TransAct profit dips sharply in 3Q on tough comp
Slot machine printer specialist TransAct Technologies Inc reported net income fell 97 percent in the third quarter of 2014, to US$50,000 from US$1.5 million a year earlier. It said the numbers were in the context of a difficult year-on-year comparison following a U.S. installation of software for its Epicentral player rewards product in 2013.
The quarterly result amounted to US$0.01 per diluted share, compared to US$0.17 per diluted share in the prior-year period.
Net revenue for the three months to September 30 for the Nasdaq-listed firm slipped 20 percent to US$13.4 million, from US$16.8 million in the third quarter 2013.
Casino and gaming revenue in the 2014 third quarter was US$5.1 million compared to US$7.5 million in the prior year period, a decline of 32 percent year-on-year.
The firm said that reflected lower sales of casino printers to original equipment manufacturers and lower domestic Epicentral revenue. The year-ago period included one domestic Epicentral software installation compared to no domestic installations in the 2014 third quarter.
International casino and gaming revenue increased US$0.5 million year-on-year reflecting higher printer sales partially offset by lower international Epicentral revenue.
TransAct also supplies products to the food safety, banking, point-of-sale, hospitality, oil and gas, medical and mobile industries.
Bart Shuldman, chairman and chief executive of TransAct, said in a statement accompanying the filing: “As anticipated, the third quarter results reflect lower overall contributions from casino and gaming operations as a result of ongoing challenges in the gaming industry.”
He added: “Despite the current casino and gaming industry environment, TransAct is maintaining its strong world-wide market share of printer sales. Importantly, we are taking direct action to bring our costs in line with the current outlook for the domestic casino market through cost cutting initiatives of approximately US$1,000,000 on an annualised basis while simultaneously continuing to invest in and fund our high growth opportunities.”
On Monday, TransAct said in a filing that its board had declared a quarterly cash dividend of US$0.08 per share. The board also approved a modification to the current stock repurchase programme.
The quarterly cash dividend will be payable on December 15 to shareholders of record on November 20.
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