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The Green ATM manufacturer and financial industry service provider reported it lost more than $7.1 million, or 11 cents a share, on revenue of $645.2 million for the three months ending Sept. 30.
Revenue was down 25.8 percent from the record $869.1 million in sales reported a year ago. Diebold had earnings of $46.5 million, or 70 cents per share for the third quarter in 2008.
Company executives today also tightened their earnings guidance for the year while saying the range was still within their forecast from early 2009. The company also reduced its revenue estimate for 2009.
Diebold said that when factoring in a loss of $31.4 million on the sale of its Premier Election Systems and other one-time charges, the company had net income of 39 cents per share for the third quarter this year.
Diebold's third quarter results fell below analysts' estimates.
Shares on Tuesday fell $1.70, or 5.7 percent, to $28.25 as of 12:45 p.m. Shares are up 0.5 percent, including reinvested dividends, since Jan. 1 and are up 3.6 percent from a year ago.
"Considering the significant headwinds we continue to face in our core financial markets, I'm encouraged by the progress we've made on various key business improvement initiatives under our direct control," Thomas Swidarski, president and chief executive officer, said in a prepared statement. "During this extremely difficult market environment, we continue to significantly reduce operating expenses on a dollar basis while maintaining our investment in future product and services solutions."
For the first nine months of 2009, Diebold made $24.9 million, or 37 cents per share, on revenue of nearly $2 billion. For the same nine months in 2008, Diebold made $87.5 million, or $1.32 a share, on revenue of nearly $2.3 billion.
Diebold said it expects to earn between $1.34 and $1.39 a share for the year, a change from previous guidance of $1.34 to $1.52. Using accounting methods that are not generally accepted, Diebold said it expects earnings per share will range from $1.75 to $1.80, compared to a previous forecast of $1.70 to $1.90.
Total revenue is expected to drop between 13 percent and 9 percent, compared to a previous estimate of 13 percent to 7 percent.
Executives continue to shift Diebold's focus toward services instead of manufacturing, the company said.
Diebold's markets are still relatively weak, Swidarski said in a conference call with analysts.
While executives have tightened guidance, "our overall outlook for the year remains essentially unchanged," Swidarski said.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
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