-- NCR reports GAAP EPS from continuing operations of $0.18,
non-GAAP EPS from continuing operations of $0.39(1)
-- Revenue from continuing operations shows 12 percent growth,
with Financial Self Service revenue up 17 percent, Retail
Store Automation revenue up 27 percent and Customer Services
revenue up 9 percent
-- Board authorizes additional funds for share repurchase; $583
million now available for share repurchase during the next two
years
-- NCR successfully completes the spin off of Teradata
DAYTON, Ohio--(BUSINESS WIRE)--Oct. 31, 2007--NCR Corporation (NYSE:NCR) today reported its financial results for the third quarter of 2007. NCR's results from continuing operations exclude the results of the company's Teradata data warehousing business, due to the spin off to shareholders which occurred at the end of the quarter and resulted in Teradata being accounted for as a discontinued operation. NCR reported revenue of $1.28 billion from continuing operations for the quarter ended Sept. 30, 2007. The 12 percent increase in revenue from the third quarter of 2006 included 3 percentage points of benefit from currency fluctuations.
NCR reported third-quarter income from continuing operations of $33 million, or $0.18 per diluted share. Earnings from continuing operations for the third quarter of 2007 included $39 million or $0.21 per diluted share of costs from items related to NCR's manufacturing realignment, the Teradata spin off and a realignment primarily in the Customer Services division in Japan. Excluding these items, non-GAAP earnings from continuing operations were $0.39 per diluted share(1), which compares to $0.21 per diluted share in the third quarter of 2006.
"New NCR delivered better-than-expected operational results in the third quarter, featuring both strong revenue growth and operating margin expansion. We accomplished these results while also successfully launching Teradata Corporation as an independent publicly traded company. I am proud of our employees for driving excellent business results across each of our major business units while also managing to successfully complete our strategic separation. With the Teradata separation behind us, NCR's focus on the implementation of our long-term vision and business strategy will sharpen, as will the focus on working capital and our overall cost structure. While we are excited about new NCR's strategy and pleased with our business results, we have significant work ahead to realize our vision of leading how the world connects, interacts and transacts with business," said Bill Nuti, chairman and chief executive officer of NCR.
Operating Segment Results(2)
Financial Self Service (ATMs)
NCR's Financial Self Service segment generated third-quarter revenue of $407 million, an increase of 17 percent from the third quarter of 2006, driven by strong growth in the Asia-Pacific market and the Europe, Middle East and Africa market. The third-quarter year-over-year revenue comparison included 4 percentage points of benefit from currency translation.
Operating income of $56 million increased from the $43 million generated in the third quarter of 2006, primarily due to higher volume.
Retail Store Automation
The Retail Store Automation segment reported revenue of $278 million, up 27 percent from the third quarter of 2006. The year-over-year revenue comparison included 2 percentage points of benefit from currency translation. Revenue growth was driven by several large rollouts in the quarter with a continued momentum in self-service solutions.
Operating income of $20 million improved from $11 million in the third quarter of 2006, as revenue growth and an improved mix of self-service solutions outpaced pricing pressure and increased investment in sales, marketing and research and development related to the company's self-service initiatives.
Customer Services
Customer Services revenue of $497 million increased 9 percent from the $457 million recorded in the third quarter of 2006. The third-quarter year-over-year revenue comparison included a 3 percentage-point benefit from currency translation. NCR continues to be successful in increasing the mix of revenues from the service of NCR-branded products, while reducing lower-margin revenues associated with servicing third-party products. Revenues from the maintenance of ATMs increased 14 percent in the third quarter, while revenues from the maintenance of third-party products declined by 10 percent. Operating income increased to $34 million from $27 million generated in the third quarter of 2006, largely due to higher revenue and productivity improvements.
Other Items (From Continuing Operations)
Other Income of $12 million favorably compared to $2 million of Other Income in the third quarter of 2006, primarily due to an increase in interest income as a result of higher cash balances.
NCR incurred approximately $27 million of costs associated with a realignment that primarily impacted our Customer Services business in Japan. These costs include severance benefits related to the realignment. This action is expected to deliver annual cost savings of $10 million to $12 million for the company.
The effective tax rate in the third quarter of 2007 was 34 percent. The effective tax rate was higher than expected due to the realignment activities in Japan, which increased the effective tax rate by 6 percentage points.(1)
NCR intends to reinstate the share repurchase program during the fourth quarter of 2007. Currently, the company has $583 million of board authorized funds available for share repurchase. This amount includes $264 million of funds previously allocated for share repurchases, an additional $250 million of funds approved by the board on Oct. 31 and $69 million related to a dilution-offset program.
Cash Flow (From Continuing Operations)
During the third quarter, NCR generated $65 million of cash from operating activities, compared to $91 million in the year-ago period. Capital expenditures of $25 million in the third quarter of 2007 were down from $34 million in the year-ago period. NCR generated $40 million of free cash flow (cash from operations less capital expenditures)(3) in the third quarter of 2007, versus generating $57 million in the year-ago period. The third quarter of 2007 included $10 million of cash payments related to the company's manufacturing realignment, which impacted the operating cash flow as well as free cash flow.
Year to date, cash from operating activities was $92 million, a $17 million increase from the prior year. In the first nine months of the year, NCR's free cash flow increased to $14 million, compared to $11 million of cash used in the first nine months of 2006.(3) Year to date, NCR has made $24 million of cash payments related to the company's manufacturing realignment, which impacted operating cash flow as well as free cash flow.
For the period ended September 30
---------------------------------
Results from Continuing Operations Three Months Nine Months
------------------ --------------
2007 2006 2007 2006
--------- -------- ------- ------
Cash provided by operating activities
(GAAP) $65 $91 $92 $75
Less capital expenditures for:
-------------------------------------
Property, plant and equipment (13) (22) (43) (50)
Additions to capitalized
software (12) (12) (35) (36)
--------- -------- ------- ------
Total capital expenditures (25) (34) (78) (86)
Free cash flow (non-GAAP measure) (3) $40 $57 $14 ($11)
Balance Sheet
NCR ended the third quarter with $1,033 million in cash and cash equivalents. NCR transferred approximately $200 million of cash to Teradata Corporation as part of the spin off.
As of Sept. 30, 2007, NCR had short- and long-term debt of $307 million, the same as of June 30, 2007.
2007 Outlook
NCR expects its 2007 GAAP earnings from continuing operations to be $0.75 to $0.80 per share. Excluding $42 million of cost related to the restructuring of NCR's global manufacturing, $27 million of cost and expense associated with customer services realignment, $15 million of Teradata spin off related expenses incurred through the third quarter, an $11 million tax adjustment recorded in the second quarter and $7 million of net expense related to the Fox River environmental matter, NCR is increasing its guidance for non-GAAP earnings per diluted share from continuing operations by $0.05. NCR expects to deliver non-GAAP earnings of $1.20 to $1.25 per diluted share for the full-year 2007.(1)
NCR expects 2007 year-over-year revenue growth of 5 to 6 percent from continuing operations, as detailed below.
Previous 2007 Revised 2007
Guidance Guidance
-------------- --------------
Year-over-year revenue growth:
Total NCR (a) 5 - 6%
Financial Self Service (ATMs) 5 - 7% 9 - 11%
Retail Store Automation 4 - 5% 7 - 8%
Customer Services 3 - 4% 4 - 5%
Earnings per share - GAAP $0.91 - $0.96 $0.75 - $0.80
Non-GAAP (does not include certain
items)(1) $1.15 - $1.20 $1.20 - $1.25
(a) NCR's prior guidance for total company revenue growth included revenue from Teradata. That guidance is not comparable to NCR's continuing operations; therefore, it has been omitted.
This earnings release includes schedules E and F which present historical quarterly data from NCR's continuing operations.
2007 Third-quarter Earnings Conference Call
A conference call is scheduled today at 10:00 a.m. (EDT) to discuss the company's 2007 third-quarter results and guidance for full-year 2007. Access to the conference call, as well as a replay of the call, is available on NCR's Web site at http://investor.ncr.com/. Supplemental financial information regarding NCR's third-quarter 2007 operating results is also available on NCR's Web site.
About NCR Corporation
NCR Corporation (NYSE:NCR) is a global technology company leading how the world connects, interacts and transacts with business. NCR's assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, gaming and public sector organizations in more than 100 countries. NCR (www.ncr.com) is headquartered in Dayton, Ohio.
NCR is a trademark of NCR Corporation in the United States and other countries.
NCR reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP. However, as described below, the company believes that certain non-GAAP measures found in this release are useful for investors. The following table reconciles certain non-GAAP measures contained in this release.
Reconciliation of Continuing Operations GAAP to Non-GAAP Measures(1)
Q3 2007 Q3 2006 FY 2007
Actual Actual Guidance
------- ------- ------------
Diluted Earnings Per Share (GAAP) $0.18 $0.21 $0.75-$0.80
Manufacturing realignment costs, net (0.02) - (0.18)
Strategic separation charges - Teradata
spin off (0.06) - (0.06)
Fox River environmental matter - - (0.02)
Customer Services realignment costs, net (0.13) - (0.13)
Tax adjustment - - (0.06)
------- ------- ------------
Adjusted Diluted Earnings Per Share
(Non-GAAP)(1) $0.39 $0.21 $1.20-$1.25
(1) NCR's management looks at the company's results excluding certain items to assess the financial performance of the company and believes this information is useful for investors because it provides a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with past reports of financial results. In addition, management uses earnings per share excluding these items to manage and determine effectiveness of its business managers and as a basis for incentive compensation. These non-GAAP measures should not be considered as substitutes for or superior to results determined in accordance with GAAP.
(2) The operating segment results discussed in this earnings release exclude the impact of $12 million of pension expense from continuing operations in the third quarter of 2007 and $27 million of pension expense from continuing operations in the third quarter of 2006. In addition, the operating segment results for the third quarter of 2007 excluded $7 million of manufacturing realignment costs, $15 million of strategic separation expense related to continuing operations and a $27 million restructuring charge for the company's Customer Services division in Japan. When evaluating the year-over-year performance of and making decisions regarding its operating segments, NCR excludes the effect of pension expense/income and certain non-operational items. Schedule B, included in this earnings release, reconciles total income from continuing operations excluding pension expense/income and certain non-operational items for all of the company's operating segments to "Total income from continuing operations" for the company.
(3) NCR defines free cash flow as cash provided/used by operating activities less capital expenditures for property, plant and equipment, and additions to capitalized software. Free cash flow does not have a uniform definition under GAAP and therefore NCR's definition may differ from other companies' definition of this measure. NCR's management uses free cash flow to assess the financial performance of the company and believes it is useful for investors because it relates the operating cash flow of the company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures for, among other things, investment in the company's existing businesses, strategic acquisitions, strengthening the company's balance sheet, repurchase of company stock and repayment of the company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered a substitute for, or superior to, cash flows from operating activities under GAAP.
Note to Investors
This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance, within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements include projections of revenue, profit growth and other financial items, future economic performance and statements concerning analysts' earnings estimates, among other things. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause NCR's actual results to differ materially.
In addition to the factors discussed in this release, other risks and uncertainties include those relating to: the separation of Teradata and NCR's other businesses, including the ability of NCR to operate as an independent entity; the uncertain economic climate and its impact on the markets in general or on the ability of our suppliers to meet their commitments to us, or the timing of purchases by our current and potential customers and other general economic and business conditions; the timely development, production or acquisition and market acceptance of new and existing products and services (such as self-service technologies), including our ability to accelerate market acceptance of new products and services; shifts in market demands, continued competitive factors and pricing pressures and their impact on our ability to improve gross margins and profitability, especially in our more mature offerings; the effect of currency translation; short product cycles, rapidly changing technologies and maintaining a competitive leadership position with respect to our solution offerings; tax rates; ability to execute our business and reengineering plans; turnover of workforce and the ability to attract and retain skilled employees, especially in light of continued cost-control measures being taken by the company; availability and successful exploitation of new acquisition and alliance opportunities; changes in Generally Accepted Accounting Principles (GAAP) and the resulting impact, if any, on the company's accounting policies; continued efforts to establish and maintain best-in-class internal information technology and control systems; and other factors detailed from time to time in the company's U.S. Securities and Exchange Commission reports and the company's annual reports to stockholders. The company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Schedule A
NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions, except per share amounts)
For the Periods Ended September 30
----------------------------------
Three Months Nine Months
----------------- ----------------
2007 2006 2007 2006
--------- ------- ------- --------
Revenue
Products $693 $600 $1,809 $1,669
Services 585 542 1,640 1,568
--------- ------- ------- --------
Total revenue 1,278 1,142 3,449 3,237
Cost of products 513 443 1,378 1,250
Cost of services 503 458 1,383 1,358
--------- ------- ------- --------
Total gross margin 262 241 688 629
% of Revenue 20.5% 21.1% 19.9% 19.4%
Selling, general and administrative
expenses 187 165 492 486
Research and development expenses 37 28 96 86
--------- ------- ------- --------
Income from operations 38 48 100 57
% of Revenue 3.0% 4.2% 2.9% 1.8%
Interest expense 6 6 18 18
Other income, net (18) (8) (34) (22)
--------- ------- ------- --------
Income before income taxes and
discontinued operations 50 50 116 61
% of Revenue 3.9% 4.4% 3.4% 1.9%
Income tax expense 17 11 41 5
--------- ------- ------- --------
Income from continuing operations 33 39 75 56
Income from discontinued
operations, net of tax - 50 90 152
--------- ------- ------- --------
Net income $33 $89 $165 $208
========= ======= ======= ========
% of Revenue 2.6% 7.8% 4.8% 6.4%
Net income per common share from
continuing operations
Basic $0.18 $0.22 $0.42 $0.31
========= ======= ======= ========
Diluted $0.18 $0.21 $0.41 $0.31
========= ======= ======= ========
Net income per common share
Basic $0.18 $0.50 $0.92 $1.15
========= ======= ======= ========
Diluted $0.18 $0.49 $0.90 $1.13
========= ======= ======= ========
Weighted average common shares
outstanding
Basic 180.6 178.7 180.0 180.5
Diluted 182.3 181.4 182.4 183.5
Schedule B
NCR CORPORATION
CONSOLIDATED REVENUE and OPERATING INCOME (LOSS) SUMMARY
(Unaudited)
(in millions)
For the Periods Ended September 30
-------------------------------------------------
Three Months Nine Months
---------------------- --------------------------
% %
2007 2006 Change 2007 2006 Change
------- ------- ------- -------
Revenue by segment
Financial Self
Service (ATMs) 407 349 17% 1,099 951 16%
Retail Store
Automation 278 219 27% 654 612 7%
Customer Services
Customer Service
Maintenance:
Financial Self
Service 193 170 14% 544 492 11%
Retail Store
Automation 130 124 5% 381 363 5%
Payment &
Imaging and
Other 30 32 (6%) 90 94 (4%)
Third-Party
Products and
Exited
Businesses 54 60 (10%) 165 186 (11%)
------- ------- ------- -------
Total Customer
Services
Maintenance 407 386 5% 1,180 1,135 4%
Third-Party
Product Sales 11 7 57% 30 23 30%
Professional and
installation-
related services 79 64 23% 202 181 12%
------- ------- ------- -------
Total Customer
Services 497 457 9% 1,412 1,339 5%
Systemedia 119 118 1% 327 339 (4%)
Payment & Imaging
and Other 33 43 (23%) 97 119 (18%)
Elimination of
installation-
related services
revenue included
in both the
Customer Services
segment and other
segments (56) (44) 27% (140) (123) 14%
------- ------- ------- -------
Total revenue $1,278 $1,142 12% $3,449 $3,237 7%
======= ======= ======= =======
Operating income
(loss) by segment
Financial Self
Service (ATMs) $56 $43 $130 $87
Retail Store
Automation 20 11 19 12
Customer Services 34 27 93 72
Systemedia 5 2 11 3
Payment & Imaging
and Other (2) 4 (5) 9
Elimination of
installation-
related services
operating income
included in both
the Customer
Services segment
and other segments (14) (12) (35) (32)
------- ------- ------- -------
Subtotal - Segment
operating income 99 75 213 151
Pension expense (12) (27) (29) (94)
Other
adjustments(1) (49) - (84) -
------- ------- ------- -------
Total income from
operations $38 $48 $100 $57
======= ======= ======= =======
(1) Includes restructuring and spin off costs from continuing
operations.
Schedule C
NCR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)
September 30 June 30 December 31
2007 2007 2006
------------ ------- -----------
Assets
-------------------------------------
Current assets
Cash and cash equivalents $1,033 $1,139 $947
Accounts receivable, net 1,014 1,007 1,016
Inventories, net 767 704 641
Other current assets 319 311 265
Assets held for spin off - 445 463
------------ ------- -----------
Total current assets 3,133 3,606 3,332
Property, plant and equipment, net 304 301 314
Goodwill 61 59 60
Prepaid pension cost 715 723 635
Deferred income taxes 204 189 212
Other assets 330 332 272
Assets held for spin off - 405 402
------------ ------- -----------
Total assets $4,747 $5,615 $5,227
============ ======= ===========
Liabilities and stockholders' equity
-------------------------------------
Current liabilities
Short-term borrowings $- $1 $1
Accounts payable 481 454 467
Payroll and benefits liabilities 195 182 213
Deferred service revenue and
customer deposits 339 333 318
Other current liabilities 484 453 385
Liabilities related to spin off - 413 386
------------ ------- -----------
Total current liabilities 1,499 1,836 1,770
Long-term debt 307 306 306
Pension and indemnity plan
liabilities 391 442 446
Post-retirement and post-employment
benefits liabilities 351 376 395
Deferred income taxes 66 42 27
Income tax accruals 173 168 132
Other liabilities 162 174 147
Minority interests 18 17 20
Liabilities related to spin off - 107 103
------------ ------- -----------
Total liabilities 2,967 3,468 3,346
Commitments and contingencies
Stockholders' equity
Preferred stock: par value $0.01 per
share, 100.0 shares authorized, no
shares issued and outstanding at
September 30, 2007 and December 31,
2006, respectively - - -
Common stock: par value $0.01 per
share, 500.0 shares authorized,
180.7 and 178.9 shares issued and
outstanding at September 30, 2007
and December 31, 2006, respectively 2 2 2
Paid-in capital 774 720 655
Retained earnings 1,512 2,032 1,900
Accumulated other comprehensive loss (508) (607) (676)
------------ ------- -----------
Total stockholders' equity 1,780 2,147 1,881
------------ ------- -----------
Total liabilities and stockholders'
equity $4,747 $5,615 $5,227
============ ======= ===========
Schedule D
NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
For the Periods Ended September 30
----------------------------------
Three Months Nine Months
--------------- ------------------
2007 2006 2007 2006
-------- ------ ------- ----------
Operating activities
Net income from continuing
operations $33 $39 $75 $56
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 27 26 81 77
Stock-based compensation expense 19 5 28 14
Excess tax benefit from stock-
based compensation (2) (1) (7) (8)
Deferred income taxes 6 16 28 26
Other adjustments to income, net (1) (4) (5) (5)
Changes in assets and
liabilities:
Receivables (11) 14 (2) (5)
Inventories (64) (42) (127) (110)
Current payables and accrued
expenses 16 69 (37) 30
Deferred service revenue and
customer deposits 9 (11) 24 14
Employee severance and pension 17 8 7 35
Other assets and liabilities 16 (28) 27 (49)
-------- ------ ------- ----------
Net cash provided by operating
activities 65 91 92 75
Investing activities
Expenditures for property, plant
and equipment (13) (22) (43) (50)
Proceeds from sales of property,
plant and equipment 4 1 15 13
Additions to capitalized software (12) (12) (35) (36)
Other investing activities,
business acquisitions and
divestitures, net (5) 7 (4) (9)
-------- ------ ------- ----------
Net cash used in investing
activities (26) (26) (67) (82)
Financing activities
Purchase of company common stock - (94) - (280)
Excess tax benefit from stock-
based compensation 2 1 7 8
Short-term borrowings, additions - 3 (1) 3
Long-term debt, additions - 1 - 1
Proceeds from employee stock plans 7 7 43 68
Distribution to discontinued
operations (196) - (196) -
Other financing activities, net - (3) 1 (3)
-------- ------ ------- ----------
Net cash used in financing
activities (187) (85) (146) (203)
Cash Flows from Discontinued
Operations
Net cash provided by operating
activities 55 51 261 213
Net cash used in investing
activities (23) (18) (74) (63)
Net cash provided by financing
activities 2 - 5 5
-------- ------ ------- ----------
Net cash provided from
discontinued operations 34 33 192 155
Effect of exchange rate changes on
cash and cash equivalents 8 1 15 6
-------- ------ ------- ----------
(Decrease) increase in cash and
cash equivalents (106) 14 86 (49)
Cash and cash equivalents at
beginning of period 1,139 747 947 810
-------- ------ ------- ----------
Cash and cash equivalents at end of
period $1,033 $761 $1,033 $761
======== ====== ======= ==========
Schedule E
NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions, except per share amounts)
2006 2007
Q1 Q2 Q3 Q4 Full Year Q1 Q2
----------------------------------- ------------------
Revenue
Products $474 $595 $600 $759 $2,428 $486 $630
Services 486 540 542 586 2,154 506 549
----------------------------------- ------------------
Total revenue 960 1,135 1,142 1,345 4,582 992 1,179
Cost of
products 353 454 443 553 1,803 411 454
Cost of
services 435 465 458 494 1,852 424 456
----------------------------------- ------------------
Total gross
margin 172 216 241 298 927 157 269
% of Revenue 17.9% 19.0% 21.1% 22.2% 20.2% 15.8% 22.8%
Selling,
general and
administrative
expenses 158 163 165 168 654 145 160
Research and
development
expenses 27 31 28 33 119 29 30
----------------------------------- ------------------
(Loss) income
from
operations (13) 22 48 97 154 (17) 79
% of Revenue (1.4%) 1.9% 4.2% 7.2% 3.4% (1.7%) 6.7%
Interest
expense 6 6 6 6 24 6 6
Other income,
net (9) (5) (8) (7) (29) (9) (7)
----------------------------------- ------------------
Total other
(income)
expense, net (3) 1 (2) (1) (5) (3) (1)
(Loss) income
before taxes
and
discontinued
operations (10) 21 50 98 159 (14) 80
% of Revenue (1.0%) 1.9% 4.4% 7.3% 3.5% (1.4%) 6.8%
Income tax
(benefit)
expense (8) 2 11 3 8 (5) 29
----------------------------------- ------------------
(Loss) income
from
continuing
operations (2) 19 39 95 151 (9) 51
Income from
discontinued
operations,
net of tax 43 59 50 79 231 43 47
----------------------------------- ------------------
Net income $41 $78 $89 $174 $382 $34 $98
=================================== ==================
% of Revenue 4.3% 6.9% 7.8% 12.9% 8.3% 3.4% 8.3%
Net (loss)
income per
common share
from
continuing
operations
Basic $(0.01) $0.10 $0.22 $0.53 $0.84 $(0.05) $0.28
=================================== ==================
Diluted $(0.01) $0.10 $0.21 $0.52 $0.83 $(0.05) $0.28
=================================== ==================
Net income per
common share
Basic $0.23 $0.43 $0.50 $0.97 $2.12 $0.19 $0.54
=================================== ==================
Diluted $0.22 $0.42 $0.49 $0.96 $2.09 $0.19 $0.54
=================================== ==================
Weighted
average common
shares
outstanding
Basic 181.7 181.1 178.7 178.5 180.0 179.3 180.1
Diluted 181.7 184.2 181.4 181.2 182.9 179.3 182.8
Schedule F
NCR CORPORATION
CONSOLIDATED REVENUE and OPERATING INCOME (LOSS) SUMMARY
(Unaudited)
(in millions)
2006 2007
------------------------------------ ------------
Q1 Q2 Q3 Q4 Full Year Q1 Q2
----------------------------------- ------------
Revenue by segment
Financial Self
Service (ATMs) 259 343 349 472 1,423 312 380
Retail Store
Automation 172 221 219 258 870 155 221
Customer Services
Customer Service
Maintenance:
Financial Self
Service 155 167 170 173 665 170 181
Retail Store
Automation 119 120 124 126 489 125 126
Payment & Imaging
and Other 30 32 32 29 123 30 30
Third-Party
Products and
Exited
Businesses 59 67 60 62 248 54 57
----------------------------------- ------------
Total Customer
Services
Maintenance 363 386 386 390 1,525 379 394
Third-Party
Product Sales 8 8 7 13 36 8 11
Professional and
installation-
related services 51 66 64 82 263 54 69
----------------------------------- ------------
Total Customer
Services 422 460 457 485 1,824 441 474
Systemedia 101 120 118 134 473 94 114
Payment & Imaging
and Other 39 37 43 51 170 28 36
Elimination of
installation-
related services
revenue included in
both the Customer
Services segment
and other segments (33) (46) (44) (55) (178) (38) (46)
----------------------------------- ------------
Total revenue $960 $1,135 $1,142 $1,345 $4,582 $992 $1,179
=================================== ============
Operating income
(loss) by segment
Financial Self
Service (ATMs) $13 $31 $43 $84 $171 $28 $46
Retail Store
Automation (7) 8 11 22 34 (9) 8
Customer Services 20 25 27 24 96 29 30
Systemedia - 1 2 1 4 2 4
Payment & Imaging
and Other 6 (1) 4 6 15 (3) -
Elimination of
installation-
related services
operating income
included in both
the Customer
Services segment
and other segments (8) (12) (12) (12) (44) (9) (12)
----------------------------------- ------------
Subtotal - Segment
operating income 24 52 75 125 276 38 76
Pension expense (37) (30) (27) (28) (122) (9) (8)
Other
adjustments(1) - - - - - (46) 11
----------------------------------- ------------
Total income from
operations $(13) $22 $48 $97 $154 $(17) $79
=================================== ============
(1) Includes restructuring and spin off costs from continuing
operations.
CONTACT: For media information:
Janet Brewer
NCR Corporation
(937) 445-6779
janet.brewer@ncr.com
or
For investor information:
Tom Mullarkey
NCR Corporation
(937) 445-4222
tom.mullarkey@ncr.com
SOURCE: NCR Corporation