ADT / Tyco Security Q3 2009 Financial PerformanceBy John Honovich, Published on Nov 24, 2009
Tyco International's fiscal Q4 2009 (calender Q3) financial results show continued financial weakness in their system integration and security product business.
- ADT Worldwide revenue fell 9% year over year dropping from $1.98 Billion to $1.79 Billion. Recurring revenue grew 4% but Systems installation and service revenue declined 14% (see page 5 of Tyco's 4th Quarter review)
- Electronic security product sales declined 21% year over year (specific dollar revenue was not disclosed). See page 9 of Tyco's 4th Quarter review. Compare this to the fiscal Q3 2009 where electronic security product sales only declined 12% year over year.
Additionally, management's Q4 conference call revealed a number of interesting details:
- ADT is prioritizing international expansion. They report operating in 40 emerging markets accounting for 15% of total revenues. They emphasize that R&D centers in Shanghai and Bangalore are focusing on products optimized for the needs and costs in local markets.
- ADT doubled its number of offices for Fire and Security in China. They expect to do so again next year. Note: they did not disclose the total number of offices.
- They commented on the interactive security services: "I would think we do launch in 2010. I won’t say it’ll be a full bore roll out across all regions but I would expect we will be out of Beta test and into some type of a roll out and clearly that would be in the second half of the fiscal year. I won’t get into all the details but we are still feeling positive about it, the technology is working nice." This may refer to their partnership and testing with iControl [link no longer available].
- ADT is adding accounts on the residential side but losing on the commercial side. They note that commercial ARPU is $80-$90 per month while residential is $35-$40.