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Diebold reports third quarter results
NORTH CANTON, Ohio -- Diebold announced a 9 percent increase in revenue for the third quarter, including a 4 percent rise in self-service hardware revenue, which includes MedSelect, campus systems and ATM upgrades. In the quarter ended Sept. 30, Diebold reported net income of $32,654,000, or diluted 47 cents per share, on revenue of $312,778,000. This compares to third quarter 1998 net income of $29,391,000, or 43 cents per share, on revenue of $287,291,000. For the nine months ended Sept. 30, Diebold reported net income of $93,339,000, or diluted $1.35 per share, on revenue of $893,257,000. For the same period in 1998, excluding pretax realignment and special charges of $61,117,000 incurred in the second quarter of 1998, the company reported net income of $83,648,000, or $1.21 per share, on revenue of $863,622,000. "I am pleased with the improvements in the third quarter results, particularly the rapid progress we have made in transitioning to our direct international distribution channels," said Robert W. Mahoney, chairman and CEO. "We intend to continue to aggressively expand our global operations through acquisitions, joint ventures and strategic marketing agreements." Incoming business was lower in the third quarter of 1999 due to an expected drop off in Y2K upgrades. The security business was up in the low double-digit range, while self-service hardware volume was down in the low double-digit range owing to a slowdown of technology implementation in the North American banking industry as the year 2000 nears. Diebold expects accelerated orders for information technology equipment in the fourth quarter for implementation in the first half of 2000. Total revenue for the quarter grew $25.5 million, or 9 percent, over the third quarter of 1998. Product revenue was up $13.6 million, or 8 percent, despite the reduction in IBM business. Service revenue was up $11.9 million, or 11 percent, reflecting the company's strategic emphasis on providing a greater mix of value-added services to its customers. On a geographic basis, international product sales were up 12 percent, despite the sharp fall off in IBM business. Sales through Diebold direct international channels increased 82 percent over the 1998 third quarter, reflecting the company's progress in growing its direct distribution channels. Asia/Pacific revenue increased 64 percent, while Europe, the Middle East and Africa increased 24 percent. Latin America revenue was down 13 percent. International service revenue was up 54 percent. North America product revenue increased 6 percent, and service revenue increased 6 percent.
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