NCR Corporation (NYSE: NCR) reported financial results today for the three months ended September 30, 2011. Reported revenue of $1.40 billion increased 16 percent from the third quarter of 2010. Third-quarter revenues reflect a favorable impact of 5 percent as a result of foreign currency translation.• Operational results ahead of expectations; quarter-ending backlog of $1.2 billion the highest in company history
• Revenue growth of 16% and global orders up 36% compared to prior year period
• GAAP diluted EPS from continuing operations of $0.10 compared to $0.48 in the prior year period; non-GAAP diluted EPS from continuing operations(1) of $0.53, an increase of 15% from the prior year
• Acquisition of Radiant Systems successfully closed; integration process on plan; potential revenue and cost synergies remain consistent with previous company expectations
• NCR raises full year 2011 revenue, non-GAAP income from operations(2) and free cash flow guidance(3)
NCR Corporation (NYSE: NCR) reported financial results today for the three months ended September 30, 2011. Reported revenue of $1.40 billion increased 16 percent from the third quarter of 2010. Third-quarter revenues reflect a favorable impact of 5 percent as a result of foreign currency translation.
NCR reported third-quarter income from continuing operations (attributable to NCR) of $16 million, or $0.10 per diluted share, compared to income from continuing operations (attributable to NCR) 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. 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 our Japanese subsidiary. Excluding these items, non-GAAP income from continuing operations(1) in the third quarter of 2011 was $0.53 per diluted share compared to $0.46 in the prior year period.
"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."
"During the quarter we completed the acquisition of Radiant Systems Inc., creating a third core solutions vertical in hospitality and specialty retail that offers immediate growth opportunity and accelerates our strategic objective of migrating to a software-enabled and services-led business model. Integration is well underway, and early results are fully consistent with our expectations. Our second strategic transaction, announced during the quarter and closed shortly after the quarter-end, is our alliance with Scopus Tecnologia, a subsidiary of the major Brazilian financial group Banco Bradesco. The alliance, and the accompanying ATM supply agreement with Bradesco, significantly and quickly expand our presence in the key Brazilian ATM market, with an initial order for 6,000 ATMs. Together, these transactions, along with a demand environment that remains healthy around the world, position NCR for solid 2011 performance while increasing confidence in our longer-term growth outlook."
