GGRAsia – TransAct 2Q sales top US$11mln, loss narrows sequentially

TransAct 2Q sales top US$11mln, loss narrows sequentially

Aug 09, 2024 Newsdesk Latest News, Top of the deck, World

TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, reported second-quarter net sales of just under US$11.6 million, up 8.5 percent from the preceding quarter. Judged year-on-year, revenue was down 41.7 percent, according to a Thursday press release.

The year-on-year decline in sales was “largely as a result of the expected market dynamics and normalising demand for our casino and gaming printers,” stated the firm.

Sales in the casino and gaming segment stood at nearly US$5.4 million in the three months to June 30, a decline of 56.0 percent from a year ago. Sales in the gaming segment fell by 5.9 percent quarter-on-quarter, according to the announcement.

In late June, TransAct said it had installed its “Epicentral Promotion and Bonusing” system on 200 games, “across two resorts for a blue-chip casino owner and operator in Macau”.

Second-quarter sales in the group’s food service technology segment rose by 7.3 percent year-on-year, to US$4.2 million. Such sales were up 26.6 percent sequentially.

TransAct’s net loss for the April to June period was US$319,000, an improvement on the US$1.0-million loss in the first quarter this year. It compared with a net profit of US$765,000 for the second quarter of 2023.

The firm reported negative adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) to the tune of US$190,000 in the second quarter, compared with negative US$966,000 in the preceding three months. TransAct had posted positive adjusted EBITDA of US$1.6 million for the second quarter of 2023.

John Dillon, TransAct’s chief executive, was quoted as saying in the announcement on the latest numbers: “We are pleased with our results for the quarter, highlighted by 1,476 new terminals sold in the quarter, sequential food service technology recurring revenue growth, and 13 new logos added to our BOHA! platform in the quarter.”

He added: “Our continued focus on cost control is also yielding results, with our latest measures expected to save approximately US$2 million on an annualised basis, which we anticipate seeing the full effect of beginning in the third quarter of 2024.”

The CEO said the group’s initiatives aimed at streamlining the organisation and increasing sales efficiency were “producing positive changes at TransAct”.

In Thursday’s filing, TransAct said it expected to record in 2024 total net sales of between US$45 million and US$50 million, with total adjusted EBITDA “to be between negative US$1 million and negative US$2 million”.

The company also said it continues to “actively assess strategic alternatives” for its business, while “continuing to pursue its business growth and development initiatives on a parallel track”.

“The company has engaged with a number of outside parties since the previous update in June and is in various stages of discussion with such outside parties,” it said. “The company is committed to pursuing an optimal outcome for all its stakeholders and maximising shareholder value.”