Shares of global financial services provider Diebold Nixdorf (NYSE:DBD) are plummeting today as concerns remain about liquidity levels after the company’s recent lender presentation.
In the presentation, DBD highlighted key liquidity pressures. It is operating facilities to fulfill existing orders and is procuring for the second quarter as lead times are resulting in the use of cash to meet production forecast.
Further, inventory is being converted into revenue at a slower pace, and realized revenue and EBITDA remained below expectations in Q4 and in the first month of 2023. Additionally, borrowing base availability is below expectations.
Importantly, DBD is also looking for a going concern waiver from lenders. Consequently, investors are spooked and the stock is already down nearly 42% in the pre-market session today.
At the same time, short interest in DBD remains high at about 12% at present. DBD shares have already dropped 68.5% over the past year.
Read full Disclosure
