TransAct Q1 Revenue Drops Due to Poor Game Sales Results
TransAct Technologies Inc, which supplies slot machine printers, casino player management software and food safety management technology, posted first-quarter net sales of just under $10.7 million, down 52.0% from a year earlier. Sequentially, sales fell 19.4%.
The decline in revenue is the result of "expected market dynamics and normalization of demand" for group casinos and gaming printers, the company said in a release on Tuesday
Revenue from the casino and gaming division was about $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.
The group's dining technology division saw first-quarter revenue decline 4.6% year-over-year to $3.3 million. These revenues were down 30.0% quarter-over-quarter.
TransAct had a net loss of US$1 million in the first quarter of 2024, compared with a net income of $3.1 million in the same period last year. The company posted a net loss of $62,000 in the final quarter of 2023.
The company reported negative earnings before interest, taxes, depreciation and amortization (EBITDA) in the January-March period, down to US$701,000 compared to a plus figure of $4.5 million in the same period last year. TransAct had an adjusted EBITDA of $587,000 in the fourth quarter of 2023.
John Dillon, CEO of TransAct, said in the announcement that he had "continued confidence" in the "core product offerings" for BOHA, a food inventory safety product, and the opportunity to "get new customers in new deployments"!
"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 existing products and move forward into new markets."
Transact's management has previously said it was negatively impacted by the group due to "high-level printer inventory" from original equipment manufacturers (OEMs) that use the company's products for their units. This means that these OEMs are "reducing the high-level printer inventory they stocked during the supply crisis in early 2023," the management said in March. 무료슬롯사이트
In a filing on Tuesday, 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 $2.5 million and negative $3.5 million," compared with sales of up to $58 million this year and an earlier forecast for "roughly break-even."
Full-year 2023 revenue rose 24.9% year-over-year to $72.6 million, reporting net income of $4.7 million. Last year, the casino and gaming division saw revenue increase by $37 to $41.2 million.
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