Message #44 From:
Stock News Bot Date: March 5, 2007 07:26:00 AM
HYC News Hypercom Extends Services and Software Business
PHOENIX--(BUSINESS WIRE)--Hypercom Corporation (NYSE: HYC) today announced that as of year-end 2006, the company supported more than 1,000,000 terminal devices with deployment, help desk, field or onsite repairs and similar services. These services are provided by Hypercom’s NETSET operations in Brazil, Chile and Mexico, as well as the company’s service center in the United Kingdom. Hypercom also recently announced the acquisitions of ACG Group and TPI Software, and the company’s new partnership with The Warranty Group for enhanced product warranties, all of which expand its footprint in the services and software business sector.
“We plan to continue to build our position in the provisioning of services and software as global demand continues to increase for end-to-end high security transaction solutions,” said Hypercom Chief Executive Officer William Keiper. “Hypercom expects a greater percentage of its revenue will be attributed to services and software over time, providing a high relative operating margin, and visible, predictable sources of recurring revenue.”
“Our heritage in payment-specific network infrastructure, and a broad range of payment-system related services, allows us to provide unique, end-to-end services value,” added John Andrews, Hypercom’s Senior Vice President of Global Customer Service. “We are growing our business in markets we currently cover, as well as by replication of our services model in new markets, and through services and software company acquisitions.”
The number of terminals under service by NETSET in Brazil rose more than 60% in 2006, now topping 700,000, continuing to extend Hypercom’s dominant market-leading position in Brazil. NETSET services in Brazil, Chile and Mexico alone support businesses in over 4,000 cities, towns and villages. NETSET provides deployment, field, help desk and repair services for products from all major payment terminal vendors. In addition, the number of new Hypercom terminals being sold continues to grow, enabling the company to add to the installed base of terminals being serviced by NETSET.
In 2006, Hypercom’s transaction transport service moved more than 100 million transactions in Brazil and over 1.6 billion transactions worldwide. This represented a 15% increase globally over 2005. These transaction transport services complement Hypercom’s payment-specific network technology and products that currently support more than 500 leading financial institutions, government institutions and large networks in over 100 countries.
The recently acquired ACG Group provides deployment, field, and help desk services for point-of-sale equipment provided by all terminal vendors in Australia, complementing Hypercom’s existing business in that country. ACG will be utilized as a platform from which Hypercom intends to expand its footprint in other countries in the Asia-Pacific market.
The acquisition of TPI Software has expanded Hypercom’s transaction software portfolio with PC-based payment solutions. It is also intended to provide the platform for expanding software-based services into converged payment infrastructures that place electronic payment functionality on PC-based cash registers.
Hypercom’s multi-year agreement with The Warranty Group allows customers to purchase enhanced warranty plans for select Hypercom payment terminals and other devices. The plans will extend the term protection of Hypercom's standard industry-leading warranty for a total coverage of five years.
Global payment technology leader Hypercom Corporation (NYSE: HYC) delivers a full suite of high security, end-to-end electronic payment products, software and services. The company’s solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits.
Hypercom is a registered trademark of Hypercom Corporation. All other products or services mentioned in this document are trademarks, service marks, registered trademarks or registered service marks of their respective owners. This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expected acquisition results and benefits, market acceptance of new products and services, product performance, product sales, revenues and profits. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include, the ability to successfully integrate the technologies, operations and personnel of acquired businesses in a timely manner; the ability to obtain the expected strategic and financial benefits from acquisitions; industry, competitive and technological changes; the loss of, and failure to replace any significant customers; the composition, timing and size of orders from and shipments to major customers; inventory obsolescence; market acceptance of new products and services; the performance of suppliers and subcontractors; risks associated with international operations and foreign currency fluctuations; the state of the U.S. and global economies in general and other risks detailed in our filings with the Securities and Exchange Commission, including the Company's most recent 10-K and subsequent 10-Qs. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements. HYCP
