US-headquartered designer and producer of technology for the international land-based casino industry as well as for other business segments TransAct Technologies Inc. reported its financial results for the first quarter of 2016. Casino and other gaming equipment sales dropped 2.6% year-on-year to $5.4 million. This was the third consecutive three-month period of sales decline in that particular segment.
The company said in a statement that revenue from the casino segment was adversely impacted by lower than expected international gaming and casino revenue. Nevertheless, sales from devices for land-based casinos were the main contributor to the overall figure posted. Revenue from gaming machines accounted for 37.9% of the total revenue reported for the period in review.
TransAct Technologies posted overall net sales (including non-gaming segments) of $14.4 million for the quarter ended March 31, 2016, down from the $16.2 million generated during the same period a year ago. Gross profit amounted to $5.9 million, down from a total of $6.5 million for the first quarter of 2016. Gross margin stood at 41%.
Operating profit for the period in review amounted to $0.9 million, up from $0.2 million. The company generated EBITDA of $1.3 million. In comparison, the amount of $0.6 million was posted for the same three months of the previous year. Net income totaled $0.6 million, up from $0.1 million.
Within the international casino industry, TransAct Technologies is best known for the production of ticket printers for gaming machines used at both gaming facilities and non-gaming ones that feature limited gambling options at their premises.
Bart Shuldman Chairman and CEO of TransAct Technologies commented that within the gambling market, the company has continued growing domestic share. The executive further noted that US sales growth for their Epic 950 printers actually exceeded the growth of the local market for gambling devices.
Mr. Shuldman also pointed out that given the fact operators are constantly looking for ways to increase revenue at their casinos, interest in the company’s printers and their innovative ability to attract players’ attention by printing promotions and coupons in real time keeps on growing.
