CHICAGO – Taser International Inc. (TASR) Tuesday reported a surge second-quarter profit and a record number of new orders but its shares dropped as much as 12 percent, extending a slide on concerns over safety of its stun guns.
The stock's descent began Monday after a weekend New York Times report that raised concerns about the safety of its stun guns (search), which are mostly used by police forces.
Taser said Monday it stands behind the safety of its weapons. It said it was assembling an advisory board of prominent scientific experts to provide ideas for further safety studies.
The Scottsdale, Ariz.-based company Tuesday said earnings jumped to $4.5 million, or 14 cents a diluted share, from $347,059, or 2 cents, a year earlier.
Analysts were expecting profit of 13 cents a share for the second quarter, according to Reuters Estimates.
Revenue climbed to $16.3 million from $4.18 million a year earlier. The company said new orders received in the quarter were $16.7 million, a 27 percent increase over the previous record quarter.
The Times reported Sunday that since 2001, at least 50 people, including six in June, have died after being shocked with stun guns. Taser, which makes several versions of the guns, says its weapons are not lethal, and that the deaths resulted from drug overdoses or other factors, the Times reported.
On Tuesday morning, Taser shares were down $4.04 or 11.13 percent at $32.28 on the Nasdaq, off an earlier low at $32.10.