ATM and point-of-sale technology company NCR Corp. continued to make strides during the first three months of the year to transition to a software-driven provider of transaction technologies, with software-related revenue jumping 45 percent year over year, including a 242 percent jump in software-as-a-service (SaaS) revenue, the company reported April 29.
“We are also making good progress integrating the Digital Insight acquisition, which has contributed significantly to our software-related and SaaS revenue growth and broadens our Financial Services technology portfolio similar to the transformation of our Retail Solutions and Hospitality businesses,” Bill Nuti, NCR chairman and CEO, said in the company’s earnings release. “Although we are seeing a challenging market in Retail Solutions, we are pleased to see the increased strength in the Financial Services industry and feel good about our growth trajectory in 2014.”
NCR completed its acquisition of Digital Insight Corp. in January. The company contends the deal will give NCR greater potential in the online and mobile-banking markets and in addressing the needs of omnichannel consumers. Part of the quarter’s 45 percent increase in software-related revenue, to $395 million from $273 million a year earlier, including the 242 percent increase in SaaS revenue, to $113 million from $33 million, came from the Digital Insight purchase, NCR said.
“Within Financial Services, branch transformation continues to drive strong year-on-year growth, and Digital Insight contributed $76 million of revenue in the first quarter of 2014,” the company said in its earnings release.
For the quarter, NCR’s total revenues of $1.52 billion for the period ended March 31, up 7.8 percent from $1.41 billion during the same period last year and beating analyst consensus by $10 million. Net income fell 14.3 percent, to $54 million from $63 million.
By segment, Financial Services revenue totaled $794 million, up 11.2 percent from $714 million; Retail Solutions revenues reached $490 million, virtually unchanged from $489 million; Hospitality revenues rose 13.7 percent, to $149 million from $131 million; and Emerging Industries revenues totaled $85 million, up 11.8 percent from $76 million.
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