Feeds

NCR's Q1 goes the way of the Hurd

Gone but not forgotten

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.