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.

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.

RELATED: Diebold Named Installer of the Year at 20th Annual SAMMY Awards

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.”

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!

Security Is Our Business, Too

For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.

A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!

Subscribe Today!

Get Our Newsletters