NCR Announces First Quarter 2014 Results: Strong Revenue And Operating Margin Led By Software-related Revenue Growth

NCR Corporation (NYSE: NCR) reported financial results today for the three months ended March 31, 2014.

"Our first quarter results show continued progress in the transformation of NCR into a software-driven leader in consumer transaction technologies,” said Chairman and CEO Bill Nuti. “Software-related revenue grew 45% in the first quarter, including SaaS revenue growth of 242%. We are also making good progress integrating the Digital Insight acquisition, which has contributed significantly to our software-related and SaaS revenue growth and broadens our Financial Services technology portfolio similar to the transformation of our Retail Solutions and Hospitality businesses. Although we are seeing a challenging market in Retail Solutions, we are pleased to see the increased strength in the Financial Services industry and feel good about our growth trajectory in 2014. We are reaffirming the NPOI and EPS range, although we do expect to be at the lower end of this range based on what we are seeing today.”

Q1 Financial Summary
  First Quarter
2014       2013       Change
Revenue $1,518 million $1,410 million 8% *
Income from operations $108 million $85 million 27%
Non-pension operating income (NPOI) $155 million $129 million ** 20% **
Diluted earnings per share $0.31 $0.37 (16)% ***
Non-GAAP diluted earnings per share $0.50 $0.54 (7)% ***
 
* Revenue growth of 10% on a constant currency basis.
** Includes $13 million benefit related to Q1 2013 amendment to U.S. separation plan; excluding this item, year-over-year change is 34%.
 
*** Decrease primarily due to higher interest expense in Q1 2014.
 

In this release, we use the non-GAAP measures non-pension operating income (NPOI), non-GAAP diluted EPS, free cash flow and revenue growth on a constant currency basis. These non-GAAP measures are described and reconciled to their corresponding GAAP measures at the end of this release.

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