Diebold, Incorporated Q3 2009 Earnings Call Transcript

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2009-11-03 11:15:16.0

Tags: Brazil, Growth, Diebold Inc., Call Transcript, Earnings, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from Kartik Mehta with Northcoast Research.

Kartik Mehta - Northcoast Research

Good morning Tom. I just want to make sure I understood some of the statements you made about 2010. You said you anticipate moderate growth, would that have included any Brazilian election business you might get in 2010 or was that kind of growth based on what the market is right now and if you get the Brazilian business that will change?

Tom Swidarski

We are looking at that as modest growth including the Brazil election business Karthik. So while we don't know exactly what the Brazilian piece is, we have confidence in our group in Brazil. The way we have delivered that in the past and think that we are well positioned there, even though there is no guarantee. So our expectation is we will have modest growth and some of that is the Brazil piece.

Depending upon the size of that the Brazil piece would influence kind of our expectations on growth. So we still as I mentioned there, don't have clarity the way the RFP is written today, and as I mentioned at the award will be in the first quarter of next year, and it a winner take all scenario. But the way it is awarded and we have reviewed that, at least 80,000 terminals over a two-year period.

So again depending on the assumptions that I have made there, we’ve learnt a lot more because I think we have to respond to the bid at the end of this month, and we will be actually doing that in person. We will get a lot more insight there. So while we have seen little bit more of stabilization in terms of the overall market, when you balance security and self-service, you would say security basically flat, may be a little moderate growth in self-service, and hopefully something from the Brazilian elections the way I'm looking at it.

Kartik Mehta - Northcoast Research

And Tom, just as a clarification, you said the last order first for 60,000 units, and now it is just one year, right. So this would be 80,000 over 2 years?

Tom Swidarski

Yes, but the way it is awarded it is at least 80,000. So again not having the opportunity of actually present this and have a dialogue, which is going from the RFP and we will learn a lot more at the end of the month when we actually go and submit the bid and have the face-to-face meetings.

 

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