TransAct 3Q sales fall, loss widens sequentially

Nov 08, 2024 Newsdesk Industry Talk, Latest News  

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TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, reported third-quarter net sales of just under US$10.9 million, down 36.8 percent from a year earlier. Judged sequentially, revenue declined by 6.3 percent, according to a Thursday press release.

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

Sales in the casino and gaming segment stood at just above US$4.5 million in the three months to September 30, a decline of 49.7 percent from a year ago. Sales in the gaming segment fell by 15.4 percent quarter-on-quarter, according to the announcement.

Third-quarter sales in the group’s food service technology segment rose by 1.9 percent year-on-year, to US$4.3 million. Such sales were up 3.4 percent sequentially.

TransAct’s net loss for the July to September period was US$551,000, an increase on the US$319,000-million loss in the second quarter this year. It compared with a net profit of US$906,000 for the third quarter of 2023.

The firm reported negative earnings before interest, taxation, depreciation, and amortisation (EBITDA) to the tune of US$533,000 in the three months to September 30, compared with negative EBITDA of US$190,000 in the preceding three months. TransAct had posted positive EBITDA of US$1.5 million for the third quarter of 2023.

John Dillon, TransAct’s chief executive, was quoted as saying in the announcement on the latest numbers: “We reported an excellent food service technology quarter, with another 1,355 BOHA! Terminal sales. We believe this momentum is just the beginning, with the effects of our reorganisation and refocusing of the sales team and go-to-market process starting to yield positive results.”

He added: “Our pipeline continues to hold strong under continued scrubbing, and as we further refine our process, we expect to further improve our go-to-market execution and generate improving conversion rates in 2025.”

In Thursday’s filing, TransAct said it expected to record in 2024 total net sales of between US$43 million and US$45 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 with the assistance of Roth Capital Partners LLC, while “continuing to pursue its business growth and development initiatives on a parallel track”.

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