Wincor Nixdorf AG Tuesday reported lower net income on lower sales for the 2009 fiscal year ended Sept. 30, but the company continues to gain market share in the United States, says one analyst.
The Paderborn, Germany-based maker of ATMs and point-of-sale equipment reported a net income of $114 million, down 10% compared with $126.65 million in 2008.
Net sales totalled 2.25 billion euros (US$3.34 billion), down 3% compared with 2.32 billion euros. Executives at the ATM maker blame the recession for the overall drop in revenue and profit. "Against the backdrop of a severe economic crisis, Wincor Nixdorf emerged from the fiscal year just ended with a moderate fall in sales, although profit contracted at a more pronounced rate," the company said in a statement.
The ATM maker reported a 9.6% decline in sales of hardware, which includes ATMs and POS equipment, to 1.22 billion euros from 1.35 billion euros.
Revenue from software and services rose 4.8%, to 1.02 billion euros form 973 million euros.
Regionally, in the Americas, which includes the United States, sales were up 7%, to 200 million euros from 187 million euros. Gil Luria, an analyst with Los Angeles-based Wedbush Securities, says agreements to sell ATMs to JPMorgan Chase & Co. and Wells Fargo & Co. enabled Wincor Nixdorf to expand its market share in the U.S. and that may be just the beginning.
"We believe Wincor's success will allow it to continue to expand its current U.S. market share into tier 2 and tier 3 banks as well," Luria wrote in his analyst report. ATM
