Valued NCR Customers and Partners,
Many of you run the world’s most essential businesses – stores, restaurants, petrol stations and financial institutions. Some of you are facing the challenges of operating a business through an unprecedented shutdown. None of us could have foreseen the scenarios we are now facing together. And whatever scenario your business finds itself in today, NCR is here to help you keep commerce running.
As we continue to navigate the changing tides posed by this pandemic, our priorities remain the same.
The safety of our employees and our customers is our top priority. Whether NCR employees are performing critical work in factories, in the field, in our labs, across our supply chains or remotely, we are enabling them to do their jobs as safely as possible to keep commerce running.
Our services customer engineers around the world continue to safely take service calls, keeping banking, shopping, restaurants and fuel pumps running. Our dedicated team is proudly meeting our pre-pandemic service-level agreements for you, including peak season support in some segments.
Ninety-five percent of our office-based employees have successfully transitioned to work-from-home environments with no disruption to service levels. Essential labs are staffed with critical employees and we have focused on their safety, including physical distancing protocols and elevated cleaning procedures. And we’re continuing to deliver software enhancements, remote-managed services and installations for you without interruptions.
Though work environments have changed, our commitment to your business remains the same. I am pleased to report that we are nearing normal production and fulfillment levels in North America even after devastating tornadoes impacted our Nashville fulfillment facilities in early March. Over the last year we implemented a new contract manufacturing and supply chain strategy, with each NCR facility having the majority of its parts sourced independently. This gave us the capability to absorb volume changes and unforeseen events. And despite many coronavirus-related national and local restrictions, NCR has secured essential business authorizations so our manufacturing, operations and supply chain partners, can run with minimal to no interruptions. Stories like this demonstrate NCR’s resilience and commitment to your success.
NCR leadership has taken bold actions to weather the storm and keep NCR strong. Last month, I took proactive measures to preserve jobs at NCR and maintain a strong cash position as a company so we remain a healthy, dependable partner to you and carry on our 136-year legacy for decades to come. This includes cutting all unnecessary expenses and making difficult decisions to temporarily pause spending on non-critical projects, many of which were staffed by outside resources. The reason behind this is simple: we choose to pay our people first.
Additionally, I cut my personal salary to $0 for the remainder of the year and reduced all executive compensation. We also implemented a temporary, shared pay cut for all employees who participate in incentive programs. Finally, to further enhance the company’s liquidity position, we drew down on our line of credit and issued additional five-year bonds. Today, we are focused on doing everything we can to maximize financial flexibility and stay prepared to navigate tomorrow’s challenges.
Let’s keep commerce running. Our team is building a resource library for businesses like yours at ncr.com/coronavirus. There, you can find everything from how to properly sanitize your NCR hardware to the best ways to drive digital banking adoption to details on stimulus packages and tips for implementing takeout and delivery at your restaurant.
We are here for you. In our 136-year history, NCR has weathered many storms. Our legacy is one of customer focus and employee care. Together, as a company, we are committed to preserving that legacy for you.
I wish you and your family safety and good health in the weeks ahead.
President and Chief Executive Officer, NCR