ADT 2002 Annual Report Download - page 10

II. Electronics
Tyco is the world’s leading supplier of passive electronic components and a leading provider of
undersea fiber optic networks and services. With fiscal 2002 revenues of $10,464.1 million, our
Electronics businesses comprise approximately 30% of our total revenues from continuing operations.
The group’s products and services include:
• designing, engineering and manufacturing electronic connector systems, fiber optic components,
wireless devices, heat shrink products, circuit protection devices, magnetic devices, wire and
cable, relays, sensors, touch screens, smart card components, identification and labeling products,
energy systems, power products, printed circuit boards and assemblies, electronic modules,
application tooling, switches and battery assemblies; and
• designing, manufacturing, installing, operating and maintaining undersea fiber optic cable
communications systems through Tyco Telecommunications and selling bandwidth on our own
cable network.
Tyco Electronics
Tyco Electronics designs, manufactures and markets a broad range of electronic, electrical and
electro-optic passive and active devices and a number of interconnection systems and connector-
intensive assemblies, as well as wireless products including radar sensors, global positioning satellite
systems components, silicon and gallium arsenide semiconductors and microwave sub-systems. Tyco
Electronics’ products have potential uses wherever an electronic, electrical, computer or
telecommunications system is involved. Tyco Electronics manufactures and sells more than 500,000
parts in over 750 global product lines, including power systems, terminals, fiber optic components,
printed circuit board and cable connectors and assemblies, cable and cabling systems, and related
application tools and application tooling equipment. Products are sold under the AMP, Agastat,
Axicom, Augat, Buchanon, Critchley, Dulmison, Elo-Touch, M/A-COM, Potter & Brumfield, Raychem,
Schrack and Tyco Electronics tradenames, among others.
Tyco Electronics markets via direct sales and distributors to customers including original equipment
manufacturers (‘‘OEMs’’) and their subcontractors, utilities, government agencies, value-added resellers
and those who install, maintain and repair equipment. For the fiscal year ended September 30, 2002,
direct sales represent 86% of revenue while the remaining revenue is via distributors. These customers
are found in the automotive, communications, computer, aerospace, military, household appliance,
industrial machinery and equipment, consumer electronics, commercial energy and networking
industries. In total, Tyco Electronics serves over 250,000 customers located in over 55 countries, and
maintains a strong local presence in the geographic areas in which it operates, including the Americas,
Europe and the Asia-Pacific region.
The markets that Tyco Electronics operates in are highly competitive. Tyco Electronics faces
competition across its product lines from other companies ranging in size from large, diversified
manufacturers to small, highly specialized manufacturers. Competition is on the basis of breadth of
product offering, product innovation, price, quality and service.
Tyco Telecommunications
Tyco Telecommunications is a leading provider of undersea fiber optic networks and services. Tyco
Telecommunications’ products and services include: designing, manufacturing and installing undersea
cable communications systems; servicing and maintaining major undersea cable networks; and
designing, manufacturing and installing a global undersea fiber optic network, known as the Tyco
Global Networku (‘‘TGN’’). Tyco Telecommunications operates, maintains and sells bandwidth capacity
on the TGN. In the near term, due to market conditions in the telecommunications industry, the focus
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