NCR Corporation yesterday reported its third quarter 2011 financial results with revenue of $1.40 billion, increased 16 percent from the third quarter of 2010.
The company reported third-quarter income from continuing operations of $16 million, or $0.10 per diluted share, compared to income from continuing operations of $78 million, or $0.48 per diluted share, in the third quarter of 2010.
Income from continuing operations in the third quarter of 2011 included $62 million ($44 million or $0.27 per diluted share, after-tax) of pension expense, $24 million ($19 million or $0.12 per diluted share, after tax) of acquisition related transaction costs, $6 million ($4 million or $0.03 per diluted share, after tax) of acquisition related severance costs, and $3 million ($2 million or $0.01 per diluted share, after tax) of acquisition related amortization of intangible assets.
Additionally, income from continuing operations for the third quarter of 2010 included $50 million ($33 million or $0.20 per diluted share, after-tax) of pension expense, $6 million ($3 million or $0.02 per diluted share, after-tax) of incremental costs related to the relocation of the company's global headquarters and $39 million ($0.24 per diluted share) of income tax benefit due to the release of a valuation reserve related to its Japanese subsidiary.
"Our third quarter featured strong execution and performance in addition to two strategic transactions that will help shape NCR's future," said Bill Nuti, chairman and CEO of NCR. "We are winning business across our core and emerging verticals and exited the quarter with backlog at historic levels. We also continue to expand our services business through increased attach rates both in traditional and emerging markets, the latter evidenced by an important new ATM services contract with one of China's largest banks."
2011 Outlook
NCR expects full-year 2011 revenues to increase in the range of eight to 10 percent on a constant currency basis compared with 2010. Including acquisition-related costs, NCR now expects its full-year 2011 Income from Operations (GAAP) to be $151 million to $161 million, non-GAAP non-pension operating income to be in the range of $410 to $420 million, GAAP diluted earnings per share to be $0.65 to $0.69 and non-GAAP diluted earnings per share excluding pension expense and special items to be in the range of $1.79 to $1.83 per diluted share.
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