TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, reported fourth-quarter net sales of just above US$10.2 million, down 22.9 percent from a year earlier, according to a Thursday press release.
Sales in the casino and gaming segment rose by 13.6 percent year-on-year, to just under US$4.8 million in the three months to December 31. Fourth-quarter sales in the group’s food service technology segment fell by 8.7 percent year-on-year, to US$4.3 million.
TransAct’s net loss for the October to December period was just under US$8.0 million, an increase on the US$62,000 loss in the prior-year period.
Such quarterly loss “includes a US$7.3 million non-cash charge to income tax expense to record a full valuation allowance on our deferred tax assets,” stated the firm.
The company reported negative adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) to the tune of US$705,000 in the three months to December 31, compared with positive adjusted EBITDA of US$587,000 a year earlier.
“Our growing sequential momentum in food service technology is a clear indicator that the improvements we’ve made in our go-to-market strategy and internal sales motions are now yielding positive results,” said John Dillon, TransAct’s chief executive, in prepared remarks included in Thursday’s announcement.
“We believe that this new run rate of terminal sales should be sustainable for the entire year and pick up speed quarter-over-quarter,” he added.
Mr Dillon stated: “We’re also seeing the predicted stabilisation of the casino and gaming market, with quarterly sales up both year-over-year as well as sequentially. We believe that all our major domestic original equipment manufacturer partners in casino and gaming are now back in buying positions after working together to overcome their oversupply positions.”
The CEO added: “We are encouraged by the direction of demand and expect 2025 to be the inflection point at which net losses begin to decrease as overall revenue returns to growth.”
TransAct reported a net loss of nearly US$9.9 million for full-year 2024, compared with a net profit of US$4.7 million in the prior year, with sales down 40.3 percent year-on-year, to US$43.4 million. Full-year 2024 adjusted EBITDA was a negative US$1.5 million, compared with a positive figure of nearly US$10.0 million in 2023.
In Thursday’s update, TransAct said it expected to record in 2025 total net sales of between US$47 million and US$52 million, with total adjusted EBITDA to be between “breakeven and negative US$2 million”.
The company also said its previously-announced strategic review process “remains active”. “The company is determined to consider any and all options that increase and / or deliver shareholder value,” it stated.
