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Shockingly Weak Earnings

Very disappointing results from this name prompt us to push our rating to a Two.
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Taser TASR announced very disappointing results this morning and shares are set to open sharply lower. We are pushing our rating to a Two here, but will wait until after the conference call -- scheduled for 10:00 a.m. EDT -- before making any decisions regarding what to do with our current model portfolio position.

Taser announced first-quarter earnings of 2 cents a share on revenue of $22.5 million. These numbers were both sharply lower than the 5 cents in earnings and $26 million in revenue that analysts were expecting. Based on previous announcements, which include 12 separate product orders from law enforcement agencies since mid-January, Taser's weak results are very surprising.

The company does not offer guidance, and management has offered little reasoning behind the miss in its press release. We will report back to readers shortly after the call with more details.

Frank Curzio is a research associate at TheStreet.com.

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