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Iridian reduces exposure to NCR Corporation

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Mar. 7 2015, Updated 9:05 p.m. ET

Iridian’s holdings in NCR

Iridian’s latest 13F filing indicated that the fund lowered its holdings in NCR Corporation (NCR) by 26%, from an earlier 6,398,375 shares to a present 4,745,855 shares. The filing also revealed that NCR Corporation constituted about 1.29% of the fund’s 4Q14 portfolio. NCR Corporation has a 0.04% representation in the iShares Russell 1000 Value ETF (IWD).

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Overview of NCR Corporation

NCR Corporation (NCR) is the global leader in consumer transaction technologies, turning everyday interactions with businesses into exceptional experiences. With its software, hardware, and portfolio of services, NCR enables more than 485 million transactions daily across retail, financial, travel, hospitality, telecom, technology, and small business sectors.

Strong software, financial services revenues drive 4Q14 performance

NCR Corporation churned revenues of $1.77 billion in 4Q14, which was 6% up year-over-year. Its operational gross margin grew 120 bps year-over-year to 30.2% in 4Q14.

However, free cash flow experienced a nosedive from $317 million in 4Q13 to $229 million in 4Q14. Cloud revenue for 4Q14 experienced a massive 231% year-over-year growth, increasing from $39 million during 4Q13 to $189 million during 4Q14.

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Emirates NBD unveils novel ATM experience

Emirates NBD, the largest bank franchise in the Middle East, plans to use the NCR CxBanking platform to facilitate deep engagement with customers. The software solution enables the ATM network of Emirates NBD to offer valuable customer experiences via integrated and secure transactions.

The solution enables Emirates NBD’s customers to carry out sophisticated transactions such as accessing banking portfolios, foreign currency exchange, IPO subscriptions, and remittances to India.

Reliance Bank deploys NCR’s Interactive Teller technology

Reliance Bank adopted a novel approach to personalized service, using NCR’s innnovative NCR Interactive Teller system. This new software, built on modern hardware and with an interactive touchscreen, enables a live teller to remotely control an ATM and assist customers with transactions that are typically completed by a bank’s tellers.

Iridian’s key position changes for 4Q14

Iridian initiated new positions in Micron Technology (MU) and Targa Resources (TRGP). The fund exited its position in FMC Corp. (FMC) and Occidental Petroleum Corp. (OXY). Iridian adopted a bullish stance to Masco Corp. (MAS) and a bearish stance regarding NCR Corporation (NCR) and AutoZone (AZO).

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