Delayed project decisions from clients hurt Diebold Nixdorf
Investors hammered Diebold Nixdorf after the company said delays in systems rollouts are hurting the company's service business and will depress upcoming profits.
The ATM and bank software provider's stock plunged about 20% on Wednesday morning after it lowered announced it would finish the year with a larger loss than it previously expected. The company expects to lose up to $1.65 per share on revenue of $4.7 billion, or more than its previous expectation of $0.65 per share on revenue of $5 billion.
The problem, according to Diebold, is the larger, more complex bank technology and bank ATM projects that require longer decision times, which delays its revenue from those deployments.
"We are disappointed in our near-term financial performance," said Andy Mattes, Diebold Nixdorf's president and CEO, in a July 5 press release.
Diebold Nixdorf is also facing regulatory pressure in the U.K., recently selling off some of its assets to meet ATM competition requirements from the U.K. government.