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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: APRIL 16, 1997
NCR CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MARYLAND 001-00395 31-0387920
(STATE OR OTHER JURISDICTION OF (COMMISSION (I.R.S. EMPLOYER
INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
1700 S. PATTERSON BLVD., DAYTON, OH 45479
(937) 445-5000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING
AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
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Item 5. Other Events
The Registrant's news release dated April 16, 1997, with respect to its
financial results for the quarter ended March 31, 1997, including a condensed
consolidated balance sheet as of March 31, 1997, and condensed consolidated
statements of operations and consolidated revenue summary for the quarter ended
March 31, 1997, is attached and incorporated herein by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NCR Corporation
Date: April 18, 1997 By: /s/ John L. Giering
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John L. Giering, Senior
Vice President and Chief
Financial Officer
NCR CORPORATION
INVESTOR RELATIONS DEPARTMENT
Tel: 937-445-5905
Fax: 937-445-5541
HTTP://WWW.NCR.COM
NEWS RELEASE
- --------------------------------------------------------------------------------
NCR REPORTS FIRST QUARTER FINANCIAL RESULTS
DAYTON, Ohio -- NCR Corporation reported a narrowed first-quarter loss
of $16 million, or $.16 per share, compared to a loss of $65 million, or $.64
per share, in the year-ago period. Revenue in the quarter was $1.389 billion, a
decline of 12 percent, compared to the $1.586 billion reported in the comparable
period last year.
Orders, however, increased and posted a gain over last year's first
quarter. Gross margins increased by 2.1 percentage points of revenue to 27.6
percent compared to 25.5 percent in the year-ago period. Operating loss for the
first quarter narrowed to $18 million compared to a $37 million loss in the
year-earlier period.
"Our first quarter results were impacted by external factors that
included the strong
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U. S. dollar and continued weakness in European markets," said Lars Nyberg, NCR
Chairman & CEO. "In addition, the decision to no longer sell PCs through
high-volume retail channels further reduced revenue compared to the year-ago
quarter."
"The quarter's strong incoming order pattern, which exceeded our
objectives on a local currency basis, gives us confidence about achieving
revenue growth in subsequent quarters. We continue to be encouraged by
operational improvements in gross margins and expenses," Nyberg said.
"We remain focused on our goals for improved performance across all
areas of the company. We can achieve our goals to grow revenue, improve profit
margins, continue expense discipline and lower our high effective tax rate for
the full year," Nyberg said.
"We believe that we're off to a solid start in meeting these goals for
the year. NCR employees are focused on our key markets and moving with a sense
of urgency to get results by serving our customers well," Nyberg said.
Orders
Total orders posted a gain over the year-ago quarter. Local currency
orders for NCR's core business, that is, excluding PCs and entry level servers,
showed very good gains. On a product basis, order growth was led by retail and
financial systems. Geographically, order increases were posted in the Americas
and Europe/Middle East/Africa regions, but the strong U. S. dollar led to order
declines in the Asia/Pacific region.
Revenue
Revenue was flat in the Asia/Pacific region in spite of the negative
impact of the strong U. S. dollar. Revenue in the Americas and Europe/Middle
East/Africa regions declined from the year-ago period. Unfavorable foreign
currency translations reduced the overall revenue growth rate by three percent.
Gross Margins
Gross margins increased 2.1 percentage points in the quarter to 27.6
percent of revenue compared to 25.5 percent in the year-ago quarter. Product
gross margins increased 4.3 points to 31.5 percent while services margins were
flat.
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Expenses
Total expenses in the first quarter decreased nine percent to $401
million compared to $442 million in the year-ago period. Selling, general, and
administrative expenses declined $41 million, or 12 percent, from last year's
first quarter, and were essentially unchanged as a percentage of revenue.
Research and development expenses were flat at $87 million, or 6.3 percent of
revenue, compared to $87 million, or 5.5 percent of a larger revenue base, in
the year-ago quarter.
Income Taxes
Income tax expense in the quarter was $1 million compared to $12
million in the comparable period a year ago.
Balance Sheet
NCR ended the quarter in a strong financial position with $1.133
billion in cash and short-term investments, debt of $88 million and total
shareholders' equity of $1.321 billion.
As of March 31, 1997, NCR employed 37,500 people worldwide, including
contractors.
NCR Corporation has a 113-year heritage of enabling and analyzing
transactions between businesses and their customers. NCR has become a world
leader in customer transactions by providing businesses the ability to capture,
process and analyze data, so they can turn the resulting knowledge into actions
that improve their relationship with their customers.
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NOTE TO INVESTORS:
This financial information regarding NCR's first-quarter results is
also available on the Internet: http://www.ncr.com. NCR's Chief Financial
Officer and Senior Vice President, John Giering, will discuss the company's
financial performance in a taped broadcast. Access is available from 2:00 P.M.
(EDT) Wednesday, April 16, through 8:00 P.M. (EDT) Friday, April 18. The
telephone number for access to this broadcast is (402) 220-5185.
This news release contains forward-looking statements. These statements
are based on current expectations and involve risks and uncertainties that could
cause NCR's actual results to differ materially. In addition to the factors
discussed in this release, other risks include the timely development,
production or acquisition, and market acceptance of new and existing products
and services; continued competitive factors and pricing pressures; the ability
of third-party suppliers to timely deliver competitive products and services at
reasonable prices; short product-life cycles and rapidly changing technologies;
general economic and business conditions; and the other risks detailed from time
to time in the company's Securities and Exchange Commission reports, including,
but not limited to, the Form 10 filed in November 1996, the Annual Report on
Form 10-K for the year ended December 31, 1996, the company's annual report to
stockholders, and the Form 10-Q for the quarter ended March 31, 1997, which will
be filed shortly.
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NCR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
Quarter Ended March 31
----------------------
1997 1996
---- ----
REVENUES
Sales $ 714 $ 875
Services 675 711
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TOTAL REVENUES 1,389 1,586
Cost of sales 489 637
Cost of services 517 544
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GROSS MARGIN 383 405
------- -------
% of Revenue 27.6% 25.5%
Selling, general, and administrative expenses 314 355
% of Revenue 22.6% 22.4%
Research and development expenses 87 87
% of Revenue 6.3% 5.5%
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LOSS FROM OPERATIONS (18) (37)
------- -------
% of Revenue -1.3% -2.3%
Interest expense 2 13
Other (income) loss, net (5) 3
------- -------
LOSS BEFORE INCOME TAXES (15) (53)
------- -------
% of Revenue -1.1% -3.3%
Income tax expense 1 12
------- -------
NET LOSS $ (16) $ (65)
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% of Revenue -1.2% -4.1%
NET LOSS PER COMMON SHARE $ (.16) $ (.64)
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WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING (IN MILLIONS) 101.5 101.4
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NCR CORPORATION
CONSOLIDATED REVENUE SUMMARY
(Unaudited)
(DOLLARS IN MILLIONS)
Quarter Ended March 31
----------------------
1997 1996
---- ----
Retail Systems Group $ 80 $ 88
Financial Systems Group 171 195
Computer Systems Group 245 284
PCs/Entry Level Servers 85 159
Systemedia Group 119 130
Customer Services 499 534
Professional Services 141 134
Data Services 29 34
Other Products and Services 20 28
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Total Revenues $1,389 $1,586
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NCR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(DOLLARS IN MILLIONS)
At March 31, 1997 At December 31, 1996
----------------- --------------------
(Unaudited)
ASSETS
Current assets
Cash and short-term investments $1,133 $1,203
Accounts receivable, net 1,336 1,457
Inventories 535 439
Other current assets 257 219
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TOTAL CURRENT ASSETS 3,261 3,318
Property, plant, and equipment, net 1,143 1,207
Other assets 763 755
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TOTAL ASSETS $5,167 $5,280
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 44 $ 28
Accounts payable 314 352
Taxes payable -- 18
Other current liabilities 1,584 1,569
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TOTAL CURRENT LIABILITIES 1,942 1,967
Long-term debt 44 48
Other long-term liabilities 1,860 1,869
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TOTAL LIABILITIES 3,846 3,884
TOTAL SHAREHOLDERS' EQUITY 1,321 1,396
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,167 $5,280
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