Axon posts lower quarterly gross margin on higher mix of services, new product scaling

Axon posts lower quarterly gross margin on higher mix of services, new product scaling Aug 5 : TASER-maker Axon Enterprise posted lower second-quarter gross margin on Wednesday, weighed by a higher mix of less lucrative professional services and investments in scaling new product offerings. Shares of the Scottsdale, Arizona-based company fell more than 6 per cent in aftermarket trading following the results. Here are some details: • Axon manufactures TASER energy weapons, body cameras, drones and real-time surveillance systems for law enforcement agencies. It supplies police body cameras in the U.S. • Adjusted gross margin in Axon's software and services segment fell 3.8 per centage points to 75.1 per cent in the second quarter from a year ago, hurt by its services business. • Under the professional services business, the company supports implementation, configuration and ongoing workflow integration. • The software-only segment's gross margin exceeded 80 per cent. • The company's gross margin fell 40 basis points to 62.9 per cent. The impact on quarterly gross margin was partly offset by strong performance in the connected devices segment. • Axon earned $1.88 per share on an adjusted basis for the quarter ended June 30, compared with analysts' average estimate of $1.85, according to data compiled by LSEG. • Its quarterly revenue was $904 million, above estimates of $877 million.