NCR Corp. (NCR) recently announced that it is deploying its Point-of-sale (POS) solutions in 180 Veteran Affairs (VA) hospitals throughout the U.S. and Puerto Rico.
This move follows a deal between NCR Corp. and Veteran’s Canteen Service (VCS), a retail and hospitality wing of the U.S. Department of Veteran’s Affairs that was signed a few months ago. Financial terms of the deal were not divulged. The POS solutions were deployed on a pilot basis in December.
POS solutions are very popular among retailers and restaurant owners. These solutions help users achieve maximum customer interaction, leading to increased productivity.
NCR Corp. is deploying roughly 1100 RealPOS 70XRT terminals and General POS (GenPOS) software in the VS hospitals, facilitating VCS to reduce costs and increase customer satisfaction. VCS will be able to avail of a comprehensive platform to manage different stores with POS solutions.
Based on NCR Corp.’s experience in serving retailers, VCS plans to install more POS solutions for other businesses, including shops, cafeterias, combination locations (retail and food), optical stores and concessionaires.
Apart from POS solutions, we are encouraged by NCR Corp.’s Automated Teller Machine (ATM) exposure. Recently, the tech company upgraded its ATM technology with the introduction of SelfServ 16, which is equipped with bank-grade ATM features.
Last month, NCR Corp. clinched a deal with Chase, the U.S. consumer and commercial banking business of J.P. Morgan Chase & Co. (JPM), whereby the latter would deploy more ATMs incorporating NCR Corp.’s latest Scalable Deposit Module technology.
We are encouraged by the company’s market leadership, successful acquisitions, product introductions and continued customer wins. However, we believe that near-term visibility is limited, as the company faces competition from Accenture plc (ACN). Moreover, uncertainty in its entertainment business also poses some threat.
Currently, NCR Corp. has a Zacks #3 Rank, which translates into a short-term Hold recommendation.
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