TransAct Technologies Reports Preliminary Third Quarter 2020 Financial Results
FST Recurring Revenues up 157% on a Year-Over-Year Basis
Completed $9.8 Million Public Offering of Common Stock
HAMDEN, Conn.--(BUSINESS WIRE)--Nov. 5, 2020-- TransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct” or the “Company”), a global leader in software-driven technology and printing solutions for high-growth markets, today reported preliminary operating results for the quarter ended September 30, 2020.
“We are pleased with our execution in the third quarter and especially pleased with the strong momentum in our Food Service Technology (“FST”) market. Our FST revenue increased 20% over Q3 2019, with our recurring FST revenue, which includes software, labels, and service sales, increasing 157% year over year. The traction we continue to generate in this market is incredibly encouraging and we are looking forward to further momentum with the recently announced native iOS BOHA! Restaurant Operations Platform and our all-new BOHA! Work Station that is paired with iPad,” said Bart Shuldman, Chairman and CEO of TransAct. “In addition, our Casino and Gaming sales increased sequentially despite the very difficult operating market for casinos around the world.”
Shuldman continued, “Finally, our recently completed $9.8 million common stock offering provides us with additional operating capital to increase penetration into the FST market and to support our new relationship with Apple. All said, despite headwinds to our customers businesses, we made significant strides this quarter toward long term growth and value creation for our shareholders.”
Third Quarter 2020 Financial Highlights
Net Sales: Net sales for the third quarter of 2020 were $7.3 million, down 38% compared to $11.7 million for the third quarter of 2019. FST net sales for the third quarter of 2020 were $2.3 million, up 20% compared to $2.0 million for the third quarter of 2019.
Gross Profit: Gross profit for the third quarter of 2020 was $3.3 million, resulting in gross margin of 45.9%, compared to gross profit of $5.5 million for the third quarter of 2019, which resulted in a 47.5% gross margin.
Operating income (loss): Operating loss for the third quarter of 2020 was $1.5 million, compared to operating income of $0.3 million for the third quarter of 2019.
Net income (loss): Net loss for the third quarter of 2020 was $0.9 million, or $0.11 net loss per diluted share, based on 7.5 million diluted weighted average common shares outstanding. Net income for the comparable 2019 period was $0.4 million, or $0.05 net income per diluted share, based on 7.8 million diluted weighted average common shares outstanding.
EBITDA: EBITDA was negative $1.1 million for the third quarter of 2020, compared to positive EBITDA of $0.5 million for the third quarter of 2019.
Adjusted EBITDA: Adjusted EBITDA was negative $0.9 million for the third quarter of 2020, compared to positive adjusted EBITDA of $0.7 million for the third quarter of 2019.
The condensed consolidated statement of operations is at https://transacttech.gcs-web.com/news-releases/news-release-details/transact-technologies-reports-preliminary-third-quarter-2020.