x993231
4 months ago
So if I read this correctly, AXON is entering into an unsecured 1.5 billion dollar loan payable at 6.125% to pay off (repurchasing or redeeming) Axon's 0.50% Convertible Senior Notes. I'm not sure what they will do with the rest of the cash.
Now they have entered into separate, privately negotiated exchange agreements with certain holders of its 0.50% convertible senior notes due 2027. At $500 a share they will issue about 1 Million shares after the closing bell on March 13th. So what does this statement mean "In connection with these exchanges, Axon expects the various exchange agreement counterparties who have hedged their equity price risk with respect to the Notes being exchanged (the "hedged holders") will unwind all or part of their hedge positions by purchasing Axon's common stock and/or entering into or unwinding various derivative transactions with respect to Axon's common stock. The amount of Axon's common stock to be purchased by the hedged holders or the notional number of shares of Axon's common stock underlying such derivative transactions may be substantial in relation to the historic average daily trading volume of Axon's common stock. This activity by the hedged holders could increase (or reduce the size of any decrease in) the market price of Axon's common stock. Axon cannot predict the magnitude of such market activity or the overall effect it will have on the price of Axon's common stock."
As information typically lenders hedge their bet (loan) by shorting the stock during the lending period, just in case it moves down, as the loan (bet) is paid off more than likely they will close those positions.
As a percentage of the outstanding shares the current short count is very low. However, it is still at about 2.5 million shares, the average volume is about 1 million so we may see a little pressure to the upside from some of the shorts closing their position? For the record going forward this is currently at $500 (recently down from $700), how far will it head back up or even better blow through the $700 number? Stay tuned.
X That is if I read those releases properly to date.
User-700991
5 years ago
Earnings going to EXECS and not shareholders
This is why the stock loss
Someone should ask about this
and 687 million in cash for things??? like what
SG&A included $27 million in stock-based compensation expense, including nearly $11 million in "catch up" expense. R&D included $6 million in stock-based compensation expense, including $1 million in "catch up" expense. Excluding stock-based compensation expense, operating expenses declined 1% sequentially.
The "catch up" expense is tied to Axon's CEO Performance Award and eXponential Stock Performance Plan ("XSPP"), for which two additional operational goals became probable of attainment during Q2 2020 due to our strengthened outlook, bringing the total number of operational goals that are statistically probable to eleven.
For more details about Axon's innovative stock-based compensation plans, which were approved by shareholders and align the interests of management and employees with shareholders, please see our online FAQ at investor axon
Cash and cash equivalents and investments totaled $687 million at June 30, 2020, or $676 million after adjusting for an investment payable of $20 million, which net of receivables was $10 million.
Pugetsounder1
5 years ago
As body cameras gain more attention, their uses are expanding well beyond law enforcement: Seattle Times
Weeks of protests in the wake of the killing of George Floyd have placed renewed attention on police body-worn cameras, whose two largest U.S. manufacturers have a significant Seattle presence.
Axon and Motorola Solutions recently branched out to commercial sales even before Floyd’s filmed killing in Minneapolis. Cellphone footage from bystanders put the case in the spotlight, but recordings from police body cameras are expected to be introduced at trial.
Businesses and municipal services large and small — including fire departments, emergency medical technicians, private security firms, department stores and construction crews — have turned increasingly to body-worn devices from a plethora of manufacturers to monitor employees for training, safety and behavioral purposes.
“Frankly, we’ve been really surprised at the level of interest in a broad number of different industry marketplaces that were not on our radar before,’’ said Axon founder Rick Smith, whose 1,500 employees include 245 in a Seattle office that is the company’s second biggest beyond its Scottsdale, Arizona, headquarters.
The idea of body cameras as a nonlethal safety tool to monitor police and modify behavior — with the aim of reducing excessive force by officers and false complaints against them — is also what’s luring the business world.
Axon makes body cameras for the Seattle Police Department and the Minneapolis force, four of whom were charged in Floyd’s killing in May. Within the past six months, it has started selling cameras to larger companies for “industrial use” purposes, one of the bigger ones a pharmaceutical firm where devices are being worn on a trial basis by employees at drug-testing facilities.
“It turns out that any time there is any concern that somebody didn’t follow the right safety protocols, they have to scrap millions of dollars of medication,” Smith said. “But they reported back to us that by having people that are working key processes wear body cameras, they are able to go back and check and verify whether or not a process was followed. They’ve already saved millions of dollars in stuff they didn’t have to scrap.”
Others include a company doing “large truckloads of deliveries” to grocery stores, using cameras to record the physical transfer of goods to reduce theft and loss. “There are times when a client would call up and say, ‘Hey, we’re one palette short of some produce’ or ‘This produce is bad.’ Well, now that they’ve got the video, they’re able to go back and look.”
While cameras like GoPro have made significant inroads among consumers — sky divers, mountain climbers, cyclists and other outdoor enthusiasts — Smith said his commercial clients want something different. The Axon Flex 2, Axon Body 2 and newer Body 3 cameras are less focused on color pixelation and cinematography than a GoPro, but better for evidence gathering given their 12-hour, full-police-shift battery life and delivery of accurate, non-erasable footage — even in low light — and crisp audio along with secure storage options.
The Body 3 also offers livestreaming that activates automatically when a police weapon is drawn or emergency lights activated, and remote map-tracking of the camera-wearer.
“The fact that we do this with police evidence is a strong industry endorsement around the reliability and security of our overall platform,” Smith said. “It appears to really be resonating in a lot of other industries.”
Motorola has made in-vehicle cameras for police since 2004 — becoming the national leader in that realm — before branching out to body camera sales in 2015. It began selling body cameras commercially in the United Kingdom last year and in the United States the first half of this year to customers in retail sales, the railway industry and emergency first responders.
The company’s Seattle office of about 150 employees is a headquarters for its “command center software” business — which includes tools for gathering and storing video evidence obtained from body cameras.
John Kedzierski, Motorola’s senior vice president of video evidence and analytics, said the recent protests and calls for increased body camera use by police “has absolutely made more customers interested” in the product. But Kedzierski said commercial interest had already been piqued, with demand surging once the coronavirus pandemic took hold.
“Unfortunately, with the COVID-19 pandemic, we continue to see cases where customers behave very inappropriately,” Kedzierski said. “You’ve probably read and heard about cases where people engage in coughing and spitting intentionally because they were dissatisfied with something. And so, we’re seeing more demand for cameras in those areas to de-escalate those situations and, if need be, to document them.”
Clients also use the footage to train new employees on real-life situations they may face. Or, to go over how an employee handled a situation to train them to attain better outcomes.
Motorola, like Axon, wouldn’t divulge the names of its U.S. clients because it doesn’t have permission. Motorola clients overseas include the Sainsbury’s department store chain — the U.K.’s second largest — where Kedzierski said employees at about 400 of 1,400 or so locations wear the company’s VT100 camera to record customer interactions.
“Front-line employees that are trying to enforce people wearing masks, or social distancing, inside the store can encounter a customer that doesn’t want to do that,” said Kedzierski, whose company also sells VT100 cameras to the British-based ASDA and Co-op supermarket chains. “And those situations can get escalated. That focus on employee safety has been a key driver in our discussions more than anything else.”
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