ADT / Tyco Security Q4 2010 Financial Results

JH
John Honovich
•Published Nov 10, 2010 00:00 AM
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In this note, we examine both ADT's and Tyco Security's financial results for the calendar quarter Q3 / fiscal quarter Q4 2010. For the second quarter, both divisions showed signs of stability and/or growth. 

From the Q4 2010 Tyco International review deck, here are key results:

  • ADT system installation and service revenue grew 1% year over year
  • Overall ADT grew 8% year over year (including the alarm business)
  • Organic revenue declined in both EMEA and North America ADT business declined about 1%
  • Electronic Security Product revenue grew 24% year over year

These results are compared to a very weak 2009 when revenue was dropping precipitously. This time last year, ADT system installation and service revenue dropped 15% and Electronic Security Product revenue plunged 21%.

With the strong bounce back in the electronic security product line, revenues are almost back to 2008 levels. However, on the ADT system installation and service side, revenue is still about 13% less than 2008.

We are not sure what is driving this. The economy has improved over the year and security services spending looks up. Is ADT losing market share while Tyco electronic security products rebounds?

It will be interesting to see how these trends develop.