GGRAsia – TransAct 2Q profit sharply down on lower casino sales

TransAct 2Q profit sharply down on lower casino sales

Aug 07, 2014 Newsdesk Industry Talk, Latest News, Top of the deck

U.S.-based Transact Technologies Inc reported a net income of US$0.2 million for the second quarter of 2014, significantly down from US$1.2 million compared with one year ago.

The Nasdaq-listed supplier of printers and printing software to the gaming and lotteries industries, among other industries, generated second quarter net sales of US$13.8 million, down by 12.7 percent on year-on-year terms. Revenue from casino and gaming sales was US$6.1 million compared to revenue of US$7.3 million in the prior year period.

“The year over year decline reflects lower sales of casino printers to original equipment manufacturers and lower domestic Epicentral revenue as the year-ago period,” the company said in a statement. The results were also negatively impacted by higher product development expenses and marketing costs.

“We are maintaining our strong market position in the challenging casino and gaming industry,” TransAct chairman and chief executive Bart Shuldman said in a statement.

He added: “As many domestic casino operators work through a slot management system upgrade cycle, we continue to make inroads in the worldwide casino market with our Epicentral promotional and couponing system. During the second quarter we installed the Epicentral system at nine properties in a Latin American market owned and operated by a multi-site casino operator.”

TransAct on Monday declared a quarterly cash dividend of US$0.08 per share.

Two of TransAct’s market rivals announced on Monday they are linking up. JCM Innovation Corp, a subsidiary of JCM American Corp, said it has entered into an agreement to buy U.S.-based FutureLogic Inc from American Capital Ltd.