NCR Corporation (NYSE: NCR) today announced its outlook for 2007 results from continuing operations after spinning off its Teradata division later this month.
Assuming completion of the strategic separation of Teradata on Sept. 30, 2007, NCR expects 2007 GAAP earnings per share from continuing operations to be $0.91 to $0.96 per share.
Excluding $35 million of expense related to the restructuring of NCR's global manufacturing, $11 million out-of-period tax adjustment, and $7 million of net expense related to the Fox River environmental matter, non-GAAP earnings per share is expected to be $1.15 to $1.20 per share for the full year 2007(1). This assumes a 25 percent effective tax rate attributable to continuing operations.
NCR is maintaining the revenue growth and non-pension operating income margin targets for each business unit that were provided on July 31, 2007. NCR management plans to provide more information regarding corporate strategy and longer-term outlook during the fourth quarter.
(1) NCR reports its results in accordance with Generally Accepted Accounting Principles in the United States, or GAAP. However, the company believes that certain non-GAAP measures found in this release are useful for investors. NCR's management looks at the company's results excluding certain items to assess the financial performance of the company and believes this information is useful for investors because it provides a more complete understanding of NCR's underlying operational performance, as well as consistency and comparability with past reports of financial results. In addition, management uses earnings per share excluding these items to manage and determine effectiveness of its business managers and as a basis for incentive compensation. These non-GAAP measures should not be considered as substitutes for or superior to results determined in accordance with GAAP.