Diebold Nixdorf at D.A. Davidson Conference: Strategic Focus on Growth

Diebold Nixdorf (NYSE:DBD) presented a detailed strategic overview at the D.A. Davidson 1st Annual Consumer & Technology Conference on Tuesday, 10 June 2025. The company outlined its plans for margin expansion, free cash flow generation, and market share growth in banking and retail sectors. While emphasizing operational improvements, Diebold also addressed challenges such as the ’death of cash’ narrative and dependency on hardware cycles.

Key Takeaways

• Diebold aims to generate $800 million in free cash flow over the next three years.
• Product margins have improved significantly from 13% to 27% through lean methodologies.
• The company is focusing on growth in the U.S. self-checkout market with modular and AI-enabled solutions.
• CEO Octavio Marquez highlighted the stability of cash usage in mature markets and growth in emerging markets like India.
• Diebold’s leadership is committed to continuous improvement and operational excellence.

Financial Results

• Product margins have seen a substantial increase, moving from 13% to 27%.
• Days Sales Outstanding (DSO) has been reduced from the high 60s to the mid to low 50s.
• The company has set a goal of $800 million in cumulative free cash flow over the next three years.
• Service margins, which ended the previous year at approximately 26%, are expected to increase by 100 basis points annually, targeting a 30% gross margin.
• Diebold’s backlog increased by $100 million in the first quarter.

Operational Updates

• The leadership team has been restructured, drawing experience from companies like GE and Danaher.
• Lean methodologies have been implemented across the enterprise, leading to improved efficiencies in manufacturing, service, HR, and finance.
• Diebold’s manufacturing strategy includes local production in key markets such as the USA, Germany, Brazil, and India.
• The company is deploying On-site Field Service (OFS) software to enhance service efficiency.

Future Outlook

• Diebold is targeting market share growth in the U.S. self-checkout market, where it currently holds less than 3%.
• The company is developing ’fit for purpose’ devices tailored to specific markets, such as India.
• There is a strategic focus on reducing dependency on hardware cycles by growing service annuity.
• Diebold is confident in achieving its revenue targets, supported by a strong backlog and order entry in the first quarter.
• Plans are underway to deploy OFS software globally to improve service margins.

Q&A Highlights

• CEO Octavio Marquez addressed concerns about the ’death of cash,’ emphasizing its stability in mature markets and growth potential in emerging markets.
• Diebold is focusing on branch automation services rather than relying solely on ATM hardware.
• The company is leveraging modular and AI capabilities in its self-checkout solutions, particularly in areas like shrink detection and age verification.
• Local manufacturing in India is expected to significantly boost ATM sales and service annuities.
• Despite the cyclical nature of point-of-sale demand, Diebold remains confident in future growth driven by retailers’ need for efficiency.

For a more detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - D.A. Davidson 1st Annual Consumer & Technology Conference:

Octavio Marquez, CEO, Diebold: And our services. And we’re focused on two primary industries, financial services and retail. In the financial industry, we’re very focused on driving efficiency at the branch level at banks. We do that through our ATMs, teller cash recyclers, but more importantly, our software and our services. In retail, we’re very focused on the self checkout experience for consumers and improving efficiency for retailers.

We have a broad solution set of self checkout solutions, point of sale solutions. Very importantly, all of them complemented with something that’s very popular today, AI. But we built a very strong AI capabilities to prevent shrink at the self checkout to identify produce to age verify. So we’re very proud of our company. We’ve been it’s a 150 plus year old company based out of Ohio.

And since Tom joined me a little bit over a year ago, I’ve been CEO for roughly three years now, we’ve been very focused on improving the financials of the company. We’ve improved margins significantly. We’re very focused on generating free cash flow and really returning value to our shareholders. So with that, Matt, I think that, that gives you a little bit of a broad idea of what we do. But why don’t we just dive into the questions?

Matt, Analyst: Sure. To that point, I want to talk about leadership in the company’s Board. I’ve followed Diebold since 02/2001. I’m sure the longest tenured analyst. But over the last two years in particular, the company has brought in a number of new senior leaders, including Tom, while simultaneously upgrading and reconstituting the Board of Directors.

Talk about some of the more meaningful additions you’ve had to your leadership team and the Board and how you kind of compare and contrast the relative accountability you see now at the Board level with respect to execution?

Octavio Marquez, CEO, Diebold: Sure. So let me start with how I reconstituted the leadership of the company. So I would say that from when I took over to today, we basically changed almost every single role that reports to the CEO. The most important one is here, my friend, Tom Finkel. So Tom, why don’t you just give us like a brief introduction on what you do and

Tom Finkel, CFO, Diebold: then I’ll jump and talk about other leaders in the company. Yes. So much like Octavio, every single role that reports into me, most of those folks have less than a year. So if you think about what the finance department was prior to my joining, it was very small, very tactical group, and we’re much more focused on being strategic business partners and really driving the operating discipline that’s required to get Diebold back to what it’s capable of doing. There’s been a lot of focus on our tax, our treasury function and just sort of getting back to normal post the corporate restructuring, made a lot of really good headway.

And I joined this company a year ago after having spent the better part of six years at GE going through the transformation. And prior to that, at GM, probably about seven years when they emerged from bankruptcy and going through that transformation. And I see at Diebold what I saw on those two companies. And I really do believe, if you’ve seen our IR pitch or not, the ability for this company to generate free cash flow cumulatively over the next three years approaches $800,000,000 And that’s not sequenced on anything but what we control from an execution perspective. So really excited about it.

Proud to be part of this team here and think we’ve got a really good runway.

Octavio Marquez, CEO, Diebold: Yes. So and talking a little bit more about my leadership team. One of the principles under which we’re running the company today is our continuous improvement mindset and implementing lean across the enterprise. That’s Tom is a big proponent that lean. He did that at GE, helping the spin out up into the three entities that eventually happened there.

But I’ve also brought my new COO or VP of Operational Excellence. He was the COO of GE Vernova as well. Again, a person with a very strong focus on supply chain services and this continuous improvement mindset. So I’d say that in that respect, we have built a very strong leadership team. We have new HR.

I’m very focused on making sure we serve not only our customers very well, but also our employees. So we’re very focused on HR as well and our team making sure we have great employees that can deliver great service to our customers that hopefully will turn into more growth for the company. And when I think of our Board, we fully reconstituted our Board. Our Board is led by Pat Byrne. Pat is a long time Danaher Executive, then long time GE Executive.

Now he’s retired, but great experience as a CEO running GE Digital, great experience as CEO running Tektronix. So Pat is helping me implement this lean culture across the enterprise. We’ve also added significant expertise around banking, one of the industries that we serve. Mara Marcus, she used to be CEO of Bank of the West, now Board member for us. Mark Gross, a very experienced CEO in the retail industry, running multiple grocers across the Northeast.

So we built a very strong industry specific Board, very strong focus on continuous improvement and lean. And then we complement that with very strong financial acumen and many other of our Board members. So I believe that today, we have probably the best Board in our industry and one that is very focused on helping the company get to the next level, making sure that our continuous improvement journey materializes and one that is truly providing a lot of support for the company to be much better.

Matt, Analyst: Very helpful. Maybe just address sort of the view that seems to be somewhat popular out there that you’re in an industry that’s somewhat of a melting ice cube, one that maybe faces secular headwind. And really what I’m talking about here is the banking side of the business, which you ran for a number of years becoming CEO. How do you respond to views that this business faces secular headwind and kind of the death of cash rhetoric?

Octavio Marquez, CEO, Diebold: Yes. So I think I’ve worked in financial services for the better part of thirty years. And we’ve always talked about the death of cash and the death of the branches. Today, there’s more branches being opened in The U. S.

Than branches being closed. There’s more cash in circulation today than at any point in history. But what I would tell you is when I look at what we do, that we really help banks become more efficient in their touch points and improve their consumer journeys. We’re very focused on how do we make the branch network more efficient, whether we do that through ATM technology, teller cash recycler technology or a complete set of software tools to really make the branch more efficient. When you think of a bank’s operating expense, a retail bank, 70 percent of that expense is tied to operating their branch network.

So our focus on making that branch infrastructure more efficient really drives value for the banks. So again, I would tell you that if I were to just focus on the mature markets, cash remains very stable. But remember, we’re a global company operating in 100 markets. I just came back from India a couple of days ago, still recovering from the twenty hour trip. But when you go to those places or Latin America or Brazil, you see how widespread cash is, how financial institutions are using ATM and particularly ATMs to distribute government programs to the population.

So I think that we’re combating that notion that cash is going away by really showcasing that we’re not just focused on the cash part of the ecosystem, but really making sure that ATMs, branches are, through our software, a key part of the branch channel strategy.

Matt, Analyst: That’s helpful. I want to maybe just touch a little bit on each of the two businesses, banking and retail. On the banking side of the business, talk about what you’re seeing from ATM, recycler demand, overall industry outlook over the next couple of years. Where are we with respect to recycling adoption globally? And how big of a catalyst has that been for the current hardware cycle?

Octavio Marquez, CEO, Diebold: Yes. So let me take a step back, Matt, and probably define what recycling is. So before joining Diebold, I thought that the money you put into an ATM was the same money that came out. Then I came to realize that the money that comes out comes out from one bin and the money that goes in comes from another bin. Recycling technology solves that problem.

The cash that goes in is the same cash that goes out providing significant operational efficiency. The biggest cost that a bank has in running ATMs is providing cash to the ATM. The CIT companies, things of companies like Lumis, Brinks, touching that ATM, refilling it, emptying it from deposits. So recyclers really help you avoid that cycle. The money that comes in is the same money that comes out.

This technology, we made a big bet that that was going to be where we focus on our R and D dollars in banking. So we’re now in our generation recycler. It’s been technology that’s been widely adopted in many parts of the world, but it hadn’t been adopted in The U. S. So we started with some of the largest banks in The U.

S. Now deploying recycling technology. We’ve been very successful at that because it has a very quick ROI. You spend $20,000 $30,000 on a device, but quickly in a year or less just based on the savings on cash and transit, you can probably pay for that device. So we see these large banks deploying recycling at a very fast pace.

We will see that trickle down to the midsize and smaller credit unions and community banks as we move forward. But we’re very early in the cycle. I like to say we have an installed base of 800,000 ATMs globally. We’ve upgraded to our new family, the DN Series 200,000 over the past two point five years. So we still have 600,000 ATMs to refresh over the next couple of years.

If you think that we replace about a of them every year, that’s the life cycle of an ATM, seven to ten years. We still have if we were to keep at the same pace, we probably have six, seven years of revenue flowing just based on the current technology that we have. And clearly, we’re investing in new things to accelerate that.

Matt, Analyst: One of the things you talked about at your Analyst Day was doing some things to further automate branch cash related operations. Can you speak to that a little bit?

Octavio Marquez, CEO, Diebold: Yes. So a lot of people when we talk about it or in the industry, we are very focused in the ATM. As I started, we’re very focused on automating the branch. There’s branch there’s cash at an ATM, there’s cash at the teller, there’s cash at the vault in a branch. What we’ve been able to do is deploy the same technology that we have in the ATM inside the branch and inside the vault.

So the same mechanism, the same recyclers that operate at the ATM operate at the branch teller. You can interchange the cassettes that hold the money between devices through software we can control it and really create an end to end cash ecosystem where you’re optimizing cash at the branch level, not cash at the ATM. And this is where we see tremendous potential of savings for the banks as you optimize the complete cash ecosystem.

Matt, Analyst: Just touching on India and kind of your Asia strategy overall, and it sounds very timely given you just spent some time there. And just to level set, the Indian ATM market is the largest in the world. Talk about your strategy in terms of reentering that market and your ability to sort of sustain profitability in a market that’s been challenged in that respect for some time?

Octavio Marquez, CEO, Diebold: Yes. So I just came back from India, so very timely as you say, Matt. Just to put things in perspective, I met with two of our largest customers there. One is the State Bank of India, the other one is the Bank of Punjab, the National Bank of Punjab, both government entities. When I was talking to their chairmans, one of them told me, because we started manufacturing in India, you really need to produce products locally to be competitive in that market.

So we started our manufacturing strategy there a couple of probably a year and a half ago. And talking to the Chairman of one of these banks, he told me, well, Octavio, I’m sorry that you made this big investment in India because this year we will buy very few ATMs. And I went, oh, really sir? You know, I was looking at my team like, this is not good. Why did they bring me to this meeting?

And the gentleman goes, no, we’re going to buy 7,000. And I go, oh, 7,000? That’s not bad, sir. And you know, and he go, and are these just replacements? And he goes, no, no, no, these are new locations.

The replacement budget is something else. We’re going to replace about 10% of the 70,000 that we already have. So they were adding 7,000 ATMs to an already large installed base of 70,000. To put it in perspective, if I add JPMorgan, Bank of America and Wells Fargo, they don’t get to 70,000 ATMs. So that was just one customer.

So again, we see great potential. We have a strategy to maintain profitability that we call building fit for purpose devices for each market. The Indian market has certain characteristics. So we built a machine very specifically designed for the Indian market, one that is smaller footprint, higher transaction volumes, different security levels. So we’re pretty convinced that, that machine will help us really grow and start increasing our installed base.

Remember, if an ATM is sold, there’s a seven year to ten year service annuity. And in India, once you sell an ATM, you practically guarantee a ten year service annuity at very high margins. So that’s why we’re so focused on growing in India and making sure that we build that service annuity for the future.

Matt, Analyst: Thank you. Let’s pivot over to retail for a moment, starting out with self checkout. Can you talk a little bit about self checkout adoption, Diebold’s market share today versus maybe three to four years ago? And what’s driven the share capture? And kind of what inning do you think we’re in globally with self checkout proliferation?

Octavio Marquez, CEO, Diebold: Yes. So let me pivot then to our other industry, the retail market. So two years ago, we made a decision that we were going to become the number one self checkout provider in Europe. We had minimal market share at that time, but we saw the market shifting in that direction. Today, we’re number one in Europe with roughly 40% market share in Europe.

We’ve done that through building a more modular product, a more secure product, one that really enhances both the staff’s journey at the retailer and the customer experience. We do that through, as I mentioned, AI technology. So our self checkout is capable through our computer vision AI that we deploy with the self checkout to recognize produce, one of the most the points of most friction in the consumer journey. When you put a lettuce or a tomato, making sure that it’s recognized and you don’t have to key in a code. So we’ve done that.

We’ve also done age verification. So for restricted products, of alcohol. Whenever you buy alcohol in a self checkout, the transaction stops and there’s an intervention by the store employee. So we’ve been able to automate that. But I think that the most amazing thing has been our shrink detection or theft prevention.

We’ve built 23 use cases using AI on how people might miss scan something or change the label of something and really prevent theft at the self checkout. One of the customers that we just recently implemented at Les Muscatiers, which is one of the largest grocers in France, saw a reduction of 70% in theft at the self checkout. So we’re very excited that it’s not just a hardware play, it’s a hardware, software and services. That again, self checkout same as ATM creates a very long annuity. So you deploy a machine and then there’s a five to six year annuity for services.

So that’s what we accomplished in Europe. This year, we’re very focused on The U. S. Where our market share is less than 3% in the self checkout space. Our large customer is one of our European customers already, Aldi, who is deploying roughly 2,500 stores across The U.

S. And we’re deploying the technology there. But we’re now very focused. The U. S.

Is the largest self checkout market in the world and there’s a big opportunity for us to really disrupt the incumbents in that market. Why? Because some of these large grocers, large retailers that implemented self checkout probably fifteen, twenty years ago bought a very tightly coupled solution where the software, the hardware and the services were all integrated and you really had very little flexibility. If you were with one provider, that’s the provider that you stood by. Today, we’re seeing large grocers like Walmart developing their own point of sale software.

Kroger doing something similar. So there’s this disaggregation of the decision between the hardware, software and services. And we believe that this opens really a great possibility for us to start growing in The U. S. Market.

And even though we have very ambitious plans, if you think about it, just growing a couple of market share points will produce tremendous results for us. We’re very encouraged by the early results that we’ve had so far in the year. And we should, hopefully, the end of the year, have some large name brands in The U. S. Using our technology.

Matt, Analyst: Can you talk about I’m going to refer to it as alternative checkout, things like intelligent carts, mobile, other AI enabled solutions. How is Diebold addressing that portion of the market? Do you see that as additive to a more hardware based self checkout? Or is that something that cannibalizes?

Octavio Marquez, CEO, Diebold: So I would say, Matt, when you think of our business, there’s always three very strong pillars. It always starts with great products, whether it’s our ATM, self checkout, point of sale, hardware technology. But believe it or not, I still believe there’s a lot of innovation to be done there. This is not a commoditized market yet. Then we have the software pillar and the services pillar.

So when I think of retail, two years ago, one of the things that we did was rewrite our software to make it endpoint agnostic. So today our point of sale software whether you’re deploying it on a self checkout device, a traditional point of sale, a deal with a person, a cart, you know, a mobile device, it’s the same software that you can it’s the same back end software that’s cloud native, API driven. So you can actually add any touch points that you want. So if you want to add, you know, self checkout cart or scanners or different things, we’re addressing it through our software that is multipoint. And once you deploy the software, you can just keep adding different points.

Matt, Analyst: Maybe just sticking with retail for a moment. Can you talk about what you’re seeing with respect to point of sale demand and when can we expect sort of the next replacement wave there?

Octavio Marquez, CEO, Diebold: Yes. So point of sale, the traditional point of sale is a more tricky business since retailers can postpone the investments there when there’s economic uncertainty. However, we see that as retailers keep investing in efficiency in the store, this is something that they can’t postpone for long. When you think of self checkout or point of sale, we I think that we had a spike in demand during the COVID years as everybody tried to modernize and optimize their stores. We saw a little bit of a low, but we’re starting to see the industry coming back up.

And I would say that as we go through the year, we’re very confident that we will start seeing incremental growth in that business progresses.

Matt, Analyst: I want to spend a minute talking about hardware cycles. I generally consider Diebold to be a little bit more beholden to hardware cycles relative to other peers in the ATM market. Do you agree with that? And what are you doing strategically sensitivity to cyclical replacement driven hardware demand?

Octavio Marquez, CEO, Diebold: Yes. I think that the industry has changed a lot, Matt. And when I talked about our focus not being exclusively on the ATM, but being very focused on what we call branch automation services. Just making sure that we’re optimizing the branch footprint for banking customers, making sure they have the right combination of recyclers, the right combination of teller cash recyclers, the right combination of software to integrate other payment methods or other channels into the branch ecosystem really diversifies our business. Clearly, as we grow that, we will continue growing our service annuity.

But think of our company today, of the $3,800,000,000 that we do in revenue, 2,200,000,000.0 are service related. So 57 percent, 58% of our company is already a service annuity. Do I want to reduce our dependency from hardware? I actually want to continue gaining market share in the hardware business because every touch point that we put just keeps feeding into our service annuity. And as banks look to optimize, there’s also a large suite of services that we provide that really help the banks move work to us, think about patching and security in an ATM network.

Many smaller institutions have no desire or ability to do that, so they’ll outsource that to us. Managing the cash in the branch, forecasting the cash, they’ll outsource that to us, monitoring health of their network. All those types of things are things that we’re very focused on growing. And today, I think with the large installed base that we have is something that we’re very, very excited about. I want to

Matt, Analyst: get back to a topic we referenced earlier, that being lean and continuous improvement. What does that mean? I think it’s easy for people easier for people to sort of understand what that means for more of an industrial company, maybe a little less so when you have a little bit more of a technology fold to your business. So Octavia and Tom, what does that mean not only just from a factory floor standpoint, but implementation of lean and continuous improvement across the company? How is that impacting your finance and accounting organization?

And again, using the baseball analogy, kind of how deep into this are you? And maybe can you give some tangible examples of successes?

Tom Finkel, CFO, Diebold: Sure. You want to start or you want

Octavio Marquez, CEO, Diebold: me to So why don’t you start, Tom?

Tom Finkel, CFO, Diebold: Yes. Look, so having been a GE, I embraced lean early on and able to bring that skill set over and partnering with Frank Bauer, who’s our VP of Operations here, very disciplined in terms of if you think about finance or really any function, how we’re tackling it is, you have an input, you have your factory, which is everybody’s desk, what you’re doing today, and then you have an output that comes out. So lean touches all of those pieces. So what we’ve gone in, we’ve identified opportunities that have more of a financial impact such as DSO. So if you were to look at our DSO about a year ago, probably high 60s, right, sixty five, sixty eight days.

When you think about our customer base of banks and the top retailers and our net terms of, let’s say, on the round forty, sixty plus days doesn’t make any sense. So we worked with our shared services group. We worked with Accenture, identified the problem. Now we’re probably floating in the mid to low 50s and we think that there’s more opportunity. But when you think about the impact that that one Kaizen event had, got everybody together, we all talked about what the issues were.

You literally kind of whiteboard this with everybody in the room. And then you go tackle what do we need and how are we going to fix it. So with that manifested itself in the true output of that process last quarter, we had positive free cash flow, which if you were to go back in DN’s history, it’s never happened. And it was driven by DSO days coming down. And we think that that’s just the beginning, right, that we have more opportunity with DSO, we have more opportunity with DIO and there’s a relentless focus on it.

We’ve done it in terms of something as simple as our Q. If you go pick up our 10 Q for the first quarter, you’ll see it’s 20 something pages versus 43. And I would tell you it’s simpler and more transparent and easier to read, right? So that’s how lean kind of manifests it in the functions. And you see that in HR.

We see that in legal in terms of how we’re just processing items. Up in factory, you want to hit with Frank?

Octavio Marquez, CEO, Diebold: Yes. So probably in the factory because that’s the easiest example to understand. We have distributed manufacturing across the globe. So we manufacture in North Canton, Ohio for our U. S.

Market. So we started that before the tariffs. So now we look a little bit smart. But again, we decided to start manufacturing in The U. S.

For The U. S. Two point five years ago. We manufacture in Germany for the European markets, in Brazil for the Latin America markets and in India for the Asia Pacific markets. So when I took over as CEO, our product margins were 13%.

So the first quarter as CEO, I reported great product margins of 13. Over the past the last two years through lean, we’ve improved those margins and we’re now in the neighborhood of 27%. And we believe that we could still continue improving our margins by applying those lean principles continue applying lean principles in manufacturing. We’re now very focused on growing our service margins, which we believe is the next big opportunity that we have as a company. And we’re applying those same principles.

How do we reduce work from the system? How do we eliminate waste? And again, is the important part is that the company used to be a company that was very focused on one time fixes to our problems. So we had a problem, we would deploy, restructure that area, try to hire consultants to do it. Now we’re changing the way the company operates.

It’s a mindset of continuous improvement. So we know that we can’t solve every challenge that we have. Like Tom said, DSO, we didn’t say we have 60, we’re going to 40. We said we have 60, we’re going to 50. But once we’re at 50, we know that we can get to 45 that we can get lower.

Same thing in inventory. We know that we have a certain level of inventory today through continuous improvement. We will keep winding it down to more appropriate levels. But that’s the change in mindset. When we think of our service business, people ask me when will we see a huge improvement.

And I keep reminding them, you will see us improve every month, every quarter, adding a couple percentage points to our profitability. But that’s the mindset I want in the company that people are always looking for ways, that people are always looking to get better a little bit every day. One thing that Tom taught me is we have to win the day. So we need to make sure people do their work correctly one day. If we win the day, we will be able to win in the week.

If we win the week, we win the month. And if we win the month, we win the quarter. So we need to make sure that people remain focused on the small task that we do every day because that’s what adds up to us having a successful quarter. And maybe I’ll just

Tom Finkel, CFO, Diebold: add to that a little bit. In our services opportunity, given the size and recurringness of the revenue base, we’re deploying our OFS software to the field. So this software shows up on the technician’s phone, tells them what routes to go, tells them what parts need to be in the truck before they go. Highly effective so far in the areas that we’ve rolled it out. So we’re going to start rolling that out in North America and then again globally.

So we think as our journey get back to a 30% gross margin in our services business, that’s going to be a part of it. And we’re really excited about that. So we’ve got a lot of runway in a space that, as Octavio alluded to, dollars 2,000,000,000 plus of our revenue base, right? And just to give you context, our service margins ended last year at 26 ish percent, and we committed to being able to increase those by 100 basis points a year over the next three years.

Matt, Analyst: Thank you for all that color. Maybe let’s talk a little bit about backlog and funnel. Talk about how you’ve been feeling about inbound orders, overall backlog, visibility to the back half of twenty twenty five. Any early thoughts you might have on 2026 just from again high level demand standpoint? And again, just maybe speak to the funnel across the two businesses?

Tom Finkel, CFO, Diebold: Yes. Maybe I’ll start with that So as of the end of the our backlog was probably $900,000,000 Our first quarter was a record in terms of OE, and we continue to see our order entry progress at a similar level in April as well. And we’re confident that, that backlog and that continuation of the order entry will help us facilitate the back end of the year, the half of the year, which we said would be not as linear as prior years, 55% of the revenue being generated in the half. So we do feel given between our order book and our backlog and what is a much different manufacturing environment, right, it takes us ninety to maybe one hundred and twenty days to turn an order around. So manifest that in the first quarter, the debold of the old would have been manufacturing through the first quarter, buying inventory, building it up, absorbing that cash flow.

Now we’re much more focused on when we need to place those orders from the supply chain and it’s really allowed us to sort of funnel that free cash flow back into the business or back to our shareholders.

Octavio Marquez, CEO, Diebold: So Matt, looking at the demand environment, I would tell you that, as Tom said, we had record orders in Q1 that allowed us to grow our backlog by $100,000,000 So we’re very confident that with that plus what we feel have good visibility during Q2, we could probably and I don’t want to say it this way, but we will have enough backlog to complete the year. Then the half of the year becomes how do we excel

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