MSNBC reports investors scrambled to cover their mistaken bets that Taser International Inc. shares were headed lower as the company reports higher earnings.

The Scottsdale, Arizona-based maker of less-lethal weapons said earnings rose to $2.8 million, or 56 cents per share, compared with $67,498, or 2 cents per share a year ago.

The earnings-per-share calculations include $449,000 of deferred revenue generated in the second and third quarters of 2003 as part of a trade-up program for the company’s Taser X26 weapon system, the company said.