NCR Corporation (NYSE:NCR) Q1 2022 Earnings Conference Call April 26, 2022 4:30 PM ET
Company Participants
Michael Nelson - Treasurer and VP of IR
Michael Hayford - CEO
Owen Sullivan - President and COO
Tim Oliver - CFO
Conference Call Participants
Erik Woodring - Morgan Stanley
Matt Summerville - D.A. Davidson
Charles Nabhan - Stephens
Kartik Mehta - Northcoast Research
Paul Chung - JP Morgan
Operator
Good day, and welcome to the NCR Corporation First Quarter Fiscal Year 2022 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Michael Nelson, Treasurer and Vice President of Investor Relations. Please go ahead.
Michael Nelson
Good afternoon, and thank you for joining our first quarter 2022 earnings call. Joining me on the call today are Mike Hayford, CEO; Owen Sullivan, President and COO; and Tim Oliver, CFO.
Before we get started, let me remind you that our presentation and discussions will include forward-looking statements. These statements reflect our current expectations and beliefs, but they're subject to risks and uncertainties that could cause actual results to differ materially from those expectations. These risks and uncertainties are described in our earnings release and our periodic filings with the SEC, including our annual report.
On today's call, we'll also be discussing certain non-GAAP financial measures. These non-GAAP measures are described and reconciled to their GAAP counterparts in the presentation materials, the press release dated April 26, 2022, and on the Investor Relations page of our website. A replay of this call will be available later today on our website ncr.com.
With that, I would now like to turn the call over to Mike.
Michael Hayford
All right. I'm assuming by now you've seen our numbers for the quarter, and while the external macro impacts resulted in disappointing financial results, our teams continue to execute in the business segments. And overall, I would say our first quarter was very good. With strong sales contributing to build order backlog, competitive wins, strategic transformation momentum and execution on our KPIs. Inflation, interest, pandemic and war, all impacted us in the first quarter and caused us to miss our expected numbers. Tim will cover more specifics later, but let me give you a high level.
Acceleration of costs led by microprocessors, fuel and shipping costs impacted us in the first quarter. We think many of these impacts will be mitigated throughout the year by things we can control, prices and our cost actions. Interest rates moved quickly in the first quarter, we don't see this improving during 2022, so we'll have to address costs elsewhere. The Omicron strain caused impact to transaction volumes as numerous countries slowed down during the first quarter. We have already started to see improved volumes in the second quarter. And lastly, the war in Ukraine has impacted our business in Ukraine and Russia. Tim will cover the impacts and actions we are taking, the bulk of the financial impacts were due to the inflationary cost pressures and the Omicron impacts.