DAYTON, Ohio - NCR Corp. reported a 1 percent revenue increase during the third quarter. The company's revenue hit $1.5 billion, virtually unchanged from the $1.49 billion the company pulled in 3Q 2005.
Net income took a 60 percent hit during the quarter, dropping from $222 million last year to $89 million. Prior-year tax items, totaling $142 million, manufacturing expenses and flat growth in the company's financial self-service and customer service segments contributed to the net drop from 2005.
But NCR president and chief executive Bill Nuti said operating profit, led by the company's Teradata division, remains strong.
Teradata experienced a 5 percent revenue increase, up from $361 million in 3Q '05 to $378 million in 3Q '06. And the company's overall operating income increased 5 percent, up from $112 million last year to $118 million.
NCR also pointed to its manufacturing facility in Budapest, Hungary, which was purchased in 2005, as a way to cut some of the manufacturing costs that took their toll this year.
"NCR produced another solid quarter of operating profit improvement, led by growth in Teradata Data Warehousing and continued progress in our customer services businesses," Nuti said. "Overall, we continue to see strong earnings growth potential for NCR as demand for NCR products and services, including our Teradata Data Warehousing and self-service technologies, remains strong."
NCR divisions
The Financial Self-Service segment remained the same for both quarters, at $349 million. However, the segment's operating income fell 28 percent, from $60 million last year to $43 this year.
The Retail Store Automation segment reported a 5 percent revenue increase, up from $209 million to $219 million.
Revenue for the Customer Services division remained flat, up only 1 percent, to $454 million, from $451 million in 3Q '05. But, the division's operating income increased 237 percent, up from $8 million to $27 million. The company said elimination of installation-related services was included in customer service and other segments.
NCR's Systemedia segment reported a 7 percent drop in revenue, down from $127 million to $118 million.
