FYI ** NCR REPORTED AN OPERATING LOSS FOR 1997,
ALTHOUGH THE COMPANY EARNED A NET PROFIT.
Operating income decreased from $75 million in 1996 to an
operating loss of $19 million in 1997. Net income was $7 million
for 1997, compared to a loss of $82 million for 1996. 1997
earnings were $.07 per share, compared with a per-share loss of
$.81 in the previous year. For 1997, orders, revenue and gross
margins decreased, compared to 1996. On a local currency basis,
orders were flat and revenue was down 1 percent. (Comparisons
do not include the impact in the fourth quarter of 1996 of a $55
million pre-tax release of restructuring reserves or the adverse
impact of an $82 million tax adjustment associated with
restructuring.)
*** FOR THE FOURTH QUARTER OF 1997, OPERATING
INCOME DECREASED, COMPARED TO THE FOURTH
QUARTER OF 1996. Operating income for the fourth quarter of
1997 was $34 million, compared to $72 million in the final
quarter of 1996. Net income for the fourth quarter was $36
million or $.35 per share, compared to net income of $34 million
or $.34 per share in 1996. Orders for financial products achieved
the largest fourth-quarter increase on record, but total orders
declined, compared to last year's quarter. On a local currency
basis, the percentage decrease for total orders was in the high
single digits. Revenue for the fourth quarter was 2 percent lower
than the fourth quarter of 1996. However, on a local currency
basis, it was up 3 percent. Revenue gains of 14 percent for
financial products, 13 percent for PCs and entry-level servers, 9
percent for retail products and 5 percent for Professional Services
were posted, compared to the year-earlier period. These gains
were offset by declines in revenue from computers, Systemedia
and customer services. Revenue increased in EMEA but declined
in Asia/Pacific and the Americas. On a local currency basis,
revenue increased 10 percent in Asia Pacific and increased 12
percent in EMEA. Gross margins in the quarter declined 2.2
percentage points, compared to the fourth quarter of 1996.
(Comparisons do not include the impact in the fourth quarter of
1996 of a $55 million pre-tax release of restructuring reserves or
the adverse impact of an $82 million tax adjustment associated
with restructuring.) |
