Diebold, Incorporated announced Monday its 1999 first quarter earnings, which include record first quarter earnings per share (EPS).
In the quarter ended March 31, Diebold reported net income of $29,124,000, or diluted $.42 per share, on revenue of $283,483,000. This compares to first quarter 1998 net income of $26,850,000, or $.39 per share, on revenue of $295,739,000. This represents an increase of eight percent over the first quarter in 1998.
* Total operating expenses down eight percent compared to the same period in 1998.
* Product gross margins increased to 40.1 percent while service gross margins increased to 29.1 percent.
* Increased service revenue of $11.8 million, or 11.5 percent.
* United States and Diebold direct international business both improved.
* Software and professional services, Campus Systems and MedSelect grew, reflecting Diebold’s commitment to expand those portions of its business.
As expected, revenue reflected the drop-off in IBM business. However, product gross margins continued to rise because of the higher profits on product sold through Diebold direct sales channels.
“We continue to make important progress toward recovering from the setbacks we experienced in the first half of 1998 and are growing those areas of our business which will move us forward in our industry,” said Robert W. Mahoney, Diebold chairman and chief executive officer. “Favorable gains in our software and service-related businesses as well as continued cost-control efforts will help us produce profitable returns well into the future.”
Given this shift of Diebold’s overall business, which is resulting in a greater mix of professional services, software and networking services, incoming product orders can no longer be considered a reliable barometer for future results. As such, the company will no longer report product orders.
Diebold, Incorporated is the global leader in providing integrated delivery systems and services. Founded in 1859, the company employs more than 6,000 associates in some 120 locations worldwide with headquarters in Canton, Ohio, USA. Diebold reported revenue of US$1.2 billion in 1998 and is publicly traded on the New York Stock Exchange under the symbol ‘DBD.’ For more information, visit the company’s Web site at www.diebold.com .
(IN THOUSANDS EXCEPT EARNINGS PER SHARE)
Three Months Ended
Product $169,113 $193,130
Service 114,370 102,609
Total 283,483 295,739
Cost of Goods 182,395 193,604
Gross Profit 101,088 102,135
Percent of Net Sales 35.7% 34.5%
Selling, General and
Administrative 47,457 49,746
and Engineering 11,951 14,930
Total 59,408 64,676
Percent of Net Sales 21.0% 21.9%
Income Before Taxes 45,864 40,993
Percent of Net Sales 16.2% 13.9%
Taxes on Income 16,740 14,143
Effective Tax Rate 36.5% 34.5%
Net Income $29,124 $26,850
Percent of Net Sales 10.3% 9.1%
Basic Weighted Average
Shares Outstanding 68,927 69,045
Diluted Weighted Average
Shares Outstanding 69,177 69,647
Basic Earnings Per Share $0.42 $0.39
Diluted Earnings Per Share $0.42 $0.39Details