Triton Systems of Delaware Inc., which is focused on rolling out its first automated teller machine aimed at banks, has hired a chief executive.
William Johnson, a veteran executive of several manufacturing companies, joined the company Aug. 8 in the newly created post. He is expected to focus on improving operational efficiencies at the Long Beach, Miss., subsidiary of Dover Corp., which should free up time for Triton's president, Brian Kett, to work on expanding the business globally.
"We are just adding some depth to our organization to better handle the responsibilities" associated with launching a new ATM product for banks, Mr. Kett said in an interview Friday. "We are looking at ourselves getting to the next level, [and] there are different demands put on the company."
Mr. Johnson, who was not available for an interview, said in a press release that his "intention is to support Triton as they move to the next level as a global manufacturer of ATMs and related products."
His hiring came a month after Triton introduced the FT7000, its first through-the-wall-style ATM designed for banks. This fulfilled a long-held desire to enter the bank ATM market, which is dominated by larger players such as NCR Corp. and Diebold Inc.
In 2006 and so far in 2007, Triton has earmarked about 15% of its machines for sale to banks, including off-premises machines owned by banks but installed in convenience stores and similar sites.
Triton's entry into the bank ATM market was driven in part by a continuing price war between makers of retail ATMs, said Leon Majors, the president of Phoenix ESP Payments Research Group, an ATM consulting company. Manufacturers have slashed prices by 30% to 40% this year on merchant ATMs, which have typically sold for $2,500. "Triton, to respond to that, is launching or relaunching a targeted program to get into banks," Mr. Majors said.
He estimated that a Triton bank ATM could cost $5,000 to $8,000 less than one from its competitors, which typically range from $20,000 to $30,000. (A Triton spokeswoman would not discuss pricing.)
However, he also said that banks are not always looking just to price when buying through-the-wall ATMs for their branches. Many are willing to pay more for added security and features offered with machines that are more sophisticated than the FT7000. "It is not necessarily worth it to them to take the extra risk just to save a few thousand bucks," Mr. Majors said.
Triton's ability to thrive in this new space remains a "big question," he said. If ATMs "ever become a pure commodity, where all that matters is producing transactions and nobody cares what features there are and what the functions are, … they might have a chance," he said.
Triton began working on its bank ATMs in 2005, but its plan to roll them out was delayed six to nine months by Hurricane Katrina. The company opened a 22,000-square-foot facility in Memphis shortly after the hurricane to help avert similar delays in the future.
Mr. Johnson joined Triton from Hill Phoenix, a maker of refrigeration cases, and he has also held executive roles at the Graham Corp., a maker of vacuum and heat transfer equipment, and at ESAB Welding and Cutting Equipment.
