Business
TransAct Technologies Reports Preliminary Third Quarter 2020 Financial Results
FST Recurring Revenues up 157% on a Year-Over-Year Basis Completed $9.8 Million Public Offering of Common Stock HAMDEN, Conn.--(BUSINESS WIRE)-- TransAct
About this update from Transact Technologies Incorporated
[{"type":"text","content":"\nFST Recurring Revenues up 157% on a Year-Over-Year Basis\n\nCompleted $9.8 Million Public Offering of Common Stock\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 September 30, 2020.\n\n“We are pleased with our execution in the third quarter and especially pleased with the strong momentum in our Food Service Technology (“FST”) market. Our FST revenue increased 20% over Q3 2019, with our recurring FST revenue, which includes software, labels, and service sales, increasing 157% year over year. The traction we continue to generate in this market is incredibly encouraging and we are looking forward to further momentum with the recently announced native iOS BOHA! Restaurant Operations Platform and our all-new BOHA! Work Station that is paired with iPad,” said Bart Shuldman, Chairman and CEO of TransAct. “In addition, our Casino and Gaming sales increased sequentially despite the very difficult operating market for casinos around the world.”\n\nShuldman continued, “Finally, our recently completed $9.8 million common stock offering provides us with additional operating capital to increase penetration into the FST market and to support our new relationship with Apple. All said, despite headwinds to our customers businesses, we made significant strides this quarter toward long term growth and value creation for our shareholders.”\n\nThird Quarter 2020 Financial Highlights\n\n\nNet Sales: Net sales for the third quarter of 2020 were $7.3 million, down 38% compared to $11.7 million for the third quarter of 2019. FST net sales for the third quarter of 2020 were $2.3 million, up 20% compared to $2.0 million for the third quarter of 2019.\n\n\nGross Profit: Gross profit for the third quarter of 2020 was $3.3 million, resulting in gross margin of 45.9%, compared to gross profit of $5.5 million for the third quarter of 2019, which resulted in a 47.5% gross margin.\n\n\nOperating income (loss): Operating loss for the third quarter of 2020 was $1.5 million, compared to operating income of $0.3 million for the third quarter of 2019.\n\n\nNet income (loss): Net loss for the third quarter of 2020 was $0.9 million, or $0...