NCR CORP. (New York symbol NCR; www.ncr.com) gets 54% of its revenue from automated teller machines (ATMs). It also makes cash registers and self-serve checkouts (31% of revenue) and kiosks for theatres and arenas (10%). The remaining 5% comes from maintaining this equipment.

NCR is cutting its reliance on ATMs by purchasing other companies. In February 2013, it paid $788 million for Israel-based Retalix, whose software helps retailers manage their sales and track inventory. Companies with a combined 70,000 locations in over 50 countries use Retalix’s products.

In January 2014, NCR acquired Digital Insight, whose software helps over 1,000 banks and credit unions manage online and mobile transactions, for $1.65 billion.

Growth strategy: Restructuring plan due to cut annual costs by $105 million

Thanks to these purchases, the company’s revenue rose 7.6% in 2014, to $6.6 billion from $6.1 billion in 2013. But earnings fell 60.0%, to $181 million, or $1.06 a share, from $452 million, or $2.67.

Without unusual items, such as costs to integrate its latest purchases, NCR’s earnings per share fell just 2.5%, to $2.74 from $2.81. That’s mainly because the company borrowed the cash it needed to buy these businesses, which pushed up its interest costs. As of December 31, 2014, NCR’s long-term debt was $3.5 billion, or a high 69% of its market cap.

NCR continues to make progress with its recent restructuring, including layoffs and eliminating unprofitable products. That should cut its annual costs by $105 million when it completes these moves in 2016. NCR has also reorganized its employee pension plans, which should free up more cash for debt repayment.

Overseas markets supply 60% of NCR’s revenue, so the high U.S. dollar will probably limit its earnings to $2.66 a share in 2015. The stock trades at a low 11.3 times that estimate.

Recommendation in Wall Street Stock Forecaster: BUY.