NORTH CANTON, Ohio – Diebold moved back into the black in the fourth quarter amid strong sales for its advanced ATM technology.
The ATM maker reported a $79.8 million fourth quarter net, compared to a $120 million loss last year related to restructuring costs. It posted fourth quarter revenue growth of 7.5%.
Chief Executive Thomas Swidarski said Diebold would be stepping up the company's investment in research and development this year to accelerate its growth driven by innovations. In recent years, ATM makers have advanced the machines to scan and interpret check amounts for deposits and identify customers with biometrics rather than a rudimentary personal identification number. Swidarski said Diebold’s innovation in products and services would reduce financial institutions’ operating expenses and help them attract new business.
Diebold said orders for its core financial self-service business, specifically ATMs, rose 17%, and revenues in that segment increased 7.6% to $640.3 million. The gains were driven by continued demand for automated deposit capabilities.
But revenues in the company’s smaller security solutions segment dropped 6.5% to $170.7 million. Diebold predicted the segment will be modestly profitable this year and grow revenue. But it expected the rebound would occur largely in the second half, as the sector remains hampered by weak U.S. bank and credit union branch construction.
For the full year Diebold reported a 4% rise in revenues, to $2.8 billion, and a $144.8 million net, compared to a loss of $20.3 million for 2010.
