NCR: Blockbuster Express Revenue ‘In Line’ With Expectations

22 Oct, 2009 By: Erik Gruenwedel

---

NCR Corp.’s initial foray into manufacturing and distributing Blockbuster Express rental kiosks is generating revenue in line with expectations, John Bruno, EVP of industrial solutions, told investors during a financial call.

The Duluth, Ga.-based manufacturer of DVD rental kiosks, ATM machines and self-service retail devices, also owns, finances or manufactures for kiosk operators The New Release and e-Play.

Analysts say NCR will spend from $75 million to $90 million rolling out 10,000 Express kiosks in 2010.

The company said ongoing tests of e-Play kiosk at Wal-Mart and Best Buy capable of accepting, selling and trading used video games remained positive and are being implemented abroad as well.

Bruno said he expects the kiosk business to become profitable by 2011.

Ongoing economic woes, notably in the banking industry, contributed to NCR reporting third-quarter (ended Sept. 30) income of $15 million, down more than 81% from income of $80 million during the previous year period.

Chairman and CEO Bill Nuti said the ongoing economic slowdown will result in the elimination of about 10% of the company’s 22,400 global workforce.

CFO Anthony Massetti is reportedly resigning to pursue a new position with Web-based communications provider Avaya Inc.

“While we will take additional cost reduction actions to right size our enterprise, our early view is that 2010 will be a better year for NCR and for our customers and should position NCR for moderate growth and margin expansion,” Nuti said.

Indeed, the company said it won contracts to be the largest ATM provider in China in India.

Bookmark it: digg del.icio.us technorati yahoo facebook twitter