Examining ADT's and Tyco Security Products Shrinking Revenue
The recession has certainly impacted the market for security systems. Examining the recent declines in revenue for ADT and Tyco Security Products provides good indicators of the breadth of that fall.
Tyco has released financial results for the Spring 2009 quarter (ending June 26, 2009). Those results include:
- 12% decline in organic revenue for electronic security categories. This is a broad category including access control and other products outside of video surveillance.
- 13% decline in organic revenue for ADT US Commercial
- US Residential revenue may have increased as ADT cites growth in both account base and average revenue per user. They do not cite directly growth so I am inferring from related statements.