TACT - Earnings call transcript Q4 2021 | TransAct Technologies Incorporated

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Operator

Good day, and welcome to the TransAct Technologies Fourth Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I’d like to turn the conference over to Mr. Ryan Gardella, Vice President of Investor Relations. Please go ahead, sir.

Ryan Gardella

you. Thank welcome call. fourth and year and TransAct earnings XXXX to afternoon quarter Technologies full Good be the we'll after Today, discussing market release our close. issued press results announced in

Bart company Joining on from will our and full strategies, include the and Steve are progress Shuldman; of call and year discussion fourth key Chairman DeMartino. us quarter Today's President the financial details and Company's today a on CFO, and initiatives CEO, results. operating these

questions. open then We the participants for call will to

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

the found as within the that, in of G. the filings, website. XX-Q. When update any to obligation to measures financial SEC meaning call press a today's turn can directly business or I'll Regulation on call and reconciliation to comparable financial non-GAAP GAAP webcast Company, or and including be list TransAct to include with calculated occur on revise to financial the Today's Bart. statements SEC most the circumstances and refer Bart? all accordance measure this its well XX-K required, presented with as to in Form release, undertakes that a risks For of after non-GAAP reports Company's full no and measures inherent events reflect the please forward-looking Company's And of will the call. over

Bart Shuldman

Ryan, on joining us the and call everyone you. thank for Thank today. to you

casino as our international from XX% the bounce and begins in as industry experienced service momentum products well supply to the continues. gaming market. almost market, We technology continue back and FST increase in sequential results domestic our the see quarter demand Our outstripping and of demonstrated gaming sales and strength food strong quarter leading both casino fourth as fantastic results an or in

FST recurring will on million quarter over expand shortly. another with saw revenue also both and these $X and We points I

were Our and XX% $XX.X preliminary quarter million respectively, fourth full from revenue of comparisons. and XXXX gains the year-over-year total $XX.X million net year XX%

a highest Our X% since mentioned our numbers third sequential quarter the acceleration fourth we quarter also XXXX. had fourth revenue which revenue, our revenue been as quarter from represents of of

Our all total set revenue record quarter another to the XX% FST $X.X in year-over-year fourth time of million.

million, FST recurring third posted and increase. consecutive labels million, includes of XXX% year-over-year $X which subscriptions, over $X.X software its Our which revenue, quarter coming in service was at

of was million. down year bit. generated million guidance our For expectation least XXXX, above revenue, the we at Breaking $X.X $X which full recurring this and FST a or

Our an BOHA impacted a COVID decline to sequentially. the as BOHA the terminals accommodate credit software to overseas decided ARPU in This fourth resulted a $XXX of customer year. inactive an in sales we the in due during their quarter fourth being an and provide quarter, from were $XX

to install base. on terminal our Moving

As the we of the have previously of are stream. the lifeblood in stated our revenue and hardware paid number recurring markets terminals sales

revenue. terminal, and recurring In our number to of so the noting workstations allowing the total for fourth we are The customers. stores over that for am a just slightly has affected with worth XXXX Well, terminals to fueling XXXX older our company happy supply franchisees terminals remain stream constraints that our FST number was in the I with XXXX Food BOHA high approved replace will grow, XXXX. predictable of we the this disappointed announce chain Safety and by restaurant opportunities terminals terminals. increase BOHA we end As a the additional in market, XXXX quarter, of an at number final added terminals of revenue a it's

enterprise design designed, online items. wheelhouse. tool as special on the is will all We sponsored this in working QX completed year stores opportunity label and we for marketing with the franchisees is marketing this safety our and is office, special we'll typical us exciting customer and our This along could their they of with during believe terminals terminal a is system. work BOHA BOHA with needs. by label label print for the corporate that an grab the begin expect used to XXXX go TransAct BOHA eventually food Once be need convert out a shipping This right project to some labeling a our as to as

foods opportunities have we for remains two fresh on build There the opportunities right And program. as food continue around need high convenience other fresh in store are working market. or they We out centered have large now. the also to their restaurant we labeling

build different opportunity to of across We the the our spectrum markets. FST funnel continue

do progressing shortage situation that food we I opportunities have that in While comments spoken the restaurant additional on previously. about forward, market large some reiterate must the labor are have we

not we do chain been have right the as We they to and their installations with are to supply work on from technology that their many simply shortage improve customers now labor issues. that working prospective wage still new have they work situation personnel hearing BOHA and

BOHA on when remain and technology begins is we BOHA these evaluated. to opportunities approve, that And we up, open this and as well-positioned terminal. capitalize are continues to workstation that's to situation even being as However, the our positive country more our

they difficult as are close chains the face typically possible, continue opportunities no to headwinds. and as small have companies small our in within we store basically the impacting new sales market. SMB and shortage, as seen deployment choice but great just macroeconomic large market have noted, we quicker labor testing These progress the has as group at been technology to some the restaurant operations best With

more shortage and sales we just in is last An to we SMB and momentum calls group XX from workstations small the quarter the sold challenges. we As initiative in XXX different answer need offset and key to fourth food up to franchisees opportunity workstations alone. directly XX with terminals to announced no test terminals technology an success businesses with call from restaurant space. and on SMB week, chains for technology small these franchisees and and this There for additional BOHA as the their benefit they our too our in we continue labor started total

corporate and to far. the to assisting their has issues helping their the not into address, only corporate processes. This proud they office. And streamlining our so our franchisees own they these personnel has be successful but are to technology office buying technology, we While promote initiative are are BOHA our proved

of As market to grows, add continue sales our inside we'll this to team. part the

issues be clear relationship market. impressed the and cost the we market, to technologies the the win technology as with message the the Together we to with despite FST As our both many restaurant over highlighting in demonstrate I labor continue Apple benefit very with both working our said, individual BOHA our encouraged on pipeline opportunities the to are by food I'm Apple, shortage how our and work a CIO office, solutions. of and we the can and friends at operations in streamline

working on customer open up. the more together doing future. are to and have in as events sales Hopefully the U.S. say more We also we'll starts to

mainly to very investors discussion POS make but our the report in for to I'm market to our sell for the market in our special regards is front end printers to FST spot pleased restaurants, I POS we our we to want that a McDonald's. another in XXXX this bright regarding the experienced Before note about of TransAct year. house growth

XXXX. are in embarking the coupled with our our issues market printers on in POS we special expect with for double a and for We project sales competitors McDonald's them, manufacturing to

up year-over-year move let's quarter are strong the full to continue up full in market, XX% on domestic Now and and year XXX% the our which with market. gaming the seeing Revenue demand the casino revenue year market We're million was XX% $XX.X and international sequentially. the in for rebound $X.X the XXXX. of up recent we pleased million, was very from was

world from As we COVID related around see demand open more closures up expect to accelerate as continued we through XXXX. the to move markets

our few to environment are wanted I and the broader make comments macro about we in. business Finally, a

challenging we we found for and needed back to higher ourselves production very our greatly But our the the in for effects regarding chips We experienced pandemic ongoing of are production suppliers the to at through the and in be to business. sales a need supply Chips have word TransAct certain our ability but with XXXX. of But worldwide a ended positions. deep third dealing avoided hardware and ordered XXXX COVID our spoken cannot have impacted before were started the XXXX shortages we a so the commitments environment. I've of inventory rising, printheads level. replenish about team In unfortunately, having sales proud quarters impact constraints our we as and our we in delays incredibly as Not only by of navigating build inventory. that benefited and XXXX decommit fourth inventory good from of

Going forward, of mouth our are ideal, be Well silver there will plenty linings hand not in every here. market sales in hardware to XXXX.

we supply competitors our chain. ahead terms managing we First, believe well of of are in our

a tell replacing even not hardware the timely instances can of deliver products a I been have you months. seen facilitate our We products in able has over we printer to a customer fashion. with as certain of where to of competitors customers six delivery the for our one are competitors TransAct are able to

soon is have produced Every either to buyer. a continues pipeline demand or already unit has the Second, strong. buyer be a that very

fact, not currently for going the XXXX we way typical In us. is have all to of the orders which end

are has align to chip You to working as very chip need our with needs who company with know our really helping manufacturer to their responded latest they us are technology. our we closely

ensure meet are that our committed the demands firmware to engineering doing thank mass board enough, and we complete utilize I will all necessary and the in so go have XXXX some staff as this beyond. who chips end availability cannot We through different redesigned to redesigns to hardware two XXXX. production we better

who outstrip issue should know the cars in worldwide investors a continues no cutting by chip production easily shortage chip to issue. XXX,XXX XXXX announced demand and supply. manufacturer major joke is due shortage can I car point the to recently to Our

products am costs order seeing wanted rising facing. for level. our pleased it. hard will to having any are flying behind absorb we I price our the rationale hardware. and in suppliers inflation, the I across and to our on market To this by out, hike combat on our And our guidance are say close the purchase customers air, This us our pressure the to to the ship majority second increase They and implementing we discuss cost and allow pushback to board of Finally, continue in not vast TransAct. hardware. pricing need new our hardware increased XXXX can by are to working we in price from they with from

to our XXXX service in guide for with our in confident to set we another paid full the million add $XX.X ability be First, level quicker feel FST a to put deal situation that we felt year to proven and that and we're to Similarly, to than the million recurring produce revisit are we of between that sell. XXXX Unfortunately, rather revenue terminals products, as that expecting $XX supply we the number. in chips for year. and wafers to than guiding expected we'll XXXX. Should

software you is number you beginning we as with function and recurring Officer our to business see turn these and the the a and can organization. numbers. hopefully call chip Financial the of over comprehensive quarter for and the largely and the As year of full our transition we're fourth terminals know, Steve a paid our all I'd our to excited future that, Chief service rundown FST the company into of revenue about processes, of pandemic, headwinds, supplies, and service. end like President our of and of And Despite DeMartino, a

Steve DeMartino

And today. joining everyone Bart. thanks for Thanks, us

the or to Total $XX.X XX% results from year-over-year, up million up XXXX. FST turn full net $XX.X million, quarter hardware food quarter net technology XX% the up of sales fourth XX% which full year XX% service the increase quarter Sales sales from down the was the over year full fourth detail. the prior million, to year fourth ‘XX for in versus and were Let's 'XX, the XXXX. year was were sales which and fourth which was were in a was million XX% due FST were in up quarter for which XXXX $XX.X XXXX. orders, but and our our market 'XX more $X.X were full year fourth in XX% the 'XX the timing quarter from in for

strong million million the consumable were Our XXX% the prior was in placed activity But for increase respectively year the due $X.X and were pace includes during and as normalized as in XXXX particularly across label recurring additional components. up over and software service all comparable sales fourth FST a quarter three over service sales, XX% 'XX and into periods. $X.X terms store from sales to more subscriptions, restaurant strength resumed well C which full and The which we as 'XX. label year,

As and sales so Bart revenue as function to pay recurring recurring service to terminals what and other how is in mentioned, our continued of have climb, we our a label those numbers revenue. many

Our ARPU in 'XX the fourth was the for down 'XX. was $X,XXX third which quarter quarter $XXX, from

reminder, annualizing the number quarters the terminals end quarter. of paid number by the and service recurring of prior a calculate then by we dividing the ARPU As at and revenue that

based base of and size quarter-to-quarter on our Given timing the that the terminal early individual orders, shipped. will in fluctuate of of stages the installed we're our of likely terminals, ARPU out still building

were in of which comparable 'XX $XX.X the the the XX% million full and and prior quarter increases and fourth are million Our sales casino periods. over for year's gaming COVID XX% $X.X impacted year,

XX% That XXX% in see quarter, casino also million of printers we XXXX markets As million the the McDonald's continued a was sequentially consists printers the finally for which stores periods increase Bart at for 'XX XX% year. which see continue the began of XXX,XXX receipt over the trend touched and line of for $X.X year. in to for domestic to pickup XXXX. to full great we expect Demand $X.X full into Printrex McDonald's label automation our on, and in and to the sales XXX,XXX were compared in were quarter fourth sales, the with quarter market prior during up improvement of the over 'XX international year XX% up the and throughout comparable mostly lows COVID third And were 'XX. we sales fourth the respectively. XXXX. POS quarter and fourth in this quarter, fourth to from use continue to

end As quarter in life to sales of some products, final our Bart large mentioned, the we customers made Printrex fourth decision 'XX. resulted in the to which

expect future sales Printrex Going products. forward, we don't of any

respectively in TSG group periods. the $X a from to TransAct is and on year totaled full sales. X% or XX% Moving sales quarter services down million TSG ago year, the which million for up $X.X and

and contracts TSG As are paper on. a we include legacy longer lottery spare printers, POS on for sales parts reminder, focused no which legacy service and baking printers

in We part to expect to new We printers of limited printers revenue TSG for over quarter to the availability decline due existing to continue repair time. fourth been to causing customers believe the purchase. shortages their slight bump due may

parts compared year gross fourth higher the the XX.X% quarter year-over-year, down margin XX.X%, in compared our higher elevated XXXX shortages, fourth the of 'XX than XXXX. lower, resulting was to income from gross and continue for was Moving in shipping XX% future. we due these as statement, was both XX.X% Despite to the 'XX in the were full quarter shipping as for to costs which and XXXX. part XX.X% margin sales expect foreseeable for our costs Unfortunately, higher hardware well mostly costs, to of significantly

as quarter the However, hardware all mentioned, during 'XX, and Bart of instituted price increase board of the we've across our products. first on

protect We the to around increases cover expect current level. our our price at cost and increases gross margin these least

and marketing software incurred and hire bit this quarter, million. expenses, and to run began and 'XX expenses higher we programs sales more further. attributed the to or our selling marketing rates software. travel to of as higher to quarter million and Also to to firm were were developers down development full year. increase expenses travel XX% be trade in return throughout for we XX% Breaking $X.X fourth increased normalized development expenses fourth support This staff, XX% additional BOHA Our our commissions shows from a up $X.X million, higher engineering and to to for $XX.X as new expenses resumed the pay third $X.X whom or included software mostly the we and the license expenses incurred In as can million. higher engineering increase the for operating projects $X.X increased this hired million, year marketing expanded sales party BOHA

up And And selling were $X.X were to the million. up G&A XX% expenses to for engineering the up marketing million. XXX% year expenses Our were million. $X.X our 'XX $X.X to our X% full expenses

of the Our were incurred million. loss expenses selling And to fourth $X.X sales net operating an The $X.X X% net ‘XX $X.X loss compares and loss in of up operating in full million We net of XX% were XX% or compares million. in quarter or million, operating incurred G&A marketing XX% XX% XXXX. year or an our of to of to to operating we 'XX, $X.X of million, of sales sales million the quarter an loss XX% net fourth sales $X.X or which which $X.X expenses up XXXX.

loan As year last the and our up full $X.X include results quarter, in under third million which item. from the PPP SBA Act, our in forgiven mentioned formerly Cares shows income the other was the quarter, line I

Additionally, recognition credit from a $X.X the other income Cares employee in the quarter million or gain Act. includes ERC fourth retention the under the 'XX of

bottom diluted million or we which loss diluted per XXXX. of in compares quarter net $.XX $XXX,XXX net fourth recorded 'XX line, or in the of the share $X.XX a loss to On share fourth the a per quarter $X.X of

our $X.XX compared $X.XX fourth net quarter fourth was adjusted per XXXX. share of credit, which a a quarter EPS retention loss of for the loss employee to in the the net Excluding 'XX

diluted loss million XXXX. per share $X.X a $X.XX year in diluted For of million compared net recorded or loss a $X.XX full 'XX of per share, we or X.X the net to

credit the XXXX. million, a to year was X.X negative in the employee million $X.XX $X.X ‘XX for compares which per our ‘XX PPP EBITDA per loss the EPS fourth year million which of Excluding $X.XX forgiveness full net a a share, employee negative credit, loan retention both and includes was adjusted the in the period. loss of retention $X.X removing net to compares for the quarter which ago Adjusted impact from the share

full negative the which was the and to this closing compares the $X.X from adjusted of XXXX any Bart? includes the and ERC negative for removing in forgiveness At no year both the million, XXXX. cash, 'XX which debt. PPP the I'd million And we in loan For $X.X impact remarks. to million call turn like with Bart over outstanding ended lastly, $XX.X to EBITDA point

Bart Shuldman

Thank you, Steve.

always, As what great a job.

open call to to questions, I Before people. prayers and like send Ukrainian I'd this to company's our thoughts

have who TransAct, hope Our and also employees helped programmer want to now the We has design pandemic to he endure and the not out a face. we pray found us shareholders week technology. he might a safe. us at to Kiev most shortages ago, worked have had trying difficult first times We parts in and get is but our the through thank the Kiev, the getting I the about out of we know who with of evacuated country. through

I on will you for conference is one you to after I You getting on week business on ones your amazing never should where dedication. team, grateful to for enough the with you to I I not to are are doing our Monday. to an say Monday meet But finding shareholders how truly our calendar make giving move will am. Roth thankful on And full. up before words next investor quite time Capital finally, My ones and attend. decide be invite I'm forward. There one solutions the

questions. time Just Operator, now it's let know. me for

Operator

George Thank to of Craig-Hallum. we you. Sutton [Operator And go first Instructions] will

George Sutton

Thank you, Bart.

labor give some me that of if suggested correct supply wrong, the didn't reflected you constraints But and guidance. First you your constraints. I'm guidance

make how supply So wanted could sure items; what would we I they're quantify labor be? impacting of to you in results and to these just two terms expect

Bart Shuldman

we're or we're of to XXXX chips. workstations terminals on availability based what Well, the at to this point, saying do looking is XXXX

look we're other the that. on just So find other working we're we at will should that opportunities, store to that the many based a the of differently. happy the day, in better back situation then we change, and on on, got some ourselves chip we'll and at working be convenience And and that two one advise the come market, that should we

George Sutton

I Okay, apologize.

those then constraints? those can if know hypothetical two numbers, talk went a I question. much But. think impact to So how it's we you're from about you we seeing

Bart Shuldman

This been George. an has just time. amazing Yes

a year that the year expecting ended chips these purchase we orders are of the we over As shipments these ago. placed

XX time bought were our, like they the expecting So and look team it's of year his getting as distributor, placeholders but delivery, major a through we manufacturer makes over and components were that having all them to XX Steve ahead specialty we and chips things from for actually a and problems. out that we started our word months

and to Some XXXX, these on with China of be we're couldn't add country companies worldwide of XXXX. supply up shortage. certain another The shut are three has working course, it areas ones to they of for will down probably that chips had the the where therefore a others do then made COVID. there's actually And made. restaurant

important get attention what we all get. that What their exactly need with can that, chip and to then working order and we CEO chips. those there get also at we're our out pleased called did, better customers more that's that are chips department, granted We're team, call our realizing as a the move very we as into and and the more and supplier customer. each supply Hoffman deliveries chip I XXX But the am CEO you I head But we an closely my just got orders manufacturer want to to then be I were because have want We're larger mainly think to will customers that And when can't So chip our us a when there is we write that manufacturer And exactly a, major hold they and that manufacturers very actually continue us I try I actually team, of my, yet. position. a to to lot find thankful helpful expand. of getting by a us closely it that getting starting I and our with the us to they his be customers deliveries getting looking place one is with myself one largest in need. the work ordering from customer with and into continue XX,XXX George, Andy would chip, the actually for most out to alone There can't working for a letter our tell they're mass demand, between customers of keep if on they different the the engineering producing the purchasing of the us. will our car to operations driven said now, they can to car demand. it's design existing specifications. very a

year we'll some In our our to we're designing boards. implement to redesign the where of printers twice the we firmware get chips. rewrite finally could and end cases, So new these

to dollar companies. facing an demand the you the one the they the no restaurant hire different talked day, have rising, shortage, So month tell time literally, doubt not I about and two, get they a as more jump every somebody, to restaurant. as labor within other much offer there's for I it's CEO said a he think just or don't who headwinds George. I to the is restaurant

amazing are openings regards were the today of than today to unemployment in numbers million jobs, more unemployed. The has think the job I the are. X.X there that amount

they their stuff design putting is customers pandemic. their system go the to what's QR from Because into we're to code one the them So of and get working and restaurant go terminal. grab understand. said, companies a right label We're the almost ability when This the out demand now make time with us is headquarters, item change it coming now, ahead. on companies that they our for we've nice to Like to instantaneous with then, on them communicate down and driving working the real get a told cool closely restaurant all the and for can products got to I We're pretty and our design. three label stores. their this

energetic, that timing limited we're there. positive. The orders. be by of say could chips we're and we is So Sad to upside

George Sutton

One other question, to labor sales, partners, us terms When aside. are to your a broad you of the, carriers if of and view you'd are look and you give of can and terms quota points? constraints you you touch I management performing be like in go-to-market how how could, you just supply update at that in successful where

Bart Shuldman

no. In yes area, one one and area,

us business. forward It's and I with of going real to marketing. medium success is the on, order, And this this order. company help. Our business to this restaurant got so an small, has wouldn't go been were we they these a because for terminals do out through one that, in that get I say directly, their think. we working actually this we and calling could the marketplace they won was won why channel in we fact, reason back stores the started some for us And agreement

we direct find sell the managers we more. have it On been has And people. field, could direct, difficult to some use in the sales we

we salespeople also we'll we somebody. sales they full most use finding or couple no sales So that fill answer video could technology. presentation of fit, is is a doubt. or like about people more they as looks that news that head and good have people. of don't There in George. built, for more George questions actually area the is for some our team some in But a promising a presentation we But success where necessary, The our of that's I would but to one regards customer a FST

George Sutton

Thank you very Appreciate it. much.

Bart Shuldman

Sure. Thanks, George.

Operator

go Research. And Howe next to of we'll Barrington Chris

Chris Howe

Bart Thanks. questions my for Steve. Thanks taking and

Bart Shuldman

Chris. Hey

Chris Howe

the a Hey. the talk chain of the about year as year? how you terminals The terminals Because think you constraints, for think readily of the paid of chain available more would mix should we XXXX supply lot the Can become chipsets on. going you? of second there's supply next of XXXX of favors perhaps terminals half to constraints mix this

Bart Shuldman

like two to would I it answer in ways. So

into sell the all of BOHA it's terminal seeing the the the two unit products help offering the certain iPad and the terminal workstation we already all of their But of restaurants, sell is And have beauty actually they the because BOHA It's offering First equation of other tablet. to kind the our we a that sales inexpensive, BOHA iPad. that for printers all it's continues is at, our in we Apple, software to workstation. two because add that to Where makes them, workstation and has more standalone, looking bought included. as that the with they're our have Apple the the product than one stand we're quite the restaurants, a the itself.

to interesting no the that take won, probably three at we're travel the again. also, I I and months the label it can what to going than as another this the to if half and do. is because them. is the them us months for to it's the do which getting to aggressive just design market marketplace. mix terminals take There that to that's we four to bigger center think how talk right finish see So command And to use we work to in of call the the to chip think the the up supply. order that that's now the us then you doubt. going all going marketplace or the And and goes doing of is okay couple first how opens even probably it's And because all look to them teaching second on the actually getting going be get up Apple project they and more be actually helping in

starting terminal. are they to buy However, the

in to information the the come our orders chip due expect than or bigger after half we would that first the We as second issue. will next I enter week be the say But their week to in system. into

Chris Howe

of about you allocation? puts is That's Very There helpful. and takes terminal excellent. can lot And talk here. a

You have company. as stores, to restaurant it relates the XXXX the

generating initiatives that SMB your success here. have the You company are for

we think about its continues buckets? this side out You the place to a terminals. also year? It's should terminals different large your that convenience have where roll to How store

Bart Shuldman

opportunities Chris. just order doing it's What first ourselves our them it product. customers ahead kind to places we We say, when want it's up. pretty the were the expecting and we What think and Christmas up told that we hard to customers of around. with first turned of and Thankfully, when that are come is to us weren't This chips given shipments heads at get and me growing. January able for forcing on in. for the simple, we happened first told this. He the literally people the the But gets to sad to our necessary we who coming they pipeline And reserve were when our is were product do telling is get time. customer we is do phone we for when to serve. a It's no were lock part of need week

talk say to force what on little your a pressure sales make good us. commitment it So think our the to I put customers directly for that's and to has

casino orders the they're quickly I saw in. mean, in mean, I possible. of are as If our our lock to you as backlog industry. there up the trying supply

the that restaurant market. So see we also in could

Chris Howe

Okay.

about and seeing ever the of environment this normalize talk into gaming last you're gaming space. a give what right picking been? perhaps me chance. in you also the some than the casino lead You looks sequential on some a we question. sounds better pickup The that share you're It market as out then others it's there I'll in international like of logistical front. and And mentioned casino my persist seeing you issues market up Can you're industry, and some quick this once

Bart Shuldman

Yes.

the it into break down Chris. three markets, let's So

have U.S. the We

Europe have we have and Asia. We

Asia, it's dead. still

in is many how is problem. a we And that telling some program the is And Macau our And there's what we to and is it's But coming able break share been has biggest trying year. the be of Laos us. can different either still is e Well, to. ship And that's and that do where to have see Cambodia. continue they came up knows have older market one then there Europe machines something to back And and production down. everything and clearly ship, sell Asia back we was the think don't soft. we believe doubt countries biggest some Macau. to slot out China more what's coming has market want the orders. don't our lock talk still a out, printer that maybe in. We customer pretty I there customers an to their nice. we everybody they business. do regards The shut through competitor some could get very us or Philippines not picked for pockets are And tolerance they're business to of. zero to slow. still should to where going Steve U.S. that up. about no

with was all they in. wanted told the you on put coming light to And People one months. biggest new ship And the was a been a us. problem that's in hasn't for a surprise ahead this ended get to extra for where when ship it to to came that, market, I able through for that these buy enough nobody pressure But going if imagine a started about forecasting to stores. months. we little of six thing us they realized as helping Chris. do project, them us. I our we us from on think and of six were couldn't the of desperate issue. and more can't The I based us printers customer the that issue the they're it Now to time. our working sale mean, lot I point thank happened all in orders that their and competitor that lot to QX over

business. can because if the Asia a to right close the into up we share. yes, our get with contact have sales fair get have we've board as I of that I'm there, open our up we've on out they or project of don't a picked won head some market to now some, as constant see no we'll come printers Tracy manager opening But well that. to back. shipping So Asia got is we sales visibility know when in amount we see up,

Chris Howe

taking Okay. questions. for my Thanks

Bart Shuldman

thanks your Thanks Chris, for help. you. to

Operator

to will And Martin go Jeff we of next Capital ROTH Partners.

Jeff Martin

get all to a wanted the I hey, of, thanks Bart evening. sense helpful. Bart, for details. Good Very Hey.

extremely Sounds difficult like you're and working conditions it through it well. sounds like you're handling

So congratulations there.

reengineering happen you're FST in engineering you well a gaming to of is side? side, QX? and having and as you to that of so, QX? phases are like casino where And the both do of the that? any if as do in really sounds on the Is the on have Or product. side On lot And starting that that

Bart Shuldman

Yes.

Jeff got I before Steve, – So two the call always probably day Christmas, we or in the a when got

Steve DeMartino

Christmas. around right Yes

Bart Shuldman

Yes.

when chips at call, have way a should was a they're I of all just work these it, so probably at we're reversed. and and you're of to on some told horrible that's versus But to a manufacturer need our latest expecting the team to of the chip this -- New thankfully, out printed to you our motors is engineering hardware us us not They we every being go, one our don't production out to our It's sensor going in that tell chips pushed design us we processes, criteria. I TransAct lot being move piece do. now. what do, So Luckily, had to whether chip got paper, while the that of they're we we products keep there's took toughest with get understand Christmas you found product mean and of going their the Christmas through with and when lot hired to have find types they the months lighting in this that. the engineering all be you not then said project. paper of product on and us our touch need We a all engineering our is team got love we out whistles. some and had manufacturer look what but go bells Jeff, and for redesigned right that if could stuff. help a those It's not of Years

designing literally latest because a some down and it's go the That one technology, us platform, got it means then package. to different to the It's a many each It's in have firmwares redesigned be Let And chip. different has work. a board's redesigned. We different got so to work how detail it's and IOs. IOs just be Jeff.

and laid literally the months, to then products, doing version. it what go we the when saw we version, out next were have go You by to next

be. right of we three, I'm to four that pleased where just be we now, is real stands are. it issue ahead we to where we're schedule, right getting schedule meetings weekly As on the if chips. almost week need have times a say going The not to

working to the I need high they'd chip production end at won't side, the platform, can sing greatest use get the engineering year, is though done. it and hardware The sing. even They're on technology to redesigned think the on even But we they by latest very that excited. will that of it and like use though when tell can so the printer the probably get every get with half product in this TransAct will be me team of we it don't we can to be and new area. we

Jeff Martin

sentiment their terms in could months shift in and wanted five forward to know, labor or the would issues shift shape in the XXXX move an imagine wondering about in And are great. if then within to to, Okay, that engagement you XXXX some to guidance XXXX, be then And and the ask of XXXX see mentality. focusing for the on hold if the implementations about technology just are whereas things last give four or of level, somewhat. just organizations large pipelines large could the would at the having larger XXXX, I the we of I the perspective of any with kind restaurant pace observations going pipeline, any that a to exceed you faster restaurant attention relative three, progress to you're help to talked and organizations still you But curious look other the they're currently maybe than those your restaurant two organizations. that respect opportunity year. shortages could over two evaluations on from or terminals, as they put comment to you throughout additional

Bart Shuldman

Yes, Thank great Jeff. question you. again

demand kind but the saw break house, of if need the got I So just where back we if it that's this the the for They their to away technology, with can't it to that do that, of terminals got there. for like there. like product, from they've for and of not for, our a older XXXX they restaurant the commitment the some and like technology things out get out only old their one drive messages up, marketing help

use being latest In technology. to we're working for driven they're by So most the that the need labeling. it's driven on of the applications

and got go labeling to they now, do restaurants you've have on emails, to going apologize, the the to getting one of it. got parts Some we to test we them that. labor We're items, they labor issues. We right savings you if inflation our won going we that such get this and And issues. issue. got issues. get just go everything on hold. don't inflation to through where But the we We're We food understand it a the put through talk want to as going on, own real get the our got to where through about we're this they customer still grab need do through shortage

that. we So understand

So real where need the for driven technology forward. there's that's a being

where and right go driving a our nutritional now. looking initiatives, business able information being in market that's that, one convenience at fresh the in food to doing So and forward store at right certain then you is and of each print that's when that the combine what's of grab information part need the market, you restaurant the and look

time timers looked you I us And where juggling We If and that. don't in can automate. we but all at something I to if what, real now we're a to just you labor, you labor restaurant they or can I hey look can bring the checking, and right do other got than, at sensing, help can and in, temperature have go we in streamline business standard can't get more. that, and help pay temperature the or go, every $X need somebody accomplish $X and operation, save they we

going So where need real a That's see where our technology. now technology, we're they the for need the need hunting. because right that's we we're where

too. have we opportunities while So market the in in opportunities this two we restaurant many market, have other convenience the store

with time the got provide to chip let's evaluations. technology work manage out expectations. closely we the say to you can issue, their also And trials them you in but that so through this just We've that a and make roll to to their manage certain that we've not want in technology. So at to through sure we're tune the to got that. got scared through We manage them about

or buy supplying terminals. also we're We customers another customers. might our While they one XXX heard that existing from of

over and go we Steve on operations we're meet know sales that top We we're all I making that actually make sure the his and every let sure seeing. we team week. with effectively Monday to demand, it. that. team So go got we over the mornings, what of

Jeff Martin

Thanks. [indiscernible] Very helpful. next week.

Bart Shuldman

hey, life Like, Yes. in fabulous. color. It's

Jeff Martin

About time.

Bart Shuldman

time. about It's

Operator

of [Operator We'll to Research. Sakai Instructions] go Chris Singular

Chris Sakai

recent questions. for have Hi, good couple you guys With BOHA I pricing have inflation label a afternoon. increased your customers?

Bart Shuldman

increase. implementing nobody customers are we help board, of doing up. Yes. the going price Chris, PPV to And that across because things we're likes one the our our second

doing doesn't into us parts. one split and to One pay is help what and So on increase the for airfreight is two that we're price experiencing. PPV their to that We go we for the split certain we're actually the inflation products.

to see so look, regards our It actually inflation. that us dollars is helping of and we're customers of the just in our facing. to So shared that they're inflation the customers with millions they're that, facing one amazing millions

increase last October. the pushing facing. the are we I we Steve, through some compared to did second were four they're We where raised, other that months our think price [and what But probably] we've stuff of nothing one September

Steve DeMartino

Yes.

Bart Shuldman

Yes.

hold and to I going We're I've with before. very understand. our the you this got we through second. all prices. been customers to with share the seeing never very with So what's we transparent them when We're This it's them for to to we CEO raise go we're But lower have across They expected had tell our and quite prices you or prices raise to on. our was prices. talk board, open. not you, to company of while a did our is, We fun we're pushing do. it

Chris Sakai

for can for that'll some you do what the And Okay, for that. BOHA great. thanks you quarter? just shed am be think in wondering the ARPU XXXX. fourth light on units Well, I

Bart Shuldman

quarter, units we that on believe $XXXX said, there. average we still as every work I between our project to $XXXX around that In right fourth revenue I be the per can as help took buy to the a customer down. this who our is customer hadn't our used us And been shut very to printer. credit they [indiscernible] year, overseas they've also important casino is

back to right was even relationships, the like in to give them give credit. So when And build us take to you you times some or do this out. him money and thing him have a for help can credit

have relationship something us no. said help on that. build you to like You for they're the do a actually too But customer when important can

So it okay. all. impacted our That's ARPU. It's

Chris Sakai

achieve Okay. guys can How installations many XXXX? BOHA unit you believe in you

Bart Shuldman

marketplace in XXXX. have XXXX don't that. our I think said shareholders we the thing realize we think is, XX,XXX I today. to terminals almost One

market we it safety BOHA terminal. food realize restaurant with a into the a Now let's were or first call terminal,

in terminals marketplace. the We have XX,XXX

recurring They're many XXXX want which won safety terminal. out that and companies. to This at our more recent all because food one restaurant day with is income them They're we we that, than but labeling, want every there. we they just working. Now drove working our they're revenue that it to do

able work almost solving them in marketing for of that with XX,XXX the for should on terminals will issue have to label we really print shareholders them marketplace grab our and a out being But We go. today.

Chris Sakai

Thanks. great. Okay,

Operator

question a private do we have a yes from investor And Richard [indiscernible].

Unidentified Analyst

Bart. Yes, hi,

impressed Just to next to call me. tell how almost feel and want you how talking to sitting am, informative is the like someone I I'm transparent

more on behalf a stock filings the help of XX [indiscernible] and past stock and the how impressed stuff the years. or with I'm shareholder buying board company probably that's lowly just I granting advance, either in to And I'm with they And impressed the 'm get also for seeing chips you its detail I'm CEOs calling all customers and SEC that. about the like options. by So

to I to we're PR there's is listen the broaden, this and in faith impressed stock the company is, you're The I'd future. barometer, a is, hire as being call going for help what my is great today a same be that's company, sort But broaden question telling that done shareholders? the So just much feel obviously it's what is, the on, my that tell people. story story is, price I by same telling some do the of to the as each like to same How of and shareholders we every everything

Bart Shuldman

so deciding to what last great the raises think we or difficult investor for attend to Thankfully, half, face was you. have. couldn't you Thank we and be enough live. can been first. go we our shareholder story question. not our base year the to will the we where which over with face year a goals doing. could I and to that Thank and the meet our conferences I like and expand tell [indiscernible] for things explain we a shareholder thank did one regards him Yes. It's believe capital two When in of we're

it's is headwinds. In headwind, to this after stock been up. So price goal the drive fairness, all

But shut I up been But cards restaurant the pandemic saw came out XXXX, to in say around. stay is for that launch and watched came the closed to probably of March handed years, and in wake a You coming chip and work, had we turn with worked thing to XXXX and big for casino technology nowhere market and holidays and of the customers for of in months. we to shut Christmas it. handed are. before expecting which you you business, were a focused in our the The through XX not all that out casino down. around went shortage we massive never we us the all middle that like orders our positive we to what casinos close in the world

on. our think I is spot strategy

force think And I to for them we're think got close out. what helping the couple a is sales that. doing convenience knows stores we more

more. growing years And terminals and is starting we for kind if This that out to focus of [indiscernible] latest think one start you start you got more, I of hopefully do, to million restaurants see out, the and We couple you to on couple first, recurring focus business. open get going start talking about their it. about thinking one recurring to terminals go a thinking revenue million/$XX on think we and there, XX,XXX/XX,XXX get finally $XX get we'll about And I to just a good we're up their out up a pocketbook. us, revenue. got you really then

also was a casino very focused So us. sale that business to back we're point us of to that the the helps for that. surprise coming our clearly, industry very profitable pleased I'm And on business. very see and

minute set an on could, happy know tremendously. house, that a business. them. They we in They the so stay last the and canceled get and think very investor we as long firm, and do a Truthfully, I think December, know best been years and do the front have the house to lot it challenges the As two is had in best much as us out. relations February. that probably had the just to firm street. to they've conference of to it's should had. But the a that us ever of be Unfortunately, January do Omicron we've wonderful the ICR get story had back chips we've to, they're year, us last helping we've could the focused. with it as up they back at going the more ICR it's We out have this a wonderful, just double January we're continue got the in focused I And helpful. to get not

Operator

additional And at to there are remarks. Bart I no like it back the now any questions for or appears time. call over to this turn closing would Shuldman further

Bart Shuldman

your you thank shareholders the all Ukraine. and on and he's safe. said, Like you, for Thank operator support. just I have out prayers send thank hope for the do I our thoughts we my there also I being to shareholders we an call. and engineer

gone last that hope I of have our who the together. through I to think just wringer two let's you come employees get the years, have Roth, some do out

again. hands shake Let's

Let's see to each again. face face other

about each a what going we're other but just again. talk say Let's do company, hello as let's to to

of talk Thank again. So to I'll you I out you you the thank call. hopefully, you. We'll see at for on bunch listening Roth. a

Operator

today's this you Thank participation. your And for call. concludes

You may now disconnect.

TransAct Technologies (TACT) 10 Mar 222021 Q4 Earnings call transcript