NCR, the Duluth-based maker of ATMs and self-checkout machines, said it has its biggest order backlog ever as banks spend to upgrade their technology.
The $1.2 billion backlog comes as orders for ATMs, cash registers and software rise. NCR chairman, president and CEO Bill Nuti said the company's financial services segment grew exponentially, as many large and regional banks upgrade their systems.
The company is also gaining share globally, said Gil Luria, senior vice president of Wedbush Securities. He said the growth is sustainable as banks begin to loosen their purse strings.
Nuti, in the company's third quarter conference call Thursday, said he expects to continue seeing strong demand for both hardware and software.
In the quarter, NCR closed its acquisition of Radiant Systems and Nuti said the funnel for that business has been up four-fold.
The increase, he said, "is giving us all a little bit of excitement" in terms of potential synergies.
Luria called Radiant Systems, now known as NCR's Hospitality and Specialty Retail business, a "gem in NCR's portfolio."
He said in addition to the possibility of selling the Radiant products internationally, which is where the increase has come from, NCR will use the new business to enhance its retail offerings, by customizing, installing and packaging its solutions with software, as Radiant Systems did.
"It's more valuable," Luria said.
The company's software orders grew 60 percent. Financial services orders grew 106 percent in the U.S. and 109 percent in Brazil, India, China, the Middle East and Africa. NCR also booked the largest order in its history in Brazil.
NCR made $15 million for the quarter; it made $85 million in the same quarter a year ago. Total revenue was $1.4 billion, a 16 percent increase over last year.
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