The following is a summary of the TransAct Technologies Incorporated (TACT) Q1 2024 Earnings Call Transcript:

Financial Performance:

• TransAct reported a significant decrease in Q1 2024 total sales to $10.7 million, down by 52% year-over-year due to factors impacting the casino and gaming segment.

• Growth was observed in food service technology (FST) recurring revenue which increased to $2.4 million year-over-year.

• FST sales dropped by 3% and 30% year-over-year and sequentially to $3.3 million.

• Sharp decline in casino and gaming sales to $5.7 million further impacted total sales, due to OEMs depleting printer inventory.

• Gross margin for Q1 was 52.6%, showing an increase from the previous quarter but still lower than the previous year.

• The company projects an adjusted EBITDA loss ranging from $2.5 million to $3.5 million for 2024.

Business Progress:

• TransAct implemented 856 new installations of its BOHA! terminals in Q1, totaling 15,370 online terminals in service.

• Positive expectations for future growth, with additional sales of BOHA! T2 product expected from transitioning a large sushi client.

• Despite challenges in the gaming sector, the company is taking measures to retain market share.

• A strategic repositioning towards being an agile, industry-agnostic transaction validation platform is in progress, with future ideas for expansion into new verticals.

• To boost the company's casino and gaming sales, plans to launch the TR80, a new model for their terminal, which is expected to go into full production soon.

• The average revenue per user (ARPU) for 2024 is projected to be in the $500 to $1,000 range, with strategies in development to increase this figure.

More details: TransAct Technologies IR

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