DULUTH, Ga. NCR Corp. reported a $61 million profit for its first quarter, compared to a $19 million loss for the first quarter last year, as revenue surged 13%.
First quarter revenue was $1.41 billion. The company’s financial services segment posted first-quarter revenue of $714 million, an increase of 3% from the year-ago period. NCR’s Retail Solutions generated revenue of $489 million in the first quarter, up 41%. That surge reflected in part the company’s acquisition of software provider Retalix Ltd. in February. Retalix revenue was $50 million in the first quarter of 2013 and contributed $9 million to operating income.
The company’s hospitality division generated revenue of $131 million in the first quarter, an increase of 16% compared with the year-ago period. NCR’s emerging industries division posted revenue of $76 million, a decline of 15%.
The company said its first quarter performance was aided by a change in accounting for employee retirement benefits. From 2013 forward, NCR will recognize changes in fair values of plan assets and net actuarial gains and losses in the year incurred, generally in the fourth quarter of each year, which were previously deferred and amortized over time into pension expense.
While NCR’s previous policy of recognizing pension expense was considered acceptable under applicable accounting guidance, NCR said it believes these new policies are preferable as they accelerate the recognition in its operating results of changes in the fair value of plan assets and actuarial gains and losses.
