Ohio-based software firm Diebold Nixdorf (DBD 22.50, -5.50 -19.6%) is getting crushed, trading down to near seven-month lows, following its updated full-year 2017 outlook.
Specifically, DBD now sees revenue in the range of $4.7-4.8 billion (down from guidance of about $5 billion) while earnings per share should come in around $0.95-$1.15 (from $1.40-1.70) on a non-GAAP basis. The company is in the process of closing its books for Q2, and expects orders, revenue and adjusted EBITDA in the period to be comparable with Q1 results. The company also sees adjusted EBITDA in the range of $360-380 million from $440-470 million.
Further, DBD now expects savings related to their multi-year business integration and cost-savings program, dubbed DN2020, to be in the realm of $240 million (up from $200 million).
As previously disclosed, the company's banking business is increasingly made up of large, complex projects with higher software content, resulting in a longer customer decision-making process and order-to-revenue conversion cycle. As a result, the timing and volume of orders to date leads the company to adjust its 2017 guidance.
Additionally, the delay in systems rollouts also has a negative impact on the company's service business. This change in volume, combined with investments in hiring and training in the service organization as part of the company's transformation, will pressure near-term margins.
Full Q2 results are slated for a July 19 premarket release.