NCR Corp. ( NCR ) recently announced that it has sealed an agreement with Transportation Security Administration (TSA). Financial details of the deal were not divulged. Under the agreement terms, NCR licensed its authentication technology to TSA.
Transportation Security Administration is an agency of the U.S. Department of Homeland Security that exercises authority over the safety and security of travelers in the United States. TSA will use the authentication technology (namely Credential Authentication Technology - Boarding Pass Scanning System) in its pilot program designed to automatically verify passenger identification documents and boarding passes.
Post implementation, TSA will launch the pilot program at select airports in early 2012. The program will assure security and convenience, while optimizing passenger experience.
NCR has a wide range of airline check-in solutions, which are available through self-serve kiosks, Internet and even through mobile phones. NCR's customized products save check-in time and also free up employees handling the check-in process, allowing them more time to cater to the more complex travel needs of passengers.
Apart from the travel vertical, we see demand for NCR's solutions mostly in the retail space. Deployment of NCR's point-of-sale (POS) solutions is increasing. Last month, Einstein Noah Restaurant Group ( BAGL ) selected NCR's Aloha Enterprise point-of-sale (POS) software solution and Radiant POS hardware solution for the Group-owned brands Einstein Bros. Bagels and Noah's New York Bagels. In September, NCR offered its self-service checkout solution to the U.K.-based supermarket chain Tesco plc.
NCR is a global technology company and its self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, entertainment, gaming, public sector, telecom carrier and equipment organizations across the world.
Strong performance across all segments at NCR led to solid third quarter results. Moreover, geographical contributions were significant. We are also encouraged by the fiscal year guidance, and believe that the company is well positioned to deliver solid momentum across all its businesses.
We are optimistic about the growth trajectory in the company's core financial and retail business, as well as the recently acquired Radiant business. Although we acknowledge some uncertainty in the company's entertainment segment, this is not material enough to completely offset the strength in its fundamentals.
NCR has a Zacks #2 Rank, implying a short-term Buy recommendation.