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Axon Denies Westpark Claim Excluding Clients From Free One-Year Body Cam Promotion

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Axon Denies Westpark Claim Excluding Clients From Free One-Year Body Cam Promotion

Axon Enterprise Inc (NASDAQ: AAXN) may have lost some paying friends with its allegedly non-grandfatherable promotion offering free, one-year trials of police body cameras. At least, that’s the theory behind Westpark Capital analyst Ishfaque Faruk’s positive outlook for competitor Digital Ally, Inc. (NASDAQ: DGLY).

But Axon discredited the thesis Monday and denied the falsely assumed limits of its promotion.

'They Are Welcome To This Offer'

“If there are current customers that want to try our newer cameras, they are welcome to this offer as well,” an Axon spokesperson told Benzinga. “Additionally, we are offering current customers sufficient discounts that are equivalent to or better than a free year of Evidence.com DEMS. We knew this offer was coming and we made appropriate accommodations. We encourage all competitors to do the same.”

Additionally, the company addressed Faruk’s claims that the Los Angeles Police Department, in particular, which recently signed a five-year, $31 million contract with Axon, is “not very happy.”

“It’s crucial to note that the City of Los Angeles’ contract for the Officer Safety Plan will not be affected,” the representative said. “Further, the contract includes discounts that are greater than the equivalent value of the one-year trial offer we announced in April. The comments by WestPark Capital come with the territory as they specifically cover one of our competitors.”

Faruk predicted in a Monday note the ire of existing Axon customers could create opportunity for rival Digital ally, but neither stock moved on the Westpark report.

At the time of publication, Digital Ally was trading down 2.4 percent and Axon up 0.5 percent on the day.

Taylor Cox contributed reporting.

Related Link:

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