NCR Corp. reported a sharp decline in third-quarter net income as the poor global economy hurt demand for automated teller machines.
The Duluth, Ga., company reported last week that it had net income of $15 million, down 81.7% from the year earlier. Revenue from product sales was $541 million, down 28.5%, and revenue from sales of services was $594 million, down 4.5%. Total revenues fell 17.4%, to $1.14 billion.
Though NCR signed some large contracts during the quarter, including an order for 3,800 ATMs from the State Bank of India, Bill Nuti, the company's chairman and chief executive, attributed the declines in both net income and revenue to the slumping global economy.
"In the third quarter, financial services, and especially retail customer investments, were negatively impacted by the global economic downturn in most geographies," Nuti said in a press release.
NCR reported revenue declines in the Americas; the Europe, Middle East and Africa region, and the Asia-Pacific/Japan region.
As a result of the company's third-quarter performance, NCR revised its 2009 operating guidance to $270 million to $290 million, from an earlier projection of $310 million to $350 million.
NCR also said it will cut its worldwide work force of 26,000 by up to 10% to align costs with revenues.