* Profit of 44 cents per share exceeds Wall Street view by 1
* Sales rise 1.8 percent to $809 million
* Shares up 2.9 percent
By Atossa Araxia Abrahamian
Jan 30 Home security services company ADT Corp
, formerly a part of Tyco, reported a higher
quarterly profit on Wednesday.
The company said net earnings had risen 12.9 percent to $105
million, or 44 cents per share, in the first quarter ended on
Dec. 28 from $93 million, or 39 cents per share, a year earlier.
The latest results exceeded analyst's expectations of 43
cents per share, according to Thomson Reuters I/B/E/S.
Shares of ADT were up 2.9 percent at $47.88 in morning
Sales rose 1.8 percent to $809 million, with recurring
revenue from existing customers increasing 5.1 percent from a
"It was a very solid quarter," Chief Executive Officer Naren
Gursahaney told Reuters. "I want to see us growing gross adds
faster, but we understand the headwinds we faced in the first
quarter, and we're addressing them."
Gursahaney said results suffered because of Superstorm
Sandy, which struck the U.S. Northeast in late October.
Sales of Pulse, a home monitoring product that allows
consumers to remotely control settings like lighting and
thermostats, are poised to accelerate in the coming year,
Introduced in October 2010, Pulse serves just 4 percent of
ADT's 6.4 million users, but according to the company's earnings
statement, 19 percent of new customers chose to adopt the
product in the last quarter, up from 7 percent a year earlier.
"I think we're already delivering take rates that we thought
would be the cap," said Gursahaney. "The results show me that we
have more upside there."
Gursahaney also expects business to grow out of ADT's
expansion into lifestyle services. The company's partnership
with health technology company Ideal Life will integrate weight,
blood pressure and other readings from medical devices into
ADT's monitoring systems.
"You're checking at home, and the information goes straight
to your caregiver," said Gursahaney. "They can either update it,
or if there's reason for concern, they can bring you in."
The Boca Raton, Florida-based company said it still expected
a rise of 4.9 percent to 5.2 percent in recurring revenue in
ADT also announced a $600 million accelerated share