ATM Maker Nautilus Hyosung Takes Aim At U.S. Bank Market

Korean ATM Manufacturer Nautilus Hyosung Inc., which is scheduled to complete
its purchase of competitor Triton Systems of Delaware Inc.
next month, is plotting an aggressive sales campaign in the United
States.
In America, both companies specialized in selling off-premise
ATMs for use in stores and restaurants, but the combined entity is
poised to pursue sales to American banks and credit unions.
"Nautilus Hyosung reported a little under $400 million in revenues last year,
and most of it comes from selling ATMs to banks globally," Carlos Siewczynski, Nautilus Hyosung vice president of North American retail self service, tells ATM&Debit News.
Seoul, South Korea-based Nautilus Hyosung Inc. owns Nautilus Hyosung
America, which is based inCoppell, Texas. Nautilus Hyosung
America is developing a strategy to grow its market share among
U.S.-based financial institutions, and Nautilus Hyosung Inc. is setting
the company's global strategy,
  Siewczynski says. Although the company
achieved breakthrough success selling an undisclosed number of
ATMs to New York-based Citibank, challenges remain, says Leon Majors, president
of Phoenix ESP Payments Research Group, a Salisbury, Md.-based consulting firm.
 The company already has excelled at selling ATMs to banks in Asia and Europe, says Majors, adding that "I am sure that's what they want to do here. But they would have to build an extensive network to service ATMs
sold to banks here to win their business."
 Gil Luria, an analyst with Los Angeles based Wedbush Morgan Securities Inc.,
agrees, saying the company "would have to have field representatives in every state or nearly every state to compete with Diebold and NCR, and that is something very expensive to do."
  The two Ohio-based manufacturers, Diebold Inc. and NCR Corp., control nearly
95% of ATM sales to the nation's banks and credit unions.
  Paderborn, Germany-based Wincor Nixdorf International GmbH controls a few
percentage points of the U.S. market, with the remainder split between a number of companies.
U.S. banks own 150,000 to 175,000 ATMs, and, after flat sales since 2006, bank
ATM sales are expected this year to grow in the single digits, Luria wrote in an analyst's report earlier this week.
"U.S. ATM market growth [is] accelerating (not a typo) as large banks retrench
around retail banking," Luria wrote. Nautilus Hyosung Inc. last month
agreed to buy Long Beach, Miss.-based Triton Systems from its parent company
New York-based Dover Corp. for an undisclosed price (ADN, 7/31).
Nautilus Hyosung Inc. also will continue to pursue the off-premise ATM market in
the United States as it seeks to enter the U.S. financial-institutions market. The manufacturer is interviewing candidates for vice president of financial-industry sales.
 Last year, Nautilus Hyosung America shipped 14,433 ATMs, making it the
nation's leading off-premise ATM manufacturer. Triton shipped 10,454 machines
in 2007.