DULUTH, Ga. – ATM maker NCR Corp. reported a $9 million fourth quarter loss yesterday, caused by a $70 million impairment charge for the company’s entertainment business, which manufactures movie theatre kiosks and machines distributing DVDs.
NCR has entered into an agreement to sell certain assets related to its Entertainment Line of Business to Redbox for up to $100 million. The acquisition includes the purchase of the DVD kiosks, certain retailer contracts, and DVD inventory. In connection with the transaction, NCR will enter into a Manufacturing and Services Agreement with Redbox’s parent company, Coinstar, which would allow Coinstar to procure from NCR hardware, software and services that will yield $25 million in gross profit over five years.
NCR said fourth quarter revenue rose 17% to $1.6 billion.
For the full year NCR had 13% increase in revenues to $5.4 billion, and 57% decline in net income to $50 million.
