Diebold announces first quarter results with record Q1 revenue

The results matched the 40-cent estimate of analysts surveyed by Thomson First Call. Diebold's stock closed up $2.82, or 6 percent, at $50.01 on the New York Stock Exchange on April 20.

The Akron Beacon Journal reported that some financial analysts who cover Diebold are upgrading their outlooks for the ATM division, which was a strong performer in the quarter.
National City Corp. recently placed a $30 million order with Diebold and other customers are upgrading ATMs in an effort to meet pending Triple DES requirements. ATM sales increased 38 percent in the latest quarter, with orders for the new Opteva line topping $60 million.

Demand for Diebold's security-related products increased 19 percent in the quarter. Revenue grew 13.7 percent, partly because of two business acquisitions in Australia, according to Diebold.

The company's election systems division was the only poor performer. Because of delayed orders, electronic voting machines accounted for only 3 percent of Diebold's sales in the quarter.

While Diebold said it expects to collect $15 million from Maryland in 2004's second quarter and $26 million from San Diego County in 2004's third quarter for supplying voting machines, the company is cutting its election systems forecast for the year.

It now expects election systems revenue of $80 million to $95 million. In 2003, the division contributed just more than $100 million to earnings.

Diebold is facing a voting-related setback in California, reported the Beacon Journal, where in hearings this week, a panel commissioned by state Secretary of State Kevin Shelley will consider whether to decertify the company's voting machines. Such a move would ban the company from operating in the state.

In late 2002, Diebold reported that it had earned a $25 million to $30 million contract to supply some 10,000 voting terminals to San Diego County. Alameda County also had hired Diebold.
Although the panel will issue only a recommendation, Shelley is "considering all options' to sanction Diebold for using uncertified voting software in 2003's gubernatorial recall election, said Shelley spokesman Doug Stone in the Beacon Journal report.

Some financial analysts who cover Diebold have suggested that the company should consider exiting the voting business. However, Walden O'Dell, Diebold's chairman, said Diebold has no intention of doing so.