TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, says its board has formed an independent committee to consider a “full range of strategic, operational, and financial alternatives” for it business.
The review might result in a “potential sale of part of or the entire business of the company and the development and implementation of new strategies designed to grow the company’s business,” TransAct said in a press release on Monday.
The firm said in March it was launching a review process in order to determine the “best long-term strategy for its business”.
“The company is actively assessing strategic alternatives with the assistance of Roth Capital Partners LLC,” TransAct stated in Monday’s announcement
It added: “The company has engaged in preliminary discussions with potential strategic partners.”
The update quoted John Dillon, TransAct’s chief executive, as saying: “TransAct’s casino business remains a market leader with growth prospects existing globally. As inventories in the industry normalise, we fully expect the business to continue to produce stable and growing returns.”
He added: “The food service technology business, despite the loss of 7-Eleven’s label business, is growing. We have added a number of new customers with significant growth opportunities and, in addition, a large global QSR client has successfully procured more than 1,000 units of our new BOHA! Terminal 2 since the beginning of this year.”
The CEO also said that while the company evaluates “strategic initiatives” for its business, it “will continue to prioritise internal initiatives that improve and refine operational execution within each functional area of the business”.
TransAct reported first-quarter net sales of just under US$10.7 million, down 52.0 percent from the prior-year period. It said the decline in sales was “largely a result of the expected market dynamics and normalising demand” for the group’s casino and gaming printers.
The firm posted a first-quarter net loss US$1.0 million, compared with a net income of US$3.1 million a year earlier.
