NCR Corp. reported financial results late yesterday for its second quarter, which ended June 30, 2012.
The company reported revenue of $1.41 billion, which represented an 11 percent increase from the second quarter of 2011, including a negative impact of 4 percent as a result of foreign currency translation.
NCR Financial Services was a significant contributor to the positive numbers. The segment generated second-quarter revenue of $783 million, an increase of 7 percent from the second quarter of 2011. The increase was driven primarily by growth in the Americas and Europe. The second quarter year-over-year revenue comparison was negatively affected by 5 percentage points of foreign currency translation.
"Solid financial results and strong order growth in the second quarter, led by our Financial Services and Hospitality businesses, leave us on firm ground to achieve our full year objectives," said Bill Nuti, chairman and CEO of NCR. "U.S. regional banks continue to drive higher revenues as they embrace advanced customer service technologies and we are successfully capturing growth opportunities in key emerging markets as evidenced by order growth in Brazil during the second quarter."
Among the company's Q2 business highlights in the financial services segment:
- Central Bank, which services Provo, Utah and the surrounding communities, will deploy 10 NCR SelfServ ATMs to revamp its ATM network. The new ATMs include NCR's Scalable Deposit Module (SDM) technology, and replace older machines including some from a competing manufacturer.
- Transoft International, a provider of currency supply chain management solutions in cooperation with its global partner, NCR, announced that Turkish Economy Bank (TEB) chose Transoft's OptiCash currency management software for its ATM cash optimization.
- NCR introduced NCR Mobile Cash Withdrawal, a new software solution that allows consumers to initiate cash withdrawals from their banking accounts via a mobile device, and complete those transactions at an ATM by scanning a 2D barcode.
- NCR launched an expanded suite of digital signage, kiosk, and managed services tailored to address important needs of community banks and credit unions.
The company's global business also made significant contributions to the bottom line:
- During Q2, NCR and Aruba Networks announced a global agreement that enables NCR to provide Aruba support services to Aruba resellers as part of its managed services agreements with its core customer segments, including service providers and telecommunications carriers.
- NCR and Bank of New Zealand jointly won the highly coveted "Best ATM Installation and Management Project" at the Asian Banker 2012 Technology Implementation Awards.
"Looking ahead, we are focused on executing upon expanding global opportunities across our verticals while also further growing our software and services revenue and driving profitable growth," said Nuti.
NCR company expects third quarter 2012 income from operations to be in the range of $88 million to $94 million, compared to $28 million in the third quarter of 2011.
The company expects full-year 2012 revenues to increase in the range of 11 to 13 percent on a constant currency basis compared with 2011. NCR expects its full-year 2012 Income from Operations (GAAP) to be $362 million to $377 million.
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