NCR announces 2007 3Q results

DAYTON, Ohio — NCR Corp. reported a 17 percent sales increase in its financial self-service unit, growth the comany attributes to greater demand in Europe, the Middle East, Africa and Asia-Pacific. And though the company's overall net income dropped 63 percent, when compared with the same period in 2006, NCR did raise its full-year earnings per share forecast for the year to between $1.20 and $1.25. 

 

The company also realized revenue growth, hitting $1.28 billion, up from revenue of $1.14 billion during the third quarter of '06.

 

Costs related with the Oct. 1 Teradata spinoff hit during 3Q, adversely affecting net income, NCR says. Income from continuing operations totaled $33 million, 18 cents per share, while earnings from continuing operations hit $39 million, 21 cents per share, from items related to NCR's manufacturing realignment, its Teradata spinoff and a realignment of the Customer Services division in Japan.

 

"(The) new NCR delivered better-than-expected operational results in the third quarter, featuring both strong revenue growth and operating margin expansion," said Bill Nuti, chairman and chief executive of NCR. "We accomplished these results while also successfully launching Teradata Corporation as an independent, publicly traded company."

 

Nuti says the completion of the Teradata spinoff will allow the company to focus on implementing tis long-term vision and business strategy for growth in the self-service sector.

 

"While we are excited about new NCR's strategy and pleased with our business results, we have significant work ahead to realize our vision of leading how the world connects, interacts and transacts with business," he said.

 

 

Revenue in the financial self-service segment hit $407 million. Operating income totaled $56 million, an increase from $43 million last year, primarily because of higher volume.

 

The retail segment reported revenue of $278 million, up 27 percent. NCR attributes that growth to numerous "large" self-service rollouts during the quarter. Operating income of $20 million improved from $11 million in '06, as revenue growth and an improved mix of self-service solutions outpaced pricing pressure.