TransAct Technologies’ 2015 third quarter revenue increases 6%

TransAct generated 2015 third quarter net sales of $14.2 million compared with net sales of $13.4 million in the 2014 third quarter. Casino and gaming revenue in the 2015 third quarter decreased 13% to $4.4 million compared to $5.1 million in the prior year period as a 70% year-over-year increase in sales of casino printers in the domestic market was more than offset by a decline in international revenue.

Food safety, point-of-sale (POS) and banking revenue increased $0.8 million, or 29%, to $3.4 million in the 2015 third quarter, including a 75% year-over-year increase in sales of food safety terminals as well as higher sales of the Company’s POS printer to McDonald’s.

Lottery printer sales for the 2015 third quarter were $1.8 million, compared with $1.5 million in the 2014 third quarter. Printrex revenues were $0.2 million in the 2015 third quarter compared to $1.0 million in the year-ago quarter, and the company’s TransAct Services Group recorded net sales of $4.4 million, an increase of 37%, compared to $3.2 million in the year-ago period on stronger sales of spare parts to its largest lottery customer.

Gross margin increased to 44.4% in the third quarter of 2015 compared to 39.5% in the year-ago quarter, and gross profit rose 19% year over year to $6.3 million primarily reflecting the higher revenue and the continued shift in mix towards higher-margin products.

Total operating expenses for the 2015 third quarter were $4.7 million compared to $5.2 million in the year-ago quarter. Excluding legal fees related to the lawsuit with Avery Dennison Corporation in the prior-year period, operating expenses declined 2% year over year reflecting the Company’s successful execution of its cost reduction initiatives.

TransAct recorded operating income of $1.6 million, or 11.0% of net sales, for the 2015 third quarter compared to $0.1 million, or 0.4% of net sales, in the 2014 third quarter. Net income in the 2015 third quarter was $1.0 million, or $0.13 per diluted share, compared to net income of $0.1 million, or $0.01 per diluted share, in the prior-year period.

Bart Shuldman, Chairman and Chief Executive Officer of TransAct, said: “TransAct’s strong 2015 third quarter financial results benefited from our focus on sales and the successful expansion of our product portfolio to include more higher-margin products. The 6% year-over-year increase in revenue and 490 basis point increase in gross margin during the third quarter drove an over three-fold rise in adjusted operating income and a doubling of Adjusted EBITDA over the prior-year quarter. We again generated strong sales of our food safety terminals and solid results in our domestic casino and gaming business while continuing our efforts to aggressively control costs across the enterprise. As we finish 2015 and plan for the year ahead, we believe that TransAct has built a strong foundation for continued success.