ATM machine maker Diebold has been in talks with the Office of the Chief Accountant at the Securities and Exchange Commission about its practice of recognizing certain revenue on a "bill and hold basis."

Diebold will discontinue the use of bill and hold for revenue recognition as a result of the discussions. The company is working to determine the most appropriate revenue recognition method to replace its prior bill and hold practice.

Spokesperson Mike Jacobsen said the company is looking at recognizing revenue either upon delivery or upon installation of the product. "It's a process that's going to take at least 30 days to determine," he said. "We have to run it through our auditors and the audit committee on the board." The percentage of the company's bill and hold revenue varied from period to period, but represented 11 percent of its total consolidated revenue in 2006.

The company also may need to amend its financial statements. Diebold's audit committee and independent auditors will conduct an analysis and then provide updated revenue and earnings guidance for 2007. The company may file amended financial statements for the year ending Dec. 31, 2006 and the first quarter of 2007. The company will then be able to submit filings for its last two quarters and resume its regular schedule.

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