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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Oct. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	TRANSACT TECHNOLOGIES INC
Entity Central Index Key	0001017303
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		7,391,028
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,795	$ 5,507
Accounts receivable, net	11,643	10,948
Inventories, net	13,065	8,875
Prepaid income taxes	47	514
Other current assets	520	517
Total current assets	29,070	26,361
Fixed assets, net of accumulated depreciation of $20,319 and $19,752, respectively	2,264	2,169
Goodwill	2,621	2,621
Deferred tax assets	2,263	2,308
Intangible assets, net of accumulated amortization of $3,454, and $3,359, respectively	829	458
Other assets	31	33
Total noncurrent assets	8,008	7,589
Total assets	37,078	33,950
Current liabilities:
Accounts payable	6,359	3,841
Accrued liabilities	2,706	3,339
Deferred revenue	307	169
Total current liabilities	9,372	7,349
Deferred revenue, net of current portion	253	69
Deferred rent, net of current portion	260	271
Other liabilities	228	247
Total noncurrent liabilities	741	587
Total liabilities	10,113	7,936
Shareholders' equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 11,435,870 and 11,366,526 shares issued, respectively; 7,391,028 and 7,478,094 shares outstanding, respectively	114	114
Additional paid-in capital	31,841	31,353
Retained earnings	27,219	24,756
Accumulated other comprehensive loss, net of tax	(99)	(99)
Treasury stock, at cost, 4,044,842 and 3,888,432 shares	(32,110)	(30,110)
Total shareholders' equity	26,965	26,014
Total liabilities and shareholders' equity	$ 37,078	$ 33,950

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Fixed assets, accumulated depreciation	$ 20,319	$ 19,752
Intangible assets, accumulated amortization	$ 3,454	$ 3,359
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	11,435,870	11,366,526
Common stock, shares outstanding (in shares)	7,391,028	7,478,094
Treasury stock (in shares)	4,044,842	3,888,432

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) [Abstract]
Net sales	$ 15,838	$ 15,524	$ 42,832	$ 43,117
Cost of sales	7,834	8,005	21,975	23,075
Gross profit	8,004	7,519	20,857	20,042
Operating expenses:
Engineering, design and product development	1,106	1,147	3,510	3,160
Selling and marketing	1,798	1,895	5,450	5,601
General and administrative	1,888	1,886	6,211	5,968
Operating expenses	4,792	4,928	15,171	14,729
Operating income	3,212	2,591	5,686	5,313
Interest and other expense:
Interest, net	(7)	(9)	(21)	(25)
Other, net	(50)	0	(137)	(8)
Interest and other expense	(57)	(9)	(158)	(33)
Income before income taxes	3,155	2,582	5,528	5,280
Income tax provision	581	769	1,064	1,657
Net income	$ 2,574	$ 1,813	$ 4,464	$ 3,623
Net income per common share:
Basic (in dollars per share)	$ 0.35	$ 0.24	$ 0.60	$ 0.49
Diluted (in dollars per share)	$ 0.33	$ 0.24	$ 0.57	$ 0.48
Shares used in per-share calculation:
Basic (in shares)	7,413	7,408	7,449	7,404
Diluted (in shares)	7,758	7,586	7,774	7,504
Dividends declared and paid per common share (in dollars per share)	$ 0.09	$ 0.09	$ 0.27	$ 0.26

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract]
Net income	$ 2,574	$ 1,813	$ 4,464	$ 3,623
Foreign currency translation adjustment, net of tax	11	3	0	10
Comprehensive income	$ 2,585	$ 1,816	$ 4,464	$ 3,633

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 4,464	$ 3,623
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	524	484
Depreciation and amortization	739	866
Deferred income taxes	35	(122)
Foreign currency transaction losses	102	11
Changes in operating assets and liabilities:
Accounts receivable	(782)	(740)
Inventories	(4,205)	1,539
Prepaid income taxes	467	(22)
Other current and long term assets	(2)	(435)
Accounts payable	2,496	(1,943)
Accrued liabilities and other liabilities	(341)	355
Net cash provided by operating activities	3,497	3,616
Cash flows from investing activities:
Capital expenditures	(722)	(590)
Additions to capitalized software	(466)	0
Net cash used in investing activities	(1,188)	(590)
Cash flows from financing activities:
Payment of dividends on common stock	(2,001)	(1,911)
Purchases of common stock for treasury	(2,000)	(358)
Proceeds from stock option exercises	229	294
Withholding taxes paid on stock issuances	(265)	(23)
Net cash used in financing activities	(4,037)	(1,998)
Effect of exchange rate changes on cash and cash equivalents	16	(6)
(Decrease) increase in cash and cash equivalents	(1,712)	1,022
Cash and cash equivalents, beginning of period	5,507	2,503
Cash and cash equivalents, end of period	3,795	3,525
Supplemental schedule of non-cash investing activities:
Capital expenditures included in accounts payable	$ 68	$ 168

Basis of presentation	9 Months Ended
Basis of presentation	Sep. 30, 2018
Basis of presentation [Abstract]
Basis of presentation	1. Basis of presentation The accompanying unaudited financial statements of TransAct Technologies Incorporated (the “Company") have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP to be included in full year financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the periods presented have been included and are of a normal recurring nature. The December 31, 2017 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2017 included in our Annual Report on Form 10-K. The financial position and results of operations of our U.K. subsidiary are measured using local currency as the functional currency. Assets and liabilities of such subsidiary have been translated at the end of period exchange rates, and related revenues and expenses have been translated at the weighted average exchange rates with the resulting translation gain or loss recorded in “Accumulated other comprehensive loss, net of tax", in the Condensed Consolidated Balance Sheets. Transaction gains and losses are included in “Other, net” in the Condensed Consolidated Statements of Income. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year.

Inventories, net

9 Months Ended

Sep. 30, 2018

Inventories, net [Abstract]

Inventories, net

2. Inventories, net

The components of inventories, net are:

	September 30, 2018		December 31, 2017
	(In thousands)

Raw materials and purchased component parts	$	9,820	$	6,322
Work-in-process		3		-
Finished goods		3,242		2,553
	$	13,065	$	8,875

Accrued product warranty liability

9 Months Ended

Sep. 30, 2018

Accrued product warranty liability [Abstract]

Accrued product warranty liability

3. Accrued product warranty liability

We generally warrant our products for up to 24 months and record the estimated cost of such product warranties at the time the sale is recorded. Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs.

The following table summarizes the activity recorded in the accrued product warranty liability during the nine months ended September 30, 2018 and 2017:

	Nine Months Ended September 30,
	2018			2017
	(In thousands)

Balance, beginning of period	$	267		$	267
Warranties issued		233			184
Warranty settlements		(205	)		(187	)
Balance, end of period	$	295		$	264

As of September 30, 2018, $197 thousand of the accrued product warranty liability is classified as current in "Accrued liabilities" in the Condensed Consolidated Balance Sheets and the remaining $98 thousand is classified as non-current in "Other liabilities".

Earnings per share

9 Months Ended

Sep. 30, 2018

Earnings per share [Abstract]

Earnings per share

4. Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands, except per share data)


Net income	$	2,574	$	1,813	$	4,464	$	3,623

Shares:
Basic: Weighted average common shares outstanding		7,413		7,408		7,449		7,404
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		345		178		325		100
Diluted: Weighted average common and common equivalent shares outstanding		7,758		7,586		7,774		7,504

Net income per common share:
Basic	$	0.35	$	0.24	$	0.60	$	0.49
Diluted	$	0.33	$	0.24	$	0.57	$	0.48

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period. These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive. For the three months ended September 30, 2018 and 2017, there were 147 thousand and 382 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. For the nine months ended September 30, 2018 and 2017, there were 149 thousand and 404 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.

Shareholders' equity

9 Months Ended

Sep. 30, 2018

Shareholders' equity [Abstract]

Shareholders' equity

5. Shareholders’ equity

Changes in shareholders’ equity for the nine months ended September 30, 2018 were as follows (in thousands):

Balance at December 31, 2017	$	26,014
Net income		4,464
Share-based compensation expense		524
Issuance of shares from exercise of stock options		229
Relinquishment of stock awards upon exercise and fully vested deferred stock units		(265	)
Purchase of common stock for treasury		(2,001	)
Dividends declared and paid on common stock		(2,000	)
Balance at September 30, 2018	$	26,965

For the three months ended September 30, 2018, our Board of Directors declared a quarterly cash dividend of $0.09 per share, totaling $665 thousand, which was paid on September 14, 2018 to common shareholders of record at the close of business on August 20, 2018. For the three months ended September 30, 2017, dividends declared and paid totaled $661 thousand, or $0.09 per share. For the nine months ended September 30, 2018 and 2017, dividends declared and paid totaled $2.0 million, or $0.27 per share, and $1.9 million, or $0.26 per share, respectively.

Income taxes	9 Months Ended
Income taxes	Sep. 30, 2018
Income taxes [Abstract]
Income taxes	6. Income taxes We recorded an income tax provision for the third quarter of 2018 of $581 thousand at an effective tax rate of 18.4%, compared to an income tax provision during the third quarter of 2017 of $769 thousand at an effective tax rate of 29.8%. For the nine months ended September 30, 2018, we recorded an income tax provision of $1.06 million at an effective tax rate of 19.2%, compared to an income tax provision during the nine months ended September 30, 2017 of $1.66 million at an effective tax rate of 31.4%. We expect our annual effective tax rate for 2018 to be between 19% and 20%. The effective tax rate for the three and nine months ended September 30, 2018 was lower than the effective tax rate for the three and nine months ended September 30, 2017 due to the passage of the Tax Cuts and Jobs Act (the "Tax Reform Act") enacted on December 22, 2017. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a one-time repatriation tax on undistributed foreign earnings. The Tax Reform Act reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate effective January 1, 2018 and, as a result, reduced our statutory U.S. corporate income tax rate from 34% to 21%. On December 22, 2017, the Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. SAB 118 provides a measurement period, not to exceed one year from the enactment of the Tax Reform Act. In accordance with SAB 118, the Company has recognized provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017, and no changes were made to these provisional amounts during the quarter ended September 30, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions, additional regulatory guidance from Treasury, the Internal Revenue Service and State Governments, and actions the Company may take as a result of the Tax Reform Act, but the enactment of this legislation did not result in a material adjustment for the nine months ended September 30, 2018. While the Tax Reform Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income ("GILTI") provisions and the base-erosion and anti-abuse tax ("BEAT") provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular income tax. The Company has not recorded any impacts of GILTI or BEAT in its consolidated financial statements for the quarter ended September 30, 2018. We are subject to U.S. federal income tax, as well as income tax in certain state and foreign jurisdictions. We have substantially concluded all U.S. federal income tax, state and local, and foreign tax regulatory examination matters through 2014. However, our federal tax returns for the years 2015 through 2017 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements. As of September 30, 2018, we had $76 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. During the third quarter of 2018, we recognized $28 thousand of previously unrecognized tax benefits as the statute of limitations on the use of our 2014 R&D credits expired during the third quarter of 2018. We recognize interest and penalties related to uncertain tax positions in the income tax provision reported as "Deferred tax assets" in the Condensed Consolidated Balance Sheet. As of September 30, 2018, we have $14 thousand of accrued interest and penalties related to uncertain tax positions. The Company maintains a valuation allowance against certain deferred tax assets where realization is not certain.

Accounting pronouncements

9 Months Ended

Sep. 30, 2018

Accounting pronouncements [Abstract]

Accounting pronouncements

7. Accounting pronouncements

The following accounting pronouncements will be adopted in future reporting periods:

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASU 2016-02 supersedes the previous leases standard, ASC 840, Leases, and is effective for public entities for annual periods beginning after December 15, 2018 and for interim periods within those fiscal years. Early adoption is permitted. The Company does have leases for equipment and real property which exceed 12 months and we are in the process of finalizing our review of our lease agreements and evaluating the impact of Topic 842. The Company intends to elect the package of practical expedients and currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption of Topic 842. While we expect to record material right-of-use assets and corresponding liabilities upon adoption of Topic 482, we do not expect adoption of the guidance will result in a material impact on the Company's results of operations or cash flows.

The following accounting pronouncements were adopted during 2018:

1)	Revenue recognition:

ASU No. 2014-09, "Revenue from Contracts with Customers” and its related amendments (collectively, ASC 606) are effective for reporting periods beginning after December 15, 2017, and interim periods therein. This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. Entities have the option of using either a full retrospective approach or modified retrospective approach to adopt the amended guidance. We adopted ASC 606 effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 were not adjusted for the new standard and no cumulative effective for the change in accounting was recognized through retained earnings at the date of adoption.

Periods prior to January 1, 2018

The Company’s revenue recognition method prior to the adoption of ASC 606 can be found under Note 2. Summary of significant accounting policies within the “Notes to Consolidated Financial Statements” in the Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Periods commencing January 1, 2018

In accordance with ASC 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations (most commonly when contracts include product and extended warranties). A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price.

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, such as price protection, reserves for returns and other allowances, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the “expected value” method or the “most likely amount” method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

For a majority of our revenue, which consists of printers, terminals, consumables, and replacement parts, the Company recognizes revenue as of a point of time. The transaction price is recognized upon shipment of the order when control of the goods is transferred to the customer and at the time the performance obligation is fulfilled. We also sell a software solution, EPICENTRAL™, that enables casino operators to create promotional coupons and marketing messages and to print them in real-time at the slot machine. EPICENTRAL^TM is primarily comprised of both a software component, which is licensed to the customer, and a hardware component. EPICENTRAL™ software and hardware are integrated to deliver the system's full functionality. The transaction prices from EPICENTRAL™ software license and hardware are recognized upon installation and formal acceptance by the customer when control of the license is transferred to the customer. For out-of-warranty repairs, the transaction price is recognized after completion of the repair work is completed and the printer or terminal is returned to the customer, as control of the product is transferred to the customer.

Performance obligations are satisfied over time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. For our separately priced extended warranty, technical support for our restaurant solution terminals and maintenance agreements (including free one-year maintenance received by the customers upon completion of EPICENTRAL™ installation) revenue is recognized over time as the customer receives the benefit. The transaction price from the maintenance services is recognized ratably over time, using output methods, as control of the services is transferred to the customer. For extended warranties, the transaction price is recognized ratably over the warranty period, using output methods, as control of the services is transferred to the customer.

In the cases where there is more than one performance obligation in a customer arrangement, the Company typically uses the “standalone selling price” method to determine the transaction price to allocate to each performance obligation. The Company sells the performance obligations separately and has established standalone selling prices for its products and services. In the case of an overall price discount, the discount is applied to each performance obligation proportionately based on standalone selling price. To determine the standalone selling price for initial EPICENTRAL™ installations, the Company uses the adjusted market assessment approach.

Disaggregation of revenue

The following table disaggregates our revenue by market-type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues.

	Nine Months Ended September 30, 2018
	United States		International		Total
	(In thousands)
Restaurant solutions	$	3,295	$	327	$	3,622
POS Automation and Banking		5,765		136		5,901
Casino and Gaming		14,084		7,190		21,274
Lottery		1,724		47		1,771
Printrex		833		229		1,062
TransAct Services Group		8,494		708		9,202
Total net sales	$	34,195	$	8,637	$	42,832

Changes in accounting policies and financial statement impact of adopting ASC 606

Except for the changes below, we have consistently applied the accounting policies to all periods presented in the consolidated financial statements. As noted above, we adopted ASC 606 using the modified retrospective approach which allows the Company to record any changes using the cumulative effect. The adoption of the ASC 606 did not require the Company to record an adjustment to retained earnings at January 1, 2018 and did not have an impact on the consolidated income statement during the first nine months of 2018, basic or diluted earnings per share, consolidated statement of cash flows or consolidated balance sheet at September 30, 2018.

Costs to Obtain a Contract – Costs to obtain a contract, such as sales commissions, were previously expensed as incurred. The Company applied the practical expedient for contracts with customers for a term of twelve months or less, in accordance with ASC 340-40-25-4, which allows TransAct to continue to expense sales commissions as incurred, since the expected amortization period of the cost to obtain a contract is less than 12 months. No amounts were capitalized as of the adoption of ASC 606 or as of September 30, 2018.

Contract balances

Our contract liabilities consist of customer pre-payments and deferred revenue. Customer prepayments are reported as “Accrued Liabilities” in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is recognized as revenue when the performance obligation is complete. Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our restaurant solution terminals, EPICENTRAL™ maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract. The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals. We do not have any contract asset balances as of September 30, 2018 or December 31, 2017. In the first nine months of 2018, we recognized revenue of $587 thousand related to our contract liabilities at January 1, 2018. Total contract liabilities consist of the following:

	September 30, 2018		January 1, 2018
	(In thousands)

Customer pre-payments	$	92	$	79
Deferred revenue, current		307		169
Deferred revenue, non-current		253		69
Total contract liabilities	$	652	$	317

Remaining performance obligations

Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer. As of September 30, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $6.0 million. The Company expects to recognize revenue on $5.5 million of our remaining performance obligations within the next 12 months, $0.4 million within the next 24 months and the balance of these remaining performance obligations recognized within the next 36 months.

1)	Stock compensation:

In May 2017, the FASB issued ASU No. 2017-09, "Compensation-Stock Compensation: Scope of modification accounting". ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017. The amendments are applied prospectively to an award modified on or after the adoption date. We adopted this guidance in the first quarter of 2018 and the adoption has not resulted in a change to our financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Inventories, net (Tables)

9 Months Ended

Sep. 30, 2018

Inventories, net [Abstract]

Inventories, net

The components of inventories, net are:

	September 30, 2018		December 31, 2017
	(In thousands)

Raw materials and purchased component parts	$	9,820	$	6,322
Work-in-process		3		-
Finished goods		3,242		2,553
	$	13,065	$	8,875

Accrued product warranty liability (Tables)

9 Months Ended

Sep. 30, 2018

Accrued product warranty liability [Abstract]

Product warranty liability

The following table summarizes the activity recorded in the accrued product warranty liability during the nine months ended September 30, 2018 and 2017:

	Nine Months Ended September 30,
	2018			2017
	(In thousands)

Balance, beginning of period	$	267		$	267
Warranties issued		233			184
Warranty settlements		(205	)		(187	)
Balance, end of period	$	295		$	264

Earnings per share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings per share [Abstract]

Earnings per share

The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands, except per share data)


Net income	$	2,574	$	1,813	$	4,464	$	3,623

Shares:
Basic: Weighted average common shares outstanding		7,413		7,408		7,449		7,404
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		345		178		325		100
Diluted: Weighted average common and common equivalent shares outstanding		7,758		7,586		7,774		7,504

Net income per common share:
Basic	$	0.35	$	0.24	$	0.60	$	0.49
Diluted	$	0.33	$	0.24	$	0.57	$	0.48

Shareholders' equity (Tables)

9 Months Ended

Sep. 30, 2018

Shareholders' equity [Abstract]

Changes in shareholders' equity

Changes in shareholders’ equity for the nine months ended September 30, 2018 were as follows (in thousands):

Balance at December 31, 2017	$	26,014
Net income		4,464
Share-based compensation expense		524
Issuance of shares from exercise of stock options		229
Relinquishment of stock awards upon exercise and fully vested deferred stock units		(265	)
Purchase of common stock for treasury		(2,001	)
Dividends declared and paid on common stock		(2,000	)
Balance at September 30, 2018	$	26,965

Accounting pronouncements (Tables)

9 Months Ended

Sep. 30, 2018

Accounting pronouncements [Abstract]

Disaggregation of revenue

	Nine Months Ended September 30, 2018
	United States		International		Total
	(In thousands)
Restaurant solutions	$	3,295	$	327	$	3,622
POS Automation and Banking		5,765		136		5,901
Casino and Gaming		14,084		7,190		21,274
Lottery		1,724		47		1,771
Printrex		833		229		1,062
TransAct Services Group		8,494		708		9,202
Total net sales	$	34,195	$	8,637	$	42,832

Contract liabilities

Contract balances

	September 30, 2018		January 1, 2018
	(In thousands)

Customer pre-payments	$	92	$	79
Deferred revenue, current		307		169
Deferred revenue, non-current		253		69
Total contract liabilities	$	652	$	317

Inventories, net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventories, net [Abstract]
Raw materials and purchased component parts	$ 9,820	$ 6,322
Work-in-process	3	0
Finished goods	3,242	2,553
Inventories, net	$ 13,065	$ 8,875

Accrued product warranty liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Accrued product warranty liability [Roll Forward]
Balance, beginning of period	$ 267	$ 267
Warranties issued	233	184
Warranty settlements	(205)	(187)
Balance, end of period	295	$ 264
Accrued product warranty liability, current	197
Accrued product warranty liability, non-current	$ 98
Maximum [Member]
Warranty [Abstract]
Product warranty period	24 months

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings per share [Abstract]
Net income	$ 2,574	$ 1,813	$ 4,464	$ 3,623
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)	7,413	7,408	7,449	7,404
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method (in shares)	345	178	325	100
Diluted: Weighted average common and common equivalent shares outstanding (in shares)	7,758	7,586	7,774	7,504
Net income per common share [Abstract]
Basic (in dollars per share)	$ 0.35	$ 0.24	$ 0.60	$ 0.49
Diluted (in dollars per share)	$ 0.33	$ 0.24	$ 0.57	$ 0.48
Stock Awards [Member]
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)	147	382	149	404

Shareholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 26,014
Net income	$ 2,574	$ 1,813	4,464	$ 3,623
Share-based compensation expense			524
Issuance of shares from exercise of stock options			229
Relinquishment of stock awards upon exercise and fully vested deferred stock units			(265)
Foreign currency translation adjustment	11	$ 3	0	$ 10
Purchase of common stock for treasury			(2,000)
Dividends declared and paid on common stock			(2,001)
Ending balance	$ 26,965		$ 26,965
Dividends [Abstract]
Dividends declared and paid per common share (in dollars per share)	$ 0.09	$ 0.09	$ 0.27	$ 0.26
Dividends paid date	Sep. 14, 2018
Dividends record date	Aug. 20, 2018
Payment of dividend on common stock	$ 665	$ 661	$ 2,001	$ 1,911

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
Income taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income taxes [Abstract]
Income tax provision	$ 581	$ 769	$ 1,064	$ 1,657
Effective tax rate	18.40%	29.80%	19.20%	31.40%
Total gross unrecognized tax benefits that would impact the effective rate	$ 76		$ 76
Previously unrecognized tax benefit recognized	28
Accrued interest and penalties related to uncertain tax positions	$ 14		$ 14
U.S. corporate income tax rate			21.00%		34.00%
Minimum [Member]
Income taxes [Abstract]
Effective tax rate			19.00%
Maximum [Member]
Income taxes [Abstract]
Effective tax rate			20.00%
U.S. corporate income tax rate					35.00%

Accounting pronouncements, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of revenue [Abstract]
Total net sales	$ 15,838	$ 15,524	$ 42,832	$ 43,117
United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			34,195
International [Member]
Disaggregation of revenue [Abstract]
Total net sales			8,637
Restaurant Solutions [Member]
Disaggregation of revenue [Abstract]
Total net sales			3,622
Restaurant Solutions [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			3,295
Restaurant Solutions [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales			327
POS Automation and Banking [Member]
Disaggregation of revenue [Abstract]
Total net sales			5,901
POS Automation and Banking [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			5,765
POS Automation and Banking [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales			136
Casino and Gaming [Member]
Disaggregation of revenue [Abstract]
Total net sales			21,274
Casino and Gaming [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			14,084
Casino and Gaming [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales			7,190
Lottery [Member]
Disaggregation of revenue [Abstract]
Total net sales			1,771
Lottery [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			1,724
Lottery [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales			47
Printrex [Member]
Disaggregation of revenue [Abstract]
Total net sales			1,062
Printrex [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			833
Printrex [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales			229
TransAct Services Group [Member]
Disaggregation of revenue [Abstract]
Total net sales			9,202
TransAct Services Group [Member] \| United States [Member]
Disaggregation of revenue [Abstract]
Total net sales			8,494
TransAct Services Group [Member] \| International [Member]
Disaggregation of revenue [Abstract]
Total net sales			$ 708

Accounting pronouncements, Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Accounting pronouncements [Abstract]
Revenue recognised	$ 587
Contract liabilities [Abstract]
Customer pre-payments	92	$ 79
Deferred revenue, current	307	169
Deferred revenue, non-current	253	69
Total contract liabilities	$ 652	$ 317

Accounting pronouncements, Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2018 USD ($)
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 6.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 5.5
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 0.4
Expected timing of satisfaction, period	24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Remaining performance obligations [Abstract]
Remaining performance obligations
Expected timing of satisfaction, period	36 months