TACT - Earnings call transcript Q3 2019 | TransAct Technologies Incorporated

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Operator

Good afternoon, ladies and gentlemen, and welcome to the TransAct Technologies Third Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. Later, we will also conduct a question-and-answer session and instructions will follow at that time. [Operator instructions] As a reminder, this conference call is being recorded.

I would like to turn the conference over to your host Investor Relations, Mr. Leahy. Jim

begin. may You

Jim Leahy

Good Conference welcome Call. Laura. XXXX TransAct Third Quarter afternoon you, to and Technologies Thank

Steve Joining Chairman Shuldman; CFO, and today CEO, us from Bart and the President Company are DeMartino. and

discussion of call progress these financial and initiatives include quarter Today's on third the against the will details results. key operating Company's strategies, a

then open participants We call will for questions. to the

and Statements As actual deemed which are expectations, future events a reminder, and materially. be differ this may may conference in results call on nature. contains as call forward-looking statements about our this forward-looking

For and the reflect a to obligations its XX-Q. to or events SEC list the full and call. of risks occur to no including the the revise circumstances to that inherent or filings, reports business XX-K undertakes refer on update Form Company, any after please TransAct statements Company's forward-looking

measure financial to as webcast G. Regulation non-GAAP required, of call include on Today's most be as accordance will website. found the the within today's directly and financial the meaning press of well in SEC measures financial release with GAAP a calculated all measures presented can reconciliation Company's in When non-GAAP comparable

At time, Bart Shuldman, I'd over turn like Bart? call this the to to

Bart Shuldman

webcast. us Jim, everyone you, welcome call this joining and conference afternoon's and Thank on

occurred. by spend Before to and hear a I and product, is few what market We important solutions from but material it discussion on our the TransAct. preliminary exciting control restaurant issued to want business disclose to our minutes update form financial begin my regarding results new on form our filed weaknesses, X-K you in me I X-K recent both

conducted an the relating received internal about independent our financial review its December audit XXXX registered controls effectiveness the as XXXX, consolidated PwC to that PwC's of recently It report internal accounting public our controls. then of that attention firm, and our and of XX, of an statements internal own audit our came PricewaterhouseCoopers inspection regarding to

controls of effectiveness about conclusion in were as and reconsideration XXXX. our resulted of effective ultimately of in internal the internal this our PwC's review year-end own our internal of That our conclusion reconsideration controls, that

As mainly information there controls our and with that determined including result certain our duties segregation of related control that to date, of of internal access over key of our deficiencies, controls aspects reconsideration, technology, as over we respect existed spreadsheets. and

have these our weaknesses deficiencies of the financial control XXXX. as that We concluded control represent in material reporting internal year over

our received and including controls regarding internal internal required, Now, has controls Pricewaterhouse been XXXX, audit an TransAct from including unqualified XXXX opinion every technology. year new has information we implemented since our when that

identified. opinion on address by weaknesses we And financial to to disappointed have or what developing the weakness is that efficiently control occurred, is concluded we XXXX to and its there now issues these as on already doing changes believe very control What are resolve efficiency consolidated we its result had TransAct, the inside are of work not a no that our now we the plan we a controlled Please that and will weaknesses Pricewaterhouse promptly we situation. While financial are we'll rectify believe certain otherwise. understand, have the control statements. quickly is implementing and we remediation material

quarterly Diluted EBITDA sales of third business gross EPS of the third of a XXXX basis, XX.X%. to the on the generated XXX,XXX, TransAct million, a for $X.XX of quarter delivering adjusted and on for quarter XXX,XXX, margin was preliminary Now results, profit income net share. operating XX.X a

in in Steve more of our review minutes. detail financial these the results Of course, and few a rest will

purpose BOHA! large continued of hardware is represented service sales as software and a the in label requiring which now restaurant of operators. Throughout deployments services against This with enacted includes significant subscriptions and food by sales upfront transition, ecosystem. executing business our as sales and focus software very market hardware restaurant our we consumable which built and made variety ecosystem progress form TransAct on now the with solutions well the of

Our this growth as opportunity third solutions generated growth in demonstrates restaurant sales contracts. and and year-over-year service related significant early both quarter new label net TransAct we success recurring clearly to with results revenue sales BOHA!

We the revenue sales the to increased from by to our remember have BOHA! over I’m XXXX restaurant this from compared third XXXX, solutions XX launched report Solution we in times the of quarter to just of May the total BOHA! by and recurring quarter pleased and software market XXX%. year, third increased

restaurant are We and different now in XX service Solution food live companies. BOHA! with

both announced we Sales sales quarter, apps based TransAct upfront as agreements as our of the well TEMS, include new a terminal. BOHA! third system, which enterprise the During of BOHA! two and BOHA! SaaS management

other two the As date, with highlights sources will in the long-term customers provide BOHA! these be setting and with new to address what believe significant recurring revenue. announcements agreements TransAct we both of

pursue today at potential potential as customer corporate that evaluates The upside this $XXX TransAct of revenue that into sign locations contract the per additional than five least hardware BOHA! approval solutions. customer Canada. first operating with base annual for apps additional unit with and selling includes recurring to agreement two food BOHA! customer's actively more believe XXXX three BOHA! sold along to We're fast large a with BOHA! sales a franchise year across

deployment XX apps of agreement BOHA! next quest a sold print XX one to an as retail expected year. be that with per terminal average is customers capabilities customers could result, new over a the BOHA! This the which the active the as go-live could service per we believe and terminal; of of $X,XXX user months. to revenue includes across unit expected and XX BOHA! second the The operator food location,

potential BOHA the the customer revenue use is as with of additional to agreements to other As up two this evaluate recurring upside there apps.

questions from closely healthcare $XX the estate and labor are providers. savings Those their due Existing operators restaurant service house going that costs no and and heard costs a legislation margin very around have that and U.S. on operations commodity, the customers provides. increase tight given rolled restaurants it an who efficiencies followed serves to businesses who the in real to from they benefiting BOHA! seeing labor doubt the industry back are to compression market and have out rising the brings hour cost only labor to

Given food was customer that real brings labor change our that believe is and today's costs, BOHA! we that a customers lower the as ideally solution to a start to as bottom-line. it from designed brings real positioned for environment change

Our becoming efforts to our clearly financial gaining evident momentum commercialize is and are this results. more in BOHA!

compared we for quarter. the quarter, the doubled with when working our XXXX still restaurant XXXX base, third While tripled prior small with in results a second are compared and off nearly when nearly recurring revenue solutions year

and confident same the have become scope that only restaurant engagements customer what market can wide At BOHA! exceeds seen TransActed remain of we the industries. time, that $X potential a rise food-service a success building billion. and across

customers, new of to opportunity while our can turning existing existing installations One us, with sales reality locations. market with opportunities closely customers customers. to told BOHA! potential trials they of Our sales customer BOHA! base on working casino team and XXX their increase potential a ecosystem has generating including total new of into our focused the with expand use this leads and activity

want important in BOHA!'s I allow commercialization. casino printer I to to and Before that development Steve, an on continue has over ongoing and gaming business call TransAction touch us our to business, turn the briefly allowed market-leading to

the results quarter in the by which third large XXXX, second with business and color was comparability casino repeat. in customer did this of several will few provide gaming moments. As our a orders, more not quarter XXXX impacted the Steve on

many product stable of nice demonstrations These our Vegas, completed annual said, to future. our Expo business and that at remain recently lead the flow long-term That very our underlying casino print we've that customers. should Las in Global interacted Gaming remains and foreseeable the we TransAct interactions business generator for with us for a cash the gaming believe what

announced real-time newly which great in swap Acres middle the and solution. real-time his Acres also as will offer will in X.X, XXXX. feedback come machine legend the data. CyberMax just market which floor This greatly promotion first Acres will power component casino Epicentral partners the technology will receive the key ability industry John Epicentral and We of in we of which serve company of and received our operators to X.X's believe bonus partnership with print from solution we X.X, quarter improve launched, and to access gaming a our

forward. solution gives a is Grail uncarded ability to GXE the demonstrated clear would highlight promotion like believe a One combination to of Acres promotion to our to feature casino will full technologies ability we as to is CyberMax X.X, ability new or player will its you selling a industry that player. uncarded Epicentral a in unique X.X. bonusing that going which my of an growth This We feature potential our of the realize target and our coupon combine issue I an allow real opinion Holy

with third Steve? that, results, I opening and for review after questions will make answers. Now call before Steve some summary quarter the remarks XXXX preliminary will our which

Steve DeMartino

everyone. XXXX Bart in operating of we're XX-K. third the results necessary Thanks, results completion amendments to that discussed third additional preliminary file finalize well internal as afternoon Form our to the quarter related Upon these to earlier, of our line subject of Bart. regarding our control Good determination effectiveness the completion quarter In presenting form of we the and procedures. as XX-Q our expect for Form XXXX our procedures, the file

to opinion third its our XXXX our the that consolidated the PwC issued net year. weaknesses third result noted, a With did financials. statements. has XX% Bart down million, million of previous in knowledge, of were quarter and As XXXX material in quarter sales financial last And XX.X XX.X withdrawn not our any of misstatement not said

third by X% to Looking million. year-over-year solutions at quarter restaurant our grew sales X.X market, sales

lead time. our quarter, sales sales growing we quarter a we on software basis, particular, BOHA! approximately up hardware BOHA! as X% extended given in in the the third field, to dollar hardware up out the and we both of entire which terminal will XX% the on label software of increase a saw in sales basis ecosystem in number traction growth unit were subscription units the In over and Solutions. for believe During and an aggressively

third tenfold a quarter. increase other for subscription are year. of prior terminal to low gaming terminal of sales were we growth. in Casino BOHA! Strong up Though Domestic were sales XX% pipeline casino sales the were million BOHA! sales well-positioned a XXXX products, hardware the believe and XX% the in quarter sales from down BOHA! gaming year-over-year from installed we down the result base, X.X starting and GXE as software base.

year the customer levels Sales that this included large not high did quarter. activity order a for did as that a were OEM from repeat, significant ago replacement customer of as similar corporate it reach as sale well to major printers not unusually large

XX% over one-time stable. domestic prior growth Sales a Excluding a more European these the and business Australian distributors markets reduction year our in down as large the our remained customer. to sales items, Asian by and gaming were sales OEM to for offset international in were large than casino

XX% POS banking X.X automation in sales third down and quarter. to the were million XXXX

continue one of including by see impact We X,XXX their slowing Ithaca replace McDonald's of repair vendors largest to printer sales of to the versus ongoing for decision printers. system McDonald's the POS POS

we sales, sales parts spare As a an it's new noted sales and TSG driven printer reduces increase while this better before, which decision show unit. in service

to Printrex Lottery were in from were this XXX,XXX the our XX% our market. quarter on of decision line longer prior XX% a of printer focus sales no expectations sales year in ago. XX,XXX year down down given product with

as TSG in level revenue for We sales than same locations. the for sales and as service to sales expect at a installed spare printers label sales strong continue the in in BOHA! XX. parts were lottery fourth repair up the ecosystem decline offset X% to well more was million by year-over-year service quarter as XXXX Ithaca X.X roughly McDonalds

in recurring the Sales nature tripled which versus in than support of largely year. of the TransAct in BOHA!, more quarter are labels prior

more ongoing revenue quarter quarter. to a base. though than from margin a a of ago year-over-year for off our service year-over-year, to The XX.X% margin gaming than away the a third Gross quarter sales from more recurring printer the was third in on lower record and the margin, products. quadruple BOHA! sales mix in decline shift compared year Our offsetting casino the in weighted low business legacy XX.X% benefits during gross

X% declined and Total design up or development and in spending quarter third sales of 'XX operating contract $X.X lower design or marketing expenses million, on for was Selling support X% and rollout. increased the our expenses and sales, prototype. Engineering, of we higher technical were BOHA! marketing expenses year-over-year. product hardware the staff $XX,XXX were in $XXX,XXX X% which marketing as

as higher professional as in or well service legal G&A connection of expenses were additional fees solutions the as personnel. accounting restaurant XX% and $XXX,XXX support with other increased up recruiting expenses hiring

$X.XX X.X% compared in net compared third $X.X quarter We the net million ago for to per Our in year was of diluted of of or share which million in recorded 'XX $X.X net the quarter. sales, third net of 'XX quarter income the XX.X% operating of $XXX,XXX sales income XXX,XXX or share year per income or period. or ago diluted the $X.XX to

of in year. third the quarter And to debt. cash the XXXX 'XX to no in Adjusted we was balance sheet, of which $X.X quarter the third compares last million EBITDA and finally, for million third quarter turning the ended with $X.X $XXX,XXX,

we invest also our as through the of cash capital our stable for quarterly quarter of per positioned continue of sheet, the remained to We rollout third $XXX,XXX to balance we prepare BOHA! returned about in With share. XXXX. shareholders in dividend $X.XX to

us our label highlights subscriptions trial hold. beginning in more quarters TransAct our third the support benefits sales staffed team a in activity software ongoing introduce lead believe that are sales annual will are increasing XXXX and will ensure The recurring Existing as the that sign BOHA! revenue growth into to coming necessary up transformation is their of generate add place we investments the they to customers staff that key of TransAct as day-to-day take to in a in and to have as of and business operations. quarter we the levels

base In will services We're a opportunity. from market of on potential be BOHA! expanding remains consumable offerings going of and these revenue. driver of becoming recurring a recurring hardware long-term track software, generate installed SaaS forward. TransAct our the providers to based this products benefit exciting that growth and

call like for I'd give to some point, back remarks. Bart this At Bart? closing to

Bart Shuldman

Thanks Steve.

TransAct the restaurant As confident to that the look solutions ever we ecosystem view and I in is revenue remained XXXX. wrap up largest opportunity. We our ahead XXXX, BOHA! market

solutions XXXX focused While point and inflection in challenges its BOHA! remain restaurant TransAct. of has the on expected we out long-term and day our in year day as presented move driving toward we business, success

our ahead. and bright The as work our by the long-term as future end take I forward shareholders do for I'll opportunity for we will quarter, except. thank to the team the also thanking is shareholders my every the I to TransAct this our we position company great for and support look trust. delivering comments TransAct value for your road

you of to has years like would also I thank be a who to Steve over make very couple a a situation last is special to difficult work tail up.

all was As invite XX. be buyer. like hotels. downtown Thursday, I will I the we reform trends on Southwest what would also ideas to the at Dallas presenting shareholders conference November investor Western to the

to Operator take we are time, at questions. ready this

Operator

of first line FBR. Your Instructions] from B. [Operator Kara Anderson the proceed. Please question of Riley comes

Kara Anderson

was of it. not I talk clarify, if restaurant Did in to from I wanted million or you missed solution how Just about much sure, quantify directly X.X the BOHA!? generated

Steve DeMartino

what Kara, asking? you're We software, don’t that hardware and out the break is

Kara Anderson

the this sense a versus get at to trying McDonald? point BOHA! is for, revenue maybe just you're AccuDate I’m generating And to more selling are guess in terminals? I what you selling

Steve DeMartino

over The AccuDate. of majority new BOHA! to is portion become the the taking sales the versus

Bart Shuldman

have McDonalds, Yes, some as announced is but we new with we based. all still orders the BOHA! business

Kara Anderson

then, you steady year-to-date. in about talked wins pretty press And of have some fairly releases, flow

out? wondering, were shifting how original you their are to those Just systems versus laid of sort schedules if that speak can

Bart Shuldman

needed that always one couple one got we're the I talked license -- this on that we've Canada the big technology. with is buying guess target, success we sell is on There new of their And I that, the told recently a of of be and a made we much to win pretty us would I pretty wanted about in that progress success there has big franchises made Kara, they the a which said technology. business. one that pleased was also the they one this product win comment as that that to is our the clearly, how

And well installation over of XX,XXX they couple year, of we could next informed expect and us going that very that an up to the it's terminals.

when says, keep was got think to thought x never customer just and it's they three we it times going bad it we Now, its but now feels what a going, to was be.

pleased that. about we're So, very

looking our they we we customers said, is five we have would that or apps. just always most two the that also trailing so easy with apps, implement, to star We much of what other in mainly because is of are one but additional to customers, apps, one application of pretty such a apps one make label application

been ago that years with recurring the revenue BOHA! thing we -- what So, So, third you able and that negotiation was we're shareholders, the have out the market to what how is in I a changeover were and pleased customers we and we than revenue. we put have see quarter coming out talk thought one little and can't very other when share stronger from AccuDate the the that you recurring the in AccuDate, see, with tell about we nice rolled to we

where very to us. out, look So, we it positive looks

Kara Anderson

of Kind point? me, possible Is BOHA! the if run coming this sort know, it on I at recurring last rate you're of we to don't can you'll at, to appreciate quantify that for give the certainly growth it from point, revenue the that's

Bart Shuldman

average to $X,XXX got one we're a not do revenue going unit, of is that customer as things yet, per other trying determine. know, $XXX. couple and unit hear We're trying customer you there to per which You to of determine we've is

of see what will labels then do the this as what ongoing and the the So, all initial some to see offer. sales we is down, settled rollout we'd sales like initial

start be that will couple the sharing I so, And you. we would over say next quarters with

Kara Anderson

sell goes think willing you into side? about can margin that. hoping the the on a lower than of revenue around price it are you or on that? I for but when a hardware. mean, flexibility think opportunity might of we I maybe Just color this, thought have provide bit might at And touched all on have capable out How would the selling this strategy recurring much you into pricing for Okay. then, you your the little

Bart Shuldman

that's be found sell in the much volume as needed but Sure, little to see in said, we've But, because the lower -- wasn't up, Sure. margin in been once clearly revenue right, really you to over what Steve that, And our gaming quarter, unit terminal continuing our because we sales. up sweet was regards at that the third as our price. marketplace. price we the point found easy to

So, standpoint, it would from needs terminal where we a know business the be. winning to

All of is there labels the We what can at. sell service is we our need there exactly other labels. what pricing on is pricing to no We special software, can exactly the no sell know asset. special -- on exactly know sell we We what what pricing sticking we know at.

a of restaurants couple somewhat unchanged that really would for really, lower was agree last with of adjustment really see providers. months. that over our would and the food me, of I hits you think it So, the has the spot service sweet that's terminal And

Steve DeMartino

said, terminal. blade there because up in -- up on that's are restaurant quarter-over-quarter, lowered X% I It's our be the a revenues Like Kara. laser price Yes. but we unit consciously will our model, volume was XX% solution

Kara Anderson

sweet and That's now that it over quarters me for and definitely of the today. get the it that next Thank that, sounds see spot. that like probably a found Yup, trend might understood you.

Bart Shuldman

Kara. you, Thank

Operator

from line Grand Sacks Mitchell comes Thank the Instructions] of next Slam. Your with you. [Operator question

Mitchell Sacks

today I is think earlier live companies. XX you call the that mentioned in BOHA! at

six around five You guess was five released earlier. or I --

little using companies gives that BOHA!, you Are over? nine switched other those are customers the are that color, those have So, more if could? new just and customers

Bart Shuldman

That’s we've that So, combination third in [Jolt] we moved customers were over with in has the process won BOHA! fact of talk some of to Some the we the of the move of when remember on BOHA! wins thermals our we over of next to called with customers labeling to the about XLXe of combination the the recurring now the them we or regard [Jolt] that solution. that announcement a had BOHA! some moving why to system look have and revenue been now but that that we in side had customers like moved XLXe software of ran the was our before the we actually It’s some quarter closed. temps what and BOHA! over over selling there out XXXX there,

Mitchell Sacks

of in so for Okay, customers signed far or them XX and consideration you've any of the BOHA! mode? apps added still that have they are

Bart Shuldman

consideration in mode. Still

Mitchell Sacks

was size expected that then, a And was out. roll they in you tripling to customer of that what mentioned there

release was be so that a you I the you X,XXX over now next had over to press think few saying, years. a roughly doing years, customers XX,XXX would So, few release do would that about customer terminals terminals that doing

Steve DeMartino

it. sir. That’s Yes,

three They it. even challenge customers the metric it was actually to the they with for program is revenue roll that so be got it now take go continues it the You The unless actually way per terminal. that’s well we again going, will said if customers very there year can that decide $X,XXX out recurring are pleased faster, but probably XX,XXX. to

Mitchell Sacks

basis. then knows amount as generating my of quite of monthly, or are question. your average it, what talked you final Kara's I was Is dollar per Because guys sort quarterly want talking grasped grew I think in you recurring were more about has terms you volume? that revenue And of of today about was? I on how off release or you're TransAct much certain if think of either unit annual quite sure what based it you but or saying, year-over-year. to it that you wasn’t Or that I questions revenue don’t one

Bart Shuldman

the sharing And with that. believe do shareholders, for I the average to tell it's be. have put little to we the then amount even between up of revenue, our build dollar of have I restaurant to recurring believe is do x to shareholders to revenue deals what start to what what what going going the I do like be solution. able x Both, and or we to start every recurring believe, would be we'll exactly we

Mitchell Sacks

Thank you very much.

Bart Shuldman

think next couple $X,XXX quarters per bigger you right and a its to the terminal, quite It’s I can idea, are that’s doing. give the and will lot it us, And of see decent turn XX,XXX you telling I of what number a what could an customers again number but revenue. a going recurring now, over be we it's

Operator

Thank you.

Your next question of comes at Sir, from from Jeff please line Bernstein the proceed. Cowen.

Jeff Bernstein

the Hey, guys, Canada, in questions. company is you One, just fast is a a license in with U.S. couple Canadian that the hunting fast food have their company? Canadian geography? Or food

Bart Shuldman

great know to This do the Steve, in answer U.S.? any have is that? Do question. they

Steven DeMartino

It's a Canadian company.

Jeff Bernstein

but And transformation trend lack should rising Got in talked of of on as pricing of a be obviously, of being the the is The you, terms then, revenue, margin, a BOHA! margin thinking gross about okay. still gross in result the casino you change Company. about this we

Bart Shuldman

sold no prints. doubt, some terminal. in look but you about We lottery Jeff, doubt, industry sold POS because still No X.X have the still legacy there. We business is still casino million very profitable,

making don't the share we you as cost clearly label softwares Terminal, much and money with TransAct. And sales is and with label We as BOHA! I labels XXX% are So app sales, money that the lower the our the think still partners. know money. the making make

from couple probably quarters that of I the So getting would away gross grows level. clearly, we're be a new to a as say may margin.

Jeff Bernstein

understand. I

Bart Shuldman

this Australia, really the some We're us years of as and environment, a orders, but anybody. very good mess, in explain need excited to as in that very to don't happy continue I different never was know, that and Epicentral this had much little couple and quarter. you we've in is one-time all margin. casino that a I Europe Even with had U.S. think mean, got I should Asia for for market and fairness, And it materialized. a we're

now with issues or no with One get when about within which player can couldn't uncarded we that And not a casino be see talking there Epicentral, us of And dealing literally I'm for this was from second and existing player coupon; only the to device a just two, we uncarded we built connecting data to their in designed system, the and but was casino get will XXXX. system. data, bizarre. an we the real-time kidding, is could XXXX because were Acres, that get not and I'm big that player using had way

we're less now, But second. a than transaction in watching every

into money can a some casino a that play. that's just or a we to a Holy have for card slot into if and that their That's the So, to have don't card. doesn't we money Grail to know see doesn't huge they We they're putting carded of machine increase casinos and the me. uncared talk be, need

talk Just means to to get, operator a casino about uncarded players to an to transfer player. what it carded a

is transitioned shown the was By this we've after to casinos that for way, is wanted inability even technology, call. the of technology, our our technology, use I anybody access though to got has with Epicentral data even next So, years people, system couple and a look demonstration because many the the real-time that over to opportunity of to this guarding which we're the at lot better we're get should antiquated swap the on riding better. see

transitioned SaaS with from have a also. model We Epicentral sales

So, we're not longer selling Epicentral.

subscription slot You buy a for machine.

but knew Steve and knows up. you system, just said get it, Acres, would be the little working technology to casinos we're we have to that could God what like wonderful. because again marketing that is building That take happen, was -- we company. look building maybe really that opportunity it's investor did up if a pretty that little Epicentral got going we're through to But a working who into one asked we're this connecting invest a why with So, we're on, not time it, but hick we're staff-based to and hick

So us it you promising. look to very looks out,

Jeff Bernstein

good Saas was question, which lead model. my That’s to a next about

revenues revenue, not if Saas had right, you the going as So, to on of depending right. we deferred sale, be of sort XX onetime et start place, for are We that long-term build evidence balance SaaS Is quarter, took when a of as going that Is should quickly in in XX that or sales? software and as software where the we're on having to only the you more right? get see couple looking sale cetera. should We're some to deferred sheet. revenue see more

Steve DeMartino

That’s then time. multiyear right, year model subscription A agreement end upfront for have customers a sign pay and typical will Jeff. a

Jeff Bernstein

kind here. just that So, level of expectation

With we going which expect to revenue. the sudden quarter model, all blade or in makes world, two the in the sense we're razor, all the that a razor shouldn't hockeystick

but and as benefit sign is littering revenue to really contract than maybe the going and a real some slower quarterly we it slide this we a from sure, little whatever Saas you and going be sales recurring for fast we're build up. bit hardware what signed build start ramp in and deal get have will We getting is to

Steve DeMartino

We system. trial, going one great every every to I mean, restaurant lead, I -- I'll with had we tell of some with you, great, are their that, running where couple CEO the had were pleasure they monitoring the turns people benefits. excited The of he trying because a of technology CEO me, weeks never they've about our he's been so for trialing said it seen his

and overtime keep all going we why it's yes, these it's to So, and we just that’s recurring building why building announced take building. away the deals, keep revenue giving because time, that’s but

Operator

line of Thank we the your have next you. question please Sir, proceed from coming And [indiscernible].

Unidentified Analyst

from sequential The maybe income level what cash level that what quarter? place, the the -- maybe there the Because some in statement? I know the cash drop in came not seems CapEx there in was is was

Steve DeMartino

little year wasn’t a We spiky fairly a million typically but actually run about $X that usual. going can Yes, anything quarter-to-quarter, a it's from be regular. bit the CapEx

really was So, inventory. the decline cash

significantly And So, liquidating we since has deployment gone actually because cash, we're invested our up inventory. receivable. actually ended has balance some in

So, balance. quarter in will us see cash fourth going the -- you see and spike probably you're to the up

Bart Shuldman

had us also had We ask give an which an days, them extra OEM to XX did. we

we much We us So, in paid with for did course them collected They relationship it it didn't collect the in customer. the October, appreciated of we and in built what they September. and very October.

good, in one could our that. quarter, had -- of that's we So, also so sheet balance because is the those we but do

Unidentified Analyst

just on what figure revenue? last quarter like more line from trying Is for to across ended? more likely out fourth thoughts of be be be help quarter to various Can else? just you I'm comparisons revenue? directionally fourth the the quarter kind Any from it third year. would that to entities Is me likely helpful the something items

Steve DeMartino

think this that it's ended. projection. do the don't us we're we could right, a about that up that We think, looks buying to show. casino actually shipments go We're tends monitoring show be industry. I installation now our to right right but little they've Well, the And monitoring level the We're not also at now. the And we is clearly a that for going out. give are and

So, really what we will see out. happens. Look, we give projection don't apologist, I just

Unidentified Analyst

did are that, cross this expense with On expenses, any to year level going forward? help work good SG&A you engineering, on the those levels

Steve DeMartino

get, very, a the go. that doing very having fast been we I now thing positive marketing could because more the Company our the more opportunities say And The BOHA! and conversation is market is about question we we get. is is we're one response that board that spend are is have, board it can the people at the more how sales looking excited with expense is and we opportunities the we the has more very with the level, right

our couple a time conversation lot of we So, meeting Board ago spent we we do. of on where we are the days the about what with just having should and had Board a

very market the to size the large and is analyzed to we our first We've of the and position. want thing maintain market it's

and at all in for in Jeff spend if as much to more bring does layer we're quicker, this time take how it see how more just more, many looking we say. Bernstein spent we did opportunities, because So, that did we're sales looking to at

going to we're as look at at to want it. right, as can. as momentum the much the can earliest to We and what's So, with we regards aim opportunity

Unidentified Analyst

Thank you.

Okay.

Steve DeMartino

where opportunities have a got at, or asking From to to got we we with some good. changes pretty to We've people standpoint, tough of look we've the us an actually software. means we customers engineering that a of got that app which couple brought new couple help in We've application it the test tested.

at business inside to growth the regard the sales I that marketing looking could and see that. just we're If in you the excitement there. with anything because is market think potential our So

Unidentified Analyst

context seems around. little be maybe then or of don't discussion interesting company great lot I’m in excess it orders your be all? transition support it to up you -- that growth My of the cash base it with to it Did or at in investor complexion first just might if might historical given have partners at board? would cut the a dividend line the speak and question, to that might mean, the come the not be kind a I for like problematic, not dividend if the necessarily so wondering growth, you eliminate with

Steve DeMartino

was deep right. fair went a to because had the this, our It very we large up we're mode. a haven't and reason development cash. in other heavily lot what It a told things cash, shareholders we have a, have picked we we We investing ramp dividend marketing pay Look, and a and clearly do there didn’t that didn’t opportunity we consider through of did. up up, the in amount to We’ve generating did. we to when we of the were inventory a and

in waited. decided shareholders but something a while opportunity. But give So, restaurant in we we're not reward, to the we high are back clearly, solution to a they growth reward,

the at And it's so, at is that, Board looking looking should we what do.

Operator

back CEO, now no showing the like conference at to this further time. I'm to turn you. would Bart Thank questions Shuldman. Mr. I

Bart Shuldman.

to call if early you back Okay. quarter Thank what and March further everybody the fourth to report results We EBIT you look afternoon. XXXX. our when reporting this joining we progress for in our -- can us in on you, business look forward

but the appreciate wonderful. Anyway, I us call, really on the joining were questions everybody

and call. Of you And have any Thank I are please family holiday. so great question, reachable, give may both, a your season, if a us you. into course, got and you holiday the Steve we as

Operator

you wonderful gentlemen, Ladies and participation Thank day. have today's concludes and for a this your conference.

disconnect. all may You

TransAct Technologies (TACT) 11 Nov 192019 Q3 Earnings call transcript