NCR Corp posted a surprise break-even performance for its first fiscal quarter, when analysts surveyed by First Call were expecting a loss of $0.05 per share. In the year-ago quarter, the company saw a loss of $16m. But the company’s revenue deterioration continues, with revenue for the quarter totaling $1.31bn, down 5.8% year-over-year and down 34.2% sequentially from the fourth quarter’s $1.99bn. Gross margins fell to 27% from 28.8% a year ago and 27.4% last quarter and pressure on operating results are being exacerbated by the Asian situation and the strong dollar, the company says. NCR says that in constant currency, revenue declined only 2%, but total orders posted a double-digit decline in both dollar-reported and local currency. Sales in the retail and financial products businesses grew for the second consecutive quarter, but computer systems and data warehousing saw declines of 18.9% and 20.9%, respectively. Every other line of business, including customer support and professional services, saw slight to moderate erosion. The restructuring announced last October has also carried over into this year, but is now history, chief executive Lars Nyberg says. He feels the company is positioned for growth in the second quarter and for the rest of the year. On the bright side, expenses were down 7% from last year at $388m. The balance sheet also looks strong, with $1.11bn in cash and short term investments, debt of $106m and total shareholders’ equity of $1.36bn. NCR shares fell $0.1875 to $32.50.
