In This Article:
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Total Sales: $10.9 million, down 6% sequentially and 37% year-over-year.
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FST Revenue: $4.3 million, up 2% year-over-year and 3% sequentially.
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FST Recurring Revenue: $2.9 million, down 8% year-over-year but up 3% sequentially.
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FST Hardware Sales: Up 30% year-over-year and 3% sequentially.
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Casino and Gaming Revenue: $4.5 million, down 50% year-over-year.
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Gross Margin: 48.1%, down from 51.9% in the prior year period.
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Operating Expenses: $6.1 million, down 22% year-over-year and 7% sequentially.
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Net Loss: $551,000 or A0.6 per diluted share, compared to net income of $906,000 or A0.9 per diluted share in the prior year.
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Adjusted EBITDA: Negative $204,000, down from $1.7 million in the prior year.
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Cash Position: Over $11 million in cash with $2.25 million borrowings under credit facility.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Transact Technologies Inc (NASDAQ:TACT) reported strong progress in the Food Service Technology (FST) sector, with 1,355 units sold in the third quarter, marking a 90% increase from the previous year.
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FST hardware sales increased by 30% year over year, indicating robust demand for their products.
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The company added 12 new BOHA clients in the quarter, representing a potential for about 2,400 units over time, showcasing a strong pipeline for future growth.
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Transact Technologies Inc (NASDAQ:TACT) has successfully implemented cost reduction initiatives, achieving $5 million in annualized savings, which has helped reduce operating expenses by 22% year over year.
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The company maintains a solid liquidity position with over $11 million in cash and minimal borrowings, ensuring financial stability.
Negative Points
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Total sales for the third quarter were $10.9 million, down 37% compared to the prior year period, indicating a significant decline in overall revenue.
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Recurring FST revenue decreased by 8% year over year, highlighting challenges in maintaining consistent revenue streams.
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Casino and gaming sales dropped by 50% year over year, primarily due to one major OEM customer working through high inventory levels.
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The company revised its revenue outlook to a range of $43 million to $45 million due to unexpected demand lag in the casino and gaming sector.
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Transact Technologies Inc (NASDAQ:TACT) reported a net loss of $551,000 for the third quarter, compared to net income in the same period last year, reflecting financial challenges.
Q & A Highlights
Q: Can you elaborate on the situation with the one OEM in the casino and gaming sector that is still in oversupply? A: John Dillon, CEO: The OEM has an oversupply in one geographical market, and we are working with them to reconfigure their existing inventory for other markets where there is no oversupply. This involves making slight changes to the inventory, such as adding or removing accessories or updating firmware, to suit different markets. We are optimistic about resolving this issue.