DAYTON, Ohio (AP) _ NCR Corp. said Monday that its second-quarter earnings will be as much as nearly 40 percent below expectations, primarily because many customers postponed decisions to upgrade their computer systems.
The news sent NCR stock down more than 14 percent, or $6.46, to $38.31 in midday trading on the New York Stock Exchange.
The Dayton-based computer services company said it expects its earnings to be between 35 cents and 37 cents a share for the three-month period that ended June 30. Analysts polled by Thomson Financial/First Call had estimated earnings would be 57 cents a share.
NCR said the lower earnings were largely due to the effect of the economy on the company’s data warehousing business.
Customers with more than $60 million of expected data warehouse upgrades postponed the upgrades, many in the final days of the second quarter, NCR said.
Data warehouses are computer database systems that enable retailers and other companies to tap large stores of information and get quick answers to complex queries about their inventories and other aspects of their business.
NCR said its also was hurt by slower than anticipated growth in its telecommunications markets.
The company said it expects its second-quarter revenue to be about $1.5 billion, a 3 percent increase over the same period a year ago.
NCR also announced that Howard Lance has been chosen president of NCR and chief executive of the company’s retail and financial group. Lance, former executive vice president for Emerson, will report to NCR Chairman Lars Nyberg. Lance replaces William Amelio, who left NCR in March for family reasons.
NCR provides computer services and manufactures ATMs and electronic checkout scanners for retailers. The company employs 33,200 workers in more than 100 countries.
On the Net:
NCR Corp.: http://www.ncr.com