Casino technology and food service technology supplier TransAct Technologies Inc announced on Thursday third-quarter sales in the casino and gaming segment fell 60.4 percent in year-on-year terms, to just above US$2.0 million, from about US$5.1 million a year earlier.
The third-quarter sales figure represented a quarter-on-quarter improvement of 47.7 percent: sales in the casino and gaming segment had fallen by 75.8 percent in the three months ended June 30, to just below US$1.4 million.
“Our casino and gaming sales increased sequentially despite the very difficult operating market for casinos around the world,” said Bart Shuldman, chairman and chief executive of the group, in commentary accompanying the third-quarter numbers.
TransAct reported an overall net loss of US$867,000 for the third quarter, compared to net income of US$384,000 in the prior-year quarter.
In the second quarter of 2020, the firm had posted a net loss of just under US$1.9 million.
Mr Shuldman said TransAct’s third-quarter performance benefited from the firm’s “strong momentum” in sales in its food service technology segment.
He added: “Our food service technology revenue increased 20 percent [to US$2.3 million] over the third quarter of 2019, with our recurring food service technology revenue, which includes software, labels, and service sales, increasing 157 percent year over year.”
The group’s core business has been casino player rewards and player tracking software, and ticket printers for electronic gaming machines. More recently it has been developing sales of its food inventory monitoring and food-service tracking system known as Boha.
Last month, TransAct completed a US$9.8 million common stock offering. Mr Shuldman said the exercise had provided the firm with “additional operating capital” to increase penetration into the food service technology market.
TransAct’s overall quarterly net sales were down 37.5 percent year-on-year, to just below US$7.3 million, from nearly US$11.7 million in the year-ago period.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months to September 30 this year were negative by US$1.1 million, versus positive EBITDA of US$500,000 in the prior-year reporting period. In the second quarter of 2020, TransAct had reported negative EBITDA of almost US$2.5 million.