Magazine article American Banker

NCR and Diebold Not Happy with 2Q ATM Results

Magazine article American Banker

NCR and Diebold Not Happy with 2Q ATM Results

Article excerpt

NCR Corp. and Diebold Inc., the two largest automated teller machine makers, reported poor results and weak sales for their ATM businesses in the second quarter.

NCR's board also announced the promotion of interim chief executive James M. Ringler to chairman. He succeeds Lars Nyberg, who is retiring.

NCR, of Dayton, Ohio, is still searching for a permanent chief executive. Mark Hurd left that post in March to become Hewlett-Packard Co.'s president and CEO.

Mr. Nyberg, who was NCR's chief from 1995 to 2003, when Mr. Hurd took over, will remain a director until October.

NCR reported that its second-quarter net income was $127 million, 4% more than a year earlier. Revenue rose 1%, to $1.47 billion.

Revenue for NCR's ATM business fell 2% in the period, to $323 million. Pete Bocian, NCR's chief financial officer, said during a conference call with analysts Tuesday that several deals with banks in Eastern Europe and China that it expected to close in the quarter now are expected to close in the second half of the year.

The Teradata data warehousing operation provided most of NCR's second-quarter growth. Its revenue rose 9%, to $361 million, and Mr. Ringler said it beat expectations.

Diebold, of North Canton, Ohio, reported that its second-quarter net income fell 24%, to $33.3 million. Revenue rose 15.3%, to $629.2 million, but that did not satisfy chairman and CEO Walden W. O'Dell.

"I'm clearly disappointed with our profitability during the quarter," he said during a conference call with analysts Wednesday.

He said the decline was related to slower-than-anticipated ATM upgrades and replacement sales to North American regional banks and tight profit margins in some international markets, including India and Thailand.

India is "one of the lowest price markets in the world. It's a pretty brutal environment," Mr. …

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