NCR Corp. (NCR) recently made announcements about its move to Georgia. Earlier this year, the world’s leading manufacturer of ATM machines announced plans of shifting its headquarters to Duluth, Georgia. The company has now transferred a number of important customer service operations to Georgia as well. It has also set up a manufacturing facility in Columbus, Georgia.
 
As a result of the shift in operations, the Global Services Parts headquarters, the Americas Customer Care Center and the NCR University will be housed under the same roof. Management expects the setup to help the company deliver superior customer service. We think that the estimated 20,000 customer service requests per day would increase scale of operations and this drive margins for the company.
 
The company is also rolling out new products on a regular basis. The company recently introduced a patented two-sided thermal (2ST) printing technology standard, to be made available on all NCR SelfServ 20- and 30-series ATMs in North America. This is expected to strengthen NCR’s grip on the self service ATM market in the region.
 
Management expects the new two sided printer installations to double the current installed base in retail, financial and other industries. It also stated that the company had secured orders for installations of 2ST printer installations from many North American financial institutions.
 
While the company is expanding its operations and building its product portfolio, the below average third quarter results make us apprehensive. The company witnessed an 18% decline in revenues on a year over year basis, driven by weakness across all geographies. Results were negatively impacted by global economic conditions which have impaired growth in the global financial services, retail and hospitality industries. Although the American economy is looking up, substantial revival in the financial services industry, which generates the bulk of revenue, will take some time.
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