DAYTON, Ohio - NCR Corp.'s revenue during the fourth quarter of 2005, ended Dec. 31, hit $1.72 billion, down 4 percent from $1.79 during the same period last year. Year-end revenue increased $44 million, from $5.98 billion in 2004 to $6.03 billion.
Net income for the quarter increased $21 million, from $129 million, or 68 cents per share, in '04 to $150 million, or 81 cents per share. For the year, net income climbed $239 million, from $290 million, or $1.51 per share, in '04 to $529 million, or $2.86 per share.
"NCR finished 2005 on a strong note, with better-than-expected profitability and revenue roughly in line with expectations, despite headwind from adverse currency fluctuations," NCR president and chief executive Bill Nuti said. "Teradata revenue and profitability exceeded our expectations, and Customer Services achieved meaningful profit improvement from the fourth quarter of 2004. … Going forward, we will continue our actions to improve the operational efficiency of NCR, while making investments in our existing businesses for future growth."
Teradata Data Warehousing reported fourth-quarter earnings of $408 million, down 1 percent from the same period last year. Quarterly revenue for customer services, on the other hand, dropped 6 percent from '04 to $471 million.
According to a news release, that decrease relates to NCR's strategy to reduce earnings associated with third-party products.
Like the Teradata division, financial self-service revenue fell a percentage point from 4Q '04 to $446 million. Retail store automation revenue for the quarter was down 4 percent to $258 million.
NCR expects 2006 revenue to be roughly the same as 2005, with ATM revenue remaining flat, customer services revenue dropping between 3 percent and 4 percent, and Teradata and retail store automation earning increasing 5 percent to 7 percent and 3 percent to 4 percent respectively.
