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TransAct Q1 Revenue Decline Game Sales Decline

TransAct Technologies Inc., a provider of slot machine printers, casino player management software and food safety management technologies, reported net sales of just $10.7 million in the first quarter, down 52.0% year over year. On a sequential basis, sales fell 19.4%.

The company said in Tuesday’s announcement that the decline in sales was “mainly a result of expected market dynamics and normalization of demand.”

In the three months to March 31, revenue for the casino and gaming division was nearly $5.7 million, down 64.0% from a year ago. But revenue for the gaming division was up 35.9% quarter-over-quarter, according to Tuesday’s report.

First-quarter revenue for the group’s dining technology division fell 4.6% year-over-year to $3.3 million. Those sales fell 30.0% sequentially.

Transact’s net loss in the first quarter of 2024 was US$1 million, a significant decrease from US$3.1 million a year earlier. The Company posted a net loss of US$62,000 in the last quarter of 2023.

The company reported a negative adjusted profit in the January-March period, compared with a positive figure of $4.5 million a year earlier, with interest, taxable, depreciable and amortised earnings (EBITDA) of $701,000. TransAct reported a adjusted EBITDA of $587,000 in the fourth quarter of 2023.

John Dillon, Transact’s chief executive, said in a release that the company has “continued confidence” in its “core product offerings” and “the ability to get new customers in new batches” for BOHA, a food inventory safety product!

He added: “We are optimistic about the future of TransAct as an agile transaction verification platform that provides customized solutions to our customers, and we believe there is a significant opportunity to target new use cases with our existing products and further into new markets in the future.”

TransAct’s management previously said OEM groups using its products in units had been negatively affected by “high levels of printer inventory.” That’s because OEMs are “reducing the high levels of printer inventory they stocked during the supply crisis in early 2023,” executives said in March.

Transact expects 2024 gross net sales to be between $45 million and $50 million, with gross adjusted EBITDA “to be between negative US$2.5 million and negative US$3.5 million,” Transact said in a Tuesday filing, compared with revenue of up to US$58 million this year and prior forecasts of adjusted EBITDA “to be roughly a break-even point.”

TransAct reported net income of $4.7 million on revenue of $72.6 million for the full year 2023.

BY: 바카라사이트윈

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