ADT Q3 Results: Sales Up, Profits Down
ADT reported that its total revenue increased 5.8%to $898 million in Q3 2015. However, net income was down 8.5% to $75 million compared with $82 million in the same quarter last year.
BOCA RATON, Fla. – Security giant ADT (NYSE: ADT) saw its sales increase, but experienced an 8.5% decrease in profits for its Q3 2015.
In its third quarter earnings report, ADT reported that its total revenue increased 5.8% to $898 million. However, net income was $75 million, or 44 cents per share compared with $82 million, or 47 cents per share, in the same quarter last year.
ADT executives noted that the year-over-year decrease in net income despite higher revenues was primarily due to higher operating costs.
The company is currently looking to lower installation costs and become more efficient in adding new customers, among other ways to cut costs, SunSentinel reports.
“We delivered our sixth consecutive quarter of improving operational metrics and solid financial results,” ADT CEO Naren Gursahaney said in a news release. “I’m pleased with the progress we’re making and the encouraging trends we see developing creating opportunities for profitable growth in the future.”
In its earnings release, ADT provided key insights to some of the initiatives it has taken to accelerate growth, and optimize capital structure.
For example, during the third quarter, ADT released its new, free Pulse app through the Apple App Store and Google Play to help customers manage home security and automation through their smartphones.
Overall, ADT Pulse now has 1.4 million subscribers, which represents 21% of ADT’s total customer base, the company reported. ADT closed the quarter with 6.6 million customer accounts, a 4.9% increase over last year.
Also, during the reported quarter the company announced a new partnership with Nest Labs, in which the Nest Learning Thermostat is now supported by ADT Pulse. The product is currently available for current ADT customers in Atlanta, Chicago, Denver and Miami. The company plans to roll out the Nest thermostat nationwide by the end of the year.
The security firm also said it improved its customer retention and boosted resales by 30% over the previous year.
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