Spin-Off and Sales - On October 16, 2023, the company completed the spin-off of its ATM-focused business into NCR Atleos Corporation, with no ownership interest retained by NCR Voyix[20]. - The company sold its Digital Banking segment for 100 million[21]. - The company completed the Spin-Off of NCR Atleos in October 2023 and the sale of its Digital Banking segment in September 2024, which may not yield the anticipated strategic and financial benefits[83]. Business Segments and Operations - Following the Digital Banking Sale, the company now operates in two reportable segments: Retail and Restaurants[23]. - The Retail segment serves enterprise and mid-market retailers, while the Restaurants segment targets various types of food service establishments, enhancing operational efficiency and customer experience[27]. - The company is focusing on small- and medium-sized businesses by increasing indirect sales channels, though the success of these initiatives remains uncertain[75]. Revenue and Financial Performance - Revenue for the year ended December 31, 2024, was 347 million, up 3% compared to the prior year[214]. Strategic Focus and Innovation - The company is focusing on driving subscription-based revenue and expanding its cloud solutions, aiming for improved cash flows and operational efficiency[26]. - Investments in innovative products and managed services are prioritized to enhance product quality and support customer needs[28]. - The company aims to enhance its market position by expanding its share of wallet among existing customers and attracting new customers through cloud-based solutions[213]. Risks and Compliance - The company faces risks related to cybersecurity, data privacy, and competition, which could adversely affect its business and financial condition[69]. - The company is subject to various evolving laws and regulations, which may require substantial compliance costs and could impact its operations[58]. - The company faces risks related to compliance with various international laws and regulations, including anti-corruption laws and economic sanctions, which could adversely affect its financial condition[137]. Intellectual Property and R&D - The company owns approximately 875 patents in the United States and has many pending patent applications, highlighting the value of its intellectual property portfolio[46]. - Research and development expenses increased to 139 million in 2023 and 1.1 billion in total indebtedness and an additional $480 million available under its senior secured revolving credit facility[154]. - The company’s current level of indebtedness may limit its ability to adapt to changing economic conditions and could place it at a competitive disadvantage[156]. - The company may need to seek additional financing or restructure its debt if cash flows are insufficient to meet its obligations[161]. Cybersecurity and Data Privacy - Cybersecurity threats pose significant risks, including unauthorized access to sensitive data, which could harm the company's reputation and financial performance[97]. - A cyber ransomware incident in April 2023 impacted certain customers, but functionality was fully restored, and a new cloud environment was built[101]. - The company has incurred expenses related to the cyber incident but does not expect these costs to materially affect its financial condition[102]. Market Conditions and Competition - The company faces extensive competition in the retail and restaurant markets, with competitors having greater financial and technical resources[117]. - Economic conditions, including consumer confidence and spending trends, significantly impact the company's business, particularly in the retail and restaurant sectors[130]. - Changes in U.S. or foreign trade policies, including proposed tariffs of up to 25% on imports from Canada and Mexico, could adversely affect the company's operations and supply chain[129].
NCR Voyix Corp(VYX) - 2024 Q4 - Annual Report