Earnings Slip for NCR

The company is hurt by organizational realignment and decreased revenue.
Publish date:

Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

On Feb. 5, 2009,


(NCR) - Get Report

reported that its Q4 FY08 earnings decreased 37.1%, hurt by costs related to organizational realignment and a decrease in revenue. Net income declined to $56.00 million or $0.35 per share from $89.00 million or $0.48 per share in Q4 FY07. Income from continuing operations dipped 42.7% to $55.00 million or $0.34 per share from $96.00 million or $0.52 per share. Excluding one-time items, non-GAAP earnings from continuing operations were $0.58 per share, which beat the latest consensus estimate of $0.54 per share.

Total revenue declined 6.6% to $1.42 billion from $1.52 billion a year ago, due to weak market condition and 4.0% negative impact from foreign currency translation. Products sales decreased 9.8% to $797.00 million, while revenue from services slipped 2.0% to $624.00 million. Segment-wise, revenue from the Americas dropped 8.2% to $584.00 million, while revenue from the Europe, Middle East & Africa (EMEA) region plummeted 7.6% to $558.00 million. Similarly, revenue from the Asia-Pacific-Japan (APJ) region inched down marginally to $279.00 million from $281.00 million in the prior year's quarter.

NCR signed a global reseller agreement with


to resell its multichannel technology platform through its worldwide sales channel. Recently, the company signed an agreement with


, a company in the North America to license its two-sided thermal (2ST) printing technology.

For FY08, net income was $228.00 million or $1.36 per share, down 16.8% from $274.00 million or $1.50 per share in FY07. Excluding special items, adjusted earnings increased to $1.72 per share from $1.41 per share. Revenues rose 6.9% to $5.32 billion from $4.97billion a year ago.

Looking forward to FY09, NCR expects its non-GAAP earnings from continuing operations to be in the range of $0.85 per share to $1.00 per share. Revenues are expected to decline between 2.0% to 6.0% from FY08 revenue.

A detailed report covering this quarterly release is now available. To purchase the report, click here.