NCR Corp. Inks UniCredit Deal - Analyst Blog

Technology and solutions provider NCR Corp. (NCR) announced that it will offer a software security solution to UniCredit Bank’s multivendor automated teller machines (ATMs). Financial details of the deal were not disclosed.

 

UniCredit Bank, the leading financial services provider in Russia, will deploy NCR Corp.’s ‘Solidcore Suite for APTRA’ in all its branches to secure its ATM networks from any frauds or running of any unauthorized codes.

 

‘Solidcore Suite for APTRA’ is a part of NCR Corp.’s APTRA Software Security, which provides customers with comprehensive ATM security. The software safeguards against unauthorized codes on ATMs and insider attacks.

 

UniCredit believes that the security solution will not only provide real time threat protection from malicious software but also reduce servicing costs. We believe NCR Corp.’s endeavor to protect the trust and integrity of the ATM channel has encouraged it to opt for the company’s services.

 

Recently, NCR Corp. extended its management and maintenance services to Barclays Bank’s 550 remote and host-operated ATMs situated in the U.K. Barclays Bank is an arm of Barclays plc (BCS).

 

We believe NCR Corp.’s association with banks and financial institutions is reflective of the trend to upgrade ATM machines across the world in order to enhance payment security and customer service. The trend also indicates a slow but gradual increase in capital-intensive purchases such as ATMs and physical security products in the U.S., following the recent recession.

 

NCR Corp. posted decent second-quarter results, with both revenues and earnings growing modestly from the year-ago quarter. Revenues increased across all geographic regions, driven by an improvement in macroeconomic conditions, especially in retail, financial services and hospitality industries.

 

While we are encouraged by the company’s market leadership, successful acquisitions, new product introductions and new business ventures, we believe that near-term visibility is limited. We expect NCR Corp.’s robust business model and restructuring initiatives to drive growth across all its segments in the medium to long term.

 

We maintain our long-term Neutral rating with a short-term Hold recommendation (Zacks #3 Rank) on NCR Corp.