Diebold (DBD), the maker of ATM machines and much-criticized automated voting machines, never seems far from controversy. It also has developed a habit over the last ten years or so of its share price swinging wildly back and forth between the $30’s and $50’s every couple of years. With the pendulum now back at the low end, traders may be tempted to hop on for the ride. Investors, however, should probably look elsewhere.

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Diebold topped out at $54.50 in late July, when it announced it would miss the deadline for filing its 10Q for the June quarter “while it seeks guidance from the Office of the Chief Accountant (the “OCA”) of the Securities and Exchange Commission with regard to its revenue recognition policy.”

After receiving said guidance, Diebold announced on October 2 that it would cease using the “bill and hold” method to record sales. The company helpfully added that:

The change in the company’s revenue recognition practice, and the potential amendment of prior financial statements, would only affect the timing of recognition of certain revenue. While the percentage of the company’s global bill and hold revenue varied from period to period, it represented 11 percent of Diebold’s total consolidated revenue in 2006. The company does not anticipate that the change in the timing of revenue recognition would impact previously reported cash provided by operating activities or the company’s net cash position.

Diebold will provide further information once it has completed an in-depth analysis of the most appropriate revenue recognition method and has reviewed it with its independent auditors and its audit committee. While the company cannot predict with certainty the length of time it will take to complete this analysis and review, it anticipates the process will take at least 30 days.