TransAct Technologies Reports Third-Quarter Net Loss on 10.7 Percent Decline in Casino and Gaming Sales
TransAct Technologies posted a $440,000 net loss as casino and gaming sales fell 10.7%, prompting lower guidance and a strategic review.Summary
TransAct Technologies reported a net loss of $440,000 for the quarter ended September 30, compared with a net profit of $15,000 a year earlier, as casino and gaming sales declined 10.7% to just under $6.4 million. Group-wide net sales rose 9.3% to $14.4 million, helped by a 32.7% increase in food service technology sales to $6.4 million. Gross margin fell to 46.4% from 49.8%, and adjusted EBITDA dropped 56.8% to $289,000. CEO John Dillon attributed the casino and gaming decline to cyclical demand weakness expected to continue into the fourth quarter. The company lowered its full-year net sales forecast to $55 million to $56 million and narrowed adjusted EBITDA guidance to $1.5 million to $1.75 million. TransAct is evaluating a potential sale of its food service technology business, while its formal strategic review, with BofA Securities engaged, remains focused on the casino and gaming business.
(Source：Sccg Management)