NCR expands its software expertise

Article Excerpt

NCR CORP. $30 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.6 million; Market cap: $5.1 billion; Price-to-sales ratio: 0.8; No dividends paid; TSINetwork Rating: Average; www.ncr.com) gets 54% of its revenue from automated teller machines (ATMs). It also makes cash registers and self-serve checkouts (31% of revenue) and kiosks for theatres and arenas (10%). The remaining 5% comes from maintaining this equipment. NCR is cutting its reliance on ATMs by purchasing other companies. In February 2013, it paid $788 million for Israel-based Retalix, whose software helps retailers manage their sales and track inventory. Companies with a combined 70,000 locations in over 50 countries use Retalix’s products. In January 2014, NCR acquired Digital Insight, whose software helps over 1,000 banks and credit unions manage online and mobile transactions, for $1.65 billion. Thanks to these purchases, the company’s revenue rose 7.6% in 2014, to $6.6 billion from $6.1 billion in 2013. But earnings fell 60.0%, to…

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