Diebold Computer Leasing, Inc.
List of Deals
Diebold Computer Leasing, Inc., was incorporated in November 1966 and began active leasing operations in October 1967. The company's business focus was the purchase and leasing of computer equipment. The company invested primarily in IBM System/360 computers in the early years but also expected it might make purchases of non-IBM third generation computer equipment in the future.
The company did not repair, maintain, or service its computer equipment. In all cases, the company required that computer equipment owned and leased by it be maintained under the manufacturer's standard maintenance agreement. Maintenance costs were borne by the lessees.
In 1968 the company owned eighty-five computer systems leased to fifty-four lessees valued at about $50 million. Most of the company's lessees were major corporations engaged in a variety of businesses. Its initial public stock offering was filed in 1968.
Diebold Computer Leasing was engaged in a highly competitive field. It competed with IBM, other computer manufacturers, banks, finance companies, and the rapidly increasing number of companies whose principal business was purchasing and then leasing out computer equipment. Manufacturers, as well as some non-manufacturing leasing companies, provided maintenance, repair, and programming services with the lease agreement; since Diebold did not offer these services and did not plan to do so, they may have been at a competitive disadvantage.
In 1971 the company announced record first-quarter net income of $708,000, or 16 cents a share, and revenue rose to $8.8 million from $8.2 million in 1970.