Diebold Reports Q1 Loss of $2.8M, Security Segment Revenues Rise 5.3%
The company cited currency issues and changes in overseas business operations were behind the overall loss, while gains in security services and products fueled growth for the security solutions group.
Diebold's security solutions segment saw first quarter revenue gains of $150 million, a 5.3% increase compared with the same period last year.
NORTH CANTON, Ohio – Diebold reported a first quarter net loss of $2.8 million or 4 cents per share, compared to profit of $9.8 million or 15 cents per share, during the same period last year. First quarter 2015 results included foreign exchange losses of $9.3 million, primarily due to the devaluation of the Venezuela bolivar. Adjusted earnings for the quarter were 29 cents per share.
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Diebold reported sales of $655.5 million, down 4.8% when compared with $688.3 million last year. A drop in revenue from operations in Brazil – $10.3 million this year compared with $79.4 million in 2014 – was key to the decline, according to the company.
The company saw revenue gains in its primary business segments. Sales for services and products in the financial service segment – automated teller machines and other bank equipment – rose 6.2% to $495.2 million compared with $466.5 million in 2014. The security solutions segment saw revenue of $150 million, a 5.3% gain compared with last year. Quarterly revenue from security services climbed 4.3% to $102.7 million, and revenue from security products rose 7.7 % to $47.4 million.
Andy Mattes, president and chief executive officer, cited the currency issues when discussing the loss. In the earnings announcement, Mattes said the company has confidence because it is “clearly executing of factors within our control.”
Last year Diebold announced it was restructuring operations in Brazil and combining that business into its Latin American sales region.
During the first quarter Diebold purchased Phoenix Interactive Design, a company that provides software for ATM and branch automation. “We’re making tangible progress to transform to a services-led, software-enabled company,” Mattes said in the release, citing the Phoenix acquisition.
“We will continue to invest in services and software to deepen our influence and move up the value chain in this dynamic industry.”
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