TransAct reports 26.1% decrease in its fourth-quarter net sales

With fourth-quarter net sales of just less than US$13.3 million, TransAct technology Inc., a producer of food-safety monitoring technology, casino player management software, and slot machine printers, reported a 26.1 percent decrease from the same period last year.

For the three months that concluded on December 31, sales in the casino and gaming segment were around US$4.2 million, a 61.9 percent decline from the same period the previous year. The company did not provide a reason for the decline in gaming industry earnings.

On the other hand, the food service technology segment’s quarterly sales increased by 54.4 percent year over year to over US$4.7 million.

TransAct said that it had engaged a strategic counsel to assist in selecting the optimal long-term strategy for the company, but it did not provide any other details.

In contrast to the $260,000 net gain in the fourth quarter of 2022, the company reported a $62,000 fourth-quarter loss. Additionally, it revealed that, from October to December of last year, it had an operational loss of around US$522,000 as opposed to an operating gain of US$494,000.

For the fourth quarter of 2023, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were US$587,000, a 54.1 percent decline from the same time the previous year.

The CEO of TransAct, John Dillon, characterized 2023 as a transformative year for the company and expressed assurance in its heightened power, efficacy, and operational efficiency consequent to this shift.

Dillon highlighted notable achievements in the food service technology sector, such as the well-received introduction of the new BOHA! Terminal 2, which attracted positive feedback from clients and potential clients.

After suffering a $5.9 million loss in 2022, TransAct reported a net gain of $4.7 million for the fiscal year 2023. In 2023, the company’s adjusted EBITDA was around US$10.0 million, whereas in 2022, it was a negative US$5.2 million.

In 2023, the company’s overall sales climbed by 24.9 percent year over year to $72.6 million. Sales for the casino and gaming division came to $41.2 million in 2023, up 37.2 percent from the year before.

TransAct projected that total adjusted EBITDA would be around breakeven in 2024 and total net sales would range from US$53 million to US$58 million.

Original story by: GGRAsia