Nasdaq-listed gaming industry supplier TransAct Technologies Inc reported a 12.9 percent year-on-year decline in aggregate net sales in the first quarter of 2018, to US$12.2 million. That was despite a 16.1 percent increase in casino and gaming sales, the firm said in a press release on Thursday.
Casino and gaming equipment net sales in the three months ended March 31 were US$5.9 million, compared to US$5.1 million in the prior-year period. U.S.-based TransAct said the improvement reflected a 36-percent increase in domestic casino and gaming sales and a 5-percent increase in international casino printer sales, “partially offset by a 32-percent decline in international gaming printer sales”.
Lottery printer net sales in the first quarter of 2018 were US$0.6 million, compared to US$3.0 million a year earlier.
TransAct generated operating income of US$0.9 million in the reporting period, down from US$1.4 million in the first quarter 2017.
The company’s net income fell 22.2 percent year-on-year, to US$0.7 million in the first three months of 2018. Earnings before interest, taxation, depreciation and amortisation for the three months to March 31 went down 35.3 percent year-on-year, to US$1.1 million.
“TransAct’s 2018 first quarter restaurant solutions terminal and label sales along with domestic casino sales growth and solid progress with direct sales in European casino and gaming markets, demonstrate our continued success in evolving our business,” said Bart Shuldman, the firm’s chairman and chief executive, in a statement included in Thursday’s release.
“As we execute on our growth and new market initiatives, our sales mix continues to shift towards higher-value technology-driven solutions and recurring revenue. This shift helped drive a significant 440 basis point year-over-year improvement in gross margin to 47.9 percent in the 2018 first quarter,” he added.
Mr Shuldman said the firm’s casino and gaming sales in the first quarter of 2018 benefited from the establishment of a direct sales team for the European market. “We saw 2018 first quarter international casino printer sales increase 5 percent year-over-year, which exceeded our initial expectations,” said the CEO.
He added: “Sales commitments in Europe continue to rise and we are confident that our shipments over the balance of 2018 will grow and augment the ongoing success we are achieving in the improving domestic marketplace.”
On Monday, TransAct announced that its board had declared a quarterly cash dividend of US$0.09 per share. The dividend will be payable on June 15, the firm said.
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