Higher sales of ATMs helped lift NCR’s profit in the second quarter, the Duluth self-service and technology company said.
The company said it expects revenues in its financial service business to rise between 6 and 8 percent for the year, up from earlier expectations of 4 to 6 percent. Orders of ATMs by U.S. regional banks were up 115 percent over the second quarter of last year, and NCR chairman and CEO Bill Nuti said in a conference call Thursday that large banks are continuing to invest.
“Banks are looking to strengthen their competitive position,” he said.
NCR said net profit was $35 million in the second quarter, up from $31 million for the same period a year ago. Revenue rose to $1.31 billion for the quarter, from $1.18 billion a year earlier.
The ATM market was down for several years, said Wedbush Securities research analyst Gil Luria, and the improvement is a good sign that banks are spending again.
“Banks feel a little bit more sure-footed to make these kind of expenditures,” he said. “It will accelerate through the year.”
NCR also raised overall revenue expectations for the year to between 6 and 8 percent growth from 2010, even as it loses more money than expected in its DVD rental kiosks, Luria said. The company announced earlier this month that it is looking to partner with another company or sell the DVD kiosk business, something that Luria said was “very good news.”
“It’s been a distraction,” he said.
This month, NCR announced its plans to acquire the Alpharetta company Radiant Systems, which will be a third main line of business, for $1.2 billion. The restaurant and retail point-of-sale business is a “perfect fit” for NCR, Nuti said.
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