RE: RE: RE: RE: RE: RE: RE: New numbers out If I have reservations about DCI, I wouldn't touch WSHE with a ten foot pole.
This is a very small company that has been around since 1997. They have massive debt in relation to their size, their ATM base and transactions are shrinking, and in their filings, they admit to 'going concern' issues.
My understanding is that they were plugging along happily with around 600 ATMs, until they decided to invest in a Processing Switch in 2009. This would normally be a good idea for a growing company (DCI did it in the early 2000's), however, to make it a Switch economical, it has to be processing transactions on thousands of ATMs (or other devices such as POS terminals or Prepaid Debit Cards).
Although they are making marginally more per transactions with a Switch, the regulatory, audit, IT and compliance costs are eating up an additional revenue, and then some.
No light at the end of the tunnel for these guys. They will likely have their assets purchased by one of the major players, and any revenue from sales will go towards paying off their debts, leaving their shareholders with Nada.
*****Remember, the ATM market in Canada is saturated and mature. Whereas it was once possible to hire a sales team and add hundreds of terminals annually, it is now a grinding fight in the trenches to add any, due to the fact that every site that could have one now does, as they are all generally tied up with 6 year contracts.
DCI grows because they have an operational history that allows them access to a large line of credit, which allows them to purchase competitors. Their internal sales growth is minimal.