The Small & Medium Business (SMB) segment is increasingly
gaining prominence among tech companies such as
NCR Corporation
(
NCR
). As numerous SMBs are still using back-dated and time-consuming
systems for payment, sales tracking and inventory management,
records maintenance and key data review, NCR was quick to target
this opportunity with its NCR Silver product.
The new product is expected to help SMBs smoothly run their
businesses and also solve complex issues. As a point-of-sale (POS)
software platform, Silver provides easy-to-use and cost-effective
cloud-based solutions that enable small business owners and
entrepreneurs to manage their payments effectively and helps them
to better manage their POS solution. The business platform runs
with equal ease on the iPad, iPhone and iPod Touch.
NCR Silver is already deployed on a pilot basis in metro
Atlanta, where it is helping the pilot customers' business to
generate increased sales based on better time management.
Apart from POS solutions, the company is also investing in the
development of DVD rental kiosks to attract some of its SMB
customers. Although the company is growing, its sales remain
affected by seasonality, with the first quarter generating lower
revenue, and the fourth quarter witnessing higher revenue each
year. 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, thereby resulting in
inaccurate cash projections.
Moreover, challenges faced by the global financial services and
retail industries, successful ongoing integration of Radiant and
potential investor concerns regarding pension expenses are other
headwinds.
The company has improved its operating performance and is
managing its expenses well. With the restructuring initiatives
already impacting its results, we believe that the company would be
able to reduce its debt balance to further improve its operating
performance and come up with new strategies to compete against the
likes of
Diebold Inc.
(
DBD
).
The company has a Zacks #3 Rank, implying a short-term Hold
rating.
DIEBOLD INC (DBD): Free Stock Analysis Report
NCR CORP-NEW (NCR): Free Stock Analysis Report
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