ADT / Tyco Security Installation and Product Revenue Continues to Decline

By: John Honovich, Published on Feb 03, 2010

Weak results and a poor outlook for the integration business is a concerning sign for the physical security industry at large. The sharp decline in ADT's System Installation and Tyco Security's product revenue continues in Q409, entering a second year of declines.

As the Tyco Quaterly review (Fiscal Q109 / Calender Q408) shows, ADT's system installation and service revenue declined 13% between Q409 and Q408. Furthermore, Electronic Security Products (DVRs, Access Control, etc.) revenue declined 10% in the same time period.

This is especially interesting because the comparison is against Q408, the first quarter after the September 2008 market implosion and therefore reflects an already weak economy. For instance, Tyco reported weakened sales and declining revenue for these categories in Q408. This now makes two years of back to back revenue declines.

The good news for Tyco is not good for the traditional video surveillance industry. They attribute positive momentum to recurring revenue and costs cutting offsetting the declines in system installation and products. From the Fiscal Q109 analyst call transcript:

"Our results for the quarter continue to be driven by our cost management and restructuring efforts as well as the continued strength of our service and recurring revenue business which represents over 40% of our total revenue. It is these actions coupled with the growth of our service business which have largely offset the impact of lower revenue in our product businesses and in our systems installation activities at ADT and Fire."

Given ADT's large size, weak results and a poor outlook for the integration business is a concerning sign for the industry at large.

3 reports cite this report:

SDM 100 Security Integrators 2009 Released on Jul 07, 2010
SDM Magazine has released its annual Top 100 Security Integrators 2009 ranking. SDM summed up the year with 4 words: "Weak economy, intense...
Optelecom-NKF Significant Financial Decline Q4 2009 on Mar 12, 2010
Optelecom-NKF, a specialist in video surveillance systems for traffic monitoring and critical infrastructure security, announced a 21% year over...
Strong Q409 Financial Results Examined on Feb 03, 2010
Reversing a year long negative trend, Axis's Q4 2009 financial results were very strong, raising the question, why? Revenue was up 32% (Q409...
Comments : Members only. Login. or Join.

Related Reports

Verkada Raises $80 Million, Triples Valuation To $1.6 Billion on Jan 30, 2020
Verkada's rocketing valuation continues. 9 months ago, they got a half-billion valuation and now they have announced more than triple that, at $1.6...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
Knightscope Sells Just 1 Net New Robot In 6 Months on Oct 04, 2019
For the first half of 2019, US government records show that Knightscope has sold just 1 net new robots ('machines-in-network'), inching up from 52...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...

Most Recent Industry Reports

USA ICI Elevated Skin Temperature Detectors Examined on Apr 06, 2020
Infrared Cameras, Inc. (ICI) is aiming to help slow the spread of COVID-19 with "pinpoint accurate skin temperature measurement" using their...
Trade Groups Request NDAA Blacklist Delay Citing Coronavirus on Apr 06, 2020
Two trade groups representing government contractors have asked Congress to delay implementation of the NDAA's 'blacklist' clause from this August...
Coronavirus Hits Manufacturers, Standing Now, Worse To Come on Apr 06, 2020
Coronavirus is hitting security manufacturers, though overall modestly for now, with worse expected to come, new IPVM survey results...
FLIR New Coronavirus Prioritized Temperature Screening Camera Examined on Apr 03, 2020
FLIR has announced a new series of thermal cameras "prioritized for entities working to mitigate the spread of COVID-19 virus", the A400/A700...
ADI Branch Burglary on Apr 03, 2020
A security systems distributor branch is an odd target for burglary but that happened this week at ADI's Memphis location. Vehicle Smash &...
Hikvision And Dahua Now Blocked From Conforming ONVIF Products on Apr 03, 2020
Dahua and Hikvision, sanctioned for human rights abuses, are now blocked from submitting products for ONVIF conformance, a blow to the mega China...
YCombinator AI Startup Visual One Tested on Apr 02, 2020
Startup Visual One, backed by Silicon Valley's powerful Y Combinator, aims to be "Your 24/7 Watchman" with advanced analytics and object...
Free IPVM Memberships For The Unemployed on Apr 02, 2020
IPVM is giving 3-month free memberships (regular price $99) for the unemployed, no questions asked. To get it, just contact us, your request...
Dahua Faked Coronavirus Camera Marketing on Apr 01, 2020
Dahua has conducted a coronavirus camera global marketing campaign centered around a faked detection. Now, Dahua has expanded this to the USA,...
Video Surveillance Trends 101 on Apr 01, 2020
This report examines major industry factors and how they could impact video surveillance in the next 5 - 10 years. This is part of our Video...