The ATM manufacturer
) is extending its network of channel partners. The company
recently announced that independent retailers now have access to
NCR point-of-sale (POS). The POS provides maintenance services to
the end user through a network of distributors.
In this particular offering, channel partners can serve as a
one-stop shop offering customized solutions related to
hardware-software-networking to independent retail customers.
Ultimately this leads to improved recurring revenue streams through
improved transaction efficiency and higher customer demand for the
Apart from improving its channel partner efficiency, the company
also introduced a new video teller service into its Canadian ATMs.
This particular service enables customers to have a live discussion
with the remote teller at the ATM. Therefore the technology enables
consumers to access branch services after the designated office
The Canadian financial institution FirstOntario Credit Union is
looking to implement new solutions to improve their productivity.
Sensing this, NCR is coming up with new technology to encash on the
The company is aggressively working with banks, financial
institutions and credit committees in Canada to improve their
efficiency and end-user experience. This is a mutually beneficial
association as both NCR and the banks are benefiting in the same
Although the company is growing, its sales tend to be seasonal,
with strong sales in the fourth quarter followed by weakness in the
first. Such seasonal nature of the business leads to fluctuation in
cash flows and makes it difficult for the company to predict its
working capital requirements accurately.
Moreover, challenges faced by the global financial services and
retail industries, the successful integration of Radiant and
potential investor concerns regarding pension expenses are other
Although the restructuring initiatives and new business
strategies have started impacting results, we believe that the
company should reduce its debt balance to further improve its
operating performance, and must come up with new strategies to
The company has a Zacks #3 Rank, implying a short-term Hold
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