Ncr Corporation (NCR) has reported 78.12 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $57 million, or $0.14 a share in the quarter, compared with $32 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $87 million, or $0.56 a share compared with $61 million or $0.38 a share, a year ago.
Revenue during the quarter went up marginally by 2.35 percent to $1,478 million from $1,444 million in the previous year period. Gross margin for the quarter expanded 163 basis points over the previous year period to 27.94 percent. Total expenses were 92.08 percent of quarterly revenues, down from 93.01 percent for the same period last year. This has led to an improvement of 92 basis points in operating margin to 7.92 percent.
Operating income for the quarter was $117 million, compared with $101 million in the previous year period.
However, the adjusted operating income for the quarter stood at $160 million compared to $139 million in the prior year period. At the same time, adjusted operating margin improved 120 basis points in the quarter to 10.83 percent from 9.63 percent in the last year period.
"We are off to a strong start in 2017, with results that exceeded expectations and position us well to accomplish our full year goals," said chairman and chief executive officer Bill Nuti. "We generated solid revenue growth and gross margin expansion across each of our business segments driven by our leading portfolio of global omni-channel and channel transformation solutions. In Software, we experienced continued strong demand, including for our cloud solutions while also benefiting from improved efficiency and scale. Our Services business expanded its recurring and implementation revenues and we further advanced our business process improvement initiatives. Store transformation momentum drove further growth in self-checkout revenue in our Hardware business and we are gaining scale as we introduce new products across key markets. Looking ahead, we will remain a global leader in omni-channel software, channel transformation and digital enablement and our solutions support customers of all sizes as they effectively transform their businesses and compete in the digital world. Our focus remains centered on strong execution, innovation, and driving customer success."
For the second-quarter, Ncr Corporation expects revenue to be in the range of $1,590 million to $1,620 million. The company projects diluted earnings per share to be in the range of $0.53 to $0.60. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.72 to $0.77.
For financial year 2017, Ncr Corporation expects revenue to be in the range of $6,630 million to $6,750 million. The company projects diluted earnings per share to be in the range of $2.20 to $2.32. The company projects diluted earnings per share to be in the range of $3.32 to $3.42 on adjusted basis.
Operating cash flow improves significantlyNcr Corporation has generated cash of $43 million from operating activities during the quarter, up 86.96 percent or $20 million, when compared with the last year period. The company has spent $53 million cash to meet investing activities during the quarter as against cash outgo of $48 million in the last year period.
The company has spent $92 million cash to carry out financing activities during the quarter as against cash inflow of $42 million in the last year period.
Cash and cash equivalents stood at $401 million as on Mar. 31, 2017, up 20.42 percent or $68 million from $333 million on Mar. 31, 2016.
Working capital declines
Ncr Corporation has witnessed a decline in the working capital over the last year. It stood at $621 million as at Mar. 31, 2017, down 13.87 percent or $100 million from $721 million on Mar. 31, 2016. Current ratio was at 1.29 as on Mar. 31, 2017, down from 1.36 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 83 days for the last year period. Days sales outstanding went down to 78 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 34 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went up to 60 days for the quarter from 56 for the same period last year.
Debt comes downNcr Corporation has recorded a decline in total debt over the last one year. It stood at $3,328 million as on Mar. 31, 2017, down 5.43 percent or $191 million from $3,519 million on Mar. 31, 2016. Total debt was 43.08 percent of total assets as on Mar. 31, 2017, compared with 45.39 percent on Mar. 31, 2016. Debt to equity ratio was at 6.22 as on Mar. 31, 2017, down from 6.54 as on Mar. 31, 2016. Interest coverage ratio improved to 3 for the quarter from 2.20 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
