GGRAsia – TransAct net sales down in 1Q, profit up

TransAct net sales down in 1Q, profit up

May 04, 2017 Newsdesk Industry Talk, Latest News

Nasdaq-listed gaming industry supplier TransAct Technologies Inc reported a 2.5 percent year-on-year decline in net sales in the first quarter of 2017, to US$14.0 million. The firm however posted a 50.8-percent increase year-on-year in operating profit, to US$1.4 million.

Net income for the period was US$943,000, up by 50.9 percent from the prior-year period, the firm said on Wednesday in a press release. Earnings before interest, taxation, depreciation and amortisation for the three months to March 31 went up 36.3 percent year-on-year, to US$1.7 million.

“In the 2017 first quarter, we continued to benefit from the diversification of our business towards higher margin, higher value technology driven solutions,” said Bart Shuldman, chairman and chief executive of TransAct, in a statement.

U.S.-based TransAct said its casino and gaming equipment sales decreased 5.9 percent year-on-year, to US$5.1 million, in the first quarter of 2017. The company said its casino and gaming revenue was negatively affected by a decline in revenue from sales of its Epicentral print system in the U.S. market and lower international sales of gaming device printers.

Mr Shuldman said the firm’s casino and gaming sales in the first quarter of 2017 benefited from domestic sales of printers associated with the launch of a new casino. “Both our casino and gaming and lottery markets remain healthy despite the ongoing maturation of these industries,” he added.

On Monday, TransAct announced that its board had increased the quarterly cash dividend to US$0.09 per share from US$0.08 per share. The dividend will be payable on June 15 to shareholders of record on May 19, 2017, the firm said.