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Apr 29, 2008
TRANSACT TECHNOLOGIES REPORTS FIRST QUARTER 2008 RESULTS
TRANSACT TECHNOLOGIES REPORTS FIRST QUARTER 2008 RESULTS
Hamden, CT, April 29, 2008 – TransAct Technologies Incorporated (NASDAQ: TACT), a global leader in market-specific printers for transaction-based industries, today announced financial results for the three months ended March 31, 2008. Revenues for the first quarter of 2008 were $14.3 million, compared to $11.5 million in the same period a year ago. The Company recorded a GAAP net loss of $(0.7) million in the first quarter of 2008, compared to a GAAP net loss of $(0.2) million in the same period of 2007. The GAAP net loss per share for the three months ended March 31, 2008 was $(0.07) per diluted share, compared to a GAAP net loss of $(0.02) per diluted share in the same period a year ago. The GAAP results for the first quarter of 2008 include $1.9 million of legal fees related to the ongoing litigation against FutureLogic, Inc. Excluding this item, pro forma net income in the first quarter of 2008 was approximately $0.5 million, or $0.06 per diluted share, compared to a pro forma net loss of approximately $(0.2) million, or $(0.02) per diluted share, in the first quarter of 2007. For further information regarding the presentation of pro forma non-GAAP financial measures, please refer to the "Financial Presentation" paragraph below. Bart C. Shuldman, Chairman, President and Chief Executive Officer of TransAct Technologies, said, "We are pleased with our results this quarter, which were achieved despite a soft domestic casino market and a difficult overall domestic economic environment. Our sales were up 17% in casino and gaming due primarily to our continued penetration of the domestic casino market and sales growth in our new off-premise international gaming market. In addition, lottery sales more than tripled from the same period a year ago due to improved sales to our key customer. Finally, we experienced higher sales of banking printers despite the credit crisis that we believe is impacting capital spending in the banking industry. Mr. Shuldman continued, "Building on the first quarter of 2008's success, in April 2008, IGT selected our Epic 950® printer as its default casino printer. As a result, our Epic 950™ printer will now be installed as the standard ticket printer in all new IGT slot machines and video platforms through June 30, 2010. In addition, we recently announced that one of the world's leading quick service restaurant companies chose our Ithaca™ 8000 thermal printer to provide a single printing solution for both receipts at the front of the store and receipt labels in the kitchen for special orders. We expect revenue from both of these customers to begin phasing in during the second quarter of this year, and expect the full sales effect of these orders to begin in the second half of 2008." Steven A. DeMartino, Executive Vice President and Chief Financial Officer of TransAct Technologies, commented, "We are already seeing a positive impact from the cost reduction and sales initiative actions we took in 2007, and believe we will continue to see improving results for the rest of 2008. During the first quarter of 2008, excluding legal fees related to the ongoing litigation against FutureLogic, these initiatives helped reduce operating expenses, and, more importantly, drove both revenue and operating margin growth. Further, we continue to have a strong balance sheet, as we ended the quarter with $1.9 million of cash and no debt outstanding under our $20 million revolving credit facility."
Financial Presentation
Investor Conference Call / Webcast Details
About TransAct Technologies Incorporated
Contacts: Forward-Looking Statements: Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "project" or "continue" or the negative thereof or other similar words. All forward-looking statements involve risks and uncertainties, including, but are not limited to, customer acceptance and market share gains, both domestically and internationally, in the face of substantial competition from competitors that have broader lines of products and greater financial resources; introduction of new products into the marketplace by competitors; successful product development; dependence on significant customers; dependence on significant vendors; the ability to recruit and retain quality employees as the Company grows; dependence on third parties for sales outside the United States, including Australia, New Zealand, Europe, Latin America and Asia; economic and political conditions in the United States, Australia, New Zealand, Europe, Latin America and Asia; marketplace acceptance of new products; risks associated with foreign operations; availability of third-party components at reasonable prices; price wars or other significant pricing pressures affecting the Company's products in the United States or abroad; risks associated with potential future acquisitions; and the outcome of the lawsuit between TransAct and FutureLogic, Inc. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances. |