News
Voting, security help boost Diebold's 3Q earnings
October 23, 2002
NORTH CANTON, Ohio -- Diebold, Incorporated (NYSE: DBD - News) reported third quarter net income of $44 million, or diluted earnings per share of 61 cents on revenue of $529.8 million, at the high end of the company's previous guidance of 57 cents to 61 cents per share.
Included in the third quarter results was a gain of one cent per share from the sale of owned and operated cash dispenser assets to Cardtronics. This compares to third quarter 2001 net income of $14.2 million, or diluted 20 cents per share on revenue of $444.6 million.
Walden O'Dell, Diebold's chairman, president and chief executive officer, said in a news release that he was "extremely pleased" with the revenue and earnings growth in the quarter, particularly the performance in Diebold's voting and security businesses.
Revenue for financial self-service hardware declined 6 percent in the quarter, dropping from $194.7 million in 2001's third quarter to $176.7 million in 2002's third quarter. Revenue for financial self-service services increased 14 percent, however, rising from $156.2 million in 2001's third quarter to $177.6 million in 2002's third quarter.
Total financial self-service revenue increased 3 percent, up from $350.9 million in 2001's third quarter to $354.3 million in 2002's third quarter.
Both security and voting revenues helped boost Diebold's bottom line. Voting revenue accounted for $55.2 million, and total security revenue grew from $91.3 million in 2001's third quarter to $120.2 million in 2002's third quarter, an increase of nearly 32 percent.
In the Americas region, financial self-service revenue was $242.8 million in 2002's third quarter, a 2 percent drop from $251.7 million in 2001's third quarter. Security revenue rose from $90.6 million in 2001's third quarter to $118.8 million in 2002's third quarter, an increase of 31 percent.
In Asia-Pacific, Diebold's financial self-service revenue increased 30 percent, from $27.3 million in 2001's third quarter, to $36 million in 2002's third quarter. Security revenue rose 83 percent, from $663,000 in 2001's third quarter to $1.2 million in 2002's third quarter.
In EMEA (Europe, Middle East, Africa), financial self-service revenue rose to $75.5 million in 2002's third quarter, up from $71.8 million in the year-earlier quarter. However, this was a 3 percent decline on a fixed exchange rate basis. Security revenue was $125,000 in 2002's third quarter, up from $22,000 in the year-earlier quarter.
According to the news release, total orders for product and service increased in the low double-digit range. The Americas increased in the double-digit range and Asia-Pacific orders increased in the high single digit range, while EMEA orders decreased in the low double digit range. Security orders remain strong, increasing well into the double digits, according to the release.
Also according to the release, Diebold expects its fourth quarter revenue to increase in the mid single digit range versus the prior year, including voting. Voting is not expected to contribute materially to revenue in the fourth quarter. The company expects fourth quarter earnings per share to be in the range of 66 cents to 72 cents.
Diebold expects full year revenue growth of approximately 10 percent, with a full year earnings per share forecast of $2.19 to $2.25.
Looking ahead to 2003, the company is forecasting revenue growth of 8 to 10 percent, on a fixed rate basis, with earnings per share in the range of $2.32 to $2.45.Included In This Story
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
