Broadview earnings exceed expectations
Broadview released their earnings this morning. Here's a brief from Yahoo Finance:
7:40AM Broadview Security beats by $0.08, reports revs in-line (CFL) 42.55 : Reports Q1 (Mar) earnings of $0.38 per share, $0.08 better than the Thomson Reuters consensus of $0.30; revenues rose 7.7% year/year to $146.5 mln vs the $146.1 mln consensus. The increase in revenue was primarily due to continued growth in the subscriber base and higher average monitoring rates. Monthly recurring revenue increased 8.0 percent at quarter-end over the prior year period to $44.8 million, driven by a 3.6 percent increase in ending subscribers and a 4.2 percent increase in average monthly recurring revenue per subscriber. The date for the special meeting of shareholders to vote on the proposed acquisition by Tyco International (TYC) has been set for May 12, 2010. Assuming the proposal receives the necessary shareholder approval, the transaction is expected to close on May 14, 2010.And in related news, yesterday, Broadview's future parent company, Tyco reported better-than-expected quarterly profits and announced that it would spin off one of its non-security related divisions, Electrical and Metal Products. Tyco announced that it would do a spin off its Electrical and Metal Products division. This division, located in Illinois, has about 3,000 employees and did about $1.4 billion in revenue in 2009. It makes steel tubes, electrical conduit and metal framing systems. â€œThere is very here on the security side, a little on the fire, but not a lot of overlap with the ADT security business,â€ Tyco spokesman Paul FitzHenry told me. This spin-off "will really sharpens the focus on our security, fire and flow-control platforms in the business,â€ he said. Here's a nice synopsis of Tyco news from Rueters.