NCR Posts $56 Million Q4 Loss4 Feb, 2010 By: Erik Gruenwedel
NCR Corp., which is rolling out 10,000 Blockbuster Express DVD rental kiosks this year, Feb. 4 reported a fourth-quarter (ended Dec. 31) loss of $56 million, compared to net income of $55 million during the previous-year period.
The Duluth, Ga.-based manufacturer attributed the loss to ongoing recessionary pressures in the financial services industry, notably bank ATMs and related areas.
Indeed, NCR said it continues to transition assets and focus toward its newly created entertainment division, including the successful install base of 2,500 Express kiosks in 2009, which included the acquisition of DVDPlay, an operator of approximately 1,300 kiosks in the United States and Canada, and rollout of kiosks in New England, New York and the Southeast.
During the quarter, NCR and MOD Systems announced a digital download pilot that will allow consumers to rapidly download a movie to a secure digital memory card and then play it on a home television. NCR expects to integrate this technology across its kiosk footprint as digital download gains incremental popularity.
“This year we successfully launched our entertainment business, opened new manufacturing plants and greatly strengthened our operating infrastructure going forward,” said CEO Bill Nuti, in a statement.
Overall, revenue in the quarter declined 5% to $1.35 billion.