Scottsdale-based stun-gun maker Taser International said Tuesday third-quarter profit plunged 90 percent as law enforcement agencies cut back on spending and the company put more money into research and development.
Net income fell to $617,773, or 1 cent per share, from $6.2 million, or 9 cents per share, in the same period last year.
That beat estimates by analysts who expected per-share earnings of zero cents on revenue of $21.1 million, according to a survey by Thomson Reuters.
Revenue of $22.9 million for the period ended Sept. 30 declined 20 percent from $28.5 million from the year-ago period. Research and development costs increased by $2.4 million, or 240 percent, in the third quarter compared with the same period last year.
Taser said the U.S. District Court for the Northern District of California on Friday eliminated a $5.2 million judgment in punitive damages awarded by a jury in a person’s death from being shocked.
Taser called it a “significant legal finding in the company’s favor” and that it will reduce the estimated total damages to $153,150 in compensatory damages.