The Duluth technology company NCR is getting out of the movie-rental business, selling its Blockbuster Express kiosks as it seeks to expand its software and service businesses and focus on hospitality instead of entertainment.
NCR's 10,000 kiosks and their DVDs will be sold to Redbox for up to $100 million and NCR has also signed a $25 million agreement with Redbox parent Coinstar to provide hardware, software and services to the company over five years.
NCR started its kiosk business three years ago; it lost $50 million in 2010 and $60 million in 2011. A spokesman at NCR would not say how many employees would be affected, but said no workers would be going to Redbox. The company also sold a health care software solutions business.
NCR is focusing instead on its hospitality business after acquiring Alpharetta-based Radiant Systems last summer. The company sees the potential for huge growth out of Radiant, as NCR repositions itself from a hardware company to one that deals primarily in software and technology. Its emerging travel, telecom and technology businesses are also promising.
"The reinvention of NCR is on an excellent path," NCR chairman and CEO Bill Nuti said in a company conference call.
The company that provides cash registers and self-service checkouts said it expects retailers to begin upgrading their technology. Both mid-size and regional banks have been adding new NCR ATMs and other technologies to keep pace with larger banks and NCR has a larger order backlog now than it has ever had, Nuti said.
NCR expects its revenues to increase between 7 and 9 percent in 2012; they rose 10 percent in 2011. The company made $52 million in 2011, as compared to $137 million in 2010. It lost $12 million in the fourth quarter of 2011 and made $38 million in the same three-month period in 2010.
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