NORTH CANTON, Ohio -- Diebold, Incorporated's (NYSE: DBD) second quarter earnings will be $30 million less than expected because of a delay in an order for voting terrminals and service from the state of Maryland.
An order valued at up to $55.6 million was delayed due to an increase in the scope and size of the contract, according to a news release. Instead of closing in the second quarter, as expected, the order was finalized on July 21.
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.
The impact to earnings from the delayed voting order was offset by solid results from operations and a gain from the early buyout of leased ATM equipment by a major customer, according to the release. Even without the gain from the buyout on the ATM equipment, EPS would still be within previous company guidance.
Walden O'Dell, Diebold chairman, president and chief executive, said in the release that Diebold will recognize approximately $30 million in hardware revenue in the third quarter with the Maryland voting order. Diebold's voting revenue guidance for the year remains the same with growth expected to be in the 15 percent to 25 percent range.
O'Dell also said he was "encouraged by the strength in overall orders and the high acceptance level of our new Opteva ATM line."
The company is scheduled to announce second quarter results on July 23 before the open of trading on the New York Stock Exchange.
