DAYTON, Ohio - NCR Corp. reported strong results for the second quarter and first half of the year in terms of both revenue and net income.
The company pulled $1.6 billion in revenue and reported net income of $98 million, 54 cents per share, for 2Q, up from $1.5 billion and $78 billion, 42 cents per share, during the same period last year. For the first six months of the year, revenue totaled $2.95 billion with net income at $132 million, up from $2.8 billion and $119 million last year.
Earnings for 2Q 2007 included net costs of $21 million, 11 cents per share, for items related to the expected spin-off of the Teradata Data Warehousing business, which NCR announced in January. Excluding those items, earnings were 65 cents per share.
"It's an exciting time at NCR," said NCR president and chief executive Bill Nuti. "We delivered our third consecutive quarter of 5 percent revenue growth and improved business results, while continuing to work diligently toward a successful strategic separation of NCR into two separate companies, NCR and Teradata."
NCR plans to make Teradata an independent, publicly traded company known as Teradata Corp. NCR said it expects to complete the separation during the third quarter.
Teradata showed strong 2Q earnings, with revenue totaling $433 million, up 9 percent increase from 2Q 2006.
ATMs also showed improvement, with 2Q revenue of $380 million, an 11 percent increase.
Customer Services' revenue improved 3 percent, from $457 million in 2Q '06 to $471 million. Revenue from ATM maintenance increased 8 percent during the quarter, while income from the maintenance of third-party products dropped 15 percent.
NCR said it "continues to be successful in increasing the mix of revenues from the service of NCR-branded products while reducing lower-margin revenues associated with servicing third-party products."
The Retail Store Automation division did not see the same positive income results. Revenue for the quarter remained flat at $221 million, the same reported in 2Q '06. For the first six months of the year, revenue was down 4 percent, from $393 million to $376 million.
However, NCR says the segment's operating income benefited from improved self-service sales, which offset inventory write downs and increased investment in sales, marketing, and research and development.
