NCR Corporation – NCR – Solid financial results in the second quarter

NCR Corporation (NYSE: NCR) reported financial results for the three months ended June 30, 2012. Reported revenue of $1.41 billion increased 11 percent from the second quarter of 2011. Second-quarter revenue includes a negative impact of 4 percent as a result of foreign currency translation.

• Operational results ahead of company expectations
• NCR Revenue growth of 11%, Orders up 19% compared to prior year period
• NCR Gross margin growth driven by significantly higher software revenues
• GAAP diluted EPS from continuing operations of $0.41 compared to $0.28 in the prior year period; non-GAAP diluted EPS from continuing operations(2) of $0.65, an increase of 25% from the prior year period
• Full year 2012 revenue and non-GAAP guidance reaffirmed

NCR reported second-quarter income from continuing operations (attributable to NCR) of $67 million, or $0.41 per diluted share, compared to income from continuing operations (attributable to NCR) of $45 million, or $0.28 per diluted share, in the second quarter of 2011. Income from continuing operations in the second quarter of 2012 included $39 million ($28 million or $0.17 per diluted share, after-tax) of pension expense, $10 million ($6 million or $0.04 per diluted share, after tax) of acquisition related amortization of intangibles, $4 million ($3 million or $0.02 per diluted share, after tax) of acquisition related integration costs and a $4 million ($3 million or $0.01 per diluted share, after tax) impairment charge related to an investment. Income from continuing operations for the second quarter of 2011 included $53 million ($38 million or $0.23 per diluted share, after-tax) of pension expense and $1 million ($1 million or $0.01 per diluted share, after-tax) of acquisition related transaction costs. Excluding these items, non-GAAP income from continuing operations in the second quarter of 2012 was $0.65 per diluted share compared to $0.52 in the prior year period.

“Solid financial results and strong order growth in the second quarter, led by our Financial Services and Hospitality businesses, leave us on firm ground to achieve our full year objectives,” said Bill Nuti, chairman and CEO of NCR. “U.S. regional banks continue to drive higher revenues as they embrace advanced customer service technologies and we are successfully capturing growth opportunities in key emerging markets as evidenced by order growth in Brazil during the second quarter. We have also continued to invest in innovation, most notably in our small and medium business offerings, with the recent introduction of NCR Silver. Our Hospitality vertical remains on track and we are actively strengthening our presence in key emerging markets such as Brazil. Looking ahead, we are focused on executing upon expanding global opportunities across our verticals while also further growing our software and services revenue and driving profitable growth.”

About NCR Corporation – NCR

NCR Corporation (NCR) is a global technology company leading how the world connects, interacts and transacts with business. NCR’s assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, hospitality, entertainment, gaming and public sector organizations in more than 100 countries.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.