INDUSTRY
NCR Announces Preliminary Second Quarter Results
- Written by: Writer
- Category: INDUSTRY
DAYTON, OH -- NCR Corporation today announced that revenue and earnings for its second quarter ended June 30, 2001 will be below the company's previous guidance, primarily due to customer deferrals in the company's Data Warehousing business. NCR expects reported revenue for the second quarter of 2001 to be approximately $1.5 billion, an increase of 3 percent over the company's 2000 second quarter revenue, up about 7 percent on a local currency basis. Earnings for the second quarter are expected to be $0.35 to $0.37 per share on a fully diluted basis, with the shortfall primarily due to the impact of the economy on the Data Warehousing business. Profitability in the High Availability Customer Services business also will be lower as a result of slower than anticipated growth in markets such as the telecommunications sector. As reported by First Call, the current analysts' consensus earnings estimate is $0.57 per share for the second quarter of 2001. NCR's Retail Store Automation and Financial Self Service businesses generally had a strong quarter with good growth and improved profitability. In the second quarter, these businesses are expected to increase aggregated revenue by nearly 7 percent; the Data Warehousing business is anticipated to generate approximately 2 percent revenue growth. Customer interest for Teradata's Data Warehousing solution remains very high; the number of new customers in the quarter is expected to increase 60 percent over the prior year period. However, the economy has driven Teradata's existing customer base to be more cautious as they expand their current systems. In this regard, Teradata saw customers with more than $60 million of data warehouse upgrades postpone their decision during the second quarter, many in the final days of the quarter. The majority of these deferrals came from companies based in the Americas, with the remainder spread evenly between the Europe-Middle East-Africa and Asia-Pacific regions. By industry, most of the deferrals were in the telecommunications and retail sectors. For additional information visit www.ncr.com