Hypercom Corp.’s newest point-of-sale products could help the company improve its profit margins, some analysts predict.
The Scottsdale, Ariz.-based terminal maker on May 10 announced its L5000 product line, the first to be made under a “joint development manufacturing” model in which a partner company manufactures the devices according to Hypercom’s specifications.
The devices includes the L5300 multilane terminal with a 5.7-inch touchscreen; the L5350, a cordless version of the L5300; the L5200, a smaller version of the L5300; and the L5400, a keypadless version merchants may use as a barcode scanner for price checks in shopping aisles. The terminals can connect to any integrated point-of-sale system, Hypercom says.
Hypercom, which would not say how much the terminals cost, expects the devices to be available this summer and to release one new terminal in the product line per quarter (see story).
The terminals could boost Hypercom’s market share among multilane retailers, George Sutton, senior research analyst at Craig-Hallum Capital Group LLC, a Minneapolis-based investment firm, tells PaymentsSource. Sutton is encouraged that the first terminals produced under the new manufacturing model are for multilane retailers.
Hypercom traditionally has lacked a “perfect competitive” product for the multilane market, Sutton says. This product line could alleviate that weakness, he says.
Indeed, the success of the new model could weigh heavily on Hypercom’s future, another observer says. “The margin pressure on terminal manufacturers has gotten higher and higher,” George Peabody, director of the emerging technologies advisory service at Mercator Advisory Group Inc., a Maynard, Mass.-based firm, tells PaymentsSource. “Any new manufacturing relationships that can drop costs are good things.”
Hypercom plans to sell the terminals directly to merchants and through its resellers, company says.