ADT 2006 Annual Report Download - page 65

AMP, AGASTAT, AXICOM, AUGAT, CRITCHLEY, DULMISON, ELO-TOUCH SYSTEMS,
M/A-COM, RAYCHEM and TYCO ELECTRONICS trade names, among others.
Sales and marketing are done via direct sales and distributors to customers including original
equipment manufacturers and their subcontractors, utilities, government agencies, value-added resellers
and those who install, maintain and repair equipment. In 2006, the group’s direct sales represented
85% of net revenue while the remaining net revenue was via distributors. Their customers are found in
the automotive, communications equipment manufacturing, telecommunications service, computer,
aerospace, military, household appliance, industrial machinery and equipment, instrumentation,
consumer electronics, energy and networking industries. In total, these businesses serve over 250,000
customers located in over 150 countries and maintain a strong local presence in the geographic areas in
which they operate, including the Americas, Europe, Middle East, Africa and the Asia-Pacific region.
Tyco Submarine Telecommunications is a leading provider of services for undersea fiber optic
networks. Tyco Submarine Telecommunications’ products and services include designing, manufacturing
and installing undersea cable communications systems and servicing and maintaining major undersea
cable networks.
Tyco Electronics operates in highly competitive markets. The competition experienced across
product lines from other companies ranges 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.
II. Fire and Security
Tyco is the world’s leading provider of both electronic security services and fire protection
contracting and services. With 2006 net revenue of $11.7 billion, our Fire and Security businesses
comprise 28% of our consolidated net revenue. In 2005 and 2004, net revenue totaled $11.5 billion or
29% of our consolidated net revenue and $11.5 billion or 30% of our consolidated net revenue,
respectively. The group’s principal products and services include:
• designing, manufacturing, installing, monitoring and servicing electronic security systems for
residential, commercial and government customers; and
• designing, manufacturing, installing and servicing a broad line of fire detection suppression
systems for commercial and government market segments.
Tyco Fire and Security consists of two business units: Worldwide Electronic Security Services and
Worldwide Fire Protection Contracting and Services.
Worldwide Electronic Security Services
We are the world’s leading provider of electronic security services, which includes the monitoring
of burglar alarms, fire alarms, medical alert systems, and other activities where around-the-clock
monitoring and response are required. We offer regular inspection and maintenance services to ensure
that systems will function properly and can be upgraded as technology or risk profiles change. We are
also a leading supplier of electronic security product solutions to the retail, commercial and government
markets, offering anti-theft, video surveillance, access control, electronic asset protection and security
management systems, products and services. These and other security services are provided principally
through our ADT operating companies.
Electronically monitored security systems are tailored to our customers’ specific needs and involve
the installation of devices designed for intrusion detection and access control, as well as reaction to
various occurrences or conditions, such as movement, fire, smoke, flooding, environmental conditions,
industrial processes and other hazards. These detection devices are connected to microprocessor-based
2006 Financials 3