Diebold Cuts 3Q Earnings Forecast on Mounting Legal Costs Over Its E-Voting EquipmentMounting legal costs over its electronic voting equipment have forced automated teller machine maker Diebold Inc. to slash its third-quarter earnings forecast.
Nevertheless, the company said, it's determined to stay in the e-voting market, which comprises 5 percent of its business.
Diebold had expected its election systems revenue to grow to as much as $170 million in 2004, from about $100 million last year, based largely on revenue from Ohio's conversion from punch cards.
But earlier this year, the company said it expected election systems revenue in the $80 million to $95 million range as states like Ohio delayed buying new machines over concerns about their reliability.
Don't rule Diebold out of the e-voting business, said Larry Ponemon, founder of the Ponemon Institute, a Tucson, Ariz., technology consulting firm that specializes in computer security.
"It is an industry that is so young, there is a lot of room for mistakes and a lot of room for opportunity," he said.
Couldn't happen to a more deserving company. All that's left is one of those share-holder lawsuits, since Diebold can hardly claim they didn't see this coming. Stockholders should ask themselves, is this what Wally O'Dell is getting paid $3 million a year for?
Short interest in Diebold stock (people selling Diebold short anticipating the stock price will fall) has risen from 1.54 to 1.75 million shares since July. This means that number of days needed to cover short positions has climbed 92% in the last 90 days.
Risk analysis shows Diebold now failing 4 out of 6 criteria.
Hart-Intercivic shareholders take note, your day is coming. David Allen
Publisher, CEO, Janitor
Plan Nine Publishing
http://www.plan9.orghttp://www.blackboxvoting.com
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