Diebold Nixdorf reports another quarterly loss as revenue slips 3.5 percent.

GREEN  Diebold Nixdorf's plan to suspend its quarterly dividend to shareholders drove down the company's stock price in heavy trading on Wednesday.

The company announced the decision with its first quarter earnings report. The move is being made as Diebold Nixdorf tries to improve cash generation and lower debt following another quarter with a loss.

For the quarter ended March 31, Diebold Nixdorf posted a loss of $70.9 million, or 94 cents per share, compared with a loss of $58.8 million, or 78 cents per share, during the 2017 first quarter. The loss came on revenue of $1.06 billion, down 3.5 percent compared with $1.1 billion last year.

Earnings and news of the suspended dividend were released before the stock market opened. Diebold Nixdorf shares opened down $1.80 from Tuesday's closing price of $15.40. The price dropped below $13 per share early trading and remained there through most of the day, closing at $12.90. More than 6.63 million shares traded, compared with an average of 1.35 million shares traded.

In addition to suspending the dividend, the company will continue efforts to cut costs and streamline, said Gerrard Schmid, the new president and chief executive officer of Diebold Nixdorf. Since joining the company in February, Schmid said, he has been learning the business from the vantage point of its customers, leaders and employees, and "concluded that our immediate focus should be to streamline and simplify our business operations."

Chris Chapman, Diebold Nixdorf senior vice president and chief financial officer, said the first quarter results reflect challenges similar to what the company faced in 2017. The company will be taking steps "such as suspending our shareholder dividend, to improve our cash generation and net debt position," Chapman said in the earnings announcement.

Schmid said he wants to create a more unified corporate culture between the legacy Diebold and Wincor Nixdoref operations that merged in 2016. He said the company will build on the success of integration work following the merger and enact a business improvement plan centered on customers.

"We are more complex than we need to be," Schmid said of the company's operations during a conference call with stock market analysts before trading started on Wednesday.

He said Diebold Nixdorf will adjust its financial reporting system as part of efforts to make the business operation less complex, going with banking and retail segments. Schmid said he plans to scrutinize profitability in all business areas and is willing to exit markets that fail to show enough profitability. Schmid said he wants to create a nimble organization that can react quickly and efficiently to customers.

"In aggregate, our actions are designed to improve the financial health of the company and deliver long-term value to our shareholders," Schmid said in the release. "I am looking forward to leveraging the full strength of the Diebold Nixdorf organization and our connected commerce solutions to benefit our customers around the world."

Diebold Nixdorf did share positive news on Wednesday. The company has secured an agreement to provide kiosks and services — including in North America — to one of the world's quick service restaurants. It also noted an $18 million contract to provide store lifecycle management for a European retailer.

In banking, the company is seeing more interest from regional financial institutions making upgrades because of Windows 10, with orders topping $50 million. Chapman said the company anticipates business tied to Windows 10 will continue to build over the coming year. Diebold Nixdorf also received a $23 million order for systems and services from a financial institution in Mexico.

The company still expects revenue to range between $4.5 billion and $4.7 billion this year, while adjusted earnings per share should range from $1 to $1.30.

Reach Edd at 330-580-8484 or edd.pritchard@cantonrep.com

On Twitter: @epritchardREP