Back to top

Analyst Blog

NCR Corporation (NCR - Analyst Report) is actively acquiring companies as a growth strategy. True to that, NCR has acquired video banking software provider uGenius Technology. This is a strategic move by the company as NCR is looking to enhance its video ATM technology.

The acquisition will boost NCR’s APTRA Interactive Teller solution. This Interactive Teller operates through two-way video conferencing and enables remote transaction processing. The video-based interactive technology helps customers to complete banking transactions through centrally-based tellers that have control of the teller machines.  NCR expects this technology to be adopted by several of the top 10 U.S. banks during the first half of 2013.

During 2011, NCR and uGenius had partnered to install the first multi-function ATM with a live teller following which it acquired a small stake in the company in January 2012.

NCR has always been on the lookout for acquisitions. In December 2012, the company announced the acquisition of retail software and services company Retalix Ltd. for $30.00 per share in cash, totaling approximately $650 million. Through this acquisition, NCR was able to adopt a hardware-enabled, software-driven business model. NCR intends to shift its business mix to increase focus on the higher-margin software and services segment.

The Radiant Systems acquisition has also been making a meaningful contribution. NCR reported decent third quarter results, with revenues improving across most of its business segments and geographical regions, and EPS exceeding our expectations. Higher volumes and cost savings also led to a stronger gross margin.

The company has also provided a decent guidance for the next fiscal year. We believe that it is well positioned to deliver good momentum across all its businesses. Of course, the debt position appears high and competition remains stiff, which are negatives.

Currently, both NCR and its arch-rival Diebold Inc. (DBD - Snapshot Report) carry a Zacks #3 Rank (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%