ADT 2012 Annual Report Download - page 104

as a partner of choice for key technology companies. Prior to joining ADT, he worked for Canoe Ventures, LLC,
a joint venture founded by the top six U.S. cable companies, first as Chief Technology Officer then Chief Product
Officer. He was responsible for building a national data and interactive services platform, developing product
and technology strategy, and launching new applications and services with key partners including Comcast
Cable, NBC-Universal, Time Warner Cable and Cox Communications. Prior to Canoe Ventures, Mr. Orduña was
Senior Vice President of Policy & Product for Advance/Newhouse—Bright House Networks. Earlier in his
career, he served as Vice President of Product & Marketing for Canal+ Technology U.S./Vivendi-Universal, and
also Vice President of Product & Marketing for Integrated Systems Inc./Diab-SDS prior to its acquisition by
Wind River Systems/Intel. He holds a Bachelor of Arts from Cornell University.
Tony Wells—48
Mr. Wells was appointed the Company’s Senior Vice President and Chief Marketing and Customer Officer
in connection with the separation from Tyco in September 2012. He is responsible for promoting and protecting
the brand as well as overseeing marketing communications, pricing, customer experience, product marketing and
consumer marketing. Prior to the Separation, he was Chief Marketing and Customer Officer of Tyco’s ADT
North American Residential business segment. Before joining ADT in May 2012, Mr. Wells served as Executive
Vice President and Chief Marketing Officer for 24 Hour Fitness, overseeing all marketing communications,
public relations, 24hourfitness.com, member services and retail products and services. Prior to joining 24 Hour
Fitness in 2007, Mr. Wells held leadership roles at Visa USA, including Vice President, Client Services and Vice
President, Partnership Marketing. Mr. Wells also served in various sales and marketing positions with SFX
Sports Group, The Mills Corporation and Nissan North America. A former Marine infantry officer, Mr. Wells
holds a Bachelor of Science in Physical Science from the United States Naval Academy and a management
certificate from Johns Hopkins University.
Item 1A. Risk Factors.
In addition to risks and uncertainties in the ordinary course of business that are common to all businesses,
important factors that are specific to our industry and our company could have a material and adverse impact on
our business, financial condition, results of operations and cash flows. You should carefully consider the risks
described below before investing in our securities. Our business may also be adversely affected by risks and
uncertainties not known to us or risks that we currently believe to be immaterial.
Risks Relating to Our Business
We sell our products in highly competitive markets, which results in pressure on our profit margins and
limits our ability to maintain or increase the market share of our products.
The monitored security alarm industry is subject to significant competition and pricing pressures. We
experience significant competitive pricing pressures on installation, monitoring and service fees. Several
significant competitors offer installation fees that match or are lower than ours. Other competitors charge
significantly more for installation but, in many cases, less for monitoring. In many cases we face competition for
direct sales from our authorized dealers, who may offer installation for considerably less than we do in particular
markets. We believe that the monitoring and service fees we offer are generally competitive with rates offered by
other major security companies. We also face potential competition from improvements in self-monitoring
systems, which enable customers to monitor their home environment without third-party involvement through the
Internet, text messages, emails or similar communications, but with the disadvantage that alarm events may go
unnoticed. It is possible that one or more of our competitors could develop a significant technical advantage over
us that allows them to provide additional service or better quality service or to lower their price, which could put
us at a competitive disadvantage. Continued pricing pressure or improvements in technology and shifts in
customer preferences towards self-monitoring could adversely impact our customer base or pricing structure and
have a material and adverse effect on our business, financial condition, results of operations and cash flows.
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