ATM manufacturer Diebold Inc. this morning reported lower preliminary second quarter net income on higher preliminary sales compared with the same period last year. In addition, Diebold raised 2008 revenue guidance because of strong ATM sales in the Americas, Asia Pacific and Eastern Europe regions, Thomas W. Swidarski, Diebold president and CEO, said during a conference call with analysts today. The company, however, withdrew from some Western European countries because it does not have the infrastructure to compete with other ATM manufacturers, Swidarski said without identifying the countries. Diebold reported preliminary second quarter net income of $25.6 million, down 5% compared with $26.9 million for the same three-month period ended June 30 last year. Diebold's preliminary operating results provide a more meaningful picture because it excludes special charges. The company's preliminary operating profit was $45.5 million, up 65% compared with $27.6 million a year earlier. Preliminary second-quarter revenues reached $771 million, up 11% compared with $694.6 million. Diebold is reporting its financials as preliminary until it files its 2007 financial results with the U.S. Securities and Exchange Commission, which is expected in September, says Kevin J. Krakora, Diebold executive vice president and chief financial officer. Krakora blames the lower preliminary net income for the quarter partly on $11 million in after-tax restructuring expenses. Diebold's goal is to save $100 million this year in expenses. The company's Financial Self-Service business, which manufactures ATMs, reported $549.4 million in preliminary sales, up 15% compared with $477.2 million. Swidarski attributes the increase to strong sales in Brazil, China and the United States. "Diebold had a very good quarter," Gil Luria, a Wedbush Morgan Securities Inc. analyst, tells CardLine sister publication ATM&Debit News. Diebold stock closed up $1.25 per share to $38.95 in afternoon trading. The company raised its guidance for revenue growth for all of 2008 to 8% to 10% from 6% to 8%. Diebold is the world's third-largest ATM manufacturer based on 2007 shipments.

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