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Naren Gursahaney

Doubling residential penetration: Pie in the sky or an eventuality?

Readers deliver wide range of opinions in SSN News Poll
 - 
12/12/2012

YARMOUTH, Maine—Forty percent residential penetration.

ADT CEO Naren Gursahaney said recently that it’s not a “moonshot,” and Honeywell Security Products President Scott Harkins said his company shared the expectation that it could happen. But given that the rate has hovered at 20 percent for years, is it realistic to believe it can be doubled? Or is that just optimism from the corner office?

ADT to add 120 jobs at Florida HQ

 - 
Friday, November 30, 2012

The ADT Corp. won praise from Florida Gov. Rick Scott at an event this week at which ADT announced it will add 120 jobs at its Boca Raton headquarters, according to a newspaper report.

Florida state, county and local governments have pledged $1.6 million in a public funding incentive package to persuade ADT to stay in Florida and create the jobs, according to the South Florida Sun-Sentinel. It said the jobs would be created over the next couple of years and be in “human resources, information technology, finance, legal and other positions needed at a corporate headquarters and public company.”

The paper quoted ADT CEO Naren Gursahaney as saying at the event that ADT already has added 600 new employees this year in its offices throughout the state, and that ADT has “committed to continue to grow our workforce here."

Here’s more from the Sun-Sentinel report:
 

The security company was offered a $1.6 million incentive package to remain in Boca Raton and create at least 120 jobs. Palm Beach County approved a $184,000 job growth incentive grant as part of the package.

Gov. Scott [who attended the event] said the incentive package is based on a formula to provide a "five times" return on taxpayer dollars. Enterprise Florida has given economic incentives to about 140 companies this year that have made commitments to create 22,000 to 23,000 jobs, he said.   

Scott said he was pleased ADT chose Florida for its headquarters instead of Texas, his rival in job-creation efforts. ADT has a large office in Dallas.

Palm Beach County Commission Chairman Steven Abrams pointed out that of the 46 corporate headquarters in Palm Beach County, nearly half of them are in Boca Raton.

"You have to have a plan. The City of Boca Raton has a plan backed up by dollars and that's making a difference," Abrams said.

In 2010, ADT was offered $1.3 million in incentives to invest in its new North American corporate headquarters at 1501 Yamato Road. At that time, the company committed to creating 20 jobs over five years.

ADT has 16,000 employees worldwide, 700 of whom work in South Florida.

Sarah Cohn, ADT director of media relations, has told me that it is “normal practice” for a lot of companies to seek such public incentives. “Many state and local governments seek to incentivize companies to stay in their areas," she said.

In fact, ADT, which began trading on the New York Stock Exchange on Oct. 1, was just one of three companies that Palm Beach County commissioners recently unanimously approved to receive such incentives, according to the Sun-Sentinel. Aerospace company Pratt & Whitney and Digital Risk, a financial services company, each was approved for $300,000 in county grants and millions more in state and city funding to create jobs, the newspaper said.

 

ADT makes RMR forecast

 - 
Tuesday, November 27, 2012

The ADT Corp., which just became independent in September, says its Pulse product is doing so well that it predicts that recurring revenue will grow by 4.9 percent to 5.2 percent in fiscal year 2013, the company said this week in a report on its Q4 and fiscal year 2012 results.

“We delivered solid recurring revenue growth fueled by the continued success of Pulse in the residential and small business security markets,” ADT CEO Naren Gursahaney said in a statement. “Our focus for 2013 is to deliver meaningful shareholder value by leveraging our competitive strengths to accelerate growth and through the efficient deployment of capital.”

ADT reported that in Q4, recurring revenue was $742 million, up 5.2 percent. The company said that was "driven by 4.4 percent growth in average revenue per customer, which rose to $38.87, and 1.1 percent net growth in customer accounts."

ADT also is initiating a dividend and has a share buyback plan. Here's what Bloomberg News had to say on that this week:
 

ADT Corp. authorized a $2 billion share repurchase program and initiated a quarterly dividend after investors George Soros and hedge-fund manager Keith Meister called on the home-security company to buy back stock.

The buyback will end in November 2015 and the quarterly dividend will amount to 12.5 cents a share, the Boca Raton, Florida-based company said in a statement today. ADT was spun off from Tyco International Ltd. (TYC) in September.

In October, billionaire Soros joined Meister in urging ADT to buy back about 45 percent of its stock with borrowed money to take advantage of low interest rates after they became the company’s biggest investors. ADT today reported adjusted earnings per share of 43 cents in the fourth quarter ended Sept. 30, matching the average analyst estimate. Recurring revenue rose 5.2 percent to $742 million.

The company has more than 6 million customers in the U.S. and Canada, providing security to homes and businesses with products including the ADT Pulse system.

 

ADT’s new hire to focus on technologies of the future

‘Cable guy’ Arthur Orduña says his goal as chief innovation officer is to help ADT succeed as an independent company
 - 
10/24/2012

BOCA RATON, Fla.—The new stand-alone ADT’s announcement this week that it has hired cable industry veteran Arthur Orduña has the blogosphere speculating that ADT is adding a “cable guy” to make it more “cable-friendly” and ready for acquisition by a telecom or cable comp

ADT's new hire to create 'a culture of innovation'

 - 
Monday, October 22, 2012

The new ADT has just created a new position—that of chief innovation officer—and today announced that Arthur Orduña has been appointed as the new CIO. He’ll report directly to ADT CEO Naren Gursahaney, the company said.

Here’s more from a news release from The ADT Corp., which is based in Boca Raton, Fla. and is newly independent after splitting off from Tyco International:
 

Mr. Orduña will be responsible for technology vision and strategy across the entire company. He will create a strategic roadmap for the full lifecycle of new and existing solutions; help define future solution and product architecture and functionality; and strengthen ADT’s relationships with key technology companies to position the company as a partner of choice.

 “Arthur brings a fresh perspective and deep technology and product management expertise to ADT’s bench of senior talent. He will play an integral role in spearheading the long-term vision for our portfolio and creating a culture of innovation at ADT," [CEO Naren Gursahaney said in a prepared statement.]

Mr. Orduña, 47, recently served as a consultant to PayPal, a division of eBay Inc., in a business development role in their Emerging Opportunities group. Prior to this, Mr. Orduña spent several years as the chief product officer and chief technology officer at Canoe Ventures, an advertising technology company founded by the top six U.S. cable companies that provide software and services to national television programming networks. Mr. Orduña has also served as senior vice president of policy and product at Bright House Networks where he was responsible for all new video, broadband, voice, and wireless product development and deployment. He has previously held senior roles at Vivendi-Universal and Integrated Systems Inc. A former dramatist and journalist, Mr. Orduña received a B.A. degree from Cornell University.

 

ADT CEO: It's not a 'moonshot' to double residential penetration to 40 percent

Naren Gursahaney says it will take effort, expanding interactive home offerings and educating the public and investors
 - 
10/10/2012

NEW YORK—The ADT Corp. CEO Naren Gursahaney has set a bold goal. He wants the newly independent ADT—which began trading on the New York Stock Exchange on Oct. 1—to increase its residential penetration from 20 percent to as much as 40 percent.

ADT celebrates independence

 - 
Wednesday, October 3, 2012

I reported yesterday that The ADT Corp. had done well on the New York Stock Exchange on its first day Monday as a publicly traded company. The positive trading news seems to be continuing today. ADT’s stock was trading at $38.96 just after 2:30 p.m. today. It opened at $36, according to news reports.

To celebrate its first week as an independent company, Boca Raton, Fla.-based ADT is also gearing up for a ceremony this coming Monday, Oct. 8. That’s when the company, which has nearly 6.4 million customers in the United States and Canada and nearly 16,000 employees, will ring the opening bell at the stock exchange.

The company says that CEO Naren Gursahaney, Chairman Bruce Gordon, and CFO Kathryn Mikells and others will be joined on the bell podium by longtime customers Tom and Kathi Guarino of Glen Head, N.Y.

According to ADT, “thanks to ADT’s home monitoring system, the Guarinos were alerted last year during Hurricane Irene to dangerously high carbon monoxide levels in their home. The alarm prompted ADT’s trained call-center experts to contact local first responders, who raced to the Guarino residence and provided life-saving medical care. The family attributes their rescue to their ADT system, the company’s team of trained specialists and skilled first responders. The Guarinos also have an ADT system in their family-owned business in Glen Head and have been ADT customers for nearly 20 years.”

It sounds pretty impressive—and I’ll be there! Keep tabs on our site next week to learn more.

ADT adding monitoring jobs in Texas

 - 
Tuesday, October 2, 2012

ADT’s split from Tyco isn’t taking any steam out of the monitoring giant’s sails. In addition to becoming an independent publicly traded entity Monday on the New York Stock Exchange, it plans to add 150 jobs at its facility in Irving, Texas by the end of November.

“I think we’ve added 200 jobs in the last several months and we’re looking at another 150 as we continue to expand,” Shawn Lucht, senior vice president of operations at ADT, told NBCDFW.com on Sept. 27.

The additional jobs will be spread across many departments at the company’s Irving campus, one of the largest ADT facilities in North America. Among the departments standing to gain will be the monitoring center, one of six that the company operates.

Dinesh Chand, one of the newer employees hired at the monitoring center, told NBCDFW.com that the department has almost doubled in size during his tenure there.

“When I got here about a year or so ago, we had a little over 200 people,” he said. “Today, we have close to 400 folks here.”

The company is aiming to expand further through a pilot program with Best Buy. The consumer electronics retailer is selling ADT security systems at three of its stores, ADT CEO Naren Gursahaney recently told SSN’s Tess Nacelewicz.

Part of the approach is “to generate leads and create appointments,” he said, because the company still believes that security “is an over-the-kitchen-table type of sale.”

For anyone looking for company on the NYSE, it’s easy to find: the ticker symbol is ADT. Company officials will ring the opening bell there on Oct. 8.

ADT independence: Today’s the day!

 - 
Monday, October 1, 2012

Officially, ADT’s split from Tyco International took place last Friday, with the distribution of shares to stockholders. But today, Monday, Oct. 1, is officially the home security giant’s first operating day as an independent company trading on the New York Stock Exchange.

Here’s more from the new release the Boca Raton-based company sent out to mark the momentous occasion:
 

The ADT Corporation, a leader in the electronic security, interactive home and business automation and alarm monitoring services industry in the U.S. and Canada, returned today to the public equity markets as an independent company after completing its spinoff from Tyco International Ltd. Founded nearly 140 years ago, ADT begins its next chapter as one of the most well-known and trusted brands in the security industry, with $3.1 billion in 2011 annual revenue and 6.4 million customers. Its shares are listed on the New York Stock Exchange under the ticker symbol ADT and it is a constituent of the S&P 500 index.

“The launch of ADT as an independent company is a great moment for our employees, and it marks an exciting milestone in our proud history,” said ADT CEO Naren Gursahaney. “ADT leads the security industry because of our commitment to customer service, focus on innovation and continued investment in our infrastructure and our people. But what really differentiates us is that we never forget what we do for a living – we help save lives.”

With nearly 16,000 employees in 200 locations, ADT maintains the largest sales, installation and service field force of all security providers. The company’s six fully redundant alarm monitoring centers comprise the industry’s most robust monitoring network. ADT serves one-fourth of the North American residential and small-business monitored security market, fully six times the size of its closest competitor.

The North American market for residential- and small-business-monitored security exceeds $12.5 billion in annual sales, up from $11.3 billion six years ago, according to ADT research and analyses of industry data. In addition, just one-in-five U.S. households possess a monitored security system today, leaving significant scope for ADT to expand in the overall market. ADT will use its spinoff from Tyco as an opportunity to pursue a unique growth strategy as a pure-play security company, focused on capturing additional market share through an expanded portfolio of offerings.

ADT’s broad range of products and advanced service offerings meet a range of customer needs for today’s lifestyles. They comprise:
 Residential Security: The core of ADT’s business, providing customers with burglar, fire, carbon dioxide and other essential alarm monitoring.
 Small Business: An important and growing market where ADT has tailored its best technology and services from other areas to provide a full range of intrusion detection, monitoring and surveillance and other essential services.
 ADT Pulse: A pioneering technology that lets residential and business customers access information and control their security systems remotely. Pulse delivers functions that record and view live video and text messages at a trigger event. When ADT launched Pulse in 2010, it was the first security company to offer a mass-market home automation system nationwide. Today, more than 1-in-3 home security units that ADT sells is a Pulse system.
 Home Health: ADT’s Personal Emergency Response System (PERS) provides customers with solutions that help sustain independent living by providing security and safety in the case of a fall or unexpected medical emergency. Driven by demographic trends and lifestyle changes, this is a growing market segment.

“As an independent company, we will invest for growth by uncovering new revenue streams and building our product portfolio through innovations and partnerships, including extensions to the ADT Pulse platform,” said Gursahaney. “I see a bright future ahead.”

 

ADT set to 'go it alone'

CEO of The ADT Corp. squelches rumors new entity will be takeover target
 - 
09/18/2012

BOCA RATON, Fla.—Tyco International shareholders voted Monday to approve splitting Tyco into three separate companies—one of them ADT, another a commercial fire and security business, and the third a flow control unit. ADT officials say they’re eager to see ADT become a stand-alone company, providing security and interactive services to residences and small businesses and focused on innovation and growth.

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