NCR Corp. got a big fourth quarter push from surprisingly high demand for new ATMs from midsize regional banks, but ATM demand in Europe stalled.
The Duluth, Ga.-based company’s ATM orders from midsize regional banks increased about 130% during the quarter compared with the same period a year earlier, Bill Nuti, the firm’s chairman and CEO, told analysts Feb. 6 during a conference call to discuss the quarter’s earnings.
Not only was ATM demand from midsize North American banks “on fire,” but ATM orders from large U.S. banks also were “very solid” during the quarter, and NCR expects to continue to see a growth trend in the region, he said.
Scottsdale, Ariz.-based TruWest Credit Union, which operates 20 branches in Arizona and Texas, recently agreed to replace its 30 ATMs with new NCR SelfServ line units, enabling customers to deposit checks and cash simultaneously through a single slot, significantly increasing deposit speeds, NCR noted in a Feb. 6 press release.
In emerging markets, including Russia, China and India, NCR also saw healthy demand for new ATMs and equipment during the quarter, Nuti noted.
While Eastern Europe and certain European countries, including France, continue to generate strong business for new ATMs, demand was down in other countries in the region, including Italy and the United Kingdom, Nuti said. ATM orders for Western Europe declined about 11% during the quarter, he noted.
Europe was “flattish last year overall, and it will be the same in 2012,” Nuti predicted, citing economic trends there.
NCR also on Feb. 6 said Coinstar Inc.’s Red box has agreed to pay $100 million for assets of NCR’s entertainment business, including DVD kiosks, certain retailer contracts and DVD inventory. As part of the agreement, NCR will continue to supply Coinstar with related products and services.
Revenue for the quarter ended Dec. 31 rose 17.1%, to $1.64 billion from $1.4 billion a year earlier. Looking ahead, NCR expects revenues this year to increase in the range of 7% to 9% compared with 2011, the company said in its earnings release.
Pension costs and impairment charges associated with the entertainment business caused a net loss for the quarter attributable to NCR of $9 million; the company generated net income of $39 million a year earlier.
The company’s financial-services segment, which includes ATMs, generated fourth-quarter revenue of $908 million, up 15.7% from $785 million.
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