Earnings Slip for NCR

The company is hurt by organizational realignment and decreased revenue.
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On Feb. 5, 2009,

NCR

(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

Experticity

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

Technicote

, 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.

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