The automated teller machine manufacturer NCR Corp. said Tuesday that sales to financial institutions were strong last quarter despite the troubled economy.
The Dayton, Ohio, company said financial institutions were the primary buyers in the Americas in the quarter; sales in the Americas rose 11% compared with last year's second quarter, it said. Its revenue overall rose 13%, to $1.33 billion.
"Even in a challenging global economy, consumers want to connect, interact, and transact with businesses in new ways, and NCR is on the forefront of helping our customers meet that demand," Bill Nuti, the chairman and chief executive, said in an earnings conference call with analysts. "We are striving to make the most of this opportunity."
NCR's net income dropped 55%, to $44 million, largely, it said, because of the September spinoff of its data warehousing unit, Teradata Corp.
Much of NCR's sales growth can be credited to new technology built around imaging and deposit automation, Mr. Nuti said.
"We're seeing solid demand for our ATM kiosk solutions, both in the U.S. and internationally," he said. "In the U.S., we expect Check 21 rollouts and our new innovative NCR SelfServ family of ATM kiosks to continue to drive growth."
NCR said it has sold more than 4,000 SelfServ units to more than 120 clients this year. "By year-end 2008, the company anticipates that new customer orders for NCR SelfServ will surpass those of the NCR Personas product line," the earnings report said.
NCR revised the 2008 guidance that it provided in May. It now expects revenue growth of 6% to 8%, instead of 5% to 7%, and diluted earnings per share of $1.55 to $1.60, instead of $1.59 to $1.64.
NCR said it repurchased 5 million shares in the second quarter for $127 million. As of Monday it had repurchased 1.4 million shares in the third quarter for $36 million; it is authorized by its board to use another $159 million for future share repurchases.