NCR Corp. yesterday reported strong fourth-quarter and year-end results despite a decline in enterprise server sales. The quarter marked the company's first revenue increase since 1995.
Revenue for the quarter ended Dec. 31 was $2 billion, up 4% from the year-ago period. Net income was up 36% to $49 million, or 49 cents a share. Net income included a $50 million one-time charge associated with an employment reduction in Japan.
Orders were down 10% compared with the same quarter last year. Revenue from retail products was up 38% to $194 million, while financial products revenue was up 9% to $427 million. Customer-support services revenue was up 8% to $615 million, and revenue from NCR's Systemedia business gained 9% to $157 million. The company said enterprise server revenue was down 12% to $111 million due to a $20 million year-over-year drop in revenue from the Japan and Asia-Pacific regions.
For the year, net income jumped to $122 million, or $1.20 a share, from $7 million, or 7 cents a share, year over year. Revenue was down 1% to about $6.5 billion.
Meanwhile, storage and server vendor Data General Corp. reported first-quarter fiscal 1999 income of $16.5 million, or 32 cents a share, on revenue of $365.6 million for the period ended Dec. 26. The results included a gain of $7.5 million, or 15 cents a share, from a tax settlement with the Internal Revenue Service as well as a $5.4 million, or 10 cents per share, gain from the sales of an investment, according to the company. This compares with net income of $3.5 million, or 7 cents a share, on revenue of $365.3 million year over year.
The company said it saw strong growth in its Aviion servers and its Clariion Fibre Channel storage products.