NCR Corp.’s foreign business in Europe and the Asia-Pacific region helped the ATM manufacturer post $31 million in net income for the second quarter ended June 30, up 29.2% from $24 million during the same period last year.
Revenues totaled $1.18 billion, up 5.4% from $1.12 billion.
The Duluth, Ga.-based ATM maker experienced success in Europe despite the credit crisis that continues to grip the region.
“To this point, [the crisis] does not appear to have a meaningful impact on bank spending,” Bill Nutti, NCR chairman and CEO, told analysts during a July 22 conference call.
“The strength in Europe is really surprising because we were all assuming things there were not going so well,” Gil B. Luria, an analyst with Wedbush Securities in Los Angeles, tells PaymentsSource.
Overall revenue in the Europe/Middle East/Africa sector was $421 million, up 9.6% from $384 million in the second quarter of 2009.
Chinese financial institutions are purchasing more intelligent deposit ATMs to help spur business in the Asia-Pacific region, Nutti noted. The Asia-Pacific region reported overall revenues of $241 million, up 2.6% from $235 million.
Latin American orders increased as NCR continued to make gains in the Brazilian market, including an agreement with Banco Bradesco S.A. “This is an early but critical milestone as we look to capitalize on our investment and build on our position in this emerging market over the next several years,” Nutti said.
Overall revenue in the Americas, which includes the United States, was $515 million, up 2% from $505 million in 2009.
Orders in the U.S. slowed as NCR nears completion of upgrades to intelligent-deposit machines with large banks, Nutti said. Smaller financial institutions, however, have started to convert to intelligent deposit machines.
During the quarter, the ATM maker secured a rollout of its envelope-free, intelligent-deposit machines at a large, undisclosed regional U.S. bank. The agreement will result in the replacement of several hundred ATMs with NCR’s SelfServ 32, 34 and 38 models with Aptra Edge and Aptra Exchange software, NCR said in its earnings release.
“These offerings extend our market-leading [services] to our global customers under the same value proposition of reducing costs, growing productivity and deepening relationships with depositors,” Nutti said.
BECU, formerly Boeing Employees’ Credit Union, became the first credit union to deploy Aptra Vision, NCR’s latest enterprise software for self-service system management. Aptra Vision provides BECU with a comprehensive view of its ATM network by analyzing operational information, business performance and consumer experience, NCR said.
NCR should continue its momentum going into the second half of the year, Luria notes. If the economy falters in some regions, the effects would not be seen until next year, he adds.
NCR made note of its goal to increase its share in the self-service checkout space.
In 2010, NCR introduces several improvements with its self-service checkout options to address the needs of convenience stores and other retailers with limited space.
“[The] new self-serve checkout mini is 50% smaller than the standard NCR [product] and provides fully integrated security features,” John Bruno, NCR executive vice president, said during the conference call.
NCR’s internal research shows retailers using self-checkout systems experienced decreased customer wait times of 40% and increased checkout speed of 20%.
“As such, adopting a broader range of self-service technology frees up staff to improve service and increase store revenue while delivering greater cost savings,” Bruno said.
Bruno revealed NCR had recently secured a contract with Marine Corps Community Services to install and maintain a new point-of-sale product at 270 retail and service-store locations throughout the U.S. and Japan.
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