8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2007
TRANSACT TECHNOLOGIES INCORPORATED
(Exact name of registrant as specified in its charter)
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Delaware
(State or other jurisdiction
of incorporation)
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0-21121
(Commission file number)
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06-1456680
(I.R.S. employer
identification no.) |
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One Hamden Center |
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2319 Whitney Ave, Suite 3B, Hamden, CT |
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06518 |
(Address of principal executive offices) |
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(Zip Code) |
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Registrants telephone number, including area code: |
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(203)859-6800 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE OF CONTENTS
Item 2.02. Results of Operations and Financial Condition.
The following information is being furnished pursuant to Item 2.02 Results of Operations and
Financial Condition of Form 8-K. Such information, including the Exhibit attached hereto, shall
not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On August 6, 2007, TransAct Technologies Incorporated issued a press release announcing its
financial results for the quarter ended June 30, 2007. A copy of the press release is furnished as
Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits:
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Exhibit |
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Description |
99.1
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Press Release dated August 6, 2007 of TransAct Technologies Incorporated |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
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TRANSACT TECHNOLOGIES INCORPORATED
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By: |
/s/ Steven A. DeMartino
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--------------------------------- |
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Steven A. DeMartino
Executive Vice President, Chief Financial Officer,
Treasurer and Secretary |
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Date: August 6, 2007
3
EXHIBIT LIST
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits:
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Exhibit |
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Description |
99.1
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Press Release dated August 6, 2007 of TransAct Technologies Incorporated |
4
EX-99.1
Exhibit 99.1
TRANSACT TECHNOLOGIES REPORTS
SECOND QUARTER 2007 RESULTS
Hamden, CT, August 6, 2007 TransAct Technologies Incorporated (NASDAQ: TACT), a leading
producer of market specific printers for transaction-based industries worldwide, today announced
financial results for the three and six months ended June 30, 2007.
Revenues for the second quarter of 2007 were $13.9 million compared to $16.9 million in the same
period a year ago. The Company recorded net income of $0.3 million in the second quarter of 2007,
compared to $0.9 million in the same period of 2006. Net income per share for the three months
ended June 30, 2007 was $0.03 per diluted share compared to $0.09 per diluted share in the same
period a year ago.
Revenues for the six months ended June 30, 2007 were $25.4 million compared to $33.3 million in the
same period a year ago. The Company earned net income for the first half of 2007 of $0.1 million
compared to $1.9 million in the first half of 2006. Net income per share for the first half of
2007 was $0.01 per diluted share compared to $0.19 per diluted share in the same period a year ago.
Bart C. Shuldman, Chairman, President and Chief Executive Officer of TransAct Technologies, said,
We are encouraged by the progress we made in our business during the second quarter of 2007 given
the weak domestic casino market. Our international gaming sales more than offset continued
softness in our domestic gaming sales, which shows the success of our efforts in the international
gaming market. Separately, we have made progress in POS and banking, as sales in this market
increased compared to the first quarter of 2007, despite not having a large banking order in the
quarter. Finally, TransAct Services Group continues to grow in the areas we are focusing on,
consumables and services.
Steven A. DeMartino, Executive Vice President and Chief Financial Officer of TransAct Technologies,
commented, We are very pleased with the results of our continued effort to lower product costs
through initiatives to move production to Asia. Gross margin increased to 35.4% from 34.0% in the
same quarter of last year despite lower sales. Our operating expenses were higher this quarter due
largely to legal expenses related to the lawsuit with FutureLogic. We incurred approximately
$175,000 of legal expenses associated with the lawsuit during the second quarter of 2007. Our
balance sheet remains strong, as we ended the quarter with no debt and approximately $2.5 million
in cash. Finally, regarding our stock repurchase program, we did not buy back any shares in the
quarter because we were working on the FutureLogic lawsuit and other corporate matters.
5
Mr. Shuldman continued, Overall, while we believe that we are nearing the end of the domestic
gaming slowdown, we expect to have one or two more quarters of mixed results. We are optimistic
about 2008. We expect to see significant improvements in sales as ticket-in, ticket-out takes hold
in Australia. We also anticipate continued gaming growth in Asia and improved sales in the
domestic gaming market as server-based gaming gets closer to becoming a reality. In addition, we
are encouraged by the opportunity for growth in gaming sales due to our efforts in what we term
off premise gaming.
Investor Conference Call / Webcast Details
TransAct will review detailed second quarter 2007 results during a conference call today at 5:00PM
ET. The conference call-in number is 201-689-8471. A replay of the call will be available from
8:00PM ET on Monday, August 6 through midnight ET on Monday, August 13 by telephone at
201-612-7415. The account number to access the replay is 3055 and the password is 246805. Investors
can also access the conference call via a live webcast on the Companys Web site at
www.transact-tech.com. A replay of the call will be archived on that Web site for one week.
About TransAct Technologies Incorporated
TransAct Technologies Incorporated (NASDAQ: TACT) is a leader in developing and manufacturing
market-specific printers for transaction-based industries. These industries include gaming,
lottery, point-of-sale, kiosk and banking. Each individual market has distinct, critical
requirements for printing and the transaction is not complete until the receipt and/or ticket is
produced. TransAct printers are designed from the ground up based on market specific requirements
and are sold under the Ithaca® and Epic product brands. TransAct distributes its products through
OEMs, value-added resellers, selected distributors, and direct to end-users. TransAct has over two
million printers installed around the world. TransAct also has a strong focus on the after-market
side of the business, with a high commitment to printer service, supplies and spare parts.
TransAct is headquartered in Hamden, CT. For more information on TransAct, visit
www.transact-tech.com or call 203-859-6800.
Contacts:
Steven DeMartino, Chief Financial Officer, 203-859-6810
or David Pasquale, 646-536-7006 with The Ruth Group
# # #
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 Companys
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.
6
TRANSACT TECHNOLOGIES INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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(In thousands, except per share amounts) |
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2007 |
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2006 |
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2007 |
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2006 |
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Net sales |
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$ |
13,947 |
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$ |
16,905 |
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$ |
25,415 |
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$ |
33,339 |
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Cost of sales |
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9,007 |
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11,159 |
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16,722 |
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21,906 |
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Gross profit |
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4,940 |
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5,746 |
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8,693 |
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11,433 |
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Operating expenses: |
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Engineering, design and product
development |
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779 |
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769 |
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1,493 |
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1,530 |
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Selling and marketing |
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1,708 |
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1,711 |
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3,350 |
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3,291 |
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General and administrative |
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2,022 |
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1,890 |
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3,872 |
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3,600 |
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Restructuring |
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12 |
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12 |
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4,521 |
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4,370 |
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8,727 |
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8,421 |
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Operating income (loss) |
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419 |
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1,376 |
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(34 |
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3,012 |
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Other income (expense): |
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Interest, net |
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10 |
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23 |
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38 |
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37 |
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Other, net |
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13 |
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(71 |
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12 |
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(82 |
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23 |
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(48 |
) |
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50 |
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(45 |
) |
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Income before income taxes |
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442 |
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1,328 |
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16 |
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2,967 |
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Income tax provision (benefit) |
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158 |
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471 |
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(45 |
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1,053 |
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Net income |
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$ |
284 |
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$ |
857 |
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$ |
61 |
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$ |
1,914 |
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Net income per common share: |
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Basic |
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$ |
0.03 |
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$ |
0.09 |
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$ |
0.01 |
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$ |
0.20 |
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Diluted |
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$ |
0.03 |
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$ |
0.09 |
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$ |
0.01 |
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$ |
0.19 |
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Shares used in per share calculation: |
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Basic |
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9,384 |
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9,581 |
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9,404 |
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9,570 |
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Diluted |
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9,574 |
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9,927 |
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9,626 |
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9,898 |
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SUPPLEMENTAL INFORMATION SALES BY SALES UNIT:
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2007 |
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2006 |
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2007 |
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2006 |
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Point of sale and banking |
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$ |
3,073 |
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$ |
4,448 |
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$ |
5,724 |
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$ |
9,112 |
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Gaming and lottery |
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7,506 |
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9,144 |
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12,779 |
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17,788 |
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TransAct services group |
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3,368 |
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3,313 |
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6,912 |
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6,439 |
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Total net sales |
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$ |
13,947 |
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$ |
16,905 |
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$ |
25,415 |
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$ |
33,339 |
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7
TRANSACT TECHNOLOGIES INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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June 30, |
|
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December 31, |
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(In thousands) |
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2007 |
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2006 |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,483 |
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$ |
3,436 |
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Receivables, net |
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10,920 |
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11,422 |
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Inventories, net |
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9,048 |
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7,567 |
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Refundable income taxes |
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197 |
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42 |
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Deferred tax assets |
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2,615 |
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2,167 |
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Other current assets |
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327 |
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506 |
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Total current assets |
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25,590 |
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25,140 |
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Fixed assets, net |
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6,693 |
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5,938 |
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Goodwill, net |
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1,469 |
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1,469 |
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Deferred tax assets |
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556 |
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542 |
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Intangibles and other assets |
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556 |
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617 |
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9,274 |
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8,566 |
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Total assets |
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$ |
34,864 |
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$ |
33,706 |
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Liabilities and Shareholders Equity: |
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Current liabilities: |
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Accounts payable |
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$ |
5,688 |
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$ |
3,997 |
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Accrued liabilities |
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|
3,193 |
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|
3,796 |
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Accrued restructuring |
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|
14 |
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|
315 |
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Deferred revenue |
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|
350 |
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|
389 |
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Total current liabilities |
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9,245 |
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|
8,497 |
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Deferred revenue, net of current portion |
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|
340 |
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|
508 |
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Accrued warranty, net of current portion |
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|
120 |
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|
160 |
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Accrued rent |
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|
521 |
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|
251 |
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Other liabilities |
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|
112 |
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|
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|
1,093 |
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|
919 |
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|
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Total liabilities |
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|
10,338 |
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|
9,416 |
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Shareholders equity: |
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Common stock |
|
|
104 |
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|
104 |
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Additional paid-in capital |
|
|
19,467 |
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|
|
19,105 |
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Retained earnings |
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|
11,784 |
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|
|
11,405 |
|
Accumulated other comprehensive income |
|
|
184 |
|
|
|
168 |
|
Treasury stock |
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|
(7,013 |
) |
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|
(6,492 |
) |
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|
|
|
|
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Total shareholders equity |
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|
24,526 |
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|
|
24,290 |
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|
|
|
|
|
|
|
|
|
$ |
34,864 |
|
|
|
33,706 |
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|
|
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8