Tyco International Reports First Quarter Earnings

Cash from operating activities was $379 million and free cash flow was $79 million. These amounts include $50 million of cash outflows primarily related to restructuring activities. In the prior year, cash from operating activities was $56 million and free cash flow was negative $215 million, each of which included a cash outflow of $25 million primarily related to restructuring activities.

Tyco Chairman and Chief Executive Officer Ed Breen said, "Our operating results for the first quarter reflect moderately higher revenue than expected as well as the benefits of our actions to reduce our cost structure in this challenging economic environment. Despite the soft economy, we continue to grow our service and recurring revenue which now represent 40% of total revenue."

"We were very pleased to announce our agreement to acquire Broadview Security last week, which we intend to combine with our ADT security business. This acquisition will provide us with an opportunity to strengthen our position in the fragmented and highly competitive residential and commercial security industry," Breen added.

Organic revenue, free cash flow and operating income, operating margin, income and diluted EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as First Quarter Review slides can be found at www.tyco.com on the Investor Relations portion of Tyco's website.

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