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Tech Industry

NCR narrows loss, sees stock rise

A rise in total orders means improved numbers--earnings and stock--for the computer maker.

    While revenue fell slightly due to weakness in some regions and a strong dollar abroad, NCR (NCR) today reported a narrowed second-quarter loss and beat expectations as total orders increased.

    The maker of computers and related products saw its stock, which has been on the decline since it was spun off from AT&T (T) late last year, gain 2-1/8 in early trading this morning.

    Net losses for the quarter ending in June were $4 million, or 4 cents per share, compared to a loss of $18 million, or 18 cents per share in the same period last year. Analysts had expected a second quarter loss of 8 cents a share, according to First Call.

    Revenue for the quarter declined 2 percent to $1.6 billion, compared to $1.7 billion reported in the corresponding quarter a year ago. On a local currency basis, revenue increased one percent, but those gains were offset when translated into U.S. currency.

    While retail products revenue grew by 25 percent, financial products rose by 13 percent and professional services by 9 percent over the year-ago period. But those gains were offset by revenue declines in computer systems, media systems products, and customer services.

    Revenue increased in the Asia-Pacific region, but declined in both the Americas and Europe-Middle East-Africa regions from the year-ago period.

    Total NCR orders were up slightly compared to last year's quarter, in part driven by retail and financial computer systems, entry-level servers and PCs. But orders for computer systems overall declined and tempered NCR's total order volume.

    The company had preannounced on June 17 that its earnings for the second quarter would likely fall short of analysts' estimates. The company blamed weak services revenues and disappointing orders for its hardware systems. Since the announcement, at least three analysts have revised expectations downward.