Diebold Nixdorf and rival NCR report financial results for Q1

Diebold Nixdorf and rival NCR Corporation reported their financial results for the three months ended March 31, 2018.
Dollar spending on technology

NCR said it reported revenue of $1.52 billion (+3 percent) with operating income of $109 million (–5 percent) in Q1 2018.

NCR said its software revenue grew 2 percent driven by cloud revenue growth of 9 percent and professional services revenue growth of 8 percent in the first quarter.

Software license revenue of NCR fell 18 percent due to lower hardware revenue, the timing of large software transactions in the prior year and the beginning of a shift from software license revenue to cloud revenue.

NCR said services revenue rose 8 percent driven by hardware maintenance and implementation services growth as a result of momentum in managed service offerings and channel transformation trends.

Hardware revenue fell 3 percent. ATM revenue dipped 7 percent reflecting the lower backlog starting the quarter. SCO revenue dropped 24 percent due to the timing of customer rollouts. POS revenue increased 19 percent due to store transformation trends.

“NCR is a global leader in providing software-led technology solutions for the financial services, retail and hospitality markets, and has a long history of driving innovation,” Michael Hayford, CEO of NCR said.

NCR started accelerating its operational transformation by initiating a process to restructure its hardware business by simplifying manufacturing network to position the business for improved profitability.

Diebold Nixdorf

Diebold Nixdorf announced revenue of $1.1 billion (–3.5 percent) with operating loss of $21 million in Q1 2018.

“Our share globally with financial institutions, a strong services value proposition, as well as growth opportunities in the software and retail businesses, make for a dynamic environment for the company,” Diebold Nixdorf CEO Gerrard Schmid said.

Diebold Nixdorf is executing business improvement plan that is centered on customers and achieving operational excellence.

Diebold Nixdorf secured a global frame agreement, including North America, to provide kiosks and services for one of the world’s largest quick-service restaurants.

Diebold Nixdorf received banking activity in the U.S. for Windows 10 upgrades, with more than $50 million in orders.

Diebold Nixdorf bagged a $23 million order for systems and new services for a financial institution in Mexico.

Diebold Nixdorf signed an $18 million contract to provide store lifecycle management for a European multinational retailer.

Diebold Nixdorf has also booked a $6 million agreement to provide systems and software maintenance, powered by DN AllConnect Services, for the largest retail chain of health and beauty products in China.