NCR Corporation NCR recently announced that its point-of-sale (POS) solution – NCR RealPOS 72XRT – has been chosen by Army and Air Force Exchange Service (AAFES) for its stores. According to the agreement, NCR Corporation will install RealPOS 72XRT solution at AAFES’s 6,000 POS terminals. Moreover, the technology will be maintained by NCR Corporation’s wholly-owned subsidiary NCR Services.
AAFES, part of the Department of Defense, provides quality goods and services to the families of American armed force personnel at comparatively low prices. It operates in more than 30 countries, five U.S. territories and 50 states through more than 3,100 facilities.
NCR RealPOS 72XRT POS offers stable performance and has a long life, thereby helping retailers reduce downtime and support costs. The solution is powered by Intel processor and features Intel Active Management Technology.
The demand for NCR’s POS system solution is on the rise among retailers and restaurant owners. One of the primary advantages of the system is that it facilitates automated billing and accounting, thus freeing up managers for customer interaction, leading to increased productivity. NCR strengthened its position in the POS market through the acquisition of Radiant Systems in Aug 2011.
According to TechNavio, the global POS software industry is expected to increase at a CAGR of 8.03% (2012–2016). Moreover, TechNavio forecasts 7.7% CAGR for the global wireless POS terminal market over the same period. Thus, NCR with its varied POS terminal offerings and solutions should be able to capitalize on these opportunities.
We believe that NCR’s growing exposure to the retailers and restaurant owners is encouraging, given the tremendous growth prospect. Regular product launches, increasing popularity of its self-service offerings and synergies from acquisitions are the growth catalysts. NCR’s commitment to protect the trust and integrity of the companies has inspired retailers and a host of other companies to choose its services, in our view.
However, similar offerings from Diebold Corp. DBD and International Business Machines Corp. IBM could create some pressure.
Currently, NCR has a Zacks Rank #4 (Sell). Investors may consider Top Image Systems Ltd. TISA operating in the same space and sporting a Zacks Rank #1 (Strong Buy).
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