TransAct Technologies Incorporated reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net sales dropping to $43.4 million, a decrease of 40% from $72.6 million in 2023. The company experienced a net loss of $9.9 million, or $0.99 per diluted share, compared to a net income of $4.7 million, or $0.47 per diluted share, in the previous year. This downturn was attributed to a substantial reduction in sales across all major markets, particularly in the casino and gaming sector, which saw a 50.6% decrease in revenue, and the POS automation market, which fell by 51.4%. The overall decline in sales volume was driven by customers working through excess inventory accumulated during previous supply chain disruptions.
In terms of operational changes, TransAct launched the BOHA! Terminal 2 in May 2023, aimed at enhancing its offerings in the food service technology market. Despite the introduction of this new product, the company faced challenges, including the termination of service by a significant customer, which resulted in a loss of approximately $4 million in sales. The company’s strategic review process remains active, with management exploring options to enhance shareholder value, although no specific outcomes have been disclosed.
The company’s workforce remained stable, with 108 full-time employees as of December 31, 2024. However, TransAct has implemented cost reduction initiatives, including a reduction in headcount and marketing expenses, which are expected to yield annual savings of approximately $5 million. These measures were taken in response to the significant decline in sales and the need to align operating expenses with reduced revenue levels.
Looking ahead, TransAct anticipates a gradual recovery in its casino and gaming sales in 2025, as customers deplete their existing inventory and begin to place new orders. However, the company also expects continued competitive pressure in the POS automation market, which may lead to lower sales in that segment. The overall outlook remains cautious, with management emphasizing the need to navigate ongoing economic uncertainties, including inflation and potential supply chain disruptions.
In terms of liquidity, TransAct reported a cash balance of $14.4 million as of December 31, 2024, an increase of 16% from the previous year. The company has access to a credit facility with a borrowing capacity of $10 million, which it plans to utilize to support its operations and capital expenditures. Despite the challenges faced in 2024, TransAct believes it has sufficient resources to meet its working capital needs in the near term, although it continues to monitor external economic factors that could impact its financial stability.
About TRANSACT TECHNOLOGIES INC
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