Table Trac announces first quarter 2016 results

Highlights

• The company signed seven new customer contracts during the quarter, and delivered three systems with an aggregate value of approximately $864,000. Roughly $695,000 of the revenue for these system sales will be recognized in future periods, since a substantial amount is not due within 12 months. These contracts, along with the related maintenance, will add to the existing recurring revenue, which was at the highest point in company history as of March 31st.
• The value of the four contracts in backlog as of March 31st was approximately $1,738,000 with delivery scheduled for the second quarter of 2016. Some revenue from some of these contracts will be recognized immediately, while some will be recognized in future quarters.
• The company repurchased 10,000 shares during the quarter and held 125,969 shares in its treasury as of March 31, 2016.

Year-to-date financial results

• Revenues decreased from $1,347,484 in 2015 to $939,371 in 2016. The decrease of $408,113 was due to more revenue deferred from the 2016 sales, compared to the 2015 sales.
• Ongoing maintenance revenue increased from $377,217 in 2015 to $463,653 in 2016, a 22.9% increase of $86,436 due to high customer retention rate along with new accounts added over the past year.
• The gross margin in 2016 was $839,785 or 89.4% of sales compared with $946,960 or 70.3% in 2015. The increase of gross margin was primarily due to the mix of hardware and software sold with the systems in 2016.
• Total operating expenses increased from $819,386 in 2015 to $1,051,495 in 2016. This 28.3% increase of $232,109 was primarily due to the cost of the process of attaining state licenses during the first quarter, which are not expected to continue at this level in future quarters.
• The net loss for 2016 was $136,854 compared to net income of $87,162 for 2015, due primarily to the 2016 long-term contracts that will have revenues and margins recognized in future periods.
• Deferred revenues – long-term increased to $3,597,535 at March 31, 2016 from $2,890,467 at December 31, 2015. The balance represents systems which have been installed under contracts that have been signed and invoiced, but the revenue will be recognized and cash collected monthly over multiple years. The increase of $707,068 represents multiple contracts that were signed and installed during the quarter, combined with the contracts installed previously, which had deferred revenue remaining as of March 31, 2016.