TransAct reports 27-pct increase in gaming sales
Nasdaq-listed gaming industry supplier TransAct Technologies Inc generated third quarter net sales of US$14.5 million, up by 2.1 percent from US$14.2 million in the third quarter of 2015. Such growth was supported by an increase in revenue from the casino and gaming product segment, the firm said on Wednesday.
The company said casino and gaming net sales in the third quarter of 2016 were US$5.6 million, up by 27.2 percent from the US$4.4 million in the prior-year period. Sales for the period reflected “strong international printer sales and a new international Epicentral installation, partially offset by lower sales to the domestic casino printer market,” TransAct said in its third quarter results announcement.
Net sales of printers for the lottery industry in the three months to September 30 increased by 22.2 percent year-on-year to US$2.2 million, on stronger sales to global gaming and lottery supplier International Game Technology Plc, said TransAct.
“While the global casino and gaming equipment market remains challenged on a macro basis, TransAct is leveraging its leadership position to drive growth and expand market share,” said Bart Shuldman, TransAct’s chairman and chief executive, in a statement.
Mr Shuldman added: “Our innovation and market leadership was reaffirmed late in the third quarter of 2016 with a strong showing at the Global Gaming Expo [G2E] in Las Vegas. In particular, we introduced our new Epic Edge casino ticket printer which… met with an enthusiastic response from casino operators.
“We also demonstrated two new versions of our Epicentral promotion and bonusing print system, including a new version that will allow TransAct to align our promotional and bonusing system directly with existing and future casino slot systems.”
Company wide, TransAct reported third quarter operating income of US$1.2 million, down by 25 percent from the prior-year period. The firm designs, develops and manufactures transaction-based printers for several industries, including the casino and lottery industries.
The U.S.-based company posted net income of US$0.9 million for the three months to September 30, compared to US$1 million a year earlier.
“The cash flow generated by our market-leading casino, gaming and lottery businesses allows us to invest in new, high-margin, technology-driven food safety and restaurant operation opportunities, and we expect to leverage our industry-leading solutions to deliver value for our shareholders in the form of additional growth and capital returns,” said Mr Shuldman.
As of September 30, TransAct said it had approximately US$2.2 million of cash and cash equivalents and no debt.
The company on Monday announced its board of directors declared a quarterly cash dividend of US$0.08 per share. The dividend will be payable on December 15 to shareholders of record at the close of business on November 21.
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