Segment Data

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Data

13. Segment data

The Company’s operations are comprised of two reportable segments: the 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 “EVIDENCE.com & Video” segment). The Company includes only revenues and costs directly attributable to the EVIDENCE.com & Video segment in that segment. Included in EVIDENCE.com & Video 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 EVIDENCE.com & Video 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, 2014							Three Months Ended March 31, 2013
	TASER		EVIDENCE.com					TASER		EVIDENCE.com
	Weapons		& Video			Total		Weapons		& Video			Total
Product sales	$	32,475	$	3,038		$	35,513	$	28,003	$	2,180		$	30,183
Service revenue		—		672			672		—		251			251
Net sales		32,475		3,710			36,185		28,003		2,431			30,434
Cost of products sold		10,918		2,656			13,574		10,217		1,188			11,405
Cost of services delivered		—		403			403		—		578			578
Gross margin		21,557		651			22,208		17,786		665			18,451
Sales, general & administrative		11,289		2,457			13,746		10,073		1,108			11,181
Research & development		817		2,789			3,606		989		1,024			2,013
Income (loss) from operations	$	9,451	$	(4,595	)	$	4,856	$	6,724	$	(1,467	)	$	5,257
Purchases of property and equipment	$	697	$	102		$	799	$	254	$	129		$	383
Purchases of intangible assets		67		—			67		104		—			104
Depreciation and amortization		1,078		84			1,162		999		420			1,419