GGRAsia – TransAct 2Q loss widens despite revenue increase

TransAct 2Q loss widens despite revenue increase

Aug 04, 2021 Newsdesk Industry Talk, Latest News

TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, saw its second-quarter net loss widen year-on-year, on net sales that rose 76.4 percent.

Such loss was just over US$2.1 million for the three months to June 30, compared to a net loss of nearly US$1.9 million in the same period of 2020, the firm reported on Tuesday in the United States.

Compared to the previous quarter, the firm’s second-quarter loss improved by 4.2 percent.

Net sales for the second quarter were just above US$9.3 million, versus nearly US$5.3 million in the prior-year period, and about US$8.3 million in the first quarter of 2021.

The group’s negative performance in earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$2.5 million, flat compared to a year earlier and the preceding quarter.

Second-quarter casino and gaming segment sales grew by 150.0 percent year-on-year, to just under US$3.5 million. The figure was up 21.0 percent quarter-on-quarter.

Food service technology sales in the second quarter rose 155.3 percent year-on-year and 11.9 percent sequentially, to nearly US$3.1 million, benefiting from demand for Transact’s food-inventory monitoring and food-service tracking system known as Boha.

Bart Shuldman, TransAct’s chairman and chief executive, said in prepared comments issued with the results, that the company saw a “broad-based recovery” across its markets, due largely to the resumption of relevant business activities in the United States.

“As America’s food service operators face mounting challenges from ingredient inflation, labour shortage, and continuing safety concerns, our Boha platform has picked up considerable steam,” he said. “We are also thrilled to see our casino and gaming market benefit from domestic reopening tailwinds.”

Mr Shuldman added: “Our results demonstrate that our industry leading Boha ecosystem and casino products remain well positioned to capitalise on the re-opening of the global economy.”