Segment Data

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Data

Segment Data

The Company’s operations are comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the video business, which includes the TASER Cam, AXON video products and EVIDENCE.com (the “AXON” segment). The Company includes only revenues and costs directly attributable to the AXON segment in that segment. Included in AXON segment costs are: costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the video sales team, video product management expenses, video trade shows and related expenses, and research and development for products included in the AXON segment. All other costs are included in the TASER Weapons segment. The CODM does not review assets by segment as part of the financial information provided; therefore, no asset information is provided in the following tables.

Information relative to the Company’s reportable segments is as follows (in thousands):

	Three Months Ended March 31, 2015							Three Months Ended March 31, 2014
	TASER Weapons		AXON			Total		TASER Weapons		AXON			Total
Product sales	$	38,341	$	4,502		$	42,843	$	32,475	$	3,038		$	35,513
Service revenue	—		1,919			1,919		—		672			672
Net sales	38,341		6,421			44,762		32,475		3,710			36,185
Cost of products sold	11,081		3,148			14,229		10,918		2,656			13,574
Cost of services delivered	—		665			665		—		403			403
Gross margin	27,260		2,608			29,868		21,557		651			22,208
Sales, general and administrative	10,705		3,860			14,565		11,289		2,457			13,746
Research and development	1,190		3,368			4,558		817		2,789			3,606
Income (loss) from operations	$	15,365	$	(4,620	)	$	10,745	$	9,451	$	(4,595	)	$	4,856
Purchase of property and equipment	$	347	$	77		$	424	$	697	$	102		$	799
Purchase of intangible assets	46		4			50		67		—			67
Depreciation and amortization	530		87			617		1,078		84			1,162