NCR plays down loss and focuses on the global picture

By PETER GRIFFIN

The regional chief of hardware maker NCR has shrugged off a $6.5 million loss reported last month, saying the global performance of the company is what really matters.

NCR, the largest local provider of automatic teller Machines to banks, generated revenue of $59.3 million in 2001, down from $74.2 million the previous year when it reported a loss of $5.7 million.

The company received a tax credit of $45,000 for 2001, Companies Office records show.

The managing director of NCR, Julian Beavis, put the 2001 loss down to restructuring aimed at positioning NCR's data warehousing division, Teradata, as a more important part of the business.

"It reflects locally the reorganisation that's gone on. The clearest indication of the health of a multinational is the corporate result rather than the ins and outs of various subsidiaries," said Beavis, who also manages Teradata's business throughout the Pacific and Southeast Asia.

He added that some of NCR's revenue was reported to Australia, which skewed the local results. "I wouldn't begin to understand international tax law and transfer pricing but every so often we get audited and we come up clean."

The reorganisation that went on at NCR during 2001 was aimed at giving Teradata, which NCR acquired around 10 years ago, better resources.

Beavis said Teradata was "swallowed" by NCR and was not recognised as the growth generator it had the potential to become until about 18 months ago.

While large regional losses are not unusual for IT companies struggling to counter sluggish market conditions, tax authorities on both sides of the Tasman are paying closer attention to the transfer pricing and inter-company payment policies of the multinationals.

Other figures posted with the Companies Office show a mixed bag of results from the ICT industry, though ever-optimistic country managers would argue the figures never paint the whole picture.

Cisco - In January the networking company reported $11 million in revenue for the year to July 28, 2001, and a surplus of $677,000.

Motorola- The mobile equipment and handset vendor turned a profit of $7.3 million on revenue of $18 million in the year to December 31, 2001, showing the high margin business the company was engaged in.

Kyocera Mita - The photocopier maker in December reported flat revenue of $5.2 million for the year to last March 31 and a surplus of just $21,530.

Nokia - The mobile giant's revenue slumped to $86.3 million in the year to December 31, 2001, from $121 million in the previous year. But the reduced turnover was more profitable for Nokia, which produced a surplus of $3.8 million compared with $1.4 million the year before.

Hitachi Data Systems- The electronics giant had turnover of $11.9 million locally in the year to last March 31 and reported a surplus of $107,000.

IDG Communications- The tech title publisher in December reported a $1.1 million loss on revenue of $9.8 million for the period ending September 30, reflecting reduced advertising from the IT industry.