TransAct reported increases in the first quarter
The company released its first quarter results and reported increases in many areas.
US.- TransAct net sales in the first quarter dropped from US$14.4 million in 2016 to US$14 million this year and casino and gaming revenue in the 2017 first quarter was $5.1 million compared to $5.4 million in the prior-year period. However, the company’s overall numbers were positive as net income rose 51 percent, diluted earnings per share 63 percent and EBITDA 36 percent, all in comparison to 2016’s same period.
TransAct released its first quarter results and reported increases in many areas but saw a 5.5 percent drop in casino and gaming revenue, which dropped US$300,000 from 2016. Nonetheless, lottery printer sales were up 3.33 percent to US$3 million in comparison to 2016’s 2.9.
Other good margins for TransAct include its Gross margin of 43.5 percent in the first quarter up from a 41.0 percent recorded in the same period of 2016. “Higher gross margins in the 2017 first quarter more than offset the 3% decline in revenues, resulting in a 4 percent increase in gross profit to US$6.1 million”, explained the company in the report.
Generated operating income reached US$1.4 million as it rose 66 percent from the reported US$900 thousand in the 2016 first quarter. Net income also rose from US$600 thousand to 900 (50 percent), or $0.13 per diluted share from $0.08 per diluted share.
TransAct Chairman and CEO Bart Shuldman said in a press release that the company “continues to benefit from the diversification of our business towards higher margin, higher value technology driven solutions”. He explained that raises were driven by “a 250 basis point year-over-year improvement in gross margin.”
“During the first quarter we made several adjustments to our planned investments in our AccuDate sales and marketing initiatives, which are now beginning this quarter. We are working hard to build out our direct sales team for this market over the next several months. We look forward to growing momentum over the balance of 2017 and in the future as a result of these investments, particularly as we better position our AccuDate offerings as the industry’s best choice for in-kitchen technology solutions.
He also explained that the company’s casino and gaming and lottery markets “remain healthy despite the ongoing maturation of these industries. He added that its Epic gaming and casino device printers and Epic lottery printers remain market share leaders and said: “During the first quarter we made significant progress toward strengthening our foundation for growth over the balance of the year as we begin to implement our sales and marketing programs to capture the significant potential of our restaurant solutions market while further benefiting from the stability of our casino and gaming and lottery operations.”
TransAct President and CFO Steve DeMartino added: “Our healthy balance sheet continues to support our long-term growth initiatives, particularly our efforts to penetrate the meaningful market opportunity for our restaurant solutions.”
