GGRAsia – TransAct slips to 2Q net loss, negative EBITDA

TransAct slips to 2Q net loss, negative EBITDA

Aug 06, 2020 Newsdesk Latest News, Top of the deck, World

Casino technology and food safety equipment supplier TransAct Technologies Inc announced on Wednesday a net loss of just under US$1.9 million for the second quarter, compared to net income of US$186,000 in the prior-year quarter.

TransAct’s second-quarter performance was “relatively solid given the challenges presented by the Covid-19 pandemic,” said Bart Shuldman, chairman and chief executive of the group, in commentary accompanying the second-quarter numbers.

Quarterly net sales were down 53.4 percent year-on-year, to just below US$5.3 million, from nearly US$11.4 million in the year-ago period.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months to June 30 this year were negative by almost US$2.5 million, versus positive EBITDA of US$403,000 in the prior-year reporting period.

Second-quarter sales in the casino and gaming segment fell 75.8 percent, to just below US$1.4 million, from just over US$5.6 million a year earlier.

Sales in the food service technology segment, which the firm has been looking to expand, saw a 7.2 percent year-on-year increase for the quarter, to slightly over US$1.2 million, from about US$1.1 million in the same quarter of 2019.

The group’s core business has been casino player rewards and player tracking software; and ticket printers for electronic gaming machines. More recently it has been developing sales of its food inventory monitoring and food-safety tracking system known as Boha.

Mr Shuldman said in commentary on the latest results, that recurring revenue from food service technology – including software, labels and service sales – “increased over 100 percent” from the second quarter last year. He added that recurring revenue from Boha might exceed US$1 million in the third quarter.

The executive said that a new Boha product called “Boha Employee Wellness” offered – via a mobile application – a “safe and secure” way for businesses to screen the health of their staff .

“Although the near-term business environment is uncertain, we continue to be excited by the momentum of our Boha solution and the long-term opportunities it provides us,” Mr Shuldman was quoted as saying.