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TransAct posts $440,000 quarterly loss as casino and gaming sales fall
The supplier lowered the upper end of its full-year sales and adjusted EBITDA forecasts as it continued a strategic review.
TransAct Technologies Inc reported a US$440,000 net loss for the three months to September 30, as declining casino and gaming sales offset growth in its food service technology business.
The Nasdaq-listed supplier of slot machine printers and casino-player management software earned US$15,000 in the same quarter a year earlier and lost US$50,000 in the preceding quarter, GGRAsia reported. Its unaudited results were issued Thursday.
Casino and gaming sales dropped 10.7 percent year-on-year to just under US$6.4 million. Food service technology sales rose 32.7 percent to US$6.4 million, helping lift group net sales 9.3 percent to US$14.4 million.
Chief executive John Dillon attributed the gaming decline to the business's cyclical nature. “Casino and gaming softened in the quarter, consistent with the cyclicality that we have seen in the past, and we expect the softer demand environment to continue into the fourth quarter,” he said.
TransAct said its board was evaluating a potential sale of the food service technology business, either on its own or in a broader transaction. The formal strategic review announced in August remains focused on casino and gaming, and the company has not set a public completion timetable.
Management worked with financial adviser BofA Securities Inc during the quarter. TransAct also lowered the upper end of its 2026 net sales forecast to US$56 million from US$57 million, retaining the US$55 million lower bound.
The company now forecasts adjusted EBITDA of US$1.5 million to US$1.75 million, down from a previous range of US$1.5 million to US$2.0 million. Third-quarter adjusted EBITDA fell 56.8 percent year-on-year to US$289,000, excluding US$120,000 in shareholder advisory costs associated with shareholder activism.
TransAct recorded an operating loss of US$415,000, compared with operating income of US$14,000 a year earlier. Gross profit rose to nearly US$6.7 million, while gross margin declined to 46.4 percent from 49.8 percent.