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The Small & Medium Business (SMB) segment is increasingly gaining prominence among tech companies such as NCR Corporation (NCR - Analyst Report). 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 - Snapshot Report).

The company has a Zacks #3 Rank, implying a short-term Hold rating.

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