ADT quarterly net income rises 13 percent

, Bloomberg



ADT Corp. said Wednesday that its fiscal first-quarter net income rose 13 percent, as the company generated more recurring revenue per customer and a shift toward more company-owned security systems boosted profitability.

For the quarter ended Dec. 28, the electronic security and home monitoring company earned $105 million, or 44 cents per share, up from $93 million, or 39 cents per share, in the same quarter last year.

Revenue rose 2 percent to $809 million from $795 million.

Analysts, on average, expected earnings of 43 cents per share on $815.4 million in revenue, according to FactSet.

ADT said recurring revenue rose 5 percent to $744 million, as average revenue per customer increased 5 percent, while customer accounts increased less than 1 percent.

Other revenue dropped 25 percent to $65 million, as the company's mix of newly installed systems continued to shift toward more ADT-owned systems, increasing deferred revenue and reducing current period installation revenue.

ADT added 257,000 new customers during the most recent quarter to finish with 6.4 million customer accounts.

The company added that its profitability got a boost from the shift toward more ADT-owned systems, along with cost controls that helped offset expenses related to its separation from Tyco International Ltd. and Superstorm Sandy.

Shares of Boca Raton-based ADT rose 87 cents, or 1.9 percent, to $47.38 in premarket trading.

In addition, ADT reported it will accelerate its share buyback program using proceeds from a recently completed debt offering to repurchase stock for about $600 million.

The accelerated buyback is part of a previous authorization to repurchase $2 billion in shares.

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