News

Diebold announces record second-quarter earnings

July 21, 2004

NORTH CANTON, Ohio -Diebold Inc. (NYSE: DBD) reported that its second-quarter earnings were up 6 percent, to $43.7 million from $41.3 million in 2003's second quarter. Per-share profits rose to 60 cents from 57 cents diluted; this was within Diebold's previous guidance of 58 cents to 62 cents EPS.

Sales at Diebold increased 15 percent, to a record $552 million from $480.9 million. Diebold attributed the increase to strong growth in financial self-service products which was fueled by strong demand for the company's new Opteva ATMs, particularly in the United States.

Opteva orders in 2004's second quarter totaled more than $80 million, including orders from two major North American financial institutions in North America totaling $7.1 million; three orders in Latin America totaling $6.3 million; and an order in the Philippines for $1.7 million.

Revenue for financial self-service products rose from $147 million in 2003's second quarter to $178.6 million in the latest quarter. Services revenue rose from $203 million in 2003's second quarter to $209.6 million in the latest quarter. Total financial self-service revenue was $388.2 million in the latest quarter, up from $350 million in 2003's second quarter.

Security solutions revenue rose from $123 million in 2003's second quarter to $136.6 million in the latest quarter. Election systems revenue was $27 million in the latest quarter, up from $7.6 million in 2003's second quarter.

"I continue to be very encouraged by our strong order growth, as product orders in the second quarter were the highest in the company's history," said Walden W. O'Dell, Diebold chairman and chief executive officer. "Our Opteva solution continues to be well-received globally, particularly in North America, and we are encouraged by the margins on that product line. Our security solutions continue to be successful, and we're working to profitably grow that part of our business through strategic acquisitions and continued market penetration."

O'Dell continued, "Given the growth of Opteva and the success of our overall core product and service businesses, we continue to be very confident about the prospects for the company moving forward."