Global Axcess Corp (GAXC) Signs Three-Year Agreement with Major Grocery Chain for DVD Rental Kiosks

Agreement Expected to Generate $7.0 Million per Year over Three-Year Term for 300 Initial Locations; Win Displaces Incumbent Kiosk Vendor

Global Axcess Corp (OTC Bulletin Board:GAXC.obNews) (the “Company”), an independent provider of self-service kiosk solutions, today announced that it has signed a three-year agreement with a major grocery chain (the “Grocery”), to initially install 300 new DVD kiosk locations that can grow by 20% or more locations. The Grocery has been an ATM client of Global Axcess. Rollout of the DVD program with the Grocery will begin in July of this year.

Mr. George McQuain, Chief Executive Officer of Global Axcess, stated, “We are pleased and excited to announce this significant DVD kiosk agreement with the Grocery, a valued client on the ATM side of our business. This demonstrates our ability to cross-sell our DVD kiosk solutions to our current client base, many of whom are well suited for the addition of DVD kiosks. We believe our satisfied clients, looking for new revenue streams, will welcome our operational excellence and revenue share opportunity on this side of their business as well.”

A representative of the Grocery stated, “We are pleased to sign this wider agreement to deploy Global Axcess’ InstaFlix DVD kiosks at our stores to provide a compelling convenience for our customers.”

Mr. McQuain continued, “Clients of ours increasingly tell us how happy they are to work with Global Axcess. We are focused on preserving our record for exceptional customer service as we expand our business to include other types of self-service kiosk solutions.”

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5 Comments »

 
  • iancassel says:

    This is huge news for GAXC and the dvd kiosk industry as this is a direct contract takeaway from Coinstar’s Redbox. Also since it is a direct takeaway (swapping out their kiosks for ours), this win is immediately accretive to earnings. Most likely 15-20% Net profit margins.

  • Brian S. says:

    how will they fund this large of contract? Operating leases?

  • Cole says:

    Ian, what would you be buying up to in GAXC? I’ve been looking to get in, and was going to have a bit of money to start with in a couple of days, but I’m wondering if I’ve missed the boat.

  • iancassel says:

    Brian: I’m sure that question will be answered on the CC. Good question.

    Cole: I think if you can get shares below $1 thats a good buy. If the overall market continues lower you might be able to snag some. But then again todays event put GAXC on a lot of radars. The news could take a few days to digest until new buyers take the stock higher.

    IC

  • Tom says:

    Ian,

    I assume you saw the latest GAXC proxy. What do you think of the institutional/insider ownership at 52% ? Does it fit your profile of a breakout Co at this stage ? Seems kind of high to me with some downside risk if there is no positive news for a while (ie funds usually hold an all or none position in small caps I think ???)

    http://www.transfer.com/sites/all/files/docs/GlobalAxcess_ProxyStatement.pdf

    Also, are you going to the s/h meeting ?

    Tks
    Tom

 

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