On its latest quarterly conference call, NCR (NYSE:NCR) did not provide any more details on the anticipated spinoff of its Teradata division; expect this after the first quarter. Still, the good news is that both divisions are continuing to show strong results.

In the fiscal fourth quarter, revenues increased 5% to $1.81 billion. Earnings increased from $150 million, or $0.81 per share, to $174 million or $0.96 per share (see our Fool by Numbers for the key numbers).

The two companies
First, let's take a look at the self-service business segment. The Financial Self Service unit builds ATMs; its revenues increased 6% to $472 million, and its operating income was about $85 million. To wring more efficiencies from this business, NCR recently signed a manufacturing outsourcing agreement with Solectron (NYSE:SLR). The terms of the deal were not disclosed.

Next, the Retail Store Automation unit develops self-check out systems. Revenues were flat at $258 million and operating income increased by $3 million to $22 million.

As for Teradata, revenues increased 15% to $469 million, and operating income was up 26% to $112 million. This division is a leader in data warehousing systems, which help companies centralize their information. With increased globalization and compliance, this is becoming critical technology.

Teradata must compete with strong rivals such as Oracle (NASDAQ:ORCL) and IBM (NYSE:IBM). However, the company has a strong product offering, with marquee clients including Cisco (NASDAQ:CSCO) and Southwest Airlines (NYSE:LUV).

Benefits of the spinoff
Teradata is really a growth story, and with its own stock, it can implement improved incentive plans for employees and leverage its acquisitions. Teradata will also not have to vie for corporate resources from NCR.

NCR, on the other hand, gets much of its revenues from mature business. It can find some growth in foreign markets, and there should be opportunities in its check-out systems, but such things will take time.

As a result, the company is currently focused on finding cost savings. Besides its Solectron deal, NCR is also restructuring its global supply chain and consolidating its call centers. There are also investments in remote services (that is, being able to monitor and fix an ATM machine without sending a maintenance person).

The fact that the company is going to spin off Teradata is another indication of management's serious commitment to increasing shareholder value. Moreover, with several years of key changes, the company has a much stronger foundation and looks poised for continued success. After all, in its fourth-quarter conference call, the company raised its 2007 earnings per share forecast by $0.05 to $2.45 to $2.55.

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Fool contributor Tom Taulli does not own shares of any company mentioned in this article.