Transact Technologies (TACT) Tops Q1 EPS by 11c
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Transact Technologies (NASDAQ: TACT) reported Q1 EPS of $0.16, $0.11 better than the analyst estimate of $0.05. Revenue for the quarter came in at $16.2 million versus the consensus estimate of $13.45 million.
Bart Shuldman, Chairman and Chief Executive Officer of TransAct, commented, “TransAct generated solid year-over-year growth in revenue, gross profit, adjusted net income and adjusted diluted EPS in the first quarter of 2015 as we executed against our strategic growth initiatives while prudently managing our expenses. Our focus on leveraging our brands and products in markets with attractive global growth opportunities while maintaining strict fiscal prudence, has positioned TransAct to profitably diversify our revenues as we continue to penetrate multiple industries.
“In addition to benefiting from a strong quarter in lottery sales, we also achieved quarterly sequential revenue growth in our casino and gaming business as the domestic market exhibited signs of improvement, particularly in comparison to the last nine months of fiscal 2014. Our Epic™ line of ticket-in, ticket-out printers continue to be favorably received by casino and gaming operators for their reliability and ease of use, which we believe contributes to the growing worldwide installed base of these products. We also continue to expect increased sales of our Epicentral® promotion and bonusing print system in 2015.
“The acceptance of our food safety terminal solutions by a growing number of restaurant and foodservice operators is an encouraging sign for near-term sales growth, as demonstrated by the over 300% year-over-year growth in sales in the first quarter, and for our ability to accelerate our products’ market penetration in the medium- and long-term. We believe our line of food safety terminals offers restaurant and foodservice operators unique and industry leading solutions that save time, cut food waste, reduce labor costs and reduce the risk of food spoilage, no matter the size and complexity of their menu or the scale of their operations.
“With the ongoing challenges impacting the oil and gas drilling industry, including a significant slowdown in active drilling sites, we remain committed to optimizing the profitability of our Printrex® product line. While growth in the installed base of our Printrex 980 and Printrex 920 color printers has slowed, TransAct continues to benefit from the high-margin recurring revenue related to sales of consumables for these products. In addition, we generated initial revenue from sales of our Responder MP2 all-in-one mobile printing solution in the first quarter, and expect that sales of this product that addresses the sizeable, yet fragmented, machine-to-machine market will accelerate in the second half of the year.”
Mr. Shuldman concluded, “We are off to a solid start in 2015 and expect that the value of our newest solutions, which carry higher profit contributions in comparison to our legacy products, will continue to lead the way for improved results over the course of the year. The engineering and development work for our diversified range of product offerings has been completed and as a result we are able to focus our full attention on sales execution while benefiting from a reduction in overall costs.”
For earnings history and earnings-related data on Transact Technologies (TACT) click here.
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