TransAct Technologies rporated(US:TACT)2025-11-13 21:43Sales Performance - Net sales for the three months ended September 30, 2025, were $13.176 million, a 21.2% increase from $10.867 million in the same period in 2024[76]. - The food service technology (FST) segment generated $4.841 million in sales, up 12.0% from $4.321 million in the prior year[76]. - Casino and gaming sales surged to $7.144 million, reflecting a 57.6% increase from $4.534 million in the previous year[76]. - Net sales for Q3 2025 increased by $2.3 million, or 21%, compared to Q3 2024, with hardware unit sales volume up 18% to approximately 24,300 units[77]. - International sales accounted for $2.740 million, representing 20.8% of total sales, compared to 20.9% in the prior year[76]. - International sales increased by $467 thousand, or 21%, in Q3 2025, primarily driven by the casino and gaming market[78]. - Domestic casino and gaming product sales surged by $2.1 million, or 78%, in Q3 2025 compared to Q3 2024, with total casino and gaming revenue reaching $7.1 million[85]. - Net sales for the first nine months of 2025 increased by $6.9 million, or 21%, compared to the same period in 2024, with a 22% increase in hardware sales unit volume[101]. - Domestic casino and gaming sales increased by $6.5 million, or 71%, in the first nine months of 2025 compared to the same period in 2024, as customers worked through excess inventory[106]. - International casino and gaming sales decreased by $0.6 million, or 9%, in the first nine months of 2025, primarily due to a significant European OEM working down overstock[107]. Financial Metrics - Gross profit for Q3 2025 was $6.6 million, a 25.4% increase from Q3 2024, with a gross margin improvement to 50%[89]. - Gross profit increased by $2.6 million, or 15%, to $19,567 thousand for the first nine months of 2025, while gross margin decreased by 230 basis points to 49%[110]. - Operating income for Q3 2025 was $14 thousand, a significant improvement from an operating loss of $837 thousand in Q3 2024, attributed to a 21% increase in sales and a $1.3 million increase in gross profit[94]. - Net interest income increased to $61 thousand in Q3 2025 from $42 thousand in Q3 2024, reflecting higher interest income on increased levels of invested cash[95]. - Net income for Q3 2025 was $15 thousand, or $0.00 per diluted share, compared to a net loss of $600 thousand, or $(0.06) per diluted share, in Q3 2024[98]. - Operating loss decreased by $2.3 million, or 90%, to $(259) thousand for the first nine months of 2025 compared to $(2,576) thousand in 2024[114]. - Net loss for the first nine months of 2025 was $(109) thousand, or $(0.01) per diluted share, compared to a net loss of $(1.9) million, or $(0.19) per diluted share in 2024[118]. Expenses and Cost Management - Engineering, design, and product development expenses increased by $16 thousand, or 1%, in Q3 2025, primarily due to higher incentive compensation[90]. - Selling and marketing expenses increased by $211 thousand, or 11%, in Q3 2025 compared to Q3 2024, primarily due to higher sales commissions and incentive compensation on a 58% increase in casino and gaming sales[91]. - General and administrative expenses rose by $251 thousand, or 10%, in Q3 2025 compared to Q3 2024, driven largely by higher incentive and share-based compensation due to improved financial results[93]. - Engineering, design, and product development expenses decreased by $389 thousand, or 7.2%, to $5,016 thousand for the first nine months of 2025[111]. - Selling and marketing expenses increased by $119 thousand, or 2%, to $6,279 thousand for the first nine months of 2025[112]. - General and administrative expenses increased by $559 thousand, or 7%, to $8,531 thousand for the first nine months of 2025[113]. Cash Flow and Liquidity - Cash and cash equivalents increased by $5.6 million, or 39%, to $20.0 million as of September 30, 2025[119]. - As of September 30, 2025, the company had $3.0 million of outstanding borrowings under the Siena Credit Facility at an interest rate of 9.00%[128]. Strategic Initiatives and Risks - The company acquired a perpetual license for the BOHA! software source code for $2.55 million, with an additional $1.0 million for transition services[66]. - The company expects annualized savings of approximately $2 million from a cost reduction initiative initiated in Q2 2024[73]. - The U.S. government has imposed a 19% tariff on goods imported from Thailand, which may impact future financial results[69][71]. - The company continues to monitor macroeconomic factors and potential impacts of tariffs on sales levels[67][71]. - The company is dependent on a single contract manufacturer in Thailand for the majority of its products, which poses risks related to supply chain disruptions[68][72]. - The company expects total FST revenue for Q4 2025 to be higher than Q4 2024, focusing on growing the installed base of terminals and related recurring revenue[81]. - The company anticipates TSG sales to be somewhat lower in Q4 2025 compared to the same period in 2024 as it plans to cease selling remaining legacy consumable products[88].