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Diebold Announces Record Fourth Quarter and Year-End Results

Wednesday 28 January 2004 00:28 CET | News

Diebold has reported record fourth quarter 2003 revenue of $648,410,000, an increase of 23.3 percent over the fourth quarter 2002.

Net income in the fourth quarter 2003 was $59,243,000, an increase of 170.0 percent over the fourth quarter 2002. Diluted earnings per share for the fourth quarter 2003 were $.81 per share versus $.30 per share in the fourth quarter of 2002, and was within the companys previous guidance of $.78 to $.83 per share. The prior-year fourth quarter results included an after-tax charge of $26,494,000 related to the settlement of a dispute with the IRS regarding the deductibility of interest on debt related to corporate owned life insurance (COLI), which reduced fully diluted earnings per share by $.37. Net income and diluted earnings per share for the fourth quarter 2003 would have increased by 22.3 percent and 20.8 percent, respectively, versus the fourth quarter of 2002, if the impact of the COLI settlement charge was excluded from the 2002 results. For the year ended December 31, 2003 Diebold reported revenue of $2,109,673,000, an increase of 8.7 percent over 2002. Net income in 2003 was $174,776,000, an increase of 76.3 percent from 2002. Fully diluted earnings per share were $2.40, an increase of 75.2 percent from $1.37 reported in 2002. Included in the 2002 results was a first quarter after-tax charge of $33,147,000 from a Cumulative Effect of a Change in Accounting related to the impairment of Goodwill (SFAS 142, Goodwill and Other Intangible Assets), which reduced 2002 fully diluted earnings per share by $.46. Net income and fully diluted earnings per share in 2003 would have increased by 10.0 percent and 9.1 percent, respectively, versus 2002, if the impact of the impairment charge and the previously discussed COLI settlement was excluded from the 2002 results. Fourth Quarter Highlights -- Double-digit increase in product and service orders, excluding election systems -- Positive order growth in election systems, including an order from San Diego, California for $28.5 million -- Total financial self-service revenue grew by 19.3 percent and 10.9 percent on a fixed exchange rate basis, led by a product revenue increase of 26.2 percent and 16.1 percent, respectively -- Security solutions revenue grew 13.4 percent as a result of continued market share gains and growth in the financial industry, government, and retail markets. Security revenue in Asia-Pacific also increased significantly due to the successful integration of Cardinal Brothers Manufacturing & Operations and Vangren Technology acquisitions in the third quarter of 2003 -- Total Asia-Pacific revenue increased 28.2 percent and 21.9 percent on a fixed exchange rate basis -- Total revenue for the Americas, excluding election systems, grew by 17.0 percent and 13.0 percent on a fixed exchange rate basis -- Established direct sales and service operations in Peru and Taiwan Full Year Highlights -- Double-digit increase in product and service orders, excluding election systems -- Total financial self-service revenue grew by 7.4 percent and 4.4 percent on a fixed rate basis* as a result of solid share gains and continued acceptance of Opteva -- Security solutions revenue grew 17.8 percent as a result of market share gains and growth in the financial industry, government, and retail markets -- International security solutions revenue grew 74.5 percent as a result of market share gains, growth in the market, and through acquisition activity in Asia-Pacific -- Total Asia-Pacific revenue increased 26.5 percent and 20.8 percent on a fixed exchange rate basis -- Total revenue for the Americas, excluding election systems, grew by 7.5 percent and 8.1 percent on a fixed exchange rate basis -- Net debt reduced by 55.8 percent to $27.6 million Diebold slightly increased total operating profit margin in a very difficult environment, and absorbed $6.5 million in increased pension expense. Diebold improved financial self-service operating


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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce