Diebold, Inc. today reported second quarter 2012 net income from continuing operations of $26.5 million, or $0.41 per diluted share. This compares with second quarter 2011 net income of $20.3 million, or $0.31 per diluted share. Second-quarter 2012 revenue was $743.2 million, up 12.2 percent from the second quarter 2011.
Non-GAAP income from continuing operations attributable to Diebold, net of tax, in the second quarter 2012 was $0.49 per diluted share, compared with $0.44 per diluted share from the second quarter 2011.
"We generated double-digit growth in revenue and earnings during the second quarter, and we improved our net debt position by nearly $50 million," said Thomas W. Swidarski, Diebold president and CEO. "Also, we achieved profitability in EMEA during the quarter and are on track to achieve our goal to be profitable for the full year in that region. We saw more than 30 percent revenue growth in Latin America/Brazil, a region where we are continuing to build upon our leadership position."
Swidarski went on to say that, despite the year-over-year growth, the company experienced a shift in revenue mix from regional to national accounts in North America and a much higher tax rate, which resulted in a sequential drop in earnings from the first quarter.
"Strong financial self-service growth in deposit automation with national account customers, and the previously anticipated reduction in regional account activity with the passing of the Americans with Disabilities Act compliance deadline, resulted in a less profitable mix of business," Swidarski said.
Despite significant growth in deposit automation in North America and prior restructuring efforts in EMEA that has had a positive impact on profitability the company is tightening its guidance for 2012. In part this reflects a negative shift in currency exchange rates, as well as a delay in expected revenue from Brazil for elections equipment.
"Aside from these two items, our outlook remains the same," Swidarski said. "I am confident in our ability to execute on the many opportunities on the horizon for Diebold and deliver profitable growth led by our services capabilities — both in the near term and beyond."
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