NCR's results from continuing operations exclude the results of the company's Teradata data warehousing business, due to the spin off to shareholders which occurred at the end of the quarter and resulted in Teradata being accounted for as a discontinued operation. NCR reported revenue of $1.28 billion from continuing operations for the quarter ended Sept. 30, 2007. The 12 percent increase in revenue from the third quarter of 2006 included 3 percentage points of benefit from currency fluctuations.

NCR reported third-quarter income from continuing operations of $33 million, or $0.18 per diluted share. Earnings from continuing operations for the third quarter of 2007 included $39 million or $0.21 per diluted share of costs from items related to NCR's manufacturing realignment, the Teradata spin off and a realignment primarily in the Customer Services division in Japan. Excluding these items, non-GAAP earnings from continuing operations were $0.39 per diluted share(1), which compares to $0.21 per diluted share in the third quarter of 2006.

"New NCR delivered better-than-expected operational results in the third quarter, featuring both strong revenue growth and operating margin expansion. We accomplished these results while also successfully launching Teradata Corporation as an independent publicly traded company. I am proud of our employees for driving excellent business results across each of our major business units while also managing to successfully complete our strategic separation. With the Teradata separation behind us, NCR's focus on the implementation of our long-term vision and business strategy will sharpen, as will the focus on working capital and our overall cost structure. While we are excited about new NCR's strategy and pleased with our business results, we have significant work ahead to realize our vision of leading how the world connects, interacts and transacts with business," said Bill Nuti, chairman and chief executive officer of NCR.

(1) 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.

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