ADI Returns To Growth, Back To 'Pre-COVID Levels'
While ADI was hit hard in April, with revenue declining 21%, the company's executives said on an investor relations call that ADI has returned to growth.
Inside this note, we examine a positive turnaround and look to what this means for ADI and the industry. Is this a signal of recovery in the security industry?
Overview ** **********
******* ********* *** ******* ** ** earnings ****, *** **************************** ***************** ***** *******.
*** ********** *** **********, ***** ** *****,************************ ***** ******* **** **** **** but ** *********** **** *** **** few ******:
***** *** ****** ******* ******* *** earnings **** **** ************* ******** ** last ****, ********* *** ** *****, we *** *** ****** ********** *********** in *** ********.
***** ******** ************ **** ***** ******* the ****** *******, *** **** ***** were ***** **** **** ** **** P&S *** ***. ** ****** ******* on *** ********-******* ***** ** *** employees *** *** ********. ** **********, we *** ********** *** ********** ** business ************ ** ******* ****** *** in ********* ***** ** **** ********* manufacturing **********, ** **** ** ****** chain ******* *****.
**** ****, ****** *** ******** ** pre-COVID ****** **** *** **** *** weeks ** **** *** *** *** Products & ********* ********, *** ***** industry ****** ****** ** ** *********.
Positive **********
**** ****** *** ***** ***** ***** COVID-19 **** ***** ***** **** **** for ***, ****** **** ********** ********** ** "********* **********":
*** ********* ** ****, ** *** noted, ** *** ********* **********. **** was * ****** ***** *** **** ADI *** *&*, *** ** *** now ****** ********* ***** ***** **** above **** ****. ****** ******, ************ in *&* ******* ** ** ****** by *** **** ****** ****** **** channel **********.
Overall ******** **
*** ***** ****** **** ***** ******** ******** ******* ********* ** *** ******* (left) *** ****** (*****) ******* **** ADI *** ********* *****, ** *** turnaround ******* *** **:
***'* ** **** ******* **** ** 3% *** ******* ** **% ******** to **** ****, * "*****-** ******* decrease" ** "****** ******** *** ******** or ********** ********** ******** ** ***** customer ******** ** ******".
*** ******** ** ******* ** ******* terms **** **** ** *** ***** being *** **** ******** ** *****-**, and ********* ******* **** **** ****,*******'* *** **********:
*** *****, ***** ******* ***** **** down **% **** *** **** **% and *&* **** **%. ***** ******* include *** ****** ** *****-** *** other ******* *** ***** **** ******* components.
************, ******* ******** ******* *** ***** discounts ****** ** ******* ***** ** April *** ****** ****:
******* ******** ****** *** **** ********** impacted ** ******* ******** ******* *** lower ***** *** *********.
ADI ****** **** *&*
*******'* *** *********, *******, *** *** appears ** **** **** ****** ********** during *** **** *** ** **** recent ****** **** *&*, ** * "well *** ********" **** **** "* more ******* ********":
*** ** * **** *** ******** and ** ***** ** **** * more ******* ******** ** ***** ** ADI ******** ** *&* *** *** functional ******
**** *** ******* **** ***** **** been **** *** **** *** ******* layoffs ** ***, ***** *** ******* to ** *** ****:
********** ***** [*****-**] ******* *** ********* aggressive **** **********, ****** * ******** at ***.
*** ***** **-********, *******, ****** *** positive ********:
********, ** ***** *** ****** ******* under ********** ********* ********* ** **** branch ********, *** *** ********** ******** improvement **** ***** ********** *** ******* and ***** ***** ******** ********* ** restrictions ****** *** ******** ********.
*****, **% ** *** ******** *** fully **** *** ********* *** ** our ******** *** **** **** ********* those ***** ******** ********** *** ******** pickup.
*&* ******* *** ******* **** **** significantly **** ***'* ***, ******* **** ***** **. *** ********* ***** **** *** "negatively ******** ** ******* *** *** increased ******* ***** ******* ** *****".
Reduced **** *** *******
******* ** *** ******* ********, *** the ** ****** **** ******** ******* making *** $** ******* ************* *******:
** **** **, ** **** *** regularly ********* $** ******* ************* ********* payment, ** **** ** * $* million ********* ********* ********* ******* ** Honeywell. ********* *** ****** ** ***** the ** ************* ********* ******* *** an ********** ** **** ******* ******* 30. ** ****** ** *********** **** Honeywell, *** **'** ****** *** ************ should ***** ** *** ******** ************.
**** ***** ** **** ** *******'* cash **** ********** ********* $*** ******* year-over-year, ********* * ****** ** "***** working ******* **** ** *** ******** in ******** ********".
*******, ** ** ***** ********** ** Resideo ***** ********* ******* ********, ******* and ************** ********, *** ********* ******* costs *** ** "***** ****** ******** and *********** ***** ***".
******* ** *********** *** *********** ********* approach ******* **** ****, ******:
*** ******* ********* ** ****-********** ** capitalize ** ***** ********. *** ********** announced ********* *** *********** ****** ** on ***** ** ******* $** ******* to $** ******* ** ******* ** 2020 *** **** $*** ******* ******** in **** *** ******.
** *** ** **** ***** ****, our *** ********** **** ** ******* pursuing ********** ************* ** ******* *** balance *****, ****** *** **** *********, improve ******* *** ***** ******* *** line ******. ***** *********** *** ** their ***** ******, *** ** **** forward ** ************* **** **** *** as **** **** ** ********.
Positive **** *** ******** *********
***** ***'* **** (****** $* ******* annual ******* **** ****), *** *** performs ** * ***** ***** *** the ******** ** * *****, ************ in ***** *******, *** ******* ******.
******, *** *** *** ******* *** fever / *********** ********* *********, **** no **** ********** ** *** ** home **** *****. ****** *** ********* results, **** ** * ******* **** that *** ******** ******** ** ********* to ******.
Vote / ****
**** *** ****** ******* ***** ** DSC ******** ** *******, **'** *** no ****** *** ** ****** ** Honeywell ***** ** ******** **** ***. I *** ******* ** *** *** of **** **** **** *** ** shift ********* ** *** ***** ***** help ***** *******.
***** ********* ***** ******** *** ******** difficult ** **** ******* ** *** DSC ******.
**** ** * **** ******** *** the ********* ** ****. ****'* ***, so ** *** **** *********** ** tracking *** ************ ************ ** *** graph ** ** *** ****** *** comment ** * ******* ********? * could **** **** **** *********** *** doing **** *** ***(***** **** ********** their *****). ** *** ******** ******** distribution *** ** ****** **** ***** give **** * **** ****** ********* metric ** ****** *** ****.
************ ****** ** * **** ********* of ******** *******. ** ** ***** a ***** *** ** ************. *******, many *********** *** ***** ******** ** the **** ***** ** ********/******* ** all ***. ******* **** ****** ***** technology ******** ** * ***** ** lift ******* ** ****** ******* ******* business.
**** ****, ******** *** ******* ******** (heavy ** ********** *****-**** ****** *** residential **** **********) ** ******* **** a *** ************ ********* ** ******** while ** *** ***** *** **** to ******, ****** **** * ******* end **** ****.
** * *** ****, ** *** catering ** *** ******* ************* ** making ******* ***** ** ****** ******* add-on ********* ** **** ** *****/****/********* technology.
** * *** ******** **** *** not ******** *** ***** ** ******** as ******, ** ** ***** ***** cash ****. **** ****** ** *******.
*** ********:
***** *** ** *********** ****** ******* of ****** ****** ******. *** *********** in ** ***** *** **** **** achieved ******* ****** ********* ********** ****** our ****** ******* *********.
* *** ********* *********** ***** ** business ******* *** *** ********* ** 2020... *** **** *** ******* *******.