NCR Corp., the world's largest ATM manufacturer based on 2007 shipments, today reported net income of $44 million for second quarter ended June 30, down 55% from $98 million for the same three-month period last year. The Dayton, Ohio-based company reported revenue of $1.3 billion, up 8.3% from $1.2 billion. "NCR's strong second-quarter results were broad-based geographically and speak to continued solid demand for self-service solutions," Bill Nuti, NCR president and CEO, said in a statement. Second-quarter income from continuing operations was $45 million, down 11.8% compared with $51 million for the same three-month period last year. NCR attributed the lower income from continuing operations to a nonrecurring $32 million after-tax charge related to arecent organizational realignment. Revenue in the Americas, which include North America, South America, Central America, Mexico and Canada, grew 11%, to $578 million, Nuti told analysts during a conference call. Revenue from Europe, the Middle East and Africa was up 16%, to $513 million, and revenue from Asia-Pacific was $241 million, up 10%. "All in all, NCR had a very good quarter," Gil Luria, an analyst with Los Angeles-based Wedbush Morgan Securities Inc., tells CardLine sister publication ATM&Debit News. "NCR's worldwide ATM business grew 13% on a constant basis, which does not include a 6% benefit from currency translations." Luria, however, was most impressed by NCR's ATM sales in the United States. "U.S. ATM sales are growing because national banks, including JPMorgan Chase & Co. and Wells Fargo & Co., are upgrading their ATM networks with bulk-check, bulk-cash deposit and envelope-free ATMs," he says. NCR did not provide specific data on U.S. sales. Second-quarter net income last year included earnings from Teradata, which NCR spun off to NCR shareholders in the third quarter. Analysts did not consider the decline in net income meaningful. In midday trading today, NCR stock was selling at $27.10 per share, up 0.63% from yesterday's $26.92 closing price.
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