NCR Posts Strong Revenue, Earnings Growth in 2008 Third Quarter

(PresseBox) ( Dayton, )
.
- Total revenue increase of 8 percent; growth across all key geographies
- GAAP EPS from continuing operations was $0.49 per diluted share; non-GAAP EPS from continuing operations was $0.55 per diluted share(1)
- Cash provided by operating activities was $157 million, an improvement of $92 million versus third quarter of 2007
- NCR raises 2008 outlook

NCR Corporation (NYSE: NCR) reported financial results today for the three months ended September 30, 2008. Reported revenue of $1.38 billion increased 8 percent over the third quarter of 2007 and included approximately 2 percentage points of benefit from foreign currency translation.

NCR reported third-quarter income from continuing operations of $82 million, or $0.49 per diluted share, compared to $33 million or $0.18 per diluted share in the third quarter of 2007. Income from continuing operations for the third quarter of 2008 included $12 million ($10 million after-tax) in costs, or $0.06 per diluted share, resulting from organizational realignment activities. In the third quarter of 2007, income from continuing operations included $39 million of after-tax costs, or $0.21 per diluted share, related to manufacturing realignment, the Teradata spinoff and a realignment initiative in Japan. Excluding these items, non-GAAP earnings from continuing operations(1) in the third quarter of 2008 were $0.55 per diluted share, which compares to $0.39 per diluted share in the prior-year period.

"NCR delivered strong third-quarter results, showing solid revenue growth across our core solutions and geographies," said Bill Nuti, chairman and chief executive officer of NCR. "We demonstrated resiliency in a weakened economic environment because we are executing well against our strategic priorities, managing for profitable revenue growth, building a sustainable and leading cost structure, and improving our working capital position. While we are managing prudently through the current macro environment, our focus on meeting the emerging demand for self-service solutions from customers who are seeking to strengthen their relationships with consumers, combined with the efficiencies we continue to build into our business model, gives us confidence to raise our revenue and profit outlook for 2008."

Third Quarter 2008 Highlights

Financial Highlights

Year-over-year revenue growth in the Americas region of 9 percent was primarily driven by an increase in sales to financial institutions. In the Europe-Middle East-Africa region, revenues increased 4 percent year-over-year, in addition to an 18 percent year-over-year growth that was realized in the third quarter of 2007. Revenues in the Asia-Pacific-Japan region grew 14 percent year-over-year, driven by strong demand for our products and services in China and Japan.

As shown on Schedule B, income from operations was $100 million in the third quarter of 2008 and included $5 million of pension expense and $12 million of costs related to organizational realignment. This compares to $38 million of income from operations in the third quarter of 2007, which included $12 million of pension expense and pre-tax costs of $49 million as previously described. Excluding these items and pension expense, non-GAAP income from operations(2) increased 18 percent to $117 million in the third quarter of 2008 compared to $99 million in the third quarter of 2007.

NCR generated $157 million of cash from operating activities during the third quarter of 2008, compared to $65 million in the year-ago period. Capital expenditures of $37 million in the third quarter of 2008 increased from $25 million in the year-ago period. NCR generated $120 million of free cash flow (cash from operations less capital expenditures)(3) in the third quarter of 2008, compared to free cash flow of $40 million in the third quarter of 2007. Free cash flow in the most recent quarter benefited from reduced levels of accounts receivable and inventory.

Year-to-date, NCR generated $307 million of cash from operating activities, compared to $92 million during the year-ago period. Capital expenditures of $105 million in the first nine months of 2008 were up from $78 million in the first nine months of 2007. NCR generated $202 million of free cash flow (3) in the first nine months of 2008, compared to free cash flow of $14 million in the first nine months of 2007.

In addition, the company used $104 million of cash to repurchase approximately 4.1 million shares of NCR stock in the third quarter.
The income tax expense in the third quarter of 2008 includes a $16 million benefit related to Internal Revenue Service audit settlements for the years 2000 through 2006.

New Product Highlights

In the third quarter, NCR continued to execute on the largest new product introductions in the company's history, delivering enhanced solutions to customers in the financial and retail industry markets, as well as verticals such as healthcare and entertainment that offer additional growth opportunities for self-service solutions.
The rollout of NCR SelfServ(tm), NCR's new automated teller machine (ATM) product family, continues to progress successfully with over 8,000 units ordered by more than 230 customers around the globe year-to-date. NCR SelfServ has been installed by major customers both in developed and emerging markets, including Australia, Canada, China, Russia, Saudi Arabia, Spain, Turkey, the United Kingdom and the United States. By year-end 2008, the company anticipates that new customer orders for NCR SelfServ will surpass those of the NCR Personas ATM product line, further validating customer confidence in NCR's SelfServ family of ATMs.

Earlier this month, NCR introduced its latest point-of-sale workstation, the NCR RealPOS(tm) 70XRT, at the 2008 NACS (the association for convenience and petroleum retailing) Show in Chicago. Featuring advanced Intel® technology, the NCR RealPOS 70XRT is designed to deliver powerful and efficient technology, innovative design, and industry-leading serviceability and manageability to retailers around the globe in the hospitality and convenience industries, as well as other retail industries. The NCR RealPOS 70XRT is supported by a comprehensive suite of services designed to achieve a faster return on investment and increased customer satisfaction.

NCR extended its self-service portfolio further into the international healthcare market with the introduction of its China-customized patient registration and payment solution, NCR MediKiosk, at the 12th China Hospital Information Networks Conference. Building on the foundation of NCR's world-leading healthcare solutions, this customized suite is specially designed to meet the unique requirements of China's healthcare industry. The NCR MediKiosk solution connects to the Hospital Information System of China's healthcare institutions and allows patients to register, pay bills and print invoices. The customized solution provides tools to help hospitals streamline workflow, reduce management costs, improve service quality and enhance the overall patient experience.

In the entertainment market, NCR and Toshiba agreed to enter into an equity investment in MOD Systems, an industry-leading provider of digital media delivery systems for retailers. The investment is part of an aggressive initiative to leverage breakthrough portable digital storage technology that offers the potential to revolutionize how consumers download movies, TV shows, music and other digital content at a wide variety of locations, and then replay it on multiple devices. The initiative will combine technologies developed by each company, and is aimed at meeting the explosive demand for easier access to high-quality digital entertainment and other content.

2008 Outlook

NCR now expects 2008 year-over-year revenue growth of 8 to 9 percent, which represents an increase from the previously provided guidance of 6 to 8 percent revenue growth.
Additionally, NCR now expects its full-year 2008 GAAP earnings from continuing operations to be $1.54 to $1.59 per diluted share and non-GAAP earnings from continuing operations to be $1.67 to $1.72 per diluted share.(1)

Die gesamte Meldung mit weiteren Infromationen findet sich unter: http://www.flutlicht.biz/...
Für die oben stehenden Pressemitteilungen, das angezeigte Event bzw. das Stellenangebot sowie für das angezeigte Bild- und Tonmaterial ist allein der jeweils angegebene Herausgeber (siehe Firmeninfo bei Klick auf Bild/Meldungstitel oder Firmeninfo rechte Spalte) verantwortlich. Dieser ist in der Regel auch Urheber der Pressetexte sowie der angehängten Bild-, Ton- und Informationsmaterialien.
Die Nutzung von hier veröffentlichten Informationen zur Eigeninformation und redaktionellen Weiterverarbeitung ist in der Regel kostenfrei. Bitte klären Sie vor einer Weiterverwendung urheberrechtliche Fragen mit dem angegebenen Herausgeber. Bei Veröffentlichung senden Sie bitte ein Belegexemplar an service@pressebox.de.