NORTH CANTON, Ohio - Diebold, Incorporated (NYSE: DBD) reported record third quarter 2003 net income of $48.3 million, an increase of 9.5 percent over third quarter 2002 net income of $44 million.
Third quarter 2003 revenue was $570 million, a 7.6 percent increase over third quarter 2002 revenue of $529.8 million. Diluted earnings per share in the latest quarter were 66 cents, near the high end of the company's previous guidance of 62 cents to 67 cents per share.
According to a news release, Diebold saw a double-digit increase in product and service orders, excluding election systems, with the highest total product orders in the company's history.
"Global acceptance of the new Opteva ATM line is growing, as is demand for our security solutions where revenue grew more than 15 percent from the third quarter 2002," said Walden O'Dell, Diebold chairman, president and chief executive, in a news release.
According to the release, Opteva orders totaled more than $40 million, including orders from four major financial institutions in North America worth $23 million.
Revenue for Diebold's Financial Self-Service division, which includes ATMs sales and services, was $385.2 million, up from $355.7 million in 2002's third quarter, an increase of 8.3 percent or 4.2 percent on a fixed exchange rate basis.
Revenue for Security Solutions was $137.2 million, up from $118.8 million in 2002's third quarter, an increase of 15.4 percent.
Election Systems revenue was $47.8 million, down from $55.2 million in 2002's third quarter, a a decline of 13.3 percent.
Diebold says that strong gains in financial self-service orders, driven in part by growing acceptance of Opteva, have increased its financial self-service revenue expectations for the fourth quarter. The gains will be offset in the election systems business, however, due to a delay caused by an independent security review of vendors' products in Ohio.
Therefore, Diebold has reduced its election systems revenue expectations in Ohio for the fourth quarter from $30 million to $10 million, with the balance moving to 2004.
Diebold now anticipates full-year financial self-service revenue growth of 4 percent to 6 percent, beating its full-year financial self-service revenue growth of 1 percent to 4 percent. Year-over-year election systems revenue, however, is expected to be essentially flat.
Diebold expects fourth quarter revenue to grow 15 percent to 20 percent versus 2002 and fourth quarter EPS to be in the range of 78 cents to 83 cents. Diebold anticipates full year 2003 revenue growth of 6 percent to 8 percent, with EPS in the range of $2.37 to $2.42.
