GGRAsia – TransAct quarterly loss widens despite revenue increase

TransAct quarterly loss widens despite revenue increase

May 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, saw its quarterly net loss widen year-on-year in the first three months of 2022, on net sales that rose by 16.9 percent year-on-year.

Such loss was just over US$4.0 million for the three months to March 31, compared to a net loss of US$2.2 million in the same period of 2021, the firm reported on Tuesday in the United States.

Operating loss for the first quarter of 2022 was US$5.2 million, compared to an operating loss of US$2.7 million a year earlier.

Net sales for the first quarter were just over US$9.7 million, versus just above US$8.3 million in the opening three months of last year.

First-quarter casino and gaming segment sales increased by 66.2 percent year-on-year, to just under US$4.8 million.

The group’s negative performance in earnings before interest, taxation, depreciation and amortisation (EBITDA) seen in the first quarter 2021 – i.e., a negative US$2.5 million – was widened in the first three months of 2022, to a negative US$5.0 million.

Bart Shuldman, TransAct’s chairman and chief executive, said in prepared comments issued with the results that while the firm was “certainly disappointed” with some of its results for the quarter, it believed it was “seeing some bright spots throughout the business”

“Our casino and gaming market continues to experience record demand, with far more orders than we can produce due to supply chain constraints, as both the domestic and international markets continue to rebound,” stated the CEO.

“I believe we remain well positioned to execute” business in an effective way, “for the remainder of the year,” added Mr Shuldman.

He stated: “As of the end of the first quarter of 2022, we have over US$13 million in booked orders.”

The CEO further noted: “Despite sales being negatively impacted by component shortages and Omicron related headwinds in the first quarter, interest in our industry-leading products remains high and we are confident that demand will only continue to grow for the rest of the year.”