July 28, 2009

NCR reports revenue decline, 91% net loss for the year

Tracy Kitten article on latest NCR results provides a great overview of NCR (and financial services in general) in the current environment. Worth noting Bank of America is trimming 10% of it banks noting that mobile and online transactions have eaten into those transaction centers (and where people like NCR, Diebold and Wincor/IBM make a few dollars).

Tracy Kitten, contributing editor

• 24 Jul 2009

The economic crunch is taking its toll on ATM manufacturers. Earlier this week, Germany-based Wincor Nixdorf announced significant income dips for the second quarter of the year, and now Duluth, Ga.-based NCR Corp. reports similar results.

At the close of Q2, which ended June 30, NCR’s revenue for the quarter was down 16 percent from the same period last year and down 6 percent for the year. But net income took an even greater hit, falling from $44 million, 26 cents per share, in Q2 2008 to $23 million, 14 cents per share, for Q2 2009. For the year, net income is down 91 percent, from $92 million, 53 cents per share, to 8 million, 5 cents per share.

Bill Nuti, NCR’s chairman and chief executive, says the company continues, despite its revenue and net income dips, to see positive results in certain areas:

While NCR continues to operate in a challenging environment for the core end markets we serve, our solutions are generating results in the areas where our customers are investing. In the meantime, we are executing on our vision to lead the self-service revolution in customer transactions, as evidenced by our entry into the entertainment kiosk market, and we are winning business in other new industry verticals as well.

We have also taken steps to enhance our global competitive position through major investments in our infrastructure in both the U.S. and South America. These initiatives will strengthen our manufacturing and sourcing capabilities and further improve our innovation, productivity and ability to meet customer needs.

NCR says the downturn in the global economy and its impact on capital spending in the financial services, retail and hospitality industries is to blame for the year-over-year revenue decreases. The company’s revenues in the Americas was down 13 percent for the year because of decreased product sales, NCR says.

Read rest of article

Posted by staff at July 28, 2009 10:12 AM