TransAct casino sales down 29 pct in 2Q
Slot machine printer specialist TransAct Technologies Inc reported casino and gaming equipment sales of US$5.2 million for the second quarter of 2016, down by 29 percent from the prior-year period.
This was the fourth consecutive quarter of casino and gaming equipment sales decline for TransAct as measured in year-on-year terms. TransAct’s casino and gaming product segment includes ticket printers for gaming machines.
Revenue from the segment was negatively affected by lower year-on-year sales of domestic and international printers, “as well as no new installations of the company’s Epicentral software system compared with one new domestic installation in the prior-year period,” the firm said in a statement issued on Thursday.
“In casino and gaming, our focus remains on growing share in the face of the industry’s overall choppiness,” said Bart Shuldman, chairman and chief executive of TransAct, in a statement.
“Domestic demand for our gaming device printers remains largely stable and international demand – while challenged through the first half of the year – is showing some signs of growing… thus far in the third quarter,” said the company’s CEO.
“In addition, we made substantial progress on two previously disclosed implementations of our Epicentral software system that we continue to expect will go live later in the year,” added Mr Shuldman.
The company said that it has had a lot of interest from Macau casino operators in its Epicentral print system. Epicentral is a computer software-based system that works in conjunction with TransAct’s Epic 950 ticket printer. The latter product is already installed in many slot machines in Asia.
TransAct’s total net sales revenue for the second quarter of 2016 – including non-gaming related segments – was US$14.8 million, down 14.1 percent in year-on-year terms. Casino and gaming sales were the main revenue contributor, accounting for 35.2 percent of the total.
Net income in the three months to June 30 was US$753,000, down 45.7 percent compared to US$144,000 in the prior-year period. It was still an improvement of 20.5 percent from the first quarter of 2016.
“Our accomplishments in the second quarter of 2016 and to-date this year are in line with our expectations and we continue to be optimistic about our prospects for a successful 2016,” said Mr Shuldman.
TransAct on Monday announced its board of directors declared a quarterly cash dividend of US$0.08 per share. The dividend will be payable on September 15 to shareholders of record at the close of business on August 19.
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