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NCR Corp. Reports Operating Results (10-Q)

August 02, 2010 | About:
10qk

10qk

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NCR Corp. (NCR) filed Quarterly Report for the period ended 2010-06-30.

Ncr Corp. has a market cap of $2.2 billion; its shares were traded at around $13.7 with a P/E ratio of 16.91 and P/S ratio of 0.48. Ncr Corp. had an annual average earning growth of 3.7% over the past 10 years.NCR is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, Steven Cohen of SAC Capital Advisors, John Keeley of Keeley Fund Management, Eric Mindich of Eton Park Capital Management, L.P., Ron Baron of Baron Funds, Kenneth Fisher of Fisher Asset Management, LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Dodge & Cox.

Highlight of Business Operations:

Selling, general and administrative expenses were $171 million in the second quarter of 2010 as compared to $156 million in the second quarter of 2009. As a percentage of revenue, these expenses were 14.5% in the second quarter of 2010 compared to 13.9% in the second quarter of 2009. Pension costs included in selling, general, and administrative expenses were $16 million in the second quarter of 2010 as compared to $12 million in the second quarter of 2009. After considering the effect of higher pension costs, the increase is due to higher incentive compensation costs, as well as $7 million of incremental costs related to the relocation of the Companys global headquarters.

Research and development expenses were $39 million in the second quarter of 2010 as compared to $34 million in the second quarter of 2009. As a percentage of revenue, these costs were 3.3% in the second quarter of 2010 compared to 3.0% in the second quarter of 2009. Pension costs included in research and development expenses were $6 million in the second quarter of 2010 as compared to $4 million in the second quarter of 2009. After considering the effect of pension costs, research and development expenses remained consistent as a percentage of revenue even with higher incentive compensation costs during the second quarter of 2010.

During the six months ended June 30, 2010, NCR incurred $106 million of pension expense compared to $77 million in the six months ended June 30, 2009. The increase in pension expense was primarily due to lower expected return on plan assets and increased actuarial loss amortization due to the loss on invested plan assets that we experienced in 2008.

Selling, general, and administrative expenses were $341 million in the six months ended June 30, 2010 as compared to $315 million in the six months ended June 30, 2009. As a percentage of revenue, these expenses were 15.5% of revenue in the first six months of 2010 compared to 14.8% in the first six months of 2009. Pension expense was $34 million in 2010 as compared to $25 million in 2009. After considering the effect of higher pension costs, the increase is due to higher incentive compensation costs, a full six months of sales and marketing expenses related to the entertainment business in 2010 as well as $12 million of incremental costs related to the relocation of the Companys global headquarters.

Research and development expenses were $78 million in the six months ended June 30, 2010 as compared to $69 million in the six months ended June 30, 2009. Research and development expenses as a percentage of revenue were 3.5% in the first six months of 2010 and 3.2% in the first six months of 2009. Pension expense was $14 million in 2010 compared to $8 million in 2009. After considering the effect of pension costs, research and development expenses remained consistent as a percentage of revenue.

Other income, net was $1 million in the six months ended June 30, 2010 compared to other expense, net of $4 million in the six months ended June 30, 2009. The increase was due to an impairment charge of $5 million related to an equity method investment recorded in the six months ended June 30, 2009 that was not recurring in the most recent period.

Read the The complete Report

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10qk
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