Want to find NCR? Follow the money. Born during the waning days of the Wild West as National Cash Register, NCR is a leading maker of ATMs. The company also makes point-of-sale (POS) terminals, bar code scanners, and related printer consumables. Other retail and financial systems offerings include check image processing systems and self-service kiosks for hospitality, retail, and travel applications. NCR's services segment provides maintenance and support, as well as professional services, such as systems integration and managed services. A direct sales force handles most of its sales. North America makes up about 40% of revenue, and Europe about 25%.
Sales were up in all regions except Japan and Korea, which saw a decline of 5%. Most markets surged by double digits, while Europe only ticked up 3%, though that region was a contributor to the 12% increase in overall service revenues. The rise in service revenues and the 14% increase in product revenue came primarily from the financial services (up 13%) and retail (up 3%) sectors.
NCR keeps a lookout for acquisitions that can help it expand the scope of its products. In 2012 it acquired Transoft International, a developer of cost optimization software for financial institutions and retailers. The deal was made to strengthen NCR's selection of cash management applications.Early the following year it bought Utah-based uGenius, which makes video banking software.
The company's newly-formed hospitality and specialty retail segment was created from the purchase of Radiant Systems in 2011 for $1.2 billion. NCR built on that the following year with the acquisitions of POS Integrated Solutions, a reseller of the NCR Aloha application for restaurants, and Wyse Sistemas de Informática Ltda., a developer of hospitality software, to boost its presence in Brazil. Late in 2012 it agreed to buy retail software provider Retalix for $650 million.
In 2012 NCR sold that business (about 3% of 2011 sales) to DVD kiosk competitor Redbox, which has more than 30,000 kiosks across the US, for $100 million. The deal also involved Redbox purchasing products and services from NCR. Also that year NCR sold its healthcare operations to QuadraMed, but has partnered with QuadraMed as a reseller of hardware and self-service products for check-in and identification management.
Exiting those businesses is part of a strategic decision to focus on its core customers -- financial services, retail, and hospitality -- while looking for expansion instead in vertical markets such as telecommunications and technology, as well as hospitality related verticals such as travel and casinos.
While many companies continue the trend of outsourcing manufacturing to third-party contractors, NCR is going in the opposite direction, opening two new plants for making ATMs in Brazil and the US during 2009 and new POS plants in the US and Hungary the following year. The moves ended its outsourcing agreement with Flextronics International, the giant contract electronics manufacturer. NCR continues to rely on transaction processing services from Accenture; it purchases microprocessors and other semiconductors from Intel and computer operating system software from Microsoft.
NCR augmented its close-to-the-chest manufacturing philosophy in 2011 when it sold a 49% stake in its Brazilian manufacturing location to Scopus Tecnologia, a subsidiary of customer Banco Bradesco, to take advantage of geographic expertise. As part of the alliance, Banco Bradesco will plan to purchase 30,000 ATMs over the following five years. Scopus will handle development, engineering, and manufacturing, while NCR employees will control sales, services, and other functions. – less
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4 salaries reported
$39,691 per year