TransAct Technologies Incorporated reported significant declines in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net sales for Q3 2024 were $10.9 million, a decrease of 37% from $17.2 million in Q3 2023. For the nine months ended September 30, 2024, total net sales were $33.2 million, down 44% from $59.4 million in the prior year. This decline was attributed to a slowdown in demand in the casino and gaming market, where unit sales dropped by 50%, and a 15% decrease in the POS automation market. The company also lost a significant customer in Q2 2024, which previously contributed approximately $4 million in sales.

Gross profit for Q3 2024 was $5.2 million, down 41% from $8.9 million in Q3 2023, resulting in a gross margin of 48%, a decline of 380 basis points. For the nine-month period, gross profit decreased by 47% to $17 million, with a gross margin of 51%, down from 54% in the same period last year. The overall sales decline, particularly in higher-margin casino and gaming products, significantly impacted profitability.

TransAct reported an operating loss of $837,000 for Q3 2024, compared to an operating income of $1.2 million in Q3 2023. For the nine months, the operating loss was $2.6 million, a stark contrast to the $6.2 million operating income reported in the same period of 2023. The net loss for Q3 2024 was $551,000, compared to a net income of $906,000 in Q3 2023. For the nine months, the net loss totaled $1.9 million, compared to a net income of $4.8 million in the prior year.

In response to the challenging market conditions, TransAct initiated cost reduction measures in Q3 2023, expected to yield approximately $3 million in annualized savings during 2024, with additional savings anticipated from further initiatives. Operating expenses decreased by 22% in Q3 2024 compared to the previous year, driven by reductions in engineering, design, and product development expenses, as well as selling and marketing costs.

As of September 30, 2024, total assets were $50.5 million, down from $54.2 million at the end of 2023. Current assets also decreased to $37.4 million, with cash and cash equivalents at $11.3 million, reflecting a decline from $12.3 million at the end of the previous fiscal year. The company maintains a revolving credit line of up to $10 million under the Siena Credit Facility, with $2.3 million in outstanding borrowings as of the reporting date.