ADT 2Q Profit Rises As It Adds More Customers
BOCA RATON, Fla. (AP) â¿¿ Electronic security and home monitoring company ADT said Wednesday that its second-quarter net income rose 2 percent, helped by adding more customers and improving results for its ADT Pulse remote security system.
For the period ended March 29, ADT Corp. earned $107 million, or 47 cents per share. A year earlier the Boca Raton, Fla., company earned $105 million, or 44 cents per share.
Excluding separation costs and other items, earnings were 41 cents per share. Taking out the separation costs and other items at cash tax rates, earnings were 63 cents per share.
Analysts polled by FactSet expected earnings of 42 cents per share.Revenue increased 2 percent to $821 million from $807 million. Wall Street predicted higher revenue of $823.5 million. Recurring revenue, which comprised the majority of total revenue, climbed 5 percent thanks to a rise in the ending average revenue per customer and a slight increase in ending customer accounts. ADT said it added 303,000 new customers in the period and had 6.5 million customer accounts at quarter's end. CEO Naren Gursahaney said in a statement that efforts to increase penetration of Pulse in the small business and dealer channels are showing success, and that one out of every three new customers in the residential direct segment is a Pulse subscriber. ADT still expects fiscal 2013 recurring revenue to climb 4.9 percent to 5.2 percent. ADT shares finished at $43.64 on Tuesday.
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