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Diebold Reports Second Quarter Earnings

Thursday 22 July 2004 21:01 CET | News

Diebold has reported record second quarter 2004 net income of $43,667,000 and diluted earnings per share of $.60, compared to diluted earnings per share of $.57 in the second quarter of 2003.

Prior year EPS included a gain of approximately $.03 per share, which was a result of an early buyout of leased ATM equipment by a major customer. Diluted earnings per share grew 5.6 percent and were within the companys previous guidance of $.58 to $.62 per share. Excluding the gain in the second quarter of 2003, diluted earnings per share would have increased by 11.9 percent. Diebold also achieved record second quarter revenue of $552,043,000, 14.8 percent higher than the second quarter of 2003. This significant increase in revenue was led by strong growth in financial self-service products which was fueled by strong demand for the companys new Opteva product solution, particularly in the United States. Second Quarter Highlights - Record total orders, which increased in the double-digit range - Total financial self-service revenue grew by 10.9 percent and 9.5 percent on a fixed exchange rate basis*. This increase was led by strong growth in financial self-service products, which grew by 21.4 percent and 19.9 percent on a fixed exchange rate basis - Security solutions revenue grew 11.0 percent and 10.9 percent on a fixed exchange rate basis as a result of continued market share gains, growth in the financial industry, government and retail markets, two small security business acquisitions in Asia-Pacific and the recent acquisition of TFE Technology Holdings - Total revenue for the Americas, excluding election systems, grew by 13.7 percent and 14.0 percent on a fixed exchange rate basis - An agreement with Hewlett-Packard (Canada) Co., in which Diebold Canada will provide automated teller machines (ATMs) and first- and second- line maintenance services for TD Bank Financial Group - Repurchased an additional 792,000 shares of Diebold stock Total orders for product and service increased well into the double-digit range. Financial self-service orders increased in the double-digit range, led by strong double-digit growth in the Americas and Asia-Pacific and slightly offset by a low single-digit decline in EMEA, where competition remains strong. Security orders remain strong, increasing in the double-digit range. Orders in election systems also grew in the double-digit range from the second quarter 2003. Significant orders for the quarter included: - Total Opteva orders in excess of $80 million - A large financial self-service order in Brazil for $16.1 million - Financial self-service orders from two banks in China and one bank in India totaling $11.5 million - A significant order in Europe for financial self-service, totaling $10.1 million - Opteva orders from two major financial institutions in North America totaling $7.1 million - Three orders for Opteva units in Latin America totaling $6.3 million - Physical security orders from a bank in North America totaling $2.5 million - A major Opteva order in the Philippines for $1.7 million Revenue Total revenue for the quarter was $552.0 million, up $71.2 million, or 14.8 percent and 13.7 percent on a fixed exchange rate basis. Total financial self-service revenue increased 10.9 percent and 9.5 percent on a fixed exchange rate basis. Approximately $18.8 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 11.0 percent and 10.9 percent on a fixed exchange rate basis. Total financial self-service and security revenue increased by 10.9 percent and 9.9 percent on a fixed exchange rate basis. Gross Margin Total gross margin for the second quarter was 29.9 percent, a 0.4 percentage point improvement from the 29.5 percent in the second quarter 2003. Product gross margin improved by 1.6 percentage points from 33.8 percent in the second quarter 2003 to 35.4 p


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Categories: Payments & Commerce | Payments General
Countries: World
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