GGRAsia – TransAct 3Q profit narrows despite higher sales

TransAct 3Q profit narrows despite higher sales

Nov 11, 2022 Newsdesk Industry Talk, Latest News

TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, reported net sales of nearly US$17.9 million in the third quarter of 2022, up 67.9 percent year-on-year.

Despite the increase in revenue, the company saw its net profit narrow by 41.4 percent year-on-year, to about US$528,000, according to a Thursday press release. The latest quarterly result was an improvement on the US$2.4-million loss in the second quarter this year.

The firm’s cost of sales for the July to September period rose by 52.6 percent year-on-year, to nearly US$9.7 million.

TransAct reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of just below US$1.2 million for the three months to September 30, compared to a negative figure of US$1.2 million in the prior-year period.

The company had reported negative adjusted EBITDA in the second quarter, at US$2.5 million.

Third-quarter casino and gaming segment sales rose by 91.8 percent year-on-year, to just over US$7.7 million.

Bart Shuldman, TransAct’s chief executive, said in prepared comments issued with the results, that the company’s third-quarter results “broke not only a number of company sales records,” but also contributed to the firm’s “best nine months in sales since 2018”.

He added: “This would not be possible without the incredible work of our engineering, operations and sales teams who have worked tirelessly to get a near record number of casino and point-of-sales printers manufactured, sold and delivered in the face of supply shortages.”

Mr Shuldman said the third quarter also saw “continued momentum” in the group’s food service technology business, with “new records”, as revenue for the segment hit US$3.7 million.

He continued: “I am thrilled with the casino and gaming market where historic demand continues to outstrip our supply. Every printer we can make is being shipped out which helped us see a double-digit gain in our domestic sales and yet another triple digit gain in our international markets in the third quarter of 2022 compared to the third quarter of 2021.”

Net sales for the first nine months of 2022 stood at US$40.2 million, up 42.2 percent from a year earlier. Nonetheless, the company recorded a net loss of US$6.2 million for the period, partially due to increases in cost of sales and operating expenses. That compared to a net loss of US$3.2 million a year ago.