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Revenue fell to $1.36 billion from $1.38 billion a year earlier on declines in sales of data warehouse systems, called Teradata, and automated tellers. Revenue would have fallen further but for the benefit of the weaker dollar, which boosts the value of overseas sales when they are converted into dollars.

Analysts on average were expecting earnings of 12 cents per share and revenue of $1.38 billion, according to Reuters Research, a unit of Reuters Group Plc.

"I think they showed a really good ATM number. I think if anything Teradata revenues weren't up to their expectations but it seems like the (order) backlog was good," said Kartik Mehta, an analyst at FTN Midwest Research. His firm does not do investment banking and he does not own shares.

NCR is in the midst of a restructuring under Mark Hurd, who was named chief executive officer in February. The company has cut costs by trimming jobs and cutting back on retirement and medical benefits. Investors have rewarded the company for its efforts -- NCR shares have risen about 42 percent this year.

Pension costs for the quarter were $31 million, compared with pension income of $19 million a year earlier. Pension costs have risen due to the drop in the stock market since the run-up of the 1990s and changes in interest rates.

NCR, which said on Tuesday that Chief Financial Officer Earl Shanks would leave next month, said earnings would be between 55 and 60 cents per share for the fourth quarter. Analysts polled by Reuters Research on average were expecting 59 cents.

Shares of NCR were down 57 cents at $33.77 in afternoon trade on the New York Stock Exchange (News - Websites) .

For the third quarter, revenues from large database systems, called data warehouses, fell 4 percent due to restrained capital spending on big-ticket items. ATM sales fell 6 percent on weaker-than-expected installations in the Asia-Pacific region.