NORTH CANTON, Ohio (5/6/09)--First-quarter income at Diebold totaled $4.4 million, a 70% drop compared with first quarter 2008, the ATM manufacturer reported Tuesday. First-quarter revenue was $663.2 million, also down 4% from first quarter 2008. The first quarter figures indicate that Diebold was not immune to unprecedented economic challenges during that time, according to Thomas Swidarski, Diebold president/CEO. “As the quarter progressed, the earlier weakness in orders that we had experienced in Eastern Europe, Russia and the regional bank segment of the U.S. became more precipitous,” he said. “The market weakness, which occurred in some of our most profitable business sectors, has forced us to reduce our revenue and earnings expectations for full year 2009.” Diebold has tried to reduce costs through cutting travel, administrative and operating expenses. It also eliminated 300 full-time positions, Swidarski said. “We continue to focus on services as a key component in our long-term growth strategy,” he added. Diebold also noted that it recorded a charge of $25 million for the period resulting from a settlement with the Securities and Exchange Commission (SEC). On Monday, Diebold said it had reached an agreement with the SEC in principle to settle civil charges stemming from the staff’s pending enforcement inquiry. The agreement remains subject to the final approval of the SEC, and there can be no assurance that the SEC will accept the terms of the settlement negotiated, Diebold noted.
NORTH CANTON, Ohio (5/6/09)--ATM manufacturer Diebold Inc. has reached an agreement in principle with the Securities and Exchange Commission (SEC) to settle charges stemming from a staff investigation. The SEC will not bring charges against the company in connection with the transactions and accounting issues subject to SEC’s investigation. However, Diebold will pay a $25 million penalty and agree to an injunction against committing or causing any violations or future violations of certain specified provisions of federal securities laws. On March 26, News Now reported that Diebold was working with the SEC and could enter into a settlement agreement. Kevin Krakora, Diebold executive vice president and chief financial officer, and other employees received Wells notices from the SEC indicating that Diebold may have violated provisions of federal securities laws. Krakora stepped down from his role when he received the Wells notice. Diebold said he would serve in a non-financial reporting capacity until the matter is resolved.