Diebold Nixdorf Inc (DBD) 2023 Q3 法說會逐字稿

Hello, everyone, and welcome to the Q3 2023 Diebold Nixdorf Earnings Call. My name is Nadia, and I will be coordinating the call today (Operator Instructions).

大家好，歡迎參加 Diebold Nixdorf 2023 年第三季財報電話會議。我的名字是 Nadia，我今天將協調通話（操作員說明）。

I will now hand over to your host, Chris Sikora, Investor Relations, to begin. Chris, please go ahead.

現在請主持人投資者關係部門的克里斯·西科拉 (Chris Sikora) 開始發言。克里斯，請繼續。

Hello, everyone, and welcome to our third quarter 2023 earnings call. To accompany our prepared remarks, we have posted our slide presentation to the Investor Relations section of our corporate website.

大家好，歡迎參加我們的 2023 年第三季財報電話會議。為了配合我們準備好的發言，我們已將幻燈片簡報發佈到公司網站的投資者關係部分。

Before we begin, I will remind all participants that during this call, you will hear forward-looking statements. These statements reflect the expectations and beliefs of our management team at the time of this call, but they are subject to risks that could cause actual results to differ materially from these statements. Additional information on these factors can be found in the company's periodic and annual filings with the SEC. Participants should be mindful that subsequent events may render this information to be out of date.

在我們開始之前，我將提醒所有參與者，在這次電話會議中，您將聽到前瞻性陳述。這些陳述反映了我們管理團隊在此次電話會議時的期望和信念，但它們存在可能導致實際結果與這些陳述有重大差異的風險。有關這些因素的更多資​​訊可以在該公司向 SEC 提交的定期和年度文件中找到。參與者應注意，後續事件可能會使此資訊過時。

We will also be discussing certain non-GAAP financial measures on today's call. As noted on Slide 3, a reconciliation between GAAP and non-GAAP measures can be found in the supplemental schedules of the presentation.

我們還將在今天的電話會議上討論某些非公認會計準則財務指標。如投影片 3 所示，可以在簡報的補充時間表中找到 GAAP 和非 GAAP 指標之間的調整表。

With that, I'll turn the call over to Octavio.

這樣，我會將電話轉給奧克塔維奧。

Thank you, Chris, and thank you all for joining us. Before we get started with our normal quarterly update, I wanted to give our new Chair, Pat Byrne, an opportunity to introduce himself on this call.

謝謝你，克里斯，也謝謝大家加入我們。在我們開始正常的季度更新之前，我想給我們的新主席 Pat Byrne 在這次電話會議上介紹自己的機會。

After emerging from our debt restructuring process, we reconstituted the Board of Directors and are very excited about the governance, experience and insight the Board will bring to the company. So today, I thought it would be appropriate for Pat to kick us off with some comments. Afterwards, Jim and me will walk you through our quarterly results.

在擺脫債務重組過程後，我們重組了董事會，並對董事會將為公司帶來的治理、經驗和洞察力感到非常興奮。所以今天，我認為帕特應該先發表一些評論。隨後，吉姆和我將向您介紹我們的季度業績。

Pat, over to you.

派特，交給你了。

Thanks, Octavio. Speaking for all the directors, I can say we're all really excited to join the Diebold Nixdorf team. And personally, it's a real honor to be leading the Board as we support and guide the management team going forward.

謝謝，奧克塔維奧。代表所有董事，我可以說我們都很高興加入 Diebold Nixdorf 團隊。就我個人而言，能夠領導董事會並支持和指導管理團隊前進，我感到非常榮幸。

The Board of Directors that we've assembled has the right skills and both operational and financial expertise to help guide the company to strong results. In our view, the company has a significant set of opportunities to create meaningful shareholder value going forward.

我們組成的董事會擁有適當的技能以及營運和財務專業知識，可以幫助引導公司取得強勁的業績。我們認為，該公司未來有大量機會創造有意義的股東價值。

Our goal is to work with Octavio and his team to focus on those opportunities and execute. We intend to finish 2023 strong, building on the Q3 sequential improvements and define the operational and financial priorities for a strong 2024.

我們的目標是與奧克塔維奧和他的團隊合作，專注於這些機會並執行。我們打算在第三季連續改善的基礎上，以強勁的勢頭結束 2023 年，並為 2024 年的強勁發展確定營運和財務優先事項。

I've been really impressed by the first engagements I've had with the Diebold Nixdorf team. There's a deep commitment to serving the customers and delivering for the company. The company has many long-standing relationships across a large global customer base. The Diebold Nixdorf team has brought technologies that have demonstrated real improvements to efficiency in both banking and retail segments while also helping our clients to better serve their customers. Our global team has demonstrated resiliency and remains committed to both serving the customer and delivering on results for the company.

與 Diebold Nixdorf 團隊的第一次合作給我留下了深刻的印象。我們堅定地致力於為客戶提供服務並為公司提供服務。該公司在全球龐大的客戶群中擁有許多長期的合作關係。 Diebold Nixdorf 團隊帶來的技術已證明能夠真正提高銀行和零售領域的效率，同時幫助我們的客戶更好地服務他們的客戶。我們的全球團隊展現了韌性，並繼續致力於為客戶提供服務並為公司帶來成果。

As we finish this year, we will set the 2024 operational and financial priorities, and we intend to share those priorities and the long-term targets for the company after that, likely in early 2024. The Board looks forward to working with Octavio and his team in this exciting new chapter for the company.

今年結束時，我們將製定 2024 年的營運和財務優先事項，並打算在之後（可能是 2024 年初）分享這些優先事項和公司的長期目標。董事會期待與 Octavio 及其領導者合作團隊為公司開啟激動人心的新篇章。

Now I'll pass it back to Octavio and to Jim.

現在我將把它傳回給奧克塔維奧和吉姆。

Thank you, Pat. I speak on behalf of our team when I say welcome to the company, and we are ready for the journey ahead.

謝謝你，帕特。當我對公司表示歡迎時，我代表我們的團隊發言，我們已經為未來的旅程做好了準備。

Q3 was another quarter of strong performance as our team remained focused on customers won in the market and continue to improve our operational execution. As you can see on Slide 4, we have made meaningful progress against all 3 of the key operating priorities that we outlined at the beginning of the year, clearly evidenced by our quarterly results.

第三季度是另一個表現強勁的季度，因為我們的團隊仍然專注於在市場上贏得的客戶，並繼續提高我們的營運執行力。正如您在幻燈片 4 中看到的，我們在年初概述的所有 3 個關鍵營運優先事項方面都取得了有意義的進展，我們的季度業績清楚地證明了這一點。

In August, we completed the debt restructuring and emerged a stronger company with recapitalized balance sheet, enhanced liquidity and a solid foundation moving forward. Our third quarter financial results demonstrate our commitment to continuous improvement with meaningful year-over-year and sequential growth in all key metrics. Through the third quarter, we are tracking towards the top half of our full year financial outlook ranges for revenue and adjusted EBITDA, and we remain focused on delivering a strong fourth quarter to close the year.

8月份，我們完成了債務重組，公司資產負債表進行了資本重組，流動性增強，未來發展基礎更加堅實。我們第三季的財務表現證明了我們對持續改善的承諾，所有關鍵指標均實現有意義的年比和季比成長。在第三季度，我們的營收和調整後 EBITDA 正朝著全年財務前景範圍的上半部分邁進，並且我們仍然專注於實現強勁的第四季度以結束今年。

We continue winning in the market with our world-class solutions, and we have recently brought new innovative solutions to our customers that further solidify our position as a leader in self-service and automation and help us increase our addressable markets.

我們以世界一流的解決方案繼續贏得市場，最近我們為客戶帶來了新的創新解決方案，進一步鞏固了我們作為自助服務和自動化領域領導者的地位，並幫助我們擴大了潛在市場。

Turning to Slide 5. Before we go into the financials, I wanted to highlight some of the new product introductions we made in the quarter. In banking, we are helping banks optimize all cash touch points with consumers by expanding our recycling capabilities. True branch transformation requires end-to-end automation across the entire cash ecosystem. So we provide solutions not only at the ATM but also at the teller length. This opens new revenue opportunities to us as we broaden our range of solutions, providing operational improvements to our banking customers.

轉向投影片 5。在討論財務數據之前，我想先強調一下我們在本季推出的一些新產品。在銀行業，我們透過擴大回收能力來幫助銀行優化與消費者的所有現金接觸點。真正的分公司轉型需要整個現金生態系的端到端自動化。因此，我們不僅為 ATM 提供解決方案，還為櫃員提供解決方案。隨著我們擴大解決方案範圍，為我們的銀行客戶提供營運改進，這為我們帶來了新的收入機會。

This quarter, we rolled out our Teller Cash Recycler that automate note handling and authentication for branch staff. In addition, we introduced the highest note capacity recycler currently in the market. The high-capacity recycler is a strong asset to our banks and markets with heavy cash usage. Both these solutions drive branch transformation by simplifying cash handling and implementing end-to-end recycling solution at the branch level.

本季度，我們推出了 Teller Cash Recycler，可以為分行員工實現票據處理和身分驗證的自動化。此外，我們也推出了目前市場上紙幣容量最高的回收機。對於我們現金使用量大的銀行和市場來說，高容量回收商是一項強大的資產。這兩種解決方案都透過簡化現金處理和在分公司層級實施端到端回收解決方案來推動分公司轉型。

On the retail side, we are enabling new checkout journeys as retailers continually adopt more self-service technology. Our dynamic retail cloud platform ensures a consistent checkout experience across multiple touch points. Built on open APIs, the solution easily integrates into the most complex retail operating environment. Also, during the third quarter, we began shipping higher volumes up DN Series EASY ONE checkout solution. Its modular design provides retailers a smooth transition from assisted checkout to full self-service checkout. We're very excited about the solutions we're bringing to market to meet our customer needs and strengthen our market position.

在零售方面，隨著零售商不斷採用更多的自助服務技術，我們正在啟用新的結帳流程。我們的動態零售雲端平台可確保跨多個接觸點提供一致的結帳體驗。該解決方案基於開放 API 構建，可輕鬆整合到最複雜的零售營運環境中。此外，在第三季度，我們開始交付更多的 DN 系列 EASY ONE 結帳解決方案。其模組化設計為零售商提供了從輔助結帳到全面自助結帳的平穩過渡。我們對推出市場以滿足客戶需求並鞏固我們市場地位的解決方案感到非常興奮。

Now to our financial performance. We had another solid quarter that was in line with our expectations. Both revenue and profitability were up significantly compared to the prior year and sequentially. The higher revenue and gross margin expansion is flowing through to the bottom line, resulting in strong year-over-year growth in operating profit and adjusted EBITDA.

現在談談我們的財務表現。我們又度過了一個穩定的季度，符合我們的預期。與上年度和上一季相比，收入和獲利能力均大幅成長。更高的收入和毛利率擴張正在影響利潤，導致營業利潤和調整後 EBITDA 年比強勁增長。

Revenue of $943 million increased 17% and total gross margin expanded 70 basis points year-over-year. Strong product gross margin performance was driven by our improved supply chain and pricing discipline. Service gross margin is relatively flat compared to prior quarter, and we expect to see improvement in the fourth quarter. As we talked about in our last investor update, we have been focused on customer satisfaction and service quality, which has led to temporarily higher resource costs that will be normalized in the coming quarters.

營收為 9.43 億美元，成長 17%，總毛利率年增 70 個基點。強勁的產品毛利率表現得益於我們改進的供應鏈和定價紀律。與上一季相比，服務毛利率相對持平，我們預計第四季會有所改善。正如我們在上次投資者更新中談到的那樣，我們一直關注客戶滿意度和服務質量，這導致資源成本暫時較高，並將在未來幾個季度正常化。

Adjusted EBITDA of $109 million is up 43% compared to the prior year and adjusted EBITDA margin expanded 220 basis points to 11.6%.

調整後 EBITDA 為 1.09 億美元，較上年成長 43%，調整後 EBITDA 利潤率擴大 220 個基點，達到 11.6%。

From a regional perspective, we are seeing strong double-digit revenue growth across all of our markets as we accelerate backlog conversion to revenue. We also continue to compete and win new business with notable wins both in banking and retail.

從區域角度來看，隨著我們加快積壓訂單向收入的轉化，我們在所有市場都看到強勁的兩位數收入成長。我們也繼續競爭並贏得新業務，在銀行和零售領域取得了顯著的勝利。

For example, in banking, we renewed a major 4-year service contract in Brazil valued at $65 million, covering 15,000 ATMs and nearly 4,000 branches. We also won a new managed services agreement at Texas Dow Employees Credit Union, which includes DN Series devices to optimize branch and ATM channel efficiency.

例如，在銀行業，我們在巴西續簽了一份為期 4 年、價值 6500 萬美元的大型服務合同，涵蓋 15,000 台 ATM 機和近 4,000 個分支機構。我們還贏得了德克薩斯州陶氏僱員信用社的一項新的託管服務協議，其中包括用於優化分支機構和 ATM 渠道效率的 DN 系列設備。

On the retail side, we expanded our self-checkout installed base with a dynamic checkout software presence at a major supermarket chain located in Great Britain and Ireland with $19 million agreement. We continue to expand our North America business with new wins, including a $3 million contract to provide self-service kiosk for a major international brand in the quick service restaurant space.

在零售方面，我們透過在英國和愛爾蘭一家大型連鎖超市推出動態結帳軟體，簽訂了價值 1,900 萬美元的協議，擴大了我們的自助結帳安裝基礎。我們繼續擴大我們的北美業務，贏得了新的勝利，包括一份價值 300 萬美元的合同，為快餐店領域的一個主要國際品牌提供自助服務亭。

While I am pleased with our 2023 performance to date, we all know there is still much work to be done in the fourth quarter. This is another good quarter that we can build upon, and it reinforces we are taking the right steps to improve financial performance and operating momentum.

雖然我對 2023 年迄今的業績感到滿意，但我們都知道第四季仍有許多工作要做。這是我們可以再接再厲的又一個好季度，它強化了我們正在採取正確的措施來改善財務業績和營運動能。

On Slide 7, clear evidence of our improved operating momentum can be seen in our banking and retail unit shipments. The third quarter represents a recent high in ATM unit production and a record high in quarterly self-checkout production. Our efforts, strengthening our supply chain and logistics environment, combined with our normalized vendor relationships, and the work we did to identify alternate components and deepen our supplier bench, are paying dividends. The third quarter output position us well to achieve our ATM and self-checkout product revenue targets in the fourth quarter.

在投影片 7 上，我們的銀行和零售單位出貨量可以明顯證明我們的營運動能有所改善。第三季 ATM 產量創近期新高，季自助結帳產量創歷史新高。我們的努力，加強我們的供應鏈和物流環境，結合我們標準化的供應商關係，以及我們為確定替代組件和深化我們的供應商基礎所做的工作，正在獲得回報。第三季的產出使我們能夠很好地實現第四季 ATM 和自助結帳產品的收入目標。

With that, I will hand the call over to Jim to provide a deeper dive into the financials. Jim?

這樣，我將把電話轉給吉姆，讓他更深入地了解財務狀況。吉姆？

Thank you, Octavio.

謝謝你，奧克塔維奧。

Starting on Slide 8, banking revenue of $665 million was up approximately 15% versus the prior period driven by ATM revenue growth of 31.5%. We continue to benefit from our supply chain and logistics improvement efforts, which is facilitating us capitalizing on demand for our DN Series offering. Service revenue was up approximately 6% versus the prior year, driven by higher revenue in both product-related service as well as end-to-end managed services.

從投影片 8 開始，由於 ATM 收入成長 31.5%，銀行業務收入為 6.65 億美元，較上一期成長約 15%。我們持續受惠於我們的供應鏈和物流改進工作，這有助於我們充分利用 DN 系列產品的需求。受產品相關服務和端到端託管服務收入增加的推動，服務收入比上年增長約 6%。

Banking gross profit in the third quarter increased by $20 million year-over-year to $164 million, with improved profitability and product from the impact of price adjustments and the benefits of disciplined cost management. This resulted in banking gross margin of 24.7% in the quarter which is flat compared to the prior year and sequential quarter as we continue to invest in customer satisfaction efforts related to service in the North American market.

第三季銀行業毛利年增 2,000 萬美元，達到 1.64 億美元，由於價格調整的影響以及嚴格的成本管理的好處，獲利能力和產品有所改善。由於我們繼續投資於與北美市場服務相關的客戶滿意度工作，本季銀行業毛利率為 24.7%，與上年同期和連續季度持平。

Moving to Slide 9. Retail revenue of $278 million was up 24% versus the prior year driven by higher self-checkout volume in the quarter as this continues to be a driver of growth for the company. Service revenue year-over-year benefited from growth in product-related services as self-checkout unit shipments are primarily new placements in the market and carry a high service attach rate. Retail gross profit in the third quarter increased meaningfully year-over-year to $75 million.

轉到投影片 9。零售收入為 2.78 億美元，較上年增長 24%，這得益於本季度自助結帳量的增加，這仍然是公司成長的推動力。服務收入較去年受益於產品相關服務的成長，因為自助結帳單位的出貨量主要是市場上的新產品，並且具有較高的服務附加率。第三季零售毛利年增，達到 7,500 萬美元。

Both product and service contributed to the increase. This resulted in retail gross margin of 26.9% in the quarter, which is up 210 basis points compared to the prior year and up 190 basis points over the sequential quarter.

產品和服務都對成長做出了貢獻。這使得本季零售毛利率達到 26.9%，比上年同期成長 210 個基點，比上一季成長 190 個基點。

On Slide 10, we wanted to reinforce that the third quarter represents another solid period of performance for us in 2023. On a year-to-date basis through the third quarter, we are driving meaningful improvements in revenue and profitability compared to the prior year.

在幻燈片10 中，我們希望強調，第三季度代表了我們在2023 年的另一個業績穩健時期。從年初至今到第三季度，與前一年相比，我們正在推動收入和盈利能力的顯著改善。

Most notably, year-to-date operating profit is up $104 million compared to the prior year, almost double, as higher revenue and gross margin expansion are resulting in increased profitability.

最值得注意的是，今年迄今的營業利潤比前一年增加了 1.04 億美元，幾乎翻了一番，因為收入的增加和毛利率的擴張導致了盈利能力的提高。

The revenue growth of $238 million over the same period has resulted in operating profit leverage of greater than 40% on that growth. Also, this shows that through Q3, we are tracking toward the top half of the full year outlook ranges for revenue and adjusted EBITDA that were communicated during our investor update call on August 14.

同期營收成長 2.38 億美元，營業利潤槓桿率超過 40%。此外，這表明，到第三季度，我們正在追蹤收入和調整後 EBITDA 的全年展望範圍的上半部分，這些預期範圍是在 8 月 14 日的投資者更新電話會議上傳達的。

On Slide 11, a key priority in 2023 was fortifying the balance sheet and deleveraging. To accomplish this, the company completed an expedited debt restructuring process in August that materially delevered our capital structure. We have a healthier balance sheet and robust liquidity position that allows us to operate the company efficiently and better compete in our markets.

在投影片 11 中，2023 年的首要任務是強化資產負債表和去槓桿化。為了實現這一目標，該公司於 8 月完成了快速債務重組流程，大幅降低了我們的資本結構。我們擁有更健康的資產負債表和強勁的流動性狀況，使我們能夠高效地經營公司並更好地參與市場競爭。

At year-end 2022, the company had approximately $2.6 billion in gross debt and approximately $2.3 billion of net debt. Now at the end of the third quarter, the company has approximately $1.25 billion of gross debt and approximately $800 million of net debt.

截至 2022 年底，該公司的總債務約為 26 億美元，淨債務約 23 億美元。截至第三季末，該公司的總債務約為 12.5 億美元，淨債務約為 8 億美元。

From a net leverage perspective, the company was approximately 8.5x levered at year-end 2022. Now at Q3, we are approximately 2.2x levered based on Q3 trailing 12-month adjusted EBITDA.

從淨槓桿角度來看，截至 2022 年底，該公司的槓桿率約為 8.5 倍。現在，根據第三季過去 12 個月調整後 EBITDA，我們的槓桿率約為 2.2 倍。

Our liquidity and cash flow profile are significantly improved. We have liquidity of approximately $450 million as of the end of September. Annual interest expense has been reduced by over $100 million.

我們的流動性和現金流狀況顯著改善。截至 9 月底，我們的流動資金約為 4.5 億美元。年利息支出減少1億多美元。

The restructuring eliminated approximately $2.8 billion of debt outstanding at the time of filing which at near-term maturity is ranging from 2023 to 2026 and replaced it with a $1.25 billion exit term loan maturing in 2028. Importantly, the exit term loan also allows for a $200 million accordion basket to put in place a revolving credit facility in the near term, subject to a corresponding pay down of the term loan. We intend to execute on this expeditiously and expect that it will improve our cost of capital and provide additional flexibility.

此次重組消除了截至提交申請時約28 億美元的未償債務（近期到期期限為2023 年至2026 年），並代之以2028 年到期的12.5 億美元退出定期貸款。重要的是，退出定期貸款還允許2億美元的手風琴籃子將在短期內建立循環信貸安排，但須相應償還定期貸款。我們打算迅速執行這項計劃，並期望它將改善我們的資本成本並提供額外的靈活性。

Moving on to Slide 12. Let me walk you through free cash flow for the quarter. Free cash flow was a use of $95 million in the quarter. Similar to the prior quarter, excluding certain items, some that are nonrecurring in nature, free cash flow would have been slightly positive. These nonrecurring cash uses include $59 million of burn down on our elevated deferred revenue balance, approximately $30 million of vendor normalization payments and approximately $21 million of fees associated with the debt restructuring. We expect significant free cash flow generation of greater than $145 million in the fourth quarter which we expect to result in liquidity at the end of the year in excess of $600 million.

轉到投影片 12。讓我帶您了解本季的自由現金流。本季自由現金流使用了 9,500 萬美元。與上一季類似，排除某些項目（其中一些項目本質上是非經常性的），自由現金流將略為正。這些非經常性現金用途包括因遞延收入餘額增加而消耗的 5,900 萬美元、約 3,000 萬美元的供應商正常化付款以及與債務重組相關的約 2,100 萬美元的費用。我們預計第四季將產生超過 1.45 億美元的大量自由現金流，預計年底流動性將超過 6 億美元。

Now I will turn the call back over to Octavio.

現在我將把電話轉回給奧克塔維奧。

Thanks, Jim.

謝謝，吉姆。

Moving to Slide 13. As we conclude our prepared remarks, I wish to thank our customers for their ongoing support. We are committed to providing best-in-class solutions to help them achieve their business outcomes.

轉向投影片 13。在我們結束準備好的演講時，我要感謝我們的客戶一直以來的支持。我們致力於提供一流的解決方案，幫助他們實現業務成果。

I am incredibly proud of our Diebold Nixdorf employees. Our team has never lost focus on what is most important, our customers, all while driving and improving our operational execution. We have completed another quarter of meaningful improvement for the company, and we are well positioned to close the year strong.

我為我們的 Diebold Nixdorf 員工感到無比自豪。我們的團隊在推動和改進我們的營運執行的同時，從未失去對最重要的事情（我們的客戶）的關注。我們已經為公司完成了另一個季度的有意義的改進，我們已做好充分準備，以強勁的業績結束這一年。

And with that, operator, please open the call for Jim and me to take some questions.

那麼，接線員，請打開電話，讓吉姆和我回答一些問題。

(Operator Instructions) And our first question is from Matt Summerville of D.A. Davidson. Matt?

（操作員說明）我們的第一個問題來自 D.A. 的 Matt Summerville。戴維森。馬特？

A couple of questions. Just Octavio, can you maybe spend a couple of minutes talking more broadly about the demand environment as you see it today by region for both banking and retail? And then I have a follow-up.

有幾個問題。奧克塔維奧，您能否花幾分鐘更廣泛地討論您今天按地區劃分的銀行業和零售業的需求環境？然後我有一個後續行動。

So probably you saw in the slide we tried to highlight the results by region. And you can see that we have strong double-digit growth in every region. So again, we still see a robust and strong demand environment for both recyclers and for our self-checkout solutions. What's more, some of the efforts that we did, increasing production lines of our self-checkout, are paying dividends; and as you saw, a record number of self-checkout shipments, the highest we've ever had in the company's history.

您可能在幻燈片中看到我們試圖按地區突出顯示結果。您可以看到我們在每個地區都有強勁的兩位數成長。因此，我們仍然看到回收商和我們的自助結帳解決方案的強勁需求環境。更重要的是，我們所做的一些努力，例如增加自助結帳的生產線，正在得到回報；正如您所看到的，自助結帳出貨數量創歷史新高，是我們公司歷史上最高的。

So we're still confident around the demand and acceptance of our products in the market. So I know you like to go through the different regions, but you can see North America had a very strong quarter. Once again, this is driven by the adoption of recycling technologies across some of the key banks in the U.S. and Canada. We expect that trend to continue. And as you saw in our remarks as well, we're expanding our product offering with now Teller Cash Recycler. That is another member of the DN Series family that will clearly help banks as they transform their branch environment by allowing the same components, the same cassette technology, to be deployed across all cash points on the branch. So we think it's a very unique thing for our North America market.

因此，我們對市場上的需求和接受度仍然充滿信心。所以我知道您喜歡瀏覽不同的地區，但您可以看到北美的季度表現非常強勁。這再次是由美國和加拿大一些主要銀行採用回收技術所推動的。我們預計這種趨勢將持續下去。正如您在我們的評論中所看到的，我們正在透過 Teller Cash Recycler 擴大我們的產品範圍。這是 DN 系列家族的另一個成員，它允許在分行的所有提款點部署相同的組件、相同的墨盒技術，從而明顯幫助銀行改造其分行環境。所以我們認為這對我們的北美市場來說是非常獨特的。

Latin America, as you know, continues to grow, and we continue to see significant expansion as banks use the ATM as a way to touch more consumers' financial inclusion in the market. So we expect demand in Latin America to remain strong.

如您所知，拉丁美洲持續成長，隨著銀行使用 ATM 作為接觸更多消費者的市場金融包容性的一種方式，我們繼續看到顯著擴張。因此，我們預計拉丁美洲的需求將保持強勁。

We always talk of Europe as a stable market. But as you can see, it was a market that also grew significantly. Part of that growth is driven by our strong retail footprint in Europe and the continued acceptance of self-checkout across most retailers globally. So we feel good about the demand on that. And as you saw, we continue to make inroads in the North America market with retail, with wins not only now from our European retailers that are establishing themselves in the Americas but now winning some local customers.

我們總是說歐洲是一個穩定的市場。但正如您所看到的，這個市場也大幅成長。這一增長的部分原因是我們在歐洲強大的零售足跡以及全球大多數零售商對自助結帳的持續接受。所以我們對這方面的需求感到滿意。正如您所看到的，我們繼續透過零售方式進軍北美市場，現在不僅贏得了在美洲立足的歐洲零售商的勝利，而且現在還贏得了一些當地客戶。

And to wrap things up, Asia Pacific. As I always say, Asia Pacific is an area great opportunity. There's clearly always more business there than what we could probably have an appetite for based just on the profile. But if you recall, we also now have started production in India that will help us grow in that market, a market that shows great promise for us, and one that we haven't been focused previously. So again, I feel that the demand environment is very conducive to continuing growing our business. And our customers, throughout all these processes, have benefited us and continued ordering our products across the globe. So I'm excited about the future, Matt.

最後，亞太地區。正如我常說的，亞太地區是一個巨大機會的地區。顯然，那裡的業務總是比我們僅根據個人資料可能有的興趣要多。但如果你還記得的話，我們現在也開始在印度生產，這將有助於我們在該市場的發展，這個市場對我們顯示出巨大的前景，也是我們以前沒有關注的市場。因此，我再次認為需求環境非常有利於我們業務的持續發展。我們的客戶在所有這些過程中都使我們受益，並繼續在全球範圍內訂購我們的產品。所以我對未來感到興奮，馬特。

Maybe if you guys can comment a little bit on services gross margin and how long we should expect or over what time frame we should expect? Forgetting the fourth quarter seasonal bump you're going to get, when do service margins get back into kind of the targeted range that the company had laid out in the not-too-distant path? And is there something that has structurally changed in that business whereby maybe that margin target doesn't make sense anymore?

也許你們可以對服務毛利率以及我們應該預期多長時間或我們應該預期的時間範圍發表一些評論？忘記第四季的季節性成長，服務利潤率什麼時候才能回到公司在不太遙遠的道路上設定的目標範圍？該業務是否發生了結構性變化，導致利潤率目標不再有意義？

No, Matt, and thank you for the question. So when we think about services, as I mentioned in the prior quarter, our main focus in our service operation globally is improved quality and customer satisfaction. Service is the best predictor of future success. Happy customers buy more. And as you've seen, customers continue buying from us, so I want to make sure that we continue this trend of improved service quality, which will lead to improved customer satisfaction and more orders for us in the future. So my focus and that of our entire service team is let's make sure that we're improving quality across the globe in all our service operations.

不，馬特，謝謝你的提問。因此，當我們考慮服務時，正如我在上一季提到的，我們在全球服務營運的主要重點是提高品質和客戶滿意度。服務是未來成功的最佳預測。快樂的顧客會買更多。正如您所看到的，客戶繼續從我們這裡購買產品，所以我想確保我們繼續這種提高服務品質的趨勢，這將提高客戶滿意度，並在未來為我們帶來更多訂單。因此，我和我們整個服務團隊的重點是確保我們在全球範圍內提高所有服務營運的品質。

With that said, that means that we're shifting our model. As we grow our service business, we have become reliant on using third-parties in certain markets. We're scaling back the use of third-parties as we believe that service quality is better when we are providing the services. So we're in that transition map where we're shifting the mix of resources from external to internal resources, as I mentioned in the prior quarter. So I would tell you that this is the process that we hire our people. We maintain the third-parties as we train them and make them proficient.

話雖如此，這意味著我們正在改變我們的模式。隨著我們服務業務的發展，我們在某些​​市場變得依賴使用第三方。我們正在減少第三方的使用，因為我們相信，當我們提供服務時，服務品質會更好。因此，正如我在上一季提到的那樣，我們正處於過渡階段，我們正在將資源組合從外部資源轉移到內部資源。所以我想告訴你，這就是我們僱用員工的流程。我們在培訓第三方並使他們熟練的同時對他們進行維護。

So I would say that you will start seeing the benefits in Q4. And the targets that we have outlined as our long-term goals remain achievable, and I think that you will start seeing us trending towards those targets in the coming periods. So there's nothing structurally different about our service market. I think that if anything, this $2 billion business or $2.1 billion business that we have with 70% recurring revenue, it's a very resilient business where I want to keep investing and growing that business.

所以我想說，您將在第四季度開始看到好處。我們概述的長期目標仍然是可以實現的，我認為您將開始看到我們在未來一段時間內朝著這些目標邁進。因此，我們的服務市場在結構上沒有什麼不同。我認為，如果有什麼不同的話，那就是我們擁有 70% 經常性收入的 20 億美元業務或 21 億美元業務，這是一個非常有彈性的業務，我想繼續投資和發展該業務。

(Operator Instructions) And our next question goes to Matt Bryson of Wedbush.

（操作員說明）我們的下一個問題是 Wedbush 的 Matt Bryson。

I guess my first question is around the banking product gross margins, the improvement. I think you talked to improved supply chain and pricing discipline, I guess, correcting some past issues. Can you give us some color around, how much -- well, I'm assuming it's just structural, but how much further improvement you can get there or you think you can get there on the product side?

我想我的第一個問題是圍繞銀行產品毛利率的改善。我想你談到了改進供應鏈和定價紀律，並糾正了一些過去的問題。您能給我們一些建議嗎？嗯，我假設這只是結構性的，但是您可以進一步改進多少，或者您認為您可以在產品方面實現多少？

So Matt, we're well on track to what we have put out for the year and where we expect the gross margins to end. So we're well on track to achieve those product gross margins that we highlighted. If anything, we're running a little bit ahead of where we thought that we would be. As far as how much we can improve them, hopefully, next time we speak, we will lay out for you guys our multiyear road map. But clearly, as we become more disciplined in our pricing, as we've now fortified important parts of our supply chain, diversified the supplier base, there is still opportunity for us to keep improving our product gross margins as we go forward.

馬特，我們正在順利實現今年的目標以及我們預計的毛利率目標。因此，我們正在順利實現我們強調的產品毛利率。如果有什麼不同的話，那就是我們比我們想像的要領先一些。至於我們可以在多大程度上改進它們，希望下次我們發言時，我們將為你們制定我們的多年路線圖。但顯然，隨著我們在定價方面變得更加嚴格，我們現在已經加強了供應鏈的重要部分，使供應商基礎多元化，我們仍然有機會在前進的過程中不斷提高我們的產品毛利率。

And then the last few quarters, you've been giving us a backlog number. Is there any chance you can give us an update there?

在過去的幾個季度中，您一直向我們提供積壓訂單數量。您有機會向我們通報最新情況嗎？

Yes, Matt, it's come down a little bit from prior quarter as we've accelerated backlog to revenue efforts. So it's right around that $1.3 billion, $1.25 billion, $1.3 billion range. as we exit the third quarter.

是的，馬特，隨著我們加快了收入工作的積壓工作，這一數字比上一季有所下降。所以它就在 13 億美元、12.5 億美元、13 億美元的範圍內。當我們退出第三季時。

Yes. Matt, probably an important thing to remember is we still have elevated backlog levels. Our long-term goal is to have a backlog of roughly a little bit over 2 quarters of product revenue and backlog at any given time that would provide greater efficiency in our operations. As Jim said, we're north of $1.2 billion, $1.3 billion -- almost $1.2 billion, $1.25 billion. We need to still keep accelerating deliveries and get that backlog to a more normalized level. So there's still opportunity to accelerate our backlog conversion.

是的。馬特，可能要記住的一件重要事情是我們的積壓水平仍然很高。我們的長期目標是，在任何給定時間，積壓的產品收入和積壓的數量大約超過兩個季度，這將提高我們的營運效率。正如吉姆所說，我們已經超過 12 億美元、13 億美元——幾乎是 12 億美元、12.5 億美元。我們仍然需要繼續加快交貨速度，並將積壓訂單達到更正常化的水平。因此，我們仍有機會加速積壓訂單的轉換。

Excellent. And then just one clarification, if you will. I think the non-GAAP EPS number, there was a large tax included. Can you just give a bit more color around that?

出色的。如果你願意的話，請澄清一點。我認為非公認會計準則每股盈餘數字中包含了大量稅費。你能給它多一點顏色嗎？

Yes, that, Matt, and this quarter, I think, a little bit -- there's a lot going on, obviously, from an accounting standpoint with fresh starts and the valuation efforts that have to go into that as well as the impacts associated with the plan with respect to the reorg items. And so that's essentially the impact from a tax perspective, once taking off the valuation allowance in the U.S. relative to the going concern with moving away and us reassessing those and running that year-to-date tax impact through the third quarter. So as I said, there's a lot going on there, so happy to spend some more time there as necessary. But that's the catch-up from a non-GAAP perspective, considering all of the other things happening related to fresh start accounting and the accounting we're doing.

是的，馬特，我認為這個季度有一點——顯然，從會計的角度來看，有很多事情正在發生，包括新的開始、必須進行的估值工作以及與相關的影響有關重組項目的計劃。因此，這本質上是從稅收角度來看的影響，一旦取消美國相對於搬遷的持續關注的估值津貼，我們就會重新評估這些影響，並在第三季度運行今年迄今為止的稅收影響。正如我所說，那裡發生了很多事情，所以很高興根據需要在那裡多花一些時間。但考慮到與新開始會計和我們正在做的會計相關的所有其他事情，從非公認會計原則的角度來看，這是一種追趕。

And we have a follow-up question from Matt Summerville of D. A. Davidson & Co.

D. A. Davidson & Co. 的 Matt Summerville 向我們提出了後續問題。

A couple of questions. OpEx is down $14 million quarter-on-quarter; I think year-to-date, down $20-ish million. Talk to me about the sustainability there? What resets from a comp standpoint in '24, how we should be thinking about OpEx moving into next year, given some of the moving pieces there.

有幾個問題。營運支出季減 1,400 萬美元；我想今年迄今為止，已經減少了 2000 萬美元左右。和我談談那裡的可持續性嗎？從 24 年的競爭角度來看，考慮到明年的一些變化，我們應該如何考慮明年的營運支出。

So Matt, I think that the way we need to think about OpEx is that we've reset incentive compensation in our plants to the appropriate level. Next year, clearly, we will still have to deal with labor inflation, but we're working on how we offset that with efficiencies in our operations. So what I would tell you is that we believe that the level that we're at is a sustainable level. Where any increase is due to wage inflation and others, we will be able to offset with efficiency in our operation, and that is our focus. We really want to maintain our SG&A, our total OpEx at this level and any increase needs to be offset with efficiency. And we feel comfortable that we will be able to achieve that in the coming years.

所以馬特，我認為我們需要考慮營運支出的方式是我們將工廠的激勵薪酬重置到適當的水平。顯然，明年我們仍然需要應對勞動力通膨問題，但我們正在研究如何透過提高營運效率來抵消這個問題。所以我要告訴你的是，我們相信我們所處的水平是可持續的。如果任何成長是由於薪資上漲和其他原因造成的，我們將能夠透過營運效率來抵消，這就是我們的重點。我們確實希望將 SG&A、總營運支出維持在這個水平，任何增加都需要用效率來抵銷。我們對在未來幾年能夠實現這一目標感到放心。

And then maybe just talk bigger picture. Obviously, I followed you a long time. And every new CEO or newer CEO that's taken over, Diebold has unleashed sort of multi-hundred million incremental sort of cost out program. And I know you've done some of that, but I guess I'm curious, Octavio, is there more structural cost-outs still to be had at Diebold? And if so, could you elaborate on that a little bit?

然後也許只是談論更大的前景。顯然，我關注你很久了。每一位新任首席執行官或新上任的首席執行官，迪堡都會推出數億美元的增量成本削減計劃。我知道你已經做了一些，但我想我很好奇，奧克塔維奧，迪堡是否還需要進行更多的結構性成本削減？如果是這樣，您能詳細說明一下嗎？

So Matt, I always stress, the way I want to run the company -- and again, I'm one of the many CEOs that you covered, and as I always joke with you, hope that you cover me for many, many years to come. But the way I want to run the company is with the mindset of continuous improvement. So we don't have one program or I don't want to run a program that's focused in the short term. I want to run a program where the company keeps improving quarter-over-quarter, year-over-year, because we will always find additional efficiencies in our business model.

所以馬特，我總是強調，我想要經營公司的方式——再說一次，我是你報道過的眾多首席執行官之一，正如我總是和你開玩笑一樣，希望你報道我很多很多年來。但我想要經營公司的方式是帶著持續改善的心態。所以我們沒有一個計劃，或者我不想運行一個專注於短期的計劃。我想要運行一個讓公司逐季度、逐年持續改進的計劃，因為我們總是能在我們的業務模式中找到額外的效率。

We will respond to changes in the market. We will respond to customer preferences. But we need to be a nimble enough organization that's all we're thinking how do we continuously improve. So to your point, will we make a big new program? My answer to you is we will always be looking for efficiency in our operations, but it needs to be a consistent improvement. It's not a onetime thing. It's quarter-over-quarter, we need to improve. Year-over-year, we need to improve. And as Pat said in his remarks, there's ample opportunities for us to keep improving our operation, and we're focused on that, making sure that we're operating in the most efficient way possible.

我們將根據市場的變化做出反應。我們將根據客戶的喜好做出回應。但我們需要成為一個足夠靈活的組織，這就是我們所思考的如何不斷改進的原因。那麼就你的觀點而言，我們會制定一個大型的新計畫嗎？我對您的回答是，我們將始終追求營運效率，但需要持續改進。這不是一次性的事情。這是季度環比，我們需要改進。年復一年，我們需要改進。正如帕特在演講中所說，我們有充足的機會不斷改進我們的運營，我們專注於這一點，確保我們以盡可能最有效的方式運作。

Got it. And then maybe just one more. Over to the retail business, self-checkout obviously doing very well for you guys, ePOS shipments down. What does that sort of infer from a macro standpoint? And how should we be thinking about ePOS into '24?

知道了。然後也許還有一個。至於零售業務，自助結帳顯然對你們來說做得很好，但 ePOS 出貨量卻下降了。從宏觀角度來看，這意味著什麼？我們應該如何考慮 24 世紀的 ePOS？

Obviously, Matt, I always want to have a healthy ePOS business. It's an important part of the business. But we are clearly seeing, and this is part of our strategy, a shift to self-service. So ePOS, it's an easier decision to delay by customers, to replace, some checkout is a necessity. So all our efforts are focused on how do we accelerate sell checkout. But again, you will see that we also will have a keen eye on accelerating growth on ePOS as we go forward. So I would tell you that if you're thinking macro economically, self-checkout continues to be one of those drivers that helps retailers on the cost side of the equation but also, very importantly, in creating a better customer experience at the checkout. So I would say that we will continue pushing very hard to grow our self-checkout while maintaining or slightly growing our ePOS business.

顯然，Matt，我一直希望擁有健康的 ePOS 業務。這是業務的重要組成部分。但我們清楚地看到，這是我們策略的一部分，向自助服務的轉變。因此，對於 ePOS，客戶更容易做出延遲、更換的決定，一些結帳是必要的。因此，我們所有的努力都集中在如何加速銷售結帳。但您會再次看到，隨著我們的發展，我們也將密切關注 ePOS 的加速成長。因此，我想告訴您，如果您從宏觀經濟角度進行思考，自助結帳仍然是幫助零售商降低成本的驅動因素之一，而且非常重要的是，它還可以在結帳時創造更好的客戶體驗。因此，我想說，我們將繼續大力推動自助結帳業務的成長，同時維持或略微成長我們的 ePOS 業務。

We have no further questions. And I'll hand back to Chris for any closing comments.

我們沒有其他問題了。我將把任何結束語交還給克里斯。

Yes. Thank you. Thanks again for the time today. And please feel free to reach out to me in Investor Relations if you have any questions. Thanks.

是的。謝謝。再次感謝您今天抽出時間。如果您有任何疑問，請隨時透過投資者關係與我聯繫。謝謝。

Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。感謝大家的加入。現在您可以斷開線路。