NCR Reports Strong Operating Performance

Broad-Based First Quarter Revenue Growth of 10 Percent

Led by a 21% Increase in Data Warehousing



Apr 17, 2001, 01:00 ET from NCR Corporation

    DAYTON, Ohio, April 17 /PRNewswire/ -- NCR Corporation (NYSE:   NCR) today
 announced strong operating performance for the first quarter ended
 March 31, 2001, including a 10 percent increase in revenue to $1.38 billion.
 On a constant currency basis, revenue increased 13 percent.  Operating income
 exceeded expectations.
     The company reported net income of  $117 million, or $1.18 per diluted
 share for the first quarter, including the effects of a favorable tax
 adjustment, the implementation of SFAS 133, integration charges related to the
 October 2000 acquisition of 4Front Technologies Inc., and the previously
 announced bad debt write-down related to an ATM customer.  Excluding these
 items, operating earnings were $22 million compared to a $4 million operating
 loss in the year-ago quarter.  Related net income and earnings per diluted
 share grew 83 percent to $11 million and $0.11, respectively.
 
     Highlights for the quarter included:
     *  The 10 percent broad-based revenue growth was generated from all key
         solutions, including 21 percent in Data Warehousing, 18 percent in
         Retail Store Automation and 8 percent in Financial Self Service.
     *  Data Warehousing added new customers at a growth rate in excess of
         20 percent over the prior year.  Broad-based revenue growth across
         multiple regions and industries was led by significantly higher
         software and professional consulting services revenues.
     *  Retail Store Automation delivered strong earnings improvement, driven
         by productivity gains and excellent revenue growth led by new
         products.
     *  Financial Self Service experienced revenue growth across regions and
         market segments with improved profitability.
     *  A significant increase in high-availability services helped deliver
         strong growth in Customer Services.
     *  Overall, revenue growth was robust across regions with Americas up
         8 percent, Europe/Middle East/Africa up 14 percent (20 percent on a
         constant currency basis) and Asia/Pacific (including Japan) up
         8 percent (18 percent on a constant currency basis).
     *  Order activity was strong, resulting in good backlogs entering the
         second quarter.
     *  The $26 million operating earnings improvement from a $4 million loss
         in last year's first quarter was achieved despite $13 million higher
         goodwill expense.
     *  Other Income/Expense was lower than anticipated primarily because of
         lower interest income.
 
     Commenting on the company's first quarter performance, NCR chairman and
 CEO Lars Nyberg said, "I am extremely pleased with the strong operating
 performance delivered by each of our key solutions.  The strength of our
 earnings this quarter clearly demonstrates that we are now a growth company
 and is particularly impressive since it was achieved in a challenging economic
 environment."
     Nyberg added, "We continue to see good momentum in each of our key
 businesses, but we are not immune to an economic slow-down.  However, given
 the current environment, we believe we can meet our targets."
 
     Revenue
     Worldwide revenues increased 10 percent in the quarter to $1.38 billion
 compared to $1.26 billion in the year-ago period.  By solution, Data
 Warehousing sustained strong revenue growth, increasing 21 percent to
 $236 million against a strong prior-year first quarter.  Retail Store
 Automation revenue grew 18 percent, Financial Self Service revenues increased
 8 percent and Customer Services Maintenance revenues improved 7 percent over
 the prior-year first quarter.  Both Systemedia and Payment and Imaging
 revenues increased 2 percent over the prior-year quarter.  Other revenues
 increased 3 percent to $126 million from $122 million, as declines in the
 exited solutions were more than offset by growth in high-availability
 services.  Currency had a negative 3 percent impact on overall revenues;
 growth in each of the three key solutions was negatively impacted by at least
 4 percent.
 
     Gross Margin
     Reported gross margin was 29.8 percent of revenues, up 1.3 points over
 last year's first quarter gross margin of 28.5 percent.  Excluding special
 items, gross margin for the first quarter increased 0.3 points to
 29.9 percent. Product gross margin increased 0.8 points to 35.9 percent, while
 services gross margin decreased 0.2 points to 23.8 percent.
 
     Expenses
     Total reported expenses in the first quarter were $429 million compared to
 $376 million in the previous year.  Excluding special items, expenses
 increased $14 million over the $375 million of expense incurred in the
 prior-year period.  Expense reductions from successful productivity
 initiatives were offset by incremental expenses and goodwill associated with
 recent acquisitions.  Acquisition-related goodwill amortization included in
 selling, general and administrative expense in the quarter increased to
 $16 million, compared with $3 million in the year-ago period.  Research and
 development expenses were $76 million, or 5.5 percent of revenue, versus
 $70 million, or 5.6 percent of revenue, in the prior-year period.
 
     Operating and Net Income
     NCR reported an operating loss of $19 million for the first quarter of
 2001.  Excluding $2 million of integration charges related to the 4Front
 Technologies acquisition and a previously disclosed $39 million charge related
 to loans and receivables from Credit Card Center (CCC), NCR's operating income
 was $22 million in the current quarter compared to a $4 million operating loss
 in the year-ago period.
     In Other Income/Expense, excluding $1 million of CCC-related charges, NCR
 incurred other expense of $6 million in the first quarter compared to other
 income of $13 million in the first quarter of 2000.  The decrease in other
 income was driven largely by lower interest income, as a result of the use of
 cash for acquisitions and share repurchases.
     Reported net income was $117 million, or $1.18 per diluted share compared
 to a net loss of $5 million, or a loss of  $0.05 per diluted share in the
 prior-year quarter.  Before special items, net income was $11 million, or
 $0.11 per diluted share, compared to $6 million, or $0.06 per diluted share in
 the first quarter of 2000.  Excluding goodwill charges, earnings per diluted
 share would have been $0.28 versus $0.10 in the prior-year period.
     Excluding special items, the tax rate for the quarter was 33 percent.
 During the first quarter of 2001, the company recorded a $138 million
 adjustment to its tax provisions following the successful conclusion of a tax
 audit of its 1993-94 international operations.  In addition, a net-of-tax
 $4 million charge for the cumulative effect of the implementation of SFAS
 No. 133, "Accounting for Derivative Instruments and Hedging Activities," was
 recognized.  These items are not included in the $11 million of net income,
 before special items.
     The weighted average number of shares outstanding on a fully diluted basis
 increased to 99.3 million in the first quarter from 96.5 million a year ago.
 
     Balance Sheet
     NCR ended the first quarter of 2001 with $325 million in cash and
 short-term investments, down from $357 million on December 31, 2000, primarily
 the result of share repurchases during the quarter.  As of March 31, 2001, NCR
 had debt of $133 million and total shareholders' equity of $1.9 billion.
     During the quarter, the company repurchased approximately 450,000 shares
 of its stock for approximately $20 million as part of the systematic
 repurchase program authorized in December 2000.  In addition, there is
 approximately $181 million remaining under the authorization received from
 NCR's Board of Directors in October 1999.
     At the end of the first quarter, NCR employed approximately 33,200 people
 worldwide, including contractors, up 300 from 32,900 at the end of the fourth
 quarter of 2000.
 
     Outlook and Financial Guidance
     Second quarter 2001 revenue growth is targeted at 5 percent, including
 15-20 percent revenue growth from Data Warehousing.  Retail Store Automation,
 Financial Self Service, and Customer Services should generate revenue growth
 in the low single-digits in the second quarter.  NCR is targeting 20 percent
 growth in operating income for the second quarter; however, other income will
 be minimal.
     The company expects interest and other income to improve in the second
 half of the year but only anticipates $20 million for the full year.  NCR is
 comfortable with the current range of analysts' earnings-per-share estimates;
 based on these ranges, analysts' consensus estimates for full-year earnings
 per share is $2.64.
 
     About NCR Corporation
     NCR Corporation (NYSE:   NCR) is a leader in providing Relationship
 Technology(TM) solutions to customers worldwide in the retail, financial,
 communications, manufacturing, travel and transportation, and insurance
 markets.  NCR's Relationship Technology solutions include privacy-enabled
 Teradata(R) warehouses and customer relationship management (CRM)
 applications, store automation and automated teller machines (ATMs).  The
 company's business solutions are built on the foundation of its
 long-established industry knowledge and consulting expertise, value-adding
 software, global customer support services, a complete line of consumable and
 media products, and leading edge hardware technology.  NCR employs 33,200 in
 more than 100 countries, and is a component stock of the Standard & Poor's
 500 Index.  More information about NCR and its solutions may be found at
 www.ncr.com .
 
     NCR and Teradata are trademarks or registered trademarks of NCR
 Corporation in the United States and other countries.
 
     Other Information
     To discuss these results, NCR Chairman and Chief Executive Officer Lars
 Nyberg and NCR Chief Financial Officer David Bearman will host a conference
 call today at 10:30 a.m. (ET).  Live access and a replay of the conference
 call is available from NCR's website at
 http://www.ncr.com/investors/invest_rel.htm .
     NCR has scheduled its annual analyst and investor meeting to be held from
 8:00 a.m. until 12:00 p.m. on July 24, 2001 at the Hudson Theatre, 145 West
 44th Street, New York, NY.  NCR's management team will discuss the current
 state of its businesses and share its strategic vision for the future.  To
 register your attendance for this meeting, please call (937) 445-5905.
 
     Note to Investors
     This news release contains forward-looking statements, including
 statements as to anticipated or expected results, beliefs, opinions, and
 future financial performance, within the meaning of Section 21E of the
 Securities and Exchange Act of 1934.  These forward-looking statements include
 any projections of revenue, profit growth and other financial items, future
 economic performance and statements expressing comfort with analysts' earnings
 estimates.  These forward-looking statements are based on current expectations
 and assumptions and involve risks and uncertainties that could cause NCR's
 actual results to differ materially.
     In addition to the factors discussed in this release, other risks and
 uncertainties include:  the timely development, production or acquisition, and
 market acceptance of new and existing products and services; shifts in market
 demands; continued competitive factors and pricing pressures; short product
 cycles and rapidly changing technologies; turnover of workforce and the
 ability to attract and retain skilled employees; tax rates; ability to execute
 the company's business plan; general economic and business conditions; and
 other factors detailed from time to time in the company's Securities and
 Exchange Commission reports and the company's annual reports to stockholders.
 The Company does not undertake any obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
 
                                NCR CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                    (in millions, except per share amounts)
 
                                             Three Months Ended March 31
                                                  2001        2000
     Revenue
 
     Products                                     $690        $629
     Services                                      686         626
 
     Total Revenue                               1,376       1,255
 
     Cost of Products                              442         412
     Cost of Services                              524         485
 
     Total Gross Margin                            410         358
       % of Revenue                               29.8%       28.5%
 
     Selling, General and
       Administrative Expenses                     353         306
     Research and Development Expenses              76          70
 
     (Loss) from Operations                        (19)        (18)
       % of Revenue                               (1.4%)      (1.4%)
 
     Interest and Other Income/(Expense), Net       (7)         13
 
     (Loss) before Income Taxes and Cumulative
       Effect of Accounting Change                 (26)         (5)
       % of Revenue                               (1.9%)      (0.4%)
 
     Income Tax Expense/(Benefit)                 (147)          0
 
     Income/(Loss) before Cumulative Effect
       of Accounting Change                        121          (5)
     Cumulative Effect of Accounting Change,
       Net of Tax (SFAS 133)                        (4)          -
 
     Net Income/(Loss)                            $117         $(5)
       % of Revenue                                8.5%       (0.4%)
 
     Net Income/(Loss) per Common Share
       Basic before Cumulative Effect
         of Accounting Change                    $1.26      $(0.05)
       Cumulative Effect of Accounting
         Change (SFAS 133)                       (0.04)          -
       Basic                                     $1.22      $(0.05)
 
       Diluted before Cumulative Effect
         of Accounting Change                    $1.22      $(0.05)
       Cumulative Effect of Accounting
         Change (SFAS 133)                       (0.04)          -
       Diluted                                   $1.18      $(0.05)
 
     Weighted Average Common Shares Outstanding
       Basic                                      95.7        93.9
       Diluted                                    99.3        96.5
 
     2001 - Significant special items represent charges related to the write-
     down of loans and receivables with Credit Card Center ($40 million),
     integration charges related to the acquisition of 4Front Technologies,
     Inc. ($2 million), the release of prior-year tax exposure reserves
     ($138 million), and the after-tax, cumulative effect of adopting SFAS 133
     ($4 million).
 
     2000 - Significant special items represent restructuring and other related
     charges ($14 million) in connection with the 1999 restructuring plan.
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
 
                                  NCR CORPORATION
                        IMPACT OF SIGNIFICANT SPECIAL ITEMS
                                    (Unaudited)
                      (in millions, except per share amounts)
 
                                                    Three Months Ended March 31
                                                          2001       2000
     Revenue                                             $1,376    $1,255
 
     Gross Margin - base business                           411       371
      % of Revenue                                         29.9%     29.6%
     Special items                                           (1)      (13)
 
     Reported Gross Margin                                  410       358
      % of Revenue                                         29.8%     28.5%
 
     Expenses - base business                               389       375
      % of Revenue                                         28.3%     29.9%
     Special items                                           40         1
 
     Reported Expenses                                      429       376
      % of Revenue                                         31.2%     30.0%
 
     Income/(Loss) from Operations- base business            22        (4)
     Customer receivable write-down                         (39)        -
     Special items                                           (2)      (14)
 
     Reported (Loss) from Operations                        (19)      (18)
 
     Other Income/(Expense), Net - base business             (6)       13
     Customer receivable write-down                          (1)        -
 
     Reported Other Income/(Expense)                         (7)       13
 
     Income before Income Taxes - base business              16         9
     Special items                                          (42)      (14)
 
     Reported (Loss) before Income Taxes
       and Cumulative Effect of Accounting Change           (26)       (5)
 
     Income Taxes - base business                             5         3
     Income Taxes related to special items                 (152)       (3)
 
     Reported Income Tax Expense/(Benefit)                 (147)        0
 
     Cumulative Effect of Accounting Change,
       Net of Tax (SFAS 133)                                 (4)        -
 
     Net Income - base business                              11         6
     Special items                                          106       (11)
 
     Reported Net Income/(Loss)                            $117       $(5)
 
     Earnings per Diluted Share - base business           $0.11     $0.06
     Earnings per Diluted Share - special items           $1.07    $(0.11)
     Reported Earnings per Diluted Share                  $1.18    $(0.05)
 
     2001 - Significant special items represent charges related to the write-
     down of loans and receivables with Credit Card Center ($40 million),
     integration charges related to the acquisition of 4Front Technologies,
     Inc. ($2 million), the release of prior-year tax exposure reserves
     ($138 million), and the after-tax, cumulative effect of adopting SFAS 133
     ($4 million).
 
     2000 - Significant special items represent restructuring and other related
     charges ($14 million) in connection with the 1999 restructuring plan.
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
                                  NCR CORPORATION
             CONSOLIDATED REVENUE SUMMARY and OPERATING INCOME SUMMARY
                                    (Unaudited)
                                   (in millions)
 
                                              Three Months Ended March 31
     Revenue By Solution Offering            2001        2000        % Change
 
     Data Warehousing                        $236        $195          21%
     Financial Self Service                   217         201           8%
     Retail Store Automation                  178         151          18%
 
     Customer Services Maintenance:
       Data Warehousing                        46          44           5%
       Financial Self Service                 119         110           8%
       Retail Store Automation                108         115          (6%)
       Payment and Imaging                     30          29           3%
       Other                                  157         132          19%
     Total Customer Services Maintenance      460         430           7%
 
     Systemedia                               116         114           2%
     Payment and Imaging                       43          42           2%
     Other                                    126         122           3%
     Total Revenue                         $1,376      $1,255          10%
 
     Operating Income/(Loss) - Including
       Customer Services Maintenance
 
     Data Warehousing                        $(10)       $(19)          -
     Financial Self Service                    35          19           -
     Retail Store Automation                  (13)        (27)          -
     Systemedia                                (1)          4           -
     Payment and Imaging                       12           7           -
     Other                                     (1)         12           -
     Total Operating Income/(Loss)*           $22         $(4)          -
 
 
     Goodwill Amortization Reflected in
       Operating Income                       $16          $3           -
 
     *Excludes significant special items.
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
                                  NCR CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in millions)
 
 
                                                       March 31     December 31
                                                         2001          2000
                                                     (Unaudited)
     Assets
     Current assets
       Cash and short-term investments                   $325           $357
       Accounts receivable, net                         1,092          1,338
       Inventories                                        329            288
       Other current assets                               250            251
     Total Current Assets                               1,996          2,234
     Property, plant and equipment, net                   949            960
     Other assets                                       1,851          1,912
     Total Assets                                      $4,796         $5,106
 
     Liabilities and Stockholders' Equity
     Current liabilities
       Short-term borrowings                             $123            $96
       Accounts payable                                   406            521
       Other current liabilities                        1,054          1,218
     Total Current Liabilities                          1,583          1,835
     Long-term debt                                        10             11
     Other long-term liabilities                        1,332          1,502
     Total Liabilities                                  2,925          3,348
     Total Stockholders' Equity                         1,871          1,758
     Total Liabilities and Stockholders' Equity        $4,796         $5,106
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
 
                                  NCR CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    (Unaudited)
                                   (in millions)
 
                                                 Three Months Ended March 31
                                                       2001        2000
     Operating Activities
     Net Income/(Loss)                                 $117        $(5)
     Adjustments to reconcile net income to cash
       provided by (used in) operating activities
        Depreciation and amortization                   105         94
        Net gain on sales of assets                       1          1
        Deferred income taxes                          (131)         2
        Changes in assets and liabilities
         Receivables                                    248         74
         Inventories                                    (40)        12
         Current payables                              (184)      (136)
         Customer deposits and deferred service revenue  88        134
         Timing of disbursements for employee
           severance and pension                        (59)       (69)
         Other assets and liabilities                  (122)       (83)
     Net Cash Provided by Operating Activities           23         24
 
     Investing Activities
     Short-term investments, net                        (10)       (20)
     Net expenditures and proceeds for service parts    (25)       (31)
     Expenditures for property, plant and equipment     (53)       (64)
     Proceeds from sales of property, plant
       and equipment                                      2         23
     Business acquisitions and investments               (3)       (25)
     Other investing activities                          (7)       (27)
     Net Cash (Used in) Investing Activities            (96)      (144)
 
     Financing Activities
     Purchase of Company common stock                   (34)        (2)
     Short-term borrowings, net                          27          2
     Long-term debt, net                                 (1)        (2)
     Other financing activities                          34         24
     Net Cash Provided by Financing Activities           26         22
 
     Effect of exchange rate changes on cash
       and cash equivalents                               5        (15)
 
     (Decrease) in Cash and Cash Equivalents            (42)      (113)
     Cash and Cash Equivalents at Beginning of Period   347        571
 
     Cash and Cash Equivalents at End of Period        $305       $458
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
 

SOURCE NCR Corporation
    DAYTON, Ohio, April 17 /PRNewswire/ -- NCR Corporation (NYSE:   NCR) today
 announced strong operating performance for the first quarter ended
 March 31, 2001, including a 10 percent increase in revenue to $1.38 billion.
 On a constant currency basis, revenue increased 13 percent.  Operating income
 exceeded expectations.
     The company reported net income of  $117 million, or $1.18 per diluted
 share for the first quarter, including the effects of a favorable tax
 adjustment, the implementation of SFAS 133, integration charges related to the
 October 2000 acquisition of 4Front Technologies Inc., and the previously
 announced bad debt write-down related to an ATM customer.  Excluding these
 items, operating earnings were $22 million compared to a $4 million operating
 loss in the year-ago quarter.  Related net income and earnings per diluted
 share grew 83 percent to $11 million and $0.11, respectively.
 
     Highlights for the quarter included:
     *  The 10 percent broad-based revenue growth was generated from all key
         solutions, including 21 percent in Data Warehousing, 18 percent in
         Retail Store Automation and 8 percent in Financial Self Service.
     *  Data Warehousing added new customers at a growth rate in excess of
         20 percent over the prior year.  Broad-based revenue growth across
         multiple regions and industries was led by significantly higher
         software and professional consulting services revenues.
     *  Retail Store Automation delivered strong earnings improvement, driven
         by productivity gains and excellent revenue growth led by new
         products.
     *  Financial Self Service experienced revenue growth across regions and
         market segments with improved profitability.
     *  A significant increase in high-availability services helped deliver
         strong growth in Customer Services.
     *  Overall, revenue growth was robust across regions with Americas up
         8 percent, Europe/Middle East/Africa up 14 percent (20 percent on a
         constant currency basis) and Asia/Pacific (including Japan) up
         8 percent (18 percent on a constant currency basis).
     *  Order activity was strong, resulting in good backlogs entering the
         second quarter.
     *  The $26 million operating earnings improvement from a $4 million loss
         in last year's first quarter was achieved despite $13 million higher
         goodwill expense.
     *  Other Income/Expense was lower than anticipated primarily because of
         lower interest income.
 
     Commenting on the company's first quarter performance, NCR chairman and
 CEO Lars Nyberg said, "I am extremely pleased with the strong operating
 performance delivered by each of our key solutions.  The strength of our
 earnings this quarter clearly demonstrates that we are now a growth company
 and is particularly impressive since it was achieved in a challenging economic
 environment."
     Nyberg added, "We continue to see good momentum in each of our key
 businesses, but we are not immune to an economic slow-down.  However, given
 the current environment, we believe we can meet our targets."
 
     Revenue
     Worldwide revenues increased 10 percent in the quarter to $1.38 billion
 compared to $1.26 billion in the year-ago period.  By solution, Data
 Warehousing sustained strong revenue growth, increasing 21 percent to
 $236 million against a strong prior-year first quarter.  Retail Store
 Automation revenue grew 18 percent, Financial Self Service revenues increased
 8 percent and Customer Services Maintenance revenues improved 7 percent over
 the prior-year first quarter.  Both Systemedia and Payment and Imaging
 revenues increased 2 percent over the prior-year quarter.  Other revenues
 increased 3 percent to $126 million from $122 million, as declines in the
 exited solutions were more than offset by growth in high-availability
 services.  Currency had a negative 3 percent impact on overall revenues;
 growth in each of the three key solutions was negatively impacted by at least
 4 percent.
 
     Gross Margin
     Reported gross margin was 29.8 percent of revenues, up 1.3 points over
 last year's first quarter gross margin of 28.5 percent.  Excluding special
 items, gross margin for the first quarter increased 0.3 points to
 29.9 percent. Product gross margin increased 0.8 points to 35.9 percent, while
 services gross margin decreased 0.2 points to 23.8 percent.
 
     Expenses
     Total reported expenses in the first quarter were $429 million compared to
 $376 million in the previous year.  Excluding special items, expenses
 increased $14 million over the $375 million of expense incurred in the
 prior-year period.  Expense reductions from successful productivity
 initiatives were offset by incremental expenses and goodwill associated with
 recent acquisitions.  Acquisition-related goodwill amortization included in
 selling, general and administrative expense in the quarter increased to
 $16 million, compared with $3 million in the year-ago period.  Research and
 development expenses were $76 million, or 5.5 percent of revenue, versus
 $70 million, or 5.6 percent of revenue, in the prior-year period.
 
     Operating and Net Income
     NCR reported an operating loss of $19 million for the first quarter of
 2001.  Excluding $2 million of integration charges related to the 4Front
 Technologies acquisition and a previously disclosed $39 million charge related
 to loans and receivables from Credit Card Center (CCC), NCR's operating income
 was $22 million in the current quarter compared to a $4 million operating loss
 in the year-ago period.
     In Other Income/Expense, excluding $1 million of CCC-related charges, NCR
 incurred other expense of $6 million in the first quarter compared to other
 income of $13 million in the first quarter of 2000.  The decrease in other
 income was driven largely by lower interest income, as a result of the use of
 cash for acquisitions and share repurchases.
     Reported net income was $117 million, or $1.18 per diluted share compared
 to a net loss of $5 million, or a loss of  $0.05 per diluted share in the
 prior-year quarter.  Before special items, net income was $11 million, or
 $0.11 per diluted share, compared to $6 million, or $0.06 per diluted share in
 the first quarter of 2000.  Excluding goodwill charges, earnings per diluted
 share would have been $0.28 versus $0.10 in the prior-year period.
     Excluding special items, the tax rate for the quarter was 33 percent.
 During the first quarter of 2001, the company recorded a $138 million
 adjustment to its tax provisions following the successful conclusion of a tax
 audit of its 1993-94 international operations.  In addition, a net-of-tax
 $4 million charge for the cumulative effect of the implementation of SFAS
 No. 133, "Accounting for Derivative Instruments and Hedging Activities," was
 recognized.  These items are not included in the $11 million of net income,
 before special items.
     The weighted average number of shares outstanding on a fully diluted basis
 increased to 99.3 million in the first quarter from 96.5 million a year ago.
 
     Balance Sheet
     NCR ended the first quarter of 2001 with $325 million in cash and
 short-term investments, down from $357 million on December 31, 2000, primarily
 the result of share repurchases during the quarter.  As of March 31, 2001, NCR
 had debt of $133 million and total shareholders' equity of $1.9 billion.
     During the quarter, the company repurchased approximately 450,000 shares
 of its stock for approximately $20 million as part of the systematic
 repurchase program authorized in December 2000.  In addition, there is
 approximately $181 million remaining under the authorization received from
 NCR's Board of Directors in October 1999.
     At the end of the first quarter, NCR employed approximately 33,200 people
 worldwide, including contractors, up 300 from 32,900 at the end of the fourth
 quarter of 2000.
 
     Outlook and Financial Guidance
     Second quarter 2001 revenue growth is targeted at 5 percent, including
 15-20 percent revenue growth from Data Warehousing.  Retail Store Automation,
 Financial Self Service, and Customer Services should generate revenue growth
 in the low single-digits in the second quarter.  NCR is targeting 20 percent
 growth in operating income for the second quarter; however, other income will
 be minimal.
     The company expects interest and other income to improve in the second
 half of the year but only anticipates $20 million for the full year.  NCR is
 comfortable with the current range of analysts' earnings-per-share estimates;
 based on these ranges, analysts' consensus estimates for full-year earnings
 per share is $2.64.
 
     About NCR Corporation
     NCR Corporation (NYSE:   NCR) is a leader in providing Relationship
 Technology(TM) solutions to customers worldwide in the retail, financial,
 communications, manufacturing, travel and transportation, and insurance
 markets.  NCR's Relationship Technology solutions include privacy-enabled
 Teradata(R) warehouses and customer relationship management (CRM)
 applications, store automation and automated teller machines (ATMs).  The
 company's business solutions are built on the foundation of its
 long-established industry knowledge and consulting expertise, value-adding
 software, global customer support services, a complete line of consumable and
 media products, and leading edge hardware technology.  NCR employs 33,200 in
 more than 100 countries, and is a component stock of the Standard & Poor's
 500 Index.  More information about NCR and its solutions may be found at
 www.ncr.com .
 
     NCR and Teradata are trademarks or registered trademarks of NCR
 Corporation in the United States and other countries.
 
     Other Information
     To discuss these results, NCR Chairman and Chief Executive Officer Lars
 Nyberg and NCR Chief Financial Officer David Bearman will host a conference
 call today at 10:30 a.m. (ET).  Live access and a replay of the conference
 call is available from NCR's website at
 http://www.ncr.com/investors/invest_rel.htm .
     NCR has scheduled its annual analyst and investor meeting to be held from
 8:00 a.m. until 12:00 p.m. on July 24, 2001 at the Hudson Theatre, 145 West
 44th Street, New York, NY.  NCR's management team will discuss the current
 state of its businesses and share its strategic vision for the future.  To
 register your attendance for this meeting, please call (937) 445-5905.
 
     Note to Investors
     This news release contains forward-looking statements, including
 statements as to anticipated or expected results, beliefs, opinions, and
 future financial performance, within the meaning of Section 21E of the
 Securities and Exchange Act of 1934.  These forward-looking statements include
 any projections of revenue, profit growth and other financial items, future
 economic performance and statements expressing comfort with analysts' earnings
 estimates.  These forward-looking statements are based on current expectations
 and assumptions and involve risks and uncertainties that could cause NCR's
 actual results to differ materially.
     In addition to the factors discussed in this release, other risks and
 uncertainties include:  the timely development, production or acquisition, and
 market acceptance of new and existing products and services; shifts in market
 demands; continued competitive factors and pricing pressures; short product
 cycles and rapidly changing technologies; turnover of workforce and the
 ability to attract and retain skilled employees; tax rates; ability to execute
 the company's business plan; general economic and business conditions; and
 other factors detailed from time to time in the company's Securities and
 Exchange Commission reports and the company's annual reports to stockholders.
 The Company does not undertake any obligation to publicly update or revise any
 forward-looking statements, whether as a result of new information, future
 events or otherwise.
 
 
                                NCR CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                    (in millions, except per share amounts)
 
                                             Three Months Ended March 31
                                                  2001        2000
     Revenue
 
     Products                                     $690        $629
     Services                                      686         626
 
     Total Revenue                               1,376       1,255
 
     Cost of Products                              442         412
     Cost of Services                              524         485
 
     Total Gross Margin                            410         358
       % of Revenue                               29.8%       28.5%
 
     Selling, General and
       Administrative Expenses                     353         306
     Research and Development Expenses              76          70
 
     (Loss) from Operations                        (19)        (18)
       % of Revenue                               (1.4%)      (1.4%)
 
     Interest and Other Income/(Expense), Net       (7)         13
 
     (Loss) before Income Taxes and Cumulative
       Effect of Accounting Change                 (26)         (5)
       % of Revenue                               (1.9%)      (0.4%)
 
     Income Tax Expense/(Benefit)                 (147)          0
 
     Income/(Loss) before Cumulative Effect
       of Accounting Change                        121          (5)
     Cumulative Effect of Accounting Change,
       Net of Tax (SFAS 133)                        (4)          -
 
     Net Income/(Loss)                            $117         $(5)
       % of Revenue                                8.5%       (0.4%)
 
     Net Income/(Loss) per Common Share
       Basic before Cumulative Effect
         of Accounting Change                    $1.26      $(0.05)
       Cumulative Effect of Accounting
         Change (SFAS 133)                       (0.04)          -
       Basic                                     $1.22      $(0.05)
 
       Diluted before Cumulative Effect
         of Accounting Change                    $1.22      $(0.05)
       Cumulative Effect of Accounting
         Change (SFAS 133)                       (0.04)          -
       Diluted                                   $1.18      $(0.05)
 
     Weighted Average Common Shares Outstanding
       Basic                                      95.7        93.9
       Diluted                                    99.3        96.5
 
     2001 - Significant special items represent charges related to the write-
     down of loans and receivables with Credit Card Center ($40 million),
     integration charges related to the acquisition of 4Front Technologies,
     Inc. ($2 million), the release of prior-year tax exposure reserves
     ($138 million), and the after-tax, cumulative effect of adopting SFAS 133
     ($4 million).
 
     2000 - Significant special items represent restructuring and other related
     charges ($14 million) in connection with the 1999 restructuring plan.
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
 
                                  NCR CORPORATION
                        IMPACT OF SIGNIFICANT SPECIAL ITEMS
                                    (Unaudited)
                      (in millions, except per share amounts)
 
                                                    Three Months Ended March 31
                                                          2001       2000
     Revenue                                             $1,376    $1,255
 
     Gross Margin - base business                           411       371
      % of Revenue                                         29.9%     29.6%
     Special items                                           (1)      (13)
 
     Reported Gross Margin                                  410       358
      % of Revenue                                         29.8%     28.5%
 
     Expenses - base business                               389       375
      % of Revenue                                         28.3%     29.9%
     Special items                                           40         1
 
     Reported Expenses                                      429       376
      % of Revenue                                         31.2%     30.0%
 
     Income/(Loss) from Operations- base business            22        (4)
     Customer receivable write-down                         (39)        -
     Special items                                           (2)      (14)
 
     Reported (Loss) from Operations                        (19)      (18)
 
     Other Income/(Expense), Net - base business             (6)       13
     Customer receivable write-down                          (1)        -
 
     Reported Other Income/(Expense)                         (7)       13
 
     Income before Income Taxes - base business              16         9
     Special items                                          (42)      (14)
 
     Reported (Loss) before Income Taxes
       and Cumulative Effect of Accounting Change           (26)       (5)
 
     Income Taxes - base business                             5         3
     Income Taxes related to special items                 (152)       (3)
 
     Reported Income Tax Expense/(Benefit)                 (147)        0
 
     Cumulative Effect of Accounting Change,
       Net of Tax (SFAS 133)                                 (4)        -
 
     Net Income - base business                              11         6
     Special items                                          106       (11)
 
     Reported Net Income/(Loss)                            $117       $(5)
 
     Earnings per Diluted Share - base business           $0.11     $0.06
     Earnings per Diluted Share - special items           $1.07    $(0.11)
     Reported Earnings per Diluted Share                  $1.18    $(0.05)
 
     2001 - Significant special items represent charges related to the write-
     down of loans and receivables with Credit Card Center ($40 million),
     integration charges related to the acquisition of 4Front Technologies,
     Inc. ($2 million), the release of prior-year tax exposure reserves
     ($138 million), and the after-tax, cumulative effect of adopting SFAS 133
     ($4 million).
 
     2000 - Significant special items represent restructuring and other related
     charges ($14 million) in connection with the 1999 restructuring plan.
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
                                  NCR CORPORATION
             CONSOLIDATED REVENUE SUMMARY and OPERATING INCOME SUMMARY
                                    (Unaudited)
                                   (in millions)
 
                                              Three Months Ended March 31
     Revenue By Solution Offering            2001        2000        % Change
 
     Data Warehousing                        $236        $195          21%
     Financial Self Service                   217         201           8%
     Retail Store Automation                  178         151          18%
 
     Customer Services Maintenance:
       Data Warehousing                        46          44           5%
       Financial Self Service                 119         110           8%
       Retail Store Automation                108         115          (6%)
       Payment and Imaging                     30          29           3%
       Other                                  157         132          19%
     Total Customer Services Maintenance      460         430           7%
 
     Systemedia                               116         114           2%
     Payment and Imaging                       43          42           2%
     Other                                    126         122           3%
     Total Revenue                         $1,376      $1,255          10%
 
     Operating Income/(Loss) - Including
       Customer Services Maintenance
 
     Data Warehousing                        $(10)       $(19)          -
     Financial Self Service                    35          19           -
     Retail Store Automation                  (13)        (27)          -
     Systemedia                                (1)          4           -
     Payment and Imaging                       12           7           -
     Other                                     (1)         12           -
     Total Operating Income/(Loss)*           $22         $(4)          -
 
 
     Goodwill Amortization Reflected in
       Operating Income                       $16          $3           -
 
     *Excludes significant special items.
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
                                  NCR CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in millions)
 
 
                                                       March 31     December 31
                                                         2001          2000
                                                     (Unaudited)
     Assets
     Current assets
       Cash and short-term investments                   $325           $357
       Accounts receivable, net                         1,092          1,338
       Inventories                                        329            288
       Other current assets                               250            251
     Total Current Assets                               1,996          2,234
     Property, plant and equipment, net                   949            960
     Other assets                                       1,851          1,912
     Total Assets                                      $4,796         $5,106
 
     Liabilities and Stockholders' Equity
     Current liabilities
       Short-term borrowings                             $123            $96
       Accounts payable                                   406            521
       Other current liabilities                        1,054          1,218
     Total Current Liabilities                          1,583          1,835
     Long-term debt                                        10             11
     Other long-term liabilities                        1,332          1,502
     Total Liabilities                                  2,925          3,348
     Total Stockholders' Equity                         1,871          1,758
     Total Liabilities and Stockholders' Equity        $4,796         $5,106
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
 
                                  NCR CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    (Unaudited)
                                   (in millions)
 
                                                 Three Months Ended March 31
                                                       2001        2000
     Operating Activities
     Net Income/(Loss)                                 $117        $(5)
     Adjustments to reconcile net income to cash
       provided by (used in) operating activities
        Depreciation and amortization                   105         94
        Net gain on sales of assets                       1          1
        Deferred income taxes                          (131)         2
        Changes in assets and liabilities
         Receivables                                    248         74
         Inventories                                    (40)        12
         Current payables                              (184)      (136)
         Customer deposits and deferred service revenue  88        134
         Timing of disbursements for employee
           severance and pension                        (59)       (69)
         Other assets and liabilities                  (122)       (83)
     Net Cash Provided by Operating Activities           23         24
 
     Investing Activities
     Short-term investments, net                        (10)       (20)
     Net expenditures and proceeds for service parts    (25)       (31)
     Expenditures for property, plant and equipment     (53)       (64)
     Proceeds from sales of property, plant
       and equipment                                      2         23
     Business acquisitions and investments               (3)       (25)
     Other investing activities                          (7)       (27)
     Net Cash (Used in) Investing Activities            (96)      (144)
 
     Financing Activities
     Purchase of Company common stock                   (34)        (2)
     Short-term borrowings, net                          27          2
     Long-term debt, net                                 (1)        (2)
     Other financing activities                          34         24
     Net Cash Provided by Financing Activities           26         22
 
     Effect of exchange rate changes on cash
       and cash equivalents                               5        (15)
 
     (Decrease) in Cash and Cash Equivalents            (42)      (113)
     Cash and Cash Equivalents at Beginning of Period   347        571
 
     Cash and Cash Equivalents at End of Period        $305       $458
 
     Certain prior-year amounts have been reclassified to conform to the 2001
     presentation.
 
 SOURCE  NCR Corporation