ADT, which spun off from Tyco International and went public last year, saw an increase in customers to 6.5 million and an increase in recurring revenue, driven by more customers buying its new home automation Pulse products, chief executive Naren Gursahaney said. “If Pulse was a stand alone, it would be the sixth-largest security provider in North America,” Gursahaney told analysts.
For the year ended Sept. 27, ADT reported a profit of $421 million, up 6.9 percent from $394 million a year ago. Annual revenues were $3.3 billion compared with $3.2 billion in 2012. While its customer base rose by 1.5 percent from a year ago, the home security company continues to battle customer loss from relocation. ADT also is working with an independent dealer with financial issues and replaced a dealer’s telemarketing operation that didn’t meet ADT standards, Gursahaney said.
Recurring revenue, which accounts for the bulk of ADT’s overall revenues, was 4.8 percent for the year. That increase reflects higher prices for upgraded equipment as well as additional customers. Courtesy: Sun Sentinel