NCR bailout revealed

NCR has received nearly $2.85 billion in bailout funds from parent company AT&T (T) since it began posting multimillion-dollar losses that go back to 1993, according to documents filed with the Securities and Exchange Commission.

The initial public offering filing revealed that the company posted a $2.28 billion net loss in 1995, following a $203 million loss the previous year and a $1.3 billion loss in 1993. Because AT&T has previously announced only NCR's operating results, the losses came as a surprise.

NCR, an information technology company, has also posted declining sales since 1994. Last year NCR reported $8.2 billion in revenues, down $300 million. During the first six months this year, NCR's revenues dropped 15.4 percent to $3.3 million compared with the same period a year ago.

"The decrease in revenues beginning the fourth quarter of 1995 and in the six months ended June 30...is due largely to the company's decision in September 1995 to discontinue selling personal computers through high-volume indirect channels," the filing said.

NCR also reported a net profit loss of $83 million for the first half of the year.

AT&T last year announced plans to restructure the company and spin off NCR and Lucent Technologies. Lucent was spun off earlier this year, and the company expects NCR to go public by December 31.

AT&T wanted to break away from the two companies because many Lucent and NCR customers or potential customers were competitors of the telecommunications giant. That, in turn, made it more difficult for the two companies to generate business.