The maker of retail and financial electronics reported a revenue boost of 5.2% to $1.61 billion, while profits increased 26% to $98 million, or $0.54 per share. The spinoff expenses cost the firm about $21 million, or $0.11 per share.
Revenue in the ATM business posted a healthy 11% increase to $380 million. This sector got a nice boost from the Asia-Pacific region, and it also helps that NCR has been outsourcing manufacturing to Solectron
However, the retail store automation division -- which involves items such as self-checkout systems -- had a disappointing Q2. Revenue here came in at $221 million, for zero growth. The long-term prospects look promising, though. For example, airlines are starting to use self-checkout systems to lower costs. There are also opportunities in health care.
As for Teradata, which provides sophisticated data-warehousing solutions, the growth continues apace. In Q2, its revenue increased 9% to $433 million. It makes sense -- with companies using more and more data, this should be a healthy market for some time. In fact, there are rumors that Teradata could be a buyout target for companies such as IBM
So far, the spinoff process appears to have been smooth. Teradata should begin trading on the NYSE by about Oct. 1.
As I've written before, the spinoff is a sensible move. Keep in mind that NCR and Teradata have operated as essentially different businesses, and there are minimal synergies between them. By being separate, both companies can focus on their core strengths as well as continue to reduce costs. So at least in the business world, a divorce can be a good thing.
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Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares of companies mentioned in this article. He is ranked 1,951 out of more than 60,000 investors in Motley Fool CAPS. The Fool has a disclosure policy.