Thursday, NCR Corp. (NCR) reported a loss for the fourth quarter due to a decline in revenue as well as a net charge related to the Fox River environmental matter, an impairment charge related to an equity investment and related assets and incremental costs related to the relocation of the company's headquarters.
According to the company, net loss attributable to the company was $56 million or $0.35 per share, compared with a net profit attributable to the company of $56 million or $0.35 per share a year-ago.
Loss from continuing operations for the quarter was $56 million or $0.35 per share, compared with an income from continuing operations of $55 million or $0.34 per share a year-ago.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.26 per share. Analysts' estimates typically exclude special items.
According to the company, income from continuing operations in the fourth quarter included a $97 million after-tax net charge, or $0.60 per share, related to the Fox River environmental matter, a $15 million after-tax, or $0.09 per share, impairment charge related to an equity investment and related assets, and a $4 million after-tax or $0.03 per share of incremental costs related to the relocation of the company's global headquarters.
Income from continuing operations for the fourth quarter of 2008 included $38 million after-tax in costs, or $0.24 per share, resulting from organizational realignment activities, legal matters and the Fox River environmental matter.
NCR said that excluding these items, non-GAAP earnings per share in the fourth quarter of 2009 was $0.37 per share, compared with $0.58 in the prior year period.
Total revenue for the quarter declined to $1.34 billion from $1.42 billion in the year-ago period.
Six Wall Street analysts estimated a revenue of $1.28 billion for the quarter.
Segment-wise, revenue from products declined to $695 million from $797 million a year-ago. However, revenue from services increased to $650 million from $624 million in the year-ago period.
The cost of products for the quarter declined to $585 million from $600 million a year-ago and the cost of services increased to $514 million from $494 million in the comparable period a year-ago.
Selling, general and administrative expenses declined to $171 million from $195 million in the year-ago period and research and development expenses declined to $36 million from $37 million in the year-ago period.
For fiscal 2010, GAAP earnings per share are expected to be in a range of $0.41- $0.51 and non-GAAP earnings per share excluding pension expense to be in the range of $1.35 - $1.45 per share. NCR expects full-year 2010 revenues to increase in the range of 2% - 5% on a constant currency basis compared with 2009. Eight analysts estimate earnings of $0.65 per share for the year.
The year-to-date net loss attributable to NCR was $33 million or $0.21 per share, compared with a profit of $228 million or $1.36 per share a year-ago. Loss from continuing operations for the quarter was $33 million or $0.21 per share, compared with a profit from continuing operations of $231 million or $1.38 per share a year-ago.
Year-to-date revenue declined to $4.61 billion from $5.31 billion in the year-ago period.
The Street estimated earnings of $0.50 per share on a revenue of $4.55 billion.
NCR is currently trading at $12.96, up $0.60 or 4.85%, on a volume of 5.57 million shares on the New York Stock Exchange.
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