Tuesday, November 03, 2009

Diebold -- No Product Leadership

Diebold (DBD) announced disappointing results. Given the depressed nature of the financial sector its not surprising. In reading the earnings release investors reach the conclusion that Diebold was just an order taker and now orders are down. Yes the financial sector is on its hands and knees. But economies cannot develop without financial institutions functioning well. The self serve concept reduces operating costs. Yet Diebold seems to not have any thought leadership. If you are selling into a specific market you need to know where its going and offer compelling products. Diebold is signalling they do not have it.