As summer revs into full swing, Hypercom Corp. has heated up the airwaves with announcements concerning major restructuring for this leading, global POS equipment provider.
Key changes include an outsourcing arrangement with Singapore-based Venture Corp. Ltd. for its manufacturing functions, a reconfiguration of the company's global sales and marketing division and the subsequent personnel changes that often accompany such reorganizations.
"We are focusing our efforts to capture market share in high-growth geographies where we have an established infrastructure and strong brand awareness, to capture more of the countertop market, and to aggressively target the mobile, multilane and unattended segments," said Hypercom President and Chief Operating Officer Philippe Tartavull.
Hypercom entered into an agreement with Venture to begin jointly manufacturing secure electronic payment transaction products. The intent is to improve product quality, reduce costs and enhance the company's ability to respond quickly to changes in the marketplace.
The alliance anticipates eventually covering everything from production and testing to order fulfillment, which it expects will allow for more efficient end-to-end management of the value chain.
Wong Ngit Liong, Chairman and Chief Executive Officer of Venture, sees the new partnership as adding "value to [Hypercom's] transaction technology, jointly creating a suite of financial transaction solutions beyond traditional applications.
"This new line … will augment Venture's existing retail store solutions … bringing Venture another step forward in its goal of creating an entire ecosystem of transaction products and solutions," he said.
Hypercom has moved its printed circuit board assembly from Shenzhen, China, to Johor Bahru, Malaysia. The company's supply chain, production, assembly and testing operations will follow in 2007 and 2008. Software development activities are also being consolidated and moved.
In addition, U.S. service and repair operations are relocating from Phoenix to Hermosillo, Mexico.
"We are [making these changes] with an exceptional range of services and secure PCI-certified products and solutions sold and supported by the right professionals in the right geographies. The new organization will strengthen our ability to more quickly deliver the very best solutions to the market," Tartavull said.
Hypercom also announced the reorganization of its sales and marketing departments. The results are expected to create a more focused platform for revenue and market growth, streamline the organization and further strengthen accountability for client relationships.
Significantly, William Keiper will step down as CEO and resign his seat on the board of directors, effective Aug. 15, 2007.
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