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): March 4, 2004


                       TRANSACT TECHNOLOGIES INCORPORATED
             (Exact name of registrant as specified in its charter)

                              ------------------


           Delaware                    0-21121              06-1456680
(State or other jurisdiction    (Commission file number)    (I.R.S. employer
of incorporation)                                           identification no.)


7 Laser Lane, Wallingford, CT                                    06492
(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code:           (203) 269-1198


Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits
         (c) Exhibits

Exhibit Description 99.1 Press Release dated March 4, 2004 of TransAct Technologies Incorporated
Item 12. Results of Operations and Financial Condition. The following information is being furnished pursuant to Item 12 "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 March 4, 2004, TransAct Technologies Incorporated issued a press release announcing its financial results for the quarter ended and twelve months ended March 4, 2004. A copy of the press release is furnished as Exhibit 99.1 to this report. 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. TRANSACT TECHNOLOGIES INCORPORATED By: /s/ Richard L. Cote ---------------------------- Richard L. Cote Executive Vice President and Chief Financial Officer Date: March 4, 2004 3 EXHIBIT LIST The following exhibit is filed herewith. Exhibit Description - ------- ----------- 99.1 Press Release dated March 4, 2004 issued by TransAct Technologies Incorporated.


                                                                    Exhibit 99.1


[TRANSACT LOGO]


                  TRANSACT TECHNOLOGIES REPORTS FOURTH QUARTER
                           AND FULL YEAR 2003 RESULTS

                  RAISES FULL YEAR FINANCIAL GUIDANCE FOR 2004

- -     Fourth quarter 2003 net revenue increased to $14.7 million, 60% year over
      year growth; Full year 2003 net revenue increased to $52.1 million, 32%
      year over year growth

- -     Gaming and lottery revenues increased 106% in the fourth quarter versus
      the fourth quarter of the previous year, with full year 2003 gaming and
      lottery revenues up nearly 50%

- -     Point of sale (POS) and banking revenues increased 17% in the fourth
      quarter versus the fourth quarter of the previous year, with full year POS
      and banking revenues up 12%

- -     Full year 2004 financial guidance raised with net revenue in the range of
      $62 million to $64 million, and net income in the range of $0.68 to $0.74
      per share

      Wallingford, CT, March 4, 2004 - TransAct Technologies Incorporated
(Nasdaq: TACT), a leading producer of transaction-based printers for customers
worldwide, today announced financial results for the fourth quarter and full
year ended December 31, 2003.

      Bart C. Shuldman, Chairman and Chief Executive Officer of TransAct
Technologies, said, "2003 was a strong year for TransAct, as we benefited from
high growth in the gaming and lottery portion of our business, a pick-up in the
POS and banking market, and growth in our aftermarket business. We believe the
momentum in these markets will continue to accelerate through 2004. Importantly,
our dramatically improved operating results underscore the powerful leverage we
have worked so hard to achieve in our business over the past few years. Our
efforts have clearly paid off and position TransAct for continued growth."

Net revenue for the fourth quarter ended December 31, 2003 increased 60% to
$14.7 million, from $9.2 million in the same period a year ago. The growth was
primarily due to strength in the gaming and lottery portion of TransAct's
business, which had revenue growth of 106% in the fourth quarter of 2003 versus
the fourth quarter of the previous year. The strong growth in this market is a
result of the continued rollout of ticket-in/ticket-out slot machines in the
U.S. TransAct also experienced



revenue growth in the POS and banking market, and in its spare parts,
consumables and services business.

During the fourth quarter of 2003, the Company increased its restructuring
accrual by $1,128,000 to provide for the remaining lease costs associated with
its manufacturing facility in Wallingford, CT, which was substantially closed in
2001. After expanded efforts, the Company determined that because of the
continuing regional decline in the commercial real estate market during 2003, it
was unlikely that the Company would be able to sublease the facility, which has
a lease term that expires in March 2008. During 2002, the Company recorded a
restructuring charge of $958,000. Also, based on the likely outcome of current
negotiations, the Company recorded an additional charge to cost of sales of
$740,000 in the fourth quarter of 2003, in connection with the estimated expense
for the use of certain third party patented technology prior to December 31,
2002. The Company initially recorded a charge of $160,000 in 2002 related to
this matter, bringing the total amount accrued for this patent issue to
$900,000. Although settlement negotiations are continuing, the Company believes
that the total amount accrued reflects the best estimate of the expense related
to the past usage of third party patented technology.

The net loss in the fourth quarter of 2003, in accordance with accounting
principles generally accepted in the United States (GAAP), was ($201,000) or
($0.05) per share, compared to a GAAP net loss of ($143,000) or ($0.04) per
share, in the fourth quarter of 2002. Included in the GAAP results for the
fourth quarter of 2003 are the two charges totaling $1.9 million, as described
above, which reduced earnings per diluted share by $0.19. Excluding the
restructuring and patent-related charges for 2003 and 2002, pro-forma net income
in the fourth quarter of 2003 was $1.0 million or $0.14 per diluted share,
compared to a pro-forma net loss in the fourth quarter of 2002 of ($41,000) or
($0.02) per share. For further information regarding the presentation of pro
forma non-GAAP financial measures, please refer to the "Financial Presentation"
paragraph below. The Company had provided fourth quarter guidance in November
2003 projecting revenues of approximately $13 million to $14 million with net
income of approximately $0.10 to $0.13 per share.

Net revenues for the full year ended December 31, 2003 increased 32% to $52.1
million, from $39.5 million in 2002. Gaming and lottery revenues were up nearly
50% in 2003, compared to 2002. In addition, the Company benefited from growth in
its POS and banking market. During the year, TransAct announced several major
wins, particularly in the banking market with the introduction of its BANKjet(R)
line of printers. Revenues from spare parts, consumables and services increased
22% for the full year 2003, compared to 2002. TransAct's higher printer volumes
and focus on this growing source of recurring revenue contributed to the
increase in aftermarket sales. The Company's GAAP net income for the full year
2003 was $1,528,000 or $0.19 per diluted share, compared with a GAAP net loss
for the full year 2002 of ($692,000) or ($0.19) per share. Excluding the
restructuring and patent-related charges for 2003 and 2002 described above, the
Company's pro-forma net income for the year ended December 31, 2003 was
$2,738,000 or $0.38 per diluted share, compared to pro-forma net income for the
year ended December 31, 2002 of $24,000 or a ($0.06) loss per share. The per
share amounts in the fourth quarter and full year 2003 and 2002 are after giving
effect to preferred stock dividends and accretion charges.

Richard L. Cote, Executive Vice President and Chief Financial Officer of
TransAct Technologies, commented, "Operationally, this was an important year for
TransAct as our results validated the growth and operational strategies we have
been executing. Gross margin, excluding the patent-related charges, improved to
32.8% in the fourth quarter of 2003 from 25.5% in the fourth quarter


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of 2002, and to 31.2% for the full year 2003 from 26.3% for the full year 2002.
This was the result of overall higher revenues, favorable product mix and our
ongoing cost controls. We expect to see further margin improvement as the volume
of product running through our factory increases. We are seeing productivity
improvement in our operations as well. For example, a key productivity measure
is sales per employee, which grew 11% in 2003. We expect further productivity
gains in 2004. Also, our cash flow in 2003 was strong, enabling us to exit 2003
almost debt free. In fact, in January 2004, we were able to pay off the $420,000
remaining on our term loan. We now have cash in the bank and no debt."

Shuldman continued, "We expect growth in the gaming and lottery market will
continue to be driven by many factors. The major factor is the rapid deployment
of coinless slot machines at casinos worldwide. For example, Foxwoods Resort
Casino, the largest resort casino in the world, selected TransAct's Series 850
line of thermal printers in the fourth quarter on an exclusive basis to upgrade
all 6,500 slot machines as part of its transition to coinless gaming. In
addition to the growth we are expecting in North America over the next three
years, we are now starting to see the international markets move toward the
ticket-in/ticket-out concept, specifically in Australia and Europe. The present
addressable worldwide market has expanded to over one million slot machines,
providing significant opportunity for future growth. Another driver is the
expected growth in our video lottery terminal (VLT) or racino market, as state
governments approve slot machines at racetracks to make up for budget
shortfalls. Finally, we continue to benefit from our strong relationship with
GTECH, where we provide one-stop shopping to GTECH for its lottery system
printers."

"On the POS and banking side of our business, we are extremely pleased with the
pick-up in this market. Our POSjet(R) printers continue to be selected as the
printer of choice from retail and banking customers worldwide, given the
considerable benefits they offer. The primary driver of growth in this market is
our ability to print color on receipts, creating a powerful marketing tool for
our customers. Adding to this, our BANKjet 1500 printer continues to be widely
adopted by major financial institutions, as banks refocus their businesses on
local branches. We also expect the government's Check 21 initiative will drive
increased BANKjet printer volumes as we move through 2004. In addition, our
after-market business has become a major focus at TransAct, as we see this
portion of our business contributing significantly to our revenue base over the
next several years. Importantly, the increased printer sales we achieved in 2003
will deliver future recurring revenues through spare parts, services and
consumables."

LOOKING FORWARD
Shuldman concluded, "We enter 2004 confident in our outlook. Our projections for
2004 are based on the steady growth of the casino market worldwide, the
continued improvement in the POS and banking business, and growth in our
aftermarket business. Overall, we expect revenues for 2004 will be in the range
of $62 million to $64 million, with net income in the range of $0.68 to $0.74
per share. For the first quarter of 2004 we anticipate revenues will be over $15
million, with net income of approximately $0.16 per diluted share."

FINANCIAL PRESENTATION
The Company has provided pro-forma non-GAAP financial measures because the
Company believes that these amounts are helpful to investors and others to more
accurately assess the ongoing nature of TransAct's core operations. The
pro-forma non-GAAP measures exclude the effects in fiscal 2003 and 2002 of the
restructuring charges  and the expense related to the use of certain third party
patent technology for years prior to December 31, 2002. These charges have been
excluded from pro-forma non-GAAP financial measures, as management does not
believe that they are representative of


                                       3

underlying trends in the Company's performance. Their exclusion provides
investors and others with additional information to more readily assess the
Company's operating results. The Company uses the non-GAAP financial measures
internally to focus management on the results of the Company's core business.
The presentation of this additional non-GAAP information is not considered
superior to or a substitute for the financial information prepared in accordance
with GAAP.

INVESTOR CONFERENCE CALL/WEBCAST DETAILS
TransAct will review detailed fourth quarter and full year 2003 results and
forward guidance on Thursday, March 4 at 5PM EST. The conference call-in number
is 973-582-2706. A replay will be available from 8PM EST on March 4 through 12AM
EST, March 11. The replay number is 973-341-3080. The confirmation number is
4454618. Investors can access the conference call via a live webcast on the
Company's website at www.transact-tech.com. A replay of the call will be
archived on that website for one week.

ABOUT TRANSACT TECHNOLOGIES INCORPORATED
TransAct (Nasdaq: TACT) designs, develops, manufactures and markets
transaction-based printers under the ITHACA(R) and MAGNETEC(R) names. In
addition, the Company markets related consumables, spare parts and service. The
Company's printers are used worldwide to provide receipts, tickets, coupons,
register journals and other documents. TransAct focuses on two core markets:
point-of-sale (POS) and gaming and lottery. TransAct sells its products to
original equipment manufacturers, value-added resellers and selected
distributors, as well as directly to end-users. The Company's product
distribution spans across the Americas, Europe, the Middle East, Africa, the
Caribbean Islands and the South Pacific. For further information, visit
TransAct's web site located at www.transact-tech.com.

CONTACTS:
Richard L. Cote, Chief Financial Officer, 203-269-1198 Ext. 6020 or David
Pasquale, 646-536-7006, or Jim Olecki, 646-536-7021 both with The Ruth Group

                                      # # #

FORWARD-LOOKING STATEMENTS:
The Company's forward-looking statements in this press release are subject to a
number of risks and uncertainties. Risks and uncertainties include, 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 third parties
for sales outside the United States, including Australia, New Zealand; economic
and political conditions in the United States, Australia, New Zealand, Europe
and Latin America; marketplace acceptance of new products, risks associated with
foreign operations; risks associated with the determination of payments to a
competitor that has advised the Company that certain of its printers may use the
competitor's patents; availability of third- party components at reasonable
prices; and the absence of price wars or other significant pricing pressures
affecting the Company's products in the United States or abroad. 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.

                               - TABLES FOLLOW -




                                       4

                       TRANSACT TECHNOLOGIES INCORPORATED
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
Three months ended December 31, Three months ended December 31, (In thousands, except per share amounts) 2003 2002 ---------------------------------------- ---------------------------------------- GAAP Adjust- Pro Forma GAAP Adjust- Pro Forma Basis ments Basis Basis ments Basis -------- ------- -------- -------- ------- ------- Net sales $ 14,660 $ -- $ 14,660 $ 9,163 $ -- $ 9,163 Cost of sales 10,589 (740)a 9,849 6,987 (160)a 6,827 -------- ------- -------- -------- ------- ------- Gross profit 4,071 740 4,811 2,176 160 2,336 -------- ------- -------- -------- ------- ------- Gross margin 27.8% 5.0% 32.8% 23.8% 1.7% 25.5% Operating expenses: Engineering, design and product development costs 619 -- 619 517 -- 517 Selling and marketing expenses 1,466 -- 1,466 950 -- 950 General and administrative expenses 1,167 -- 1,167 886 -- 886 Business consolidation and restructuring expenses 1,128 (1,128)b -- -- -- -- -------- ------- -------- -------- ------- ------- 4,380 (1,128) 3,252 2,353 -- 2,353 -------- ------- -------- -------- ------- ------- Operating income (loss) (309) 1,868 1,559 (177) 160 (17) -------- ------- -------- -------- ------- ------- Other income (expense): Interest, net (27) -- (27) (44) -- (44) Write-off of deferred financing costs -- -- -- -- -- -- Other, net (64) -- (64) (2) -- (2) -------- ------- -------- -------- ------- ------- (91) -- (91) (46) -- (46) -------- ------- -------- -------- ------- ------- Income (loss) before income taxes (400) 1,868 1,468 (223) 160 (63) Income taxes (benefit) (199) 658 c 459 (80) 58 c (22) -------- ------- -------- -------- ------- ------- Net income (loss) (201) 1,210 1,009 (143) 102 (41) Dividends and accretion on preferred stock (89) -- (89) (89) -- (89) -------- ------- -------- -------- ------- ------- Net income (loss) available to common shareholders $ (290) $ 1,210 $ 920 $ (232) $ 102 $ (130) ======== ======= ======== ======== ======= ======= Net income (loss) per share: Basic $ (0.05) $ 0.16 $ (0.04) $ (0.02) ======== ======== ======== ======= Diluted $ (0.05) $ 0.14 $ (0.04) $ (0.02) ======== ======== ======== ======= Shares used in per share calculation: Basic 5,914 5,914 5,664 5,664 ======== ======== ======== ======= Diluted 5,914 6,495 5,664 5,664 ======== ======== ======== =======
SUPPLEMENTAL INFORMATION - SALES BY MARKET:
Three months ended Year ended December 31, December 31, ------------------- -------------------- 2003 2002 2003 2002 ---- ---- ---- ---- Point of sale and banking $ 5,553 $4,734 $20,745 $18,475 Gaming and lottery 9,107 4,429 31,353 20,986 ------- ------ ------- ------- Total net sales $14,660 $9,163 $52,098 $39,461 ======= ====== ======= =======
a. Charges to cost of sales in connection with the estimated expense for the use of certain third party patented technology prior to December 31, 2002. b. Restructuring charges related to the lease costs associated with the closure of the Company's Wallingford, CT manufacturing facility. c. The tax effect on the adjustments was calculated using a tax rate of 35.2% for the 2003 periods presented and 36.0% for the 2002 periods presented. 5 TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Year ended December 31, Year ended December 31, (In thousands, except per share amounts) 2003 2002 ------------------------------------ ----------------------------------------- GAAP Adjust- Pro Forma GAAP Adjust- Pro Forma Basis ments Basis Basis ments Basis -------- -------- -------- -------- -------- -------- Net sales $ 52,098 $ -- $ 52,098 $ 39,461 $ -- $ 39,461 Cost of sales 36,555 (740)a 35,815 29,245 (160)a 29,085 -------- -------- -------- -------- -------- -------- Gross profit 15,543 740 16,283 10,216 160 10,376 -------- -------- -------- -------- -------- -------- Gross margin 29.8% 1.4% 31.2% 25.9% .04% 26.3% Operating expenses: Engineering, design and product -- development costs 2,276 2,276 2,025 -- 2,025 Selling and marketing expenses 4,968 -- 4,968 4,027 -- 4,027 General and administrative expenses 4,483 -- 4,483 4,190 -- 4,190 Business consolidation and restructuring expenses 1,128 (1,128)b -- 958 (958)b -- -------- -------- -------- -------- -------- -------- 12,855 (1,128) 11,727 11,200 (958) 10,242 -------- -------- -------- -------- -------- -------- Operating income (loss) 2,688 1,868 4,556 (984) 1,118 134 -------- -------- -------- -------- -------- -------- Other income (expense): Interest, net (210) -- (210) (192) -- (192) Write-off of deferred financing costs (103) -- (103) -- -- -- Other, net (122) -- (122) 94 -- 94 -------- -------- -------- -------- -------- -------- (435) -- (435) (98) -- (98) -------- -------- -------- -------- -------- -------- Income (loss) before income taxes 2,253 1,868 4,121 (1,082) 1,118 36 Income taxes (benefit) 725 658 c 1,383 (390) 402 c 12 -------- -------- -------- -------- -------- -------- Net income (loss) 1,528 1,210 2,738 (692) 716 24 Dividends and accretion on preferred stock (358) -- (358) (358) -- (358) -------- -------- -------- -------- -------- -------- Net income (loss) available to common shareholders $ 1,170 $ 1,210 $ 2,380 $ (1,050) $ 716 $ (334) ======== ======== ======== ======== ======== ======== Net income (loss) per share: Basic $ 0.20 $ 0.41 $ (0.19) $ (0.06) ======== ======== ======== ======== Diluted $ 0.19 $ 0.38 $ (0.19) $ (0.06) ======== ======== ======== ======== Shares used in per share calculation: Basic 5,793 5,793 5,636 5,636 ======== ======== ======== ======== Diluted 6,223 6,223 5,636 5,636 ======== ======== ======== ========
a. Charges to cost of sales in connection with the estimated expense for the use of certain third party patented technology prior to December 31, 2002. b. Restructuring charges related to the lease costs associated with the closure of the Company's Wallingford, CT manufacturing facility. c. The tax effect on the adjustments was calculated using a tax rate of 35.2% for the 2003 periods presented and 36.0% for the 2002 periods presented. 6