Company leaders said efforts to right the company are succeeding.

GREEN  Diebold Nixdorf officials told stock analysts on Tuesday that the company's efforts to transform its operations are succeeding in the wake of another quarterly loss and a dip in revenue.

The company ended the third quarter with a loss of $35.7 million, or 46 cents per share, compared with a loss of $238.5 million, or $3.13 per share, during the 2018 third quarter. Revenue for the period ended Sept. 30 was $1.08 billion, down 3.6% from last year.

Through the first nine months, Diebold Nixdorf's loss is $218.7 million, or $2.86 per share, compared with $445.1 million, or $5.86 per share. Revenue of $3.26 billion is down 1% from $3.29 billion last year.

"I am very encouraged by the year-over-year improvements we have delivered to both gross margins and cash flow as key measures of our progress," Gerrard Schmid, president and chief executive officer, told stock analysts during a conference call to discuss Diebold Nixdorf's third quarter earnings.

Third quarter results were released before trading started on Tuesday. Investors didn't share Schmid's optimism as Diebold Nixdorf stock opened at $7.71, a drop of more than $2 per share from Monday's closing price of $9.88. The stock value continued to drop during the day in active trading and closed at $6.96 for a loss of $2.92 per share.

Diebold Nixdorf is in the midst of an effort to reduce costs by $400 million by 2021. Schmid calls the program DN Now and said it has progressed as planned. "The transition to the new operating model is virtually complete," he told analysts.

The company revised its outlook for the rest of the year, projecting that revenue will be about $4.4 billion instead of the previously anticipated $4.5 billion. The company expects free cash flow will be higher, but lowered capital investments to $50 million instead of $70 million.

Revenue suffered in the third quarter because of the exchange rate between the U.S. dollar and some foreign currencies, Schmid said. Revenue fell by $130 million, or about 4%, because of currency fluctuations tied the strong dollar, he said.

Diebold Nixdorf also is seeing customer confidence lag in the European economy, which is slowing sales of retail point-of-purchase products. Revenue tied to the sales and service of automatic teller machines in the European market also lagged.

Diebold Nixdorf saw gains in ATM sales and service with customers in the Americas, including a $29 million contract to supply a Brazilian bank with cash recycling units. The company also noted an agreement to provide interactive kiosks at 60 Dave & Buster's restaurant locations around the country.

Schmid said the DN Series of ATMs introduced this year has been well received by banking customers. He said more than 150 financial institutions are reviewing the equipment for certification. Some of the companies looking at the machines would be new customers for Diebold Nixdorf.

The company's efforts to reduce costs hit a blip during the third quarter as selling, general and administrative expenses rose slightly. Schmid said the increase was a one-time incident and that SG&A costs should drop in the future.

As part of the DN Now effort, the company continued to divest small, non-core operations. That included operations in Eurasia and Venezuela, as well as the sale of Kony Inc., a Texas business the company partnered with in 2017. Last month, Kony was acquired by Temenos, a Swiss company that develops banking software. The commercial agreement with Kony will continue and Diebold Nixdorf will begin working with Temenos, a spokesman said.

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