Though Diebold posted year-over-year growth in revenue and income, the North Canton, Ohio ATM maker says it is dealing with the effects of shorter-term changes to its revenue mix.
Diebold Inc.'s net income from continuing operations, net of tax, rose 31% in the second quarter, to $26.5 million from $20.3 million a year earlier. Its revenue rose 12.2%, to $743.2 million from $662.4 million a year earlier.
"Despite the year over year growth, we saw a sizable shift in revenue mix from regional to national accounts in North America and a much higher tax rate, which resulted in a sequential drop in earnings from the first quarter,” said Thomas W. Swidarski, Diebold's president and CEO, in a press release July 30. “Strong financial self-service growth in deposit automation with national account customers, and the previously anticipated reduction in regional account activity with the passing of the Americans with Disabilities Act compliance deadline, resulted in a less profitable mix of business."
Otherwise, Swidarski said, “I am encouraged by the significant growth in deposit automation in North America," as well as restructuring efforts in the Europe, Middle East and Africa regions, "which are clearly having a positive impact on our profitability there."
Diebold tightened its 2012 guidance, due largely to delayed revenue from Brazil and a negative shift in that country's currency exchange rate. It now predicts revenue to grow 6% to 8% in 2012. Its previous guidance was a range of 7% to 10%.