TransAct 1Q loss widens despite revenue increase q-on-q

May 07, 2021 Newsdesk Industry Talk, Latest News, Top of the deck, World  

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TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, saw its quarterly net loss widen year-on-year in the first three months of 2021, on net sales that fell 19.0 percent.

Such loss was just over US$2.2 million for the three months to March 31, compared to a net loss of US$992,000 in the same period of 2020, the firm reported on Thursday in the United States.

Compared to the previous quarter, the firm’s first quarter loss also widened: TransAct had posted a net loss of US$1.9 million for the three months ended December 31, 2020.

Net sales for the first quarter were just over US$8.3 million, versus just above US$10.2 million in the opening three months of last year, and around US$7.8 million in the fourth quarter of 2020.

First-quarter casino and gaming segment sales slipped 41.9 percent year-on-year, to just under US$2.9 million. The figure was however a quarterly increase: TransAct’s casino and gaming segment sales for the fourth quarter of 2020 were under US$2.7 million.

Food service technology sales rose 100.4 percent year-on-year in the first three months of 2021, to just over US$2.7 million, benefiting from demand for Transact’s food-inventory monitoring and food-service tracking system known as Boha.

The group’s negative performance in earnings before interest, taxation, depreciation and amortisation (EBITDA) seen in the first quarter 2020 – i.e., a negative US$1.2-million – was widened in the first three months of 2021, to a negative US$2.5 million. That was also worse than the negative EBITDA of US$2.0 million recorded for the fourth quarter of 2020.

Bart Shuldman, TransAct’s chairman and chief executive, said in prepared comments issued with the results that judged by sequential quarters, the outlook was positive.

The first quarter this year was the group’s “third consecutive quarter of sequential top line growth,” stated the CEO.

“We are seeing many green shoots and positive signs of recovery as we carry our momentum over from that latter half of 2020 into the first quarter of 2021,” said Mr Shuldman.

The CEO suggested TransAct’s casino and gaming segmental performance had “begun to turn the corner” in the U.S. domestic market, due to venues reopening.

He added that in terms of other markets, TransAct was “well-positioned to capitalise on the reopening of the global economy and especially the casino and restaurant market ”.

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