Want to find NCR? Follow the money. Born during the waning days of the Wild West as National Cash Register, NCR is a leading maker of ATMs. The company also makes point-of-sale (POS) terminals, bar code scanners, and related printer consumables. Other retail and financial systems offerings include check image processing systems and self-service kiosks for hospitality, retail, and travel applications. NCR's services segment provides maintenance and support, as well as professional services such as systems integration and managed services. NCR serves clients in more than 100 countries; it generates about 50% of sales outside the Americas.
The company's largest segment, financial services, represents about 55% of sales and includes ATMs and payment processing hardware and software. Its retail solutions segment accounts for about 30% of sales and includes POS terminals and bar-code scanners. The hospitality and emerging industries segments -- which include POS hardware and software for restaurants and sports/entertainment venues and products and services for the manufacturing, travel, and gaming industries, respectively -- bring in the remaining revenue.
The US is NCR's largest market, representing nearly 40% of sales, with the Americas as a whole contributing about 50%. Europe and the AMEA (Asia, Middle East, and Africa) region each account for about a quarter of revenue. The company saw growth across all regions, with double-digit growth in the Americas
NCR has manufacturing facilities in Australia, Austria, Brazil, China, Hungary, India, and the US.
Sales and Marketing
The company's products and services are marketed primarily through a direct sales force, although it does, to a lesser degree, utilize a network of distributors and resellers.
NCR reported revenue of $5.7 billion in 2012, up 8% from the prior year. The results were driven primarily by a 6% increase in its financial services segment and a jump of more than 250% in its smaller hospitality segment (resulting, in part, from a full year of revenue from Radiant Systems, which was acquired in late 2011). The company also saw a 175% jump in net income (to $146 million) from the prior year when losses from discontinued operations hurt the bottom line.
NCR has been exiting certain businesses as part of a strategic decision to focus on its core customers -- financial services, retail, and hospitality -- while looking for expansion in vertical markets such as telecommunications and technology, as well as hospitality related verticals such as travel and casinos. Focusing on financial services, the company has agreed to acquire Digital Insight Corp., a leader in online and mobile banking software, for $1.65 billion. It also recently acquired Alaric Systems Ltd., a London-based software firm that provides secure transaction switching and fraud prevention, for about $84 million. Together, these two firms extend NCR's existing capabilities in the banking industry.
In 2012 it sold its entertainment business (DVD kiosks) to Redbox, which has more than 30,000 kiosks across the US, for $100 million. The deal also involved Redbox purchasing products and services from NCR. Also that year NCR sold its healthcare operations to QuadraMed, but has partnered with QuadraMed as a reseller of hardware and self-service products for check-in and identification management.
Mergers and Acquisitions
NCR keeps a lookout for acquisitions that can help it expand the scope of its products. In 2012 it acquired Transoft International, a developer of cost optimization software for financial institutions and retailers. The deal was made to strengthen NCR's selection of cash management applications. Early the following year it bought Utah-based uGenius, which makes video banking software.
The company's newly-formed hospitality segment was created from the purchase of Radiant Systems in 2011 for $1.2 billion. NCR built on that the following year with the acquisitions of POS Integrated Solutions, a reseller of the NCR Aloha application for restaurants, and Wyse Sistemas de Informática Ltda., a developer of hospitality software. The Wyse deal also boosted the company's presence in the fast-growing Brazilian market.
Early in 2013 NCR bought retail software provider Retalix for $650 million.