25.00
2015-11-24 Reiterated Rating Craig Hallum Buy
2015-11-24 Reiterated Rating JPMorgan Chase & Co. Hold
2015-11-18 Upgrade Ladenburg Thalmann Neutral to Buy $24.00
2015-11-09 Reiterated Rating Oppenheimer Market Perform
2015-11-04 Lower Price Target Craig Hallum $33.00 to $28.00
2015-10-21 Reiterated Rating Craig Hallum Buy
2015-10-21 Reiterated Rating Dougherty & Co Buy
2015-09-24 Initiated Coverage Sidoti Buy $35.00
2015-07-13 Initiated Coverage CL King Neutral
2015-05-26 Reiterated Rating Dougherty & Co Buy $34.00
2015-05-26 Reiterated Rating Oppenheimer Market Perform
2015-05-13 Boost Price Target JPMorgan Chase & Co. Hold $28.00 to $31.00
2015-05-09 Reiterated Rating Craig Hallum Buy $35.00
2015-05-07 Boost Price Target Craig Hallum Buy $38.00
2015-05-07 Downgrade Oppenheimer Outperform to Market Perform $28.00 to $28.00
2015-05-01 Boost Price Target Dougherty & Co Buy $28.00 to $34.00
2015-04-20 Boost Price Target JPMorgan Chase & Co. Neutral $23.00 to $26.00
2015-01-15 Reiterated Rating JPMorgan Chase & Co. Hold $20.00 to $22.00
2014-12-22 Initiated Coverage Oppenheimer Outperform $28.00
2014-12-08 Downgrade Ladenburg Thalmann Buy to Neutral $24.00
2014-12-03 Downgrade JPMorgan Chase & Co. Overweight to Neutral $21.89 to $20.00
2014-10-31 Downgrade CRT Capital Fair Value to Sell $12.00
2014-09-03 Reiterated Rating JPMorgan Chase & Co. Positive $17.00 to $19.00
2014-09-02 Initiated Coverage Ladenburg Thalmann Buy $19.50
2014-08-07 Upgrade Dougherty & Co Neutral to Buy
2014-08-01 Lower Price Target JPMorgan Chase & Co. Overweight $18.50 to $17.00
2014-05-14 Initiated Coverage CRT Capital Fair Value
2014-05-09 Lower Price Target JPMorgan Chase & Co. Overweight $20.00 to $18.50
2014-05-01 Downgrade Dougherty & Co Buy to Hold
2014-04-11 Upgrade Dougherty & Co Hold to Buy
2013-12-16 Upgrade JPMorgan Chase & Co. Neutral to Overweight $17.00 to $18.50
2013-10-08 Boost Price Target JPMorgan Chase & Co. Neutral $12.00 to $13.00
2013-10-03 Downgrade Sidoti Buy to Neutral
2013-02-21 Downgrade Dougherty & Company Buy to Neutral
2013-01-04 Reiterated Dougherty & Company Buy $9 to $10
2010-07-01 Downgrade Merriman Buy to Neutral
2010-04-27 Upgrade JP Morgan Underweight to Neutral $6
2010-04-05 Downgrade JP Morgan Neutral to Underweight $7.50 to $6
2010-04-05 Downgrade Dougherty & Company Buy to Neutral $10 to $5
2010-03-01 Downgrade JP Morgan Overweight to Neutral $7.50
2010-02-22 Reiterated Dougherty & Company Buy $7 to $10
2009-11-06 Upgrade JP Morgan Neutral to Overweight
2009-10-23 Upgrade Dougherty & Company Neutral to Buy $6
2009-05-05 Downgrade JP Morgan Overweight to Neutral
2009-03-06 Upgrade Merriman Curhan Ford Neutral to Buy
2009-01-05 Downgrade Dougherty & Company Buy to Neutral
2008-07-25 Downgrade Merriman Curhan Ford Buy to Neutral
2008-02-13 Initiated JP Morgan Overweight
2007-11-26 Initiated GARP Research Buy
2007-08-30 Upgrade Merriman Curhan Ford Neutral to Buy
2007-07-24 Downgrade Feltl & Co. Buy to Hold
2007-07-23 Downgrade Merriman Curhan Ford Buy to Neutral
2007-06-22 Reiterated Jefferies & Co Buy $13 to $20
2016-07-12 Reiterated Rating Oppenheimer Holdings Inc. Market Perform
2016-07-06 Upgrade CL King Neutral to Buy $32.00
2016-07-01 Reiterated Rating Ladenburg Thalmann Buy $28.00
2016-06-23 Reiterated Rating Dougherty & Co Buy $23.00
2016-06-01 Upgrade JPMorgan Chase & Co. Neutral to Overweight

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Major Shareholders

Name Relationship Total Shares Holding stocks
SMITH PATRICK W Chief Executive Officer 1.45%  (762684) TASR /
Partovi Hadi 0.64%  (335613) TASR /
SMITH THOMAS P President 0.42%  (221081) TASR /
Womack Marcus General Manager, EVIDENCE.com 0.27%  (141360) TASR /
Larson Luke Chief Marketing Officer 0.15%  (79345) TASR /
KLINT DOUGLAS E President-Hardware Group 0.15%  (79341) TASR /
Ahsan Jawad A Chief Financial Officer 0.13%  (69156) TASR /
KROLL MARK W 0.10%  (54628) HAE / TASR /
Carmona Richard H 0.10%  (53200) CLX / HLF / TASR /
GARNREITER MICHAEL 0.07%  (36684) ASYS / KNX / SWFT / TASR /
Isner Joshua EVP Global Sales 0.06%  (34062) TASR /
Kukowski Jeff CMO and EVP Sales 0.06%  (33583) TASR /
Behrendt Daniel Marc Chief Financial Officer 0.06%  (30762) TASR /
Caldwell John S 0.05%  (27759) TASR /
Martz Judy 0.05%  (27392) TASR /
Droege Jason Dodd General Manager EVIDENCE.com 0.05%  (26206) TASR /
Taylor Bret Steven 0.04%  (19894) CRM / TASR /
MCBRADY MATTHEW R 0.02%  (10713) TASR /
Cullivan Julie A 0.01%  (6302) TASR /