Lemur
03-06-2007, 03:34
File this under good ideas. (http://arstechnica.com/news.ars/post/20070305-diebold-may-leave-e-voting-business.html) Diebold is seriously weighing leaving the e-voting business. Considering their behavior, I heartily approve.
Considering that Diebold's ATM division accounts for 63 percent of the company's profit, Diebold needs to evaluate whether the negative publicity surrounding its e-voting machines is hurting the bulk of its business. If banks begin to doubt Diebold's commitment to reliability and security as a result of the voting machine controversies, then the business could take a revenue hit over the years from lost business. Luria believes that Diebold will decide to divest, saying that the probability of Diebold's holding on to it is "very low."
Diebold's poor e-voting reputation can't just be attributed to the poor performance of its hardware, however. Some of its executives have been accused of outright lying to government officials, leading to the company being investigated for criminal activity and the decertification of some machines in the state of California. Diebold was eventually sued by California's Attorney General for fraud. Instead of acknowledging the problems, Diebold appeared to stonewall at every opportunity, which contributed to the widespread distrust of the company.
Considering that Diebold's ATM division accounts for 63 percent of the company's profit, Diebold needs to evaluate whether the negative publicity surrounding its e-voting machines is hurting the bulk of its business. If banks begin to doubt Diebold's commitment to reliability and security as a result of the voting machine controversies, then the business could take a revenue hit over the years from lost business. Luria believes that Diebold will decide to divest, saying that the probability of Diebold's holding on to it is "very low."
Diebold's poor e-voting reputation can't just be attributed to the poor performance of its hardware, however. Some of its executives have been accused of outright lying to government officials, leading to the company being investigated for criminal activity and the decertification of some machines in the state of California. Diebold was eventually sued by California's Attorney General for fraud. Instead of acknowledging the problems, Diebold appeared to stonewall at every opportunity, which contributed to the widespread distrust of the company.