Revenue during the quarter surged 42.69 percent to $71.88 million from $50.38 million in the previous year period. Gross margin for the quarter expanded 311 basis points over the previous year period to 64.78 percent. Total expenses were 84.58 percent of quarterly revenues, down from 86.69 percent for the same period last year. This has led to an improvement of 211 basis points in operating margin to 15.42 percent.

Operating income for the quarter was $11.09 million, compared with $6.71 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $13.81 million compared with $9.54 million in the prior year period. At the same time, adjusted EBITDA margin improved 28 basis points in the quarter to 19.21 percent from 18.94 percent in the last year period.

“I am simply delighted with the results of our team's extraordinary work this part quarter. We realized strong growth in the period from both our Weapons and Axon businesses, and our Axon bookings remained strong,” commented Rick Smith, TASER Chief executive officer and Founder. “Customers value the Axon network we have created, which now connects over half of the major cities in the United States, bringing the criminal justice system online with advanced technology and enhanced transparency. We will continue to grow our existing platform offerings while developing complementary capabilities to extend our leadership position with law enforcement around the world.”

Cash flow from investing activities was $2.28 million for the nine month period as against cash outgo of $33.29 million in the last year period.

The company has spent $33.80 million cash to carry out financing activities during the nine month period as against cash inflow of $0.43 million in the last year period.

Cash and cash equivalents stood at $50.60 million as on Sep. 30, 2016, up 10.27 percent or $4.71 million from $45.89 million on Sep. 30, 2015.

Working capital declines
TASER International, Inc has witnessed a decline in the working capital over the last year. It stood at $100.68 million as at Sep. 30, 2016, down 14.06 percent or $16.47 million from $117.15 million on Sep. 30, 2015. Current ratio was at 2.49 as on Sep. 30, 2016, down from 4.55 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 115 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 46 days for the same period last year.

Days inventory outstanding has decreased to 46 days for the quarter compared with 101 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 32 for the same period last year.