1069183--3/15/2010--TASER_INTERNATIONAL

related topics

{customer, product, revenue}

{property, intellectual, protect}

{product, liability, claim}

{cost, regulation, environmental}

{product, market, service}

{financial, litigation, operation}

{acquisition, growth, future}

{personnel, key, retain}

{operation, international, foreign}

{competitive, industry, competition}

{system, service, information}

{stock, price, operating}

{operation, natural, condition}

{control, financial, internal}

{product, candidate, development}

If we are unable to manage our growth, our prospects may be limited and our future profitability may be adversely affected. To the extent demand for our products increases, our future success will be dependent upon our ability to ramp manufacturing production capacity which will be accomplished by the implementation of customized manufacturing automation equipment. Pending litigation may subject us to significant litigation costs, judgments, fines and penalties in excess of insurance coverage, and divert management attention from our business. Our future success is dependent on our ability to expand sales through distributors and our inability to recruit new distributors would negatively affect our sales. If we are unable to design, introduce and sell new products or new product features successfully, our business and financial results could be adversely affected. Delays in product development schedules may adversely affect our revenues. Acquisitions and joint ventures may have an adverse effect on our business. We expend significant resources in anticipation of a sale due to our lengthy sales cycle and may receive no revenue in return. Government regulation of our products may adversely affect sales. Environmental laws and regulations subject us to a number of risks and could result in significant liabilities and costs. If we are unable to protect our intellectual property, we may lose a competitive advantage or incur substantial litigation costs to protect our rights. We may be subject to intellectual property infringement claims, which could cause us to incur litigation costs and divert management attention from our business. If we face competition in foreign countries, we can enforce patent rights only in the jurisdictions in which our patent applications have been granted. Our efforts to avoid the patent, trademark, and copyright rights of others may not provide notice to us of potential infringements in time to avoid investing in product development and promotion that must later be abandoned if suitable license terms cannot be reached. Government regulations applied to our products may affect our markets for these products. Defects in our products could reduce demand for our products and result in a loss of sales, delay in market acceptance and injury to our reputation. We face risks associated with medical safety concerns and media publicity concerning allegations of deaths and injuries occurring after use of the TASER ECD and the negative effect this publicity could have on our sales. Our dependence on third party suppliers for key components of our devices could delay shipment of our products and reduce our sales. Component shortages could result in our inability to produce volume to adequately meet customer demand, which could result in a loss of sales, delay in deliveries and injury to our reputation. Our dependence on foreign suppliers for key components of our products could delay shipment of our finished products and reduce our sales. We may experience a decline in gross margins due to rising raw material and transportation costs associated with a future increase in petroleum prices. Catastrophic events may disrupt our business. We may experience outages and disruptions of our EVIDENCE.COM service if we fail to maintain an adequate operations infrastructure. Our revenues and operating results may fluctuate unexpectedly from quarter to quarter, which may cause our stock price to decline. We may experience difficulties in the future in complying with Sarbanes-Oxley Section 404. Foreign currency fluctuations may affect our competitiveness and sales in foreign markets. We maintain all of our cash, cash equivalent and short-term investment balances, some of which are not insured, at one depository institution. We face risks associated with rapid technological change and new competing products. We depend on our ability to attract and retain our key management and technical personnel.

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1069183--3/15/2010--TASER_INTERNATIONAL_INC