Diebold Report First Quarter Results

Diluted earnings per share were within the companys previous guidance of $.38 to $.42. Revenue grew 21.5 percent versus the first quarter of 2003, while net income increased 12.6 percent and diluted earnings per share grew 11.1 percent. This performance was driven by strong growth in the financial self-service business, which more than off set the dilutive effect of the election systems business, which was $.04 per share in the first quarter of 2004 compared to $.01 accretive in the first quarter of 2003. First Quarter Highlights - Double-digit increase in product and service orders, excluding election systems. - Revenue from non-election systems businesses grew by 19.9 percent, and 14.7 percent on a fixed exchange rate basis, while diluted earnings per share from these businesses grew by 25.7 percent. - Total financial self-service revenue grew by 22.2 percent and 15.1 percent on a fixed exchange rate basis, led by strong demand for our Opteva financial self-service product solutions. - Security solutions revenue grew 13.7 percent and 13.3 percent on a fixed exchange rate basis as a result of continued market share gains, growth in the financial industry, government, and retail markets and two small security business acquisitions in Asia-Pacific. - Total Asia-Pacific revenue increased 32.0 percent and 24.3 percent on a fixed exchange rate basis. - Total revenue for the Americas, excluding election systems, grew by 18.7 percent and 15.5 percent on a fixed exchange rate basis. Total orders for product and service increased well into the double-digit range. Financial self-service orders in the Americas and Asia-Pacific increased in the double-digit range. Security orders remain strong, increasing in the double-digit range. Total orders in North America grew well into the double-digit range, excluding election systems. Orders in Europe, Middle East and Africa (EMEA) decreased in the single-digit range as this market remains very competitive. Orders in election systems grew substantially from the first quarter 2003 and included a $35.8 million dollar order from Brazil. Significant orders for the quarter included: - Total Opteva orders in excess of $60 million - An election systems order from the Tribunal Superior Eleitoral (TSE) of Brazil for $35.8 million - Opteva orders from two major financial institutions in North America totaling $13.3 million - Financial self-service orders from two banks in China and one bank in India totaling $6.8 million - Four significant orders in Europe for financial self-service, including Opteva, totaling approximately $6.3 million - A major Opteva order in Australia for $4.9 million - Physical security orders from three banks in North America totaling $2.4 million - Three orders for Opteva units in Latin America totaling $1.9 million Revenue Total revenue for the quarter was $498.3 million, up $88.1 million, or 21.5 percent and 16.2 percent on a fixed exchange rate basis. Total financial self-service revenue increased 22.2 percent and 15.1 percent on a fixed exchange rate basis. Approximately $14 million of financial self-service revenue in the prior year period was reclassified from product to service to better reflect the nature of that business. Security solutions revenue grew 13.7 percent and 13.3 percent on a fixed exchange rate basis. Total financial self-service and security revenue increased by 19.9 percent and 14.7 percent on a fixed exchange rate basis. Currency Impact During the quarter, revenue was positively impacted by the year-over-year strengthening of the Brazilian real and by the strengthening of the euro and certain other currencies. The positive currency impact in the first quarter was approximately $18.5 million or 4.5 percent versus the prior year reported results. Gross