TransAct Technologies Inc., a supplier of slot machine printers, casino player management software and food safety management technology, reported first-quarter net sales of just $10.7 million, down 52.0% from a year earlier. Judging sequentially, sales were down 19.4%.
The company said in Tuesday’s announcement that the drop in revenue was “mainly a result of anticipated market dynamics and normalization of demand.”
Revenue from the casino and gaming division was nearly $5.7 million in the three months to March 31, down 64.0% from a year ago. However, revenue from the gaming division was up 35.9% quarter-over-quarter, according to Tuesday’s announcement.
First-quarter revenue for the group’s dining technology division fell 4.6% year-over-year to $3.3 million. These sales fell 30.0% sequentially.
Transact’s net loss for the first quarter of 2024 was US$1 million, a significant decrease from US$3.1 million in the same period last year. The company posted a net loss of US$62,000 in the final quarter of 2023.
The company reported a negative adjusted profit in the January-March period, compared with a positive $4.5 million figure for the year-ago period, with interest, taxation, depreciation and amortization (EBITDA) of $701,000. TransAct reported an adjusted EBITDA of $587,000 for the fourth quarter of 2023.
John Dillon, CEO of TransAct, said in the announcement that the company has “constant confidence” in its “core product offerings” and “ability to get new customers in new batches” for its food inventory safety product, BOHA!
“We are optimistic about TransAct’s future 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 enter new markets in the future.”
Transact’s management previously said the OEM group using its products for its units had been negatively impacted by “high-level printer inventory.” It said in March that OEMs were “reducing the high-level printer inventory they stocked during the supply crisis in early 2023.”
In its Tuesday filing, TransAct said it expects total net sales in 2024 to be between $45 million and $50 million, with total adjusted EBITDA “to be between negative US$2.5 million and negative US$3.5 million,” compared with revenue of up to US$58 million this year and earlier forecasts from Adjusted EBITDA “to be roughly a break-even point.”
Transact reported net income of $4.7 million in 2023 with revenue of $72.6 million, up 24.9% year-over-year. Revenue in the casino and gaming division rose 37 to $41.2 million last year.
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