STRATEGIC PARTNERS
December 27, 2001
DAYTON, Ohio -- NCR Corp reported lower second-quarter net income of $35 million, or 35 cents a share, a 10 percent drop from year-earlier net income of $39 million, or 39 cents per share.
Before acquisition-related special items, earnings in the latest quarter were $37 million, or 37 cents a share, compared with $60 million, or 61 cents a share, in the year-earlier quarter. Analysts had expected 36 cents a share.
Revenues were $1.50 billion, up from $1.45 billion in the year-ago quarter.
The company warned on July 9 that it expected earnings of 35 to 37 cents per share. At the time, analysts were expecting 57 cents per share. Analysts subsequently cut their consensus forecast to 36 cents per share, according to Thomson Financial/First Call.
In its statement, NCR said its data-warehousing revenue grew 2 percent, below company expectations, primarily due to a 50 percent drop in purchases by U.S. telecommunications and retail companies. Both the company's retail-store automation and financial self-service businesses, which includes ATMs, experienced revenue growth of 8 percent.
NCR said it expects low single-digit revenue growth for the second half of the year. Compared to the second half of last year, revenue for its data-warehousing business as well as retail store automation business is expected to be flat, while its ATM and customer-services businesses should generate mid-single-digit revenue growth.
