NCR Prepares for Spinoff: Fool by Numbers

On Jan. 25, NCR (NYSE: NCR) released fourth-quarter earnings for the period ended Dec. 31, 2006.

• Revenues were up 5.5%, backed by a 15% increase in sales from Teradata Data Warehousing, expected to be spun off this year.
• NCR raised its 2007 earnings guidance by $0.05, to $2.45-$2.55 per share, on lower-than-previously-expected pension expense in 2007.
• The company's capital spending increased 145.5% because of new initiatives and increased investment in software development and corporate infrastructure.
• NCR carries a two-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$1,811	$1,717	5.5%
Net Profit	$174	$150	16.0%
EPS	$0.96	$0.81	18.5%
Diluted Shares	181.2	185.9	(2.5%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	30.3%	30.8%	(0.4)
Operating Margin	11.3%	10.0%	1.4
Net Margin	9.6%	8.7%	0.9

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$947	$810	16.9%
Accounts Rec.	$1,408	$1,305	7.9%
Inventory	$677	$595	13.8%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$534	$490	9.0%
Long-Term Debt	$306	$305	0.3%

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q4 2006	Q4 2005	Change
Cash From Ops.	$194	$211	(8.1%)
Capital Expenditures	$54	$22	145.5%
Free Cash Flow	$140	$189	(25.9%)

Find out why Fools always follow the money.

Related Companies:

• Electronic Data Systems (NYSE: EDS)
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• Affiliated Comp Services (NYSE: ACS)
• Unisys (NYSE: UIS)
• Acxiom (Nasdaq: ACXM)

Related Foolishness:

• NCR: No More Split Personality
• NCR: The Cash Register Is Still Ringing
• Diebold Votes for ATMs

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.