NORTH CANTON, Ohio – ATM maker Diebold Inc. announced an 88% plunge in first quarter profits, due mostly to a $25 million settlement with the Securities and Exchange Commission over civil charges related to its accounting practices.
Diebold said it had been informed that federal prosecutors in Cleveland will not bring criminal charges against the company over transactions and accounting issues covered in an SEC probe. Regulators began reviewing the way Diebold reports revenue in early 2007, looking into when revenue could be reported for services and product shipments.
First quarter net was just $1.6 million, down from $13.8 million in the first quarter last year.
Revenues declined 4% to $663.2 million from $691.9 million as both product and service revenue declined.
Diebold said it will continue to slash costs, including the elimination of 300 jobs, of almost 2% of its workforce.
