Diebold could lose out in Ohio

Switch to optical-scan voting machines might cost company revenue, attracts renewed competition

By Erika D. Smith

Akron Beacon Journal   19 January 2005

Word that Ohio is shunning touch-screens for optical-scan voting machines is attracting competition for Diebold Inc.

Last week, Sequoia Voting Systems made another run at Secretary of State J. Kenneth Blackwell, offering to supply the state with its voting machines. More than $130 million is at stake.

``Everybody's kind of taking another look at Ohio, trying to figure out what's going on,'' Sequoia spokesman Alfie Charles said.

Right now, only Green-based Diebold, along with competitor Election Systems & Software, is authorized to sell optical-scan machines to Ohio's 88 counties. And Blackwell's spokesman, Carlo LoParo, said it will probably stay that way.

``At this point, the secretary has set a very aggressive timetable,'' LoParo said. ``The counties have to their preferred (optical-scan) voting system by Feb. 9.''

ES&S' model costs $5,499 per unit, while Diebold's AccuVote-OS costs $4,572.

All 88 counties will also need one touch-screen machine for every polling place to comply with the Americans with Disabilities Act. But the deadline hasn't been set for ing a supplier because most manufacturers, including Diebold, don't have a certified machine that prints a paper record.

Overall, Blackwell's change of heart about touch-screen voting will hurt Diebold the most.

The state will need far fewer optical-scan machines than touch-screens, so the company will reap less revenue.

Diebold, which reports fourth-quarter and year-end revenue on Jan. 26, must rework its 2005 earnings forecast because of the change.

Shares of Diebold rose $2.02, or 3.6 percent, to $57.51 in trading Wednesday on the New York Stock Exchange.