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TransAct Technologies rporated(TACT) - 2024 Q4 - Annual Results
TACTTransAct Technologies rporated(TACT)2025-03-13 20:13

Financial Performance - Net sales for Q4 2024 were 10.2million,down610.2 million, down 6% sequentially and down 23% compared to 13.3 million in Q4 2023[3] - FST recurring revenue for Q4 2024 was 2.7million,down52.7 million, down 5% sequentially and 15% compared to 3.2 million in Q4 2023[3] - Gross profit for Q4 2024 was 4.5million,resultinginagrossmarginof44.24.5 million, resulting in a gross margin of 44.2%, compared to a gross profit of 6.4 million and a 48.0% gross margin in Q4 2023[3] - Full year 2024 net sales were 43.4million,down4043.4 million, down 40% from 72.6 million in 2023[6] - Full year 2024 net loss was (9.9)million,or(9.9) million, or (0.99) per diluted share, compared to a net income of 4.7million,or4.7 million, or 0.47 per diluted share in 2023[6] - Adjusted EBITDA for Q4 2024 was negative (705)thousand,comparedtopositive(705) thousand, compared to positive 587 thousand in Q4 2023[6] - The operating loss for Q4 2024 was (1,050,000),comparedtoanoperatinglossof(1,050,000), compared to an operating loss of (522,000) in Q4 2023[22] - Net loss for Q4 2024 was (7,957,000),significantlyhigherthanthenetlossof(7,957,000), significantly higher than the net loss of (62,000) in Q4 2023[22] - For the year ended December 31, 2024, the net loss was reported at (9,863)million,comparedtoanetincomeof(9,863) million, compared to a net income of 4,748 million for 2023[31] - Adjusted EBITDA for the year ended December 31, 2023, was 9,968million,whiletheadjustedEBITDAfor2024was9,968 million, while the adjusted EBITDA for 2024 was (1,521) million[31] Assets and Liabilities - Total assets decreased to 44,034,000asofDecember31,2024,downfrom44,034,000 as of December 31, 2024, down from 54,198,000 as of December 31, 2023[26] - Total liabilities decreased to 13,401,000asofDecember31,2024,from13,401,000 as of December 31, 2024, from 14,784,000 as of December 31, 2023[26] - The company reported a full valuation allowance on deferred tax assets amounting to 7,313,000inQ42024[27]FutureOutlook−Thecompanyexpectsfullyear2025netsalestobebetween7,313,000 in Q4 2024[27] Future Outlook - The company expects full year 2025 net sales to be between 47 million and 52million[6]−Thecompanyanticipates2025tobeaninflectionpointwithdecreasingnetlossesasoverallrevenuereturnstogrowth[2]−Thestrategicreviewprocessremainsactive,focusingonoptionstoincreaseshareholdervalue[7]−Thecompanyplanstofocusondevelopingnewproductsandexpandingitsmarketpresencedespitecurrenteconomicchallenges[22]OperatingExpenses−Thecompany’soperatingexpensesfortheyearendedDecember31,2024,were52 million[6] - The company anticipates 2025 to be an inflection point with decreasing net losses as overall revenue returns to growth[2] - The strategic review process remains active, focusing on options to increase shareholder value[7] - The company plans to focus on developing new products and expanding its market presence despite current economic challenges[22] Operating Expenses - The company’s operating expenses for the year ended December 31, 2024, were 25,108,000, representing 57.9% of net sales[29] - Operating expenses for the year were 32,694million,representing45.032,694 million, representing 45.0% of net sales, while adjusted operating expenses were 31,233 million, or 43.0% of net sales[30] - The company incurred a severance charge of 1,461millionrelatedtotheresignationoftheformerCEO,impactingtheincometaxexpenseby1,461 million related to the resignation of the former CEO, impacting the income tax expense by (303) million[30] Income Tax and Other Income - The company experienced a significant increase in income tax expense from 1,155millionin2023to1,155 million in 2023 to 6,295 million in 2024[31] - Interest and other income for the year was 197million,withnoadjustmentsmade[30]ShareholderReturns−Thecompanyreportedabasicnetincomepercommonshareof197 million, with no adjustments made[30] Shareholder Returns - The company reported a basic net income per common share of 0.48 and a diluted net income per common share of $0.47 for the year ended December 31, 2023[30]