Feeds

NCR's Q1 goes the way of the Hurd

Gone but not forgotten

  • alert
  • submit to reddit

Reducing security risks from open source software

NCR presented a familiar story in its first quarter of 2005 by showing a modest revenue gain and a much more dramatic rise in income. Such a quarterly formula was common during former CEO Mark Hurd's tenure. NCR's first quarter, ended 31 March, was the last to fall under Hurd's charge with him now at HP.

NCR reported revenue of $1.34bn, which was a 4 per cent year-over-year rise with no adjustments and just a 2 per cent rise in constant currency. The mediocre revenue growth was offset by a surge in income, as NCR reported a $35m gain for the period. In the same quarter last year, NCR posted a $5m loss.

Numerous reports have celebrated Hurd as an efficiency expert responsible for a dramatic turnaround at NCR - a leading factor behind HP's hiring of the executive at the end of March.

But some sources familiar with Hurd's rule at NCR have criticized his approach and results. They say he simply cut jobs, reduced key services and outsourced a lot of work at the expense of product quality, internal morale and customer support. Many see Hurd's moves as short-term fixes to long-term problems.

Hurd ran NCR for all of 2004 and showed very similar results to those posted in the first quarter of this year. In 2004, NCR's revenue grew only 3 per cent in constant currency - not the type of growth typically associated with a highly sought after CEO.

There, however, were plenty of bright spots in NCR's first quarter.

The well-respected Teradata data warehousing unit brought in $350m - a 14 per cent year-over-year rise or 11 per cent in constant currency. NCR's ATM business posted $272m in revenue - up 8 per cent year-over-year or 5 percent in constant currency.

Revenue from the Retail Store Automation unit showed revenue of $175m - a rise of 6 per cent or 4 per cent in constant currency. NCR's Customer Services business posted revenue of $436m - down 2 per cent or down 4 per cent in constant currency.

NCR is still conducting policies similar to those in place under Hurd.

"As part of the company's continued efforts to improve profitability in Customer Services, NCR has offered an early retirement program to qualified Customer Service engineers in the United States," the company said. "Depending on the level of participation in this program, the company anticipates up to a $22 million one-time, non-cash increase in pension expense in the second quarter of 2005."

NCR expects earnings to rise between 3 per cent and 4 per cent during the second quarter. ®

Related stories

Why Fiorina wasn't the right man for the HP CEO post
HP makes Hurd the $20m man
Never Hurd of the new HP boss?
HP bets on the Hurd mentality for CEO

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.