Business
TransAct Technologies Reports Preliminary Second Quarter 2020 Financial Results
2020 Second Quarter Net Sales of $5.3 Million Food Service Technology Revenues up 7% on a Year-Over-Year Basis HAMDEN, Conn.--(BUSINESS WIRE)-- TransAct
About this update from Transact Technologies Incorporated
[{"type":"text","content":"\n2020 Second Quarter Net Sales of $5.3 Million\n\n\nFood Service Technology Revenues up 7% on a Year-Over-Year Basis\n\n HAMDEN, Conn.--(BUSINESS WIRE)--\nTransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct” or the “Company”), a global leader in software-driven technology and printing solutions for high-growth markets, today reported preliminary operating results for the quarter ended June 30, 2020.\n\n\n“TransAct’s second quarter performance was relatively solid given the challenges presented by the COVID-19 pandemic. Notwithstanding these challenges and during the heart of the pandemic in Q2 2020, our Food Service Technology (“FST”) recurring revenue, which includes software, labels and service sales, increased over 100% from Q2 2019. Additionally, we continue to invest in our technology to enhance our position in the FST market. Our most recent addition to the BOHA! solution suite is BOHA! Employee Wellness. BOHA! Employee Wellness offers a safe and secure digital process with its mobile app to conduct wellness screenings that will either greenlight employees that can work or identify employees that must go home to recover,” said Bart C. Shuldman, Chairman and CEO of TransAct. “Although the near-term business environment is uncertain, we continue to be excited by the momentum of our BOHA! solution and the long-term opportunities it provides us. Our BOHA! solution continues to resonate with customers and orders for Q3 are projected to grow from the Q2 trough. Most exciting is our projection that BOHA! recurring revenue may exceed $1 million in the third quarter, which would be a first for TransAct. As the headwinds from COVID continue to abate our solutions will be ready to drive measurable improvement across restaurant and foodservice operators’ bottom line.”\n\n\nSecond Quarter 2020 Financial Highlights\n\n\n\nNet Sales: Net Sales for the second quarter of 2020 were $5.3 million, down 53% compared to $11.4 million for the second quarter of 2019.\n\n\nGross Profit: Gross profit for the second quarter of 2020 was $2.3 million, resulting in gross margin of 43.3%, compared to gross profit of $5.7 million in the second quarter of 2019, which resulted in a 50.3% gross margin.\n\n\nOperating income (loss): Operating loss for the second quarter of 2020 was $2.7 million, compared to operating income of $0.3 million in the s...