The following is a summary of the TransAct Technologies Incorporated (TACT) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 total sales reported at $10.9 million.
Casino and gaming sales declined by 50% year-over-year to $4.5 million.
Business Progress:
FST unit sales up 90% year-over-year with 1,355 units sold in Q3.
Launched BOHA! Terminal 2 with positive market reception.
Opportunity:
BOHA! Terminal 2 rollout could expand market presence in various food service sectors.
New strategic partnerships, like with CasinoTrac, could open new revenue streams.
Risk:
Casino and gaming sector faces challenges with oversupply, recovery may delay until 2025.
Economic slowdown in the gaming industry could adversely affect segment performance.
Financial Performance:
Total sales for the quarter were reported at $10.9 million.
FST segment revenue showed a year-over-year increase of 2% and sequential quarterly increase of 3%, totaling $4.3 million.
Casino and gaming sales declined significantly by 50% year-over-year to $4.5 million due to oversupply issues with OEM customers.
The company recorded a net loss of $551,000 for Q3, compared to a net income of $906,000 in the same period the previous year.
Revised annual revenue outlook set between $43 million and $45 million, while adjusted EBITDA expectations remain unchanged due to disciplined cost controls.
Business Progress:
Significant growth in FST unit sales, which were up 90% year-over-year, selling 1,355 units in Q3.
The rollout of BOHA! Terminal 2 is progressing with positive feedback and sales to a large QSR client and other sectors like sushi and convenience stores.
Established new strategic relationships and added 12 new BOHA! clients in the quarter, representing potential future sales of about 2,400 units.
Enhanced engagement in the casino and gaming segment through a partnership with CasinoTrac to incorporate Epicentral in their Slot Suite product, which has shown promising pilot results.
Efforts ongoing to address casino and gaming segment challenges, including working with OEM clients to reconfigure existing stock for other markets to relieve inventory oversupply.
Opportunities:
Potential market expansion and product innovation through the rollout of BOHA! Terminal 2 and increasing adoption in various food service sectors.
Strategic partnerships improving with the inclusion of Epicentral in the CasinoTrac Slot Suite offering, potentially opening up new revenue streams in the casino industry.
Human capital growth opportunity from new client relationships offering a substantial base for scaling operations and increasing unit placements.
Risks:
Persistence of supply oversupply in the casino and gaming sector potentially delaying recovery until at least 2025.
Economic factors indicating a slowdown in the gaming industry could adversely affect the business segment further.
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