Revenue during the quarter grew 7.26 percent to $1,802 million from $1,680 million in the previous year period. Gross margin for the quarter contracted 175 basis points over the previous year period to 26.58 percent. Total expenses were 91.90 percent of quarterly revenues, up from 91.79 percent for the same period last year. That has resulted in a contraction of 11 basis points in operating margin to 8.10 percent.

Operating income for the quarter was $146 million, compared with $138 million in the previous year period.

However, the adjusted operating income for the quarter stood at $264 million compared to $260 million in the prior year period. At the same time, adjusted operating margin contracted 83 basis points in the quarter to 14.65 percent from 15.48 percent in the last year period.

"Continued fourth-quarter momentum led to a highly successful 2016 and ability to exceed revenue, earnings, and free cash flow expectations," said chairman and chief executive officer Bill Nuti. "We were pleased with our top-line growth in every business, but especially in Software, where revenues continue to expand, particularly for our cloud and software license offerings. Hardware experienced another very strong quarter from ongoing demand for our Self-Checkout and A/ITM edge platforms that deliver channel transformation solutions. Overall, our global omni-channel leadership resulted in strong financial results throughout 2016, and our consistent performance speaks to the value we provide customers as they transform their businesses to effectively compete in the rapidly developing digital economy."

For the first-quarter 2017, NCR Corporation projects revenue to be in the range of $1,450 million to $1,470 million. The company forecasts diluted earnings per share to be in the range of $0.17 to $0.25. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.43 to $0.48. 

For financial year 2017, NCR Corporation projects revenue to be in the range of $6,600 million to $6,720 million. The company forecasts diluted earnings per share to be in the range of $2.56 to $2.69. The company forecasts diluted earnings per share to be in the range of $3.25 to $3.35 on adjusted basis.

The company has spent $189 million cash to meet investing activities during the year as against cash outgo of $209 million in the last year.

The company has spent $467 million cash to carry out financing activities during the year as against cash outgo of $583 million in the last year period.

Cash and cash equivalents stood at $498 million as on Dec. 31, 2016, up 51.83 percent or $170 million from $328 million on Dec. 31, 2015.

Working capital increases marginally
NCR Corporation has recorded an increase in the working capital over the last year. It stood at $792 million as at Dec. 31, 2016, up 3.12 percent or $24 million from $768 million on Dec. 31, 2015. Current ratio was at 1.40 as on Dec. 31, 2016, down from 1.43 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 30 days for the quarter from 34 days for the last year period. Days sales outstanding went down to 33 days for the quarter compared with 34 days for the same period last year.

Days inventory outstanding was almost stable at 24 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 27 days for the quarter from 25 for the same period last year.