According to a report from Reuters, major banks in the U.S. and U.K. will need to upgrade their machines' software in time for the deadline or negotiate for extended software support from Microsoft.
As early as 2007, the tech giant has warned its support for Windows XP would lapse, but since then only one-third of the total 2.2 million ATMs worldwide have been upgraded with new software.Reuters notes several of the big banks are in negotiations with Microsoft to extend support, a crucial component to protecting the machines against risks such as hacking and viruses. According to sources, a contract could cost as much as $100 million for banks in the U.K. Currently JPMorgan (JPM), Citigroup (C), and Bank of America (BAC) have said they intend to upgrade their ATMs this year, but no major bank has said it will have its entire network up to date by the April deadline. Must Read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. The team has this to say about their recommendation: "We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MSFT's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although MSFT's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.96, which clearly demonstrates the ability to cover short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, MICROSOFT CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.73% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full analysis from the report here: MSFT Ratings Report