Wed, May 14, 9:01 PM (35 days ago)
**TransAct Technologies Inc. (TACT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $13,053,000 (up 22% YoY from $10,687,000). - **Profit Margins:** Gross margin at 48.7%, down 3.9% YoY due to higher sales of lower-margin BOHA! hardware. - **Net Income:** $19,000 (improved from a loss of $1,036,000 in Q1 2024). - **Cash Flow:** Net cash used in operations was $161,000 (improved from $1,490,000 in Q1 2024). **Key Metrics & Trends:** - **Sales Growth:** Driven by a 28% increase in printer, terminal, and hardware unit sales, particularly in the casino and gaming market (up 25% in units) and food service technology (up 143% in units). - **Market Performance:** Strong domestic sales in casino and gaming (up 49% YoY) offset by lower international sales due to inventory normalization. - **Cost Management:** Operating expenses reduced by 8% YoY, with significant savings from cost reduction initiatives. - **Liquidity:** Maintained compliance with credit facility covenants, with $3.3 million in borrowing capacity available. **Uncertainties & Future Operations:** - **Tariffs:** Potential impact from U.S. tariffs on goods from Thailand, where primary manufacturing occurs. - **Economic Conditions:** Uncertainty due to global economic pressures, inflation, and competitive dynamics. - **Supply Chain:** Dependence on a single manufacturer in Thailand poses risks related to disruptions and tariffs. **Outlook:** - **Revenue Growth:** Expected to continue in 2025, driven by normalized casino and gaming sales and growth in food service technology. - **Margin Management:** Gross margins anticipated to remain in the mid-to-high 40% range. - **Liquidity:** Adequate cash and borrowing capacity to meet working capital needs and capital expenditures through at least the next 12 months.