- Continued operational improvement more than offsets lower revenue
- Earnings per share includes $0.04 impact from early retirement expense
- NCR reaffirms previous revenue and earnings guidance for full-year 2006
DAYTON, Ohio – NCR Corporation (NYSE: NCR) today reported earnings of $0.22 per share and revenue of $1.28 billion for the quarter ended March 31, 2006. The 4 percent revenue decline from the first quarter of 2005 included the negative impact of nearly 3 percentage points from currency fluctuations. Revenue declined approximately 2 percentage points when compared in constant currency.
NCR reported first-quarter net income of $41 million, or $0.22 per share, compared to $30 million of net income, or $0.16 per share, reported in the first quarter of 2005. Results in the first quarter of 2006 included $6 million of incremental stock-based compensation expense and $9 million of non-cash incremental pension expense associated with an early-retirement program offered during the first quarter of 2006 in NCR’s Customer Services business. Results in the first quarter of 2005 included $5 million of net negative impact from non-operational items. “Although I’m not pleased with our first-quarter revenue performance, I’m encouraged by our continued operational improvement in the quarter, which enabled NCR to deliver meaningful year-over-year earnings expansion,” said Bill Nuti, president and chief executive officer of NCR. “Improvements in our Customer Services business more than offset the impact from the timing of certain transactions in our Teradata Data Warehousing business.”
See attachment for the complete press release.