News

Diebold to extend e-voting in Maryland; delay in contract affects 2Q earnings

July 21, 2003

NORTH CANTON, Ohio, -- Diebold Election Systems Inc., a wholly owned subsidiary of Diebold Inc., has finalized an agreement for up to $55.6 million with Maryland officials to deliver touchscreen voting technology and related services throughout the remainder of the state.

The contract, which is the largest-ever voting system agreement to date in the United States, includes about 11,000 Diebold touchscreen voting systems that will bring uniformity to elections throughout Maryland.

Under terms of the Maryland agreement, product hardware will account for approximately $30 million in revenue in 2003, with the remainder of the order accounting for service and maintenance of the systems over the contract period. In related news, Diebold announced that its second-quarter earnings will be $30 million less than expected because of a delay in the Maryland order.

Instead of closing in the second quarter, as expected, Diebold finalized the order on July 21. The delay was caused by the increased scope and size of the project, according to a news release.

In March 2002, the State of Maryland purchased more than 5,000 Diebold electronic voting systems for approximately $17 million for use in four Maryland counties: Allegany, Dorchester, Montgomery and Prince George's, home to about 35 percent of the state's nearly 3 million registered voters. These four counties were the first in a state-mandated endeavor to implement a unified voting system throughout the state.

Each Diebold voting station is equipped with a 15-inch touchscreen monitor for easy use by voters, and is capable of supporting thousands of different ballot styles. Each station also provides full, private ballot access to blind and visually impaired voters using a voice-guidance system and a standard keypad.

According to a news release, while Diebold had expected revenue to increase in the mid single-digit range over 2002's second quarter, it now says earnings per share will be approximately 57 cents, within its previous guidance of 54 cents to 59 cents and in line with analysts' expectations.