- Earnings call transcript Q3 2022

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Operator

Good day and welcome to the TransAct Technologies Third Quarter 2022 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Ryan Gardella, Investor Relations. Please go ahead, sir.

Ryan Gardella

you. Thank welcome third and call. XXXX TransAct to afternoon quarter Technologies earnings Good we’ll announced closed. after results discussing our Today, the issued and be press release market

us those discussion results. of and company’s Bart quarter key DeMartino. is financial the the details our call and progress on strategies, on third Today’s a CFO, Steve and Joining Shuldman include will operating from initiatives company President CEO, our

participants for will questions. call then We open to the

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

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

Bart Shuldman

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

could company. proud I all reaching side seeing. the of not TransAct, every success be very for we’re quarter are quarter, issue. part future. incredible of Engineering say related months excited a team in to and in team, Last casting of at to sales every of work incredibly lines that and we an get worldwide finally the results thrilled broke third normal, solving member of believe a by the of and the couple near printers am production on of the discussed and After Operations our shortage efforts the teams business I back production TransAct I point third quarter, ongoing records. swing. contributed more we the problems the to our are reflect And across difficult with inflection number back years, many Casino we that and you now record Our the facet of in accumulation the company’s a I’m delivered full point-of-sale number to to

sales we Food I’ll Service which record more First, at highs set a recurring total side, in shortly. detail revenue, into go FST Technology revenue terms total level, on FST revenue, the or FST high label of dollars and for

side, saw yet our side On believe continue. the triple-digit increase will another issues, and the unforeseen And on up the R&D operations any Casino sales we and business, increase double-digit were and on to of this domestic to a success. we sales massive barring side. international production momentum was Suffice in Gaming our percentage ramp another say

update bottom revenue an market combined our the to of cutting top by our go discussed also quarter growth in a thrilled increases, revenue were I see our of effect on profitability. cutting These increased XXXX. line margin basis XXX wanted by cost initiatives third measures the line the improvement through in call gross was which of with the flow quarter’s resulted you I September significant We points. last to in through to the price I provide and and Before full results, cost in

Okay.

for Let he’s XX minutes. me Ryan, is step – Mitch that aside. me Sacks hold he texting on

again. let out? that So can me figure So start somebody

line profitability. margin top measures technology. the our flow gross job you income sales team increased line a a in the and net the adjusted positive thrilled resulted were see job. fantastic to while TransAct EBITDA. improvement both did great significant a the combined What modern with through XXX We cost bottom and by this by it’s teams, to growth point, of Sorry, basis achieving These in get cutting positive revenue our revenue points, to us to

go markets let’s in records. we with more I in detail, be cannot Now, starting through number more as just our results. mentioned, of FST. pleased with our set I And a

of time nearly FST a Our $X.X over new record first revenue a for the setting in $X.X recurring million crossed million. quarter, high

saw FST three record sales mind, only past, sales, a the revenue quarter. particularly momentum the new please quarter, be positive we typical saw that sales record components less all in quarter expanded of total as a in said hardware have high for label a months. dollars. reached software FST increases which, is has cycle sales of terms and over of Combined been total $X.X across newly million, a with record dollars adding recurring sales can six I in the the in in to expanded in in a place already also quarter, that sales for the are sales While force, a high we strong set a in revenue, of we lot Well, and our mentioned, and team well our keep credited year, than the

our going layered believe economics for a on to future which performance. for with workstations, we large nicely top. label few convenience some industry-leading BOHA! new joined but is to the out see have the cases use usage, very grocery stores TransAct the particularly us significant I’m and software weeks additional the excited grocery in vertical, resemble aisle where important stage heavy The ago. we with as and their started SMB market, really of in carve inroads – early setting brand see They the success, Some Terminal forward. just to made

messages into I’m let’s that about third paid total call. sorry, terminal text Ryan, in added Now can’t I’m In the for getting paid currently get a of we talk quarter. terminals XXX quarter, count. people XX,XXX the currently, the

added In we for total quarter, count. terminals market. XX,XXX a paid about XXX third in the of currently talk the paid let’s Now terminal

and but am I optimistic continue of continue has of results And opportunities new believe to for identified. our speaking we or due it We ever. perhaps more our the year, optimistic all to XXXX have the be to sales pipeline, sales for about new robust team the than sales our future, the even remainder

on Well, end are at of XXXX. with team is our million currently for the close opportunities that well-known will the number $XX some the a we a working And FST our great to high We believe time seeing traction across sales some reiterating to of technology, underway international pipeline, will close and momentum year deals. valuations in for take into $X to recurring there need is year we brands. it guidance of the and real the carry in of we With revenue full million. are see mind, positive throughout our gear

large would about one that a success I speak like become to Now, great TransAct. for opportunity story should

We the franchise XXXX. have been between given of to with a organizations goal our the organization test very approval This process is QSR. into to And final in begin two a large their with July is sales sales go in test. opportunity design work We just large TransAct. final largest opportunity BOHA! company’s have then field technology. finish the for be some the a final history and believe the we very this a will to And for the

in touch sequentially. quarter, which our at $XXX the wanted ARPU I to Before on $XXX versus moving came on, for

gain, fuel the recurring revenue our Our helped record strong FST business. label with this from particularly performance

As our a per $X,XXX ARPU continues be to reminder, to target $X,XXX year.

will system which fall included However, of which revenue. higher units into AccuDate The workstations beginning. ARPU or hardware app opportunity The generate not are workstation to upsell BOHA! calculation now BOHA! get replace Terminals gives the the each revenue and Food XXXX of our our recurring our Safety our us in sale, will purchase customers Terminal, we than selling old and also offerings. from these the these a down will number BOHA! are of recurring rather will number dragged typical our will to be onto Terminals that so any debt. different and price Terminal our than Well, portal-based

ramp Once could up again, sold we Now let’s the demand more have and we products, Casino is our Gaming the but as production talk about incredible even outstripping supply, significantly. market.

is were year-over-year. which and sales third almost quarter, million, the Casino XX% For Gaming $X.X up

we sales COVID into much mentioned, and double-digit markets. yet solid triple-digit in market, international gain achieved domestic [inaudible] in lockdown was a sales, gain our is I without our the success the another still Chinese saw And by As which our international affected policy.

across we the manufacturers product As Casino competitor as with of shortages out many is in our production our we Bart, have There customers as on slot appears printers. help in and their to the are personally know, globe and out. took of to word in issue, supply, that line task doubt the the me, One ramping to is to the quickly manufacturer the TransAct buy despite Casinos. coming from people marketplace slot bailed possible, new no them has the told production a sales epic market our

actively on of even we experience quarter We we the should plan increasing quarter. the as XXXX, in demand. more work in ship production our did in to production quarter fourth we printers this on to record We than to ways meet continue higher third fourth increase more the and sales

this and and in heard Vegas, It hard be to around we power booths in with back learned first house for the to out meet thank In our the more our our them generated the and like the we’re more at GXE lesson. of place. a interacting experiencing coming everyone BOHA! all booths technology our and Casinos in learn seeing added focus this are to to BOHA! prospects, see more of product at leads in even to planning Las demand one the I’d addition, and trade our shows out the at We customers produce We GXE, solutions to GXE increase to working our met sales fantastic have at like of about for back had GXE and all pleased technology. demonstrations. lot market Show quarter XXXX showing is and customers We wanting to year production printers. we and the from world.

resulted I Gaming, what believe customers to In ship The the of begin allowed important be to going system. confident certain orders continue experienced dive actively POS ramp to We to to work the And as our Now to up over seeing XXX% to the our Automation is closing, in Ithaca across of prior which momentum in we’re POS with In printer for FST also of the this in XXXX customer. we’re fulfilling we the production, above POS BOHA! a our into of I share highlights to saw Automation sales line let’s FST, the revenue. was get amount further printers move recap to In them growing beneficiary level in and our incredible market sales competitors’ inability our year. $X.X over to We serve our success us record our sales huge our market fantastic Casino feel of this operations, market. us of well. we sell to highs constant every want together, a quarter. leads million, as It pipeline key the us and teams POS from cross and the were the and as due supply forward. additional to in markets backlog the quickly R&D production our all here, geographic we on board, did. taking supply

see highlight demand real were these we and sales to continue international from Our customers.

program increases entered very $XX of were positive first a XXXX EBITDA price with and million quarter reduction implemented. the in fourth fully adjusted in cost they we income the net backlog. quarter And Our of and resulted

a hope got Steve finally before And imagine quarter like happening. apologize, whole. a they’re I as having TransAct know problems through. I don’t is this over do on better can do, to to hand hard go the it’s together, I numbers. I’d through I why to to With over for getting call this that, Taken the call. But only people

Steve to over like to the numbers. call Steve? to hand over I’d Okay, the go

Steve DeMartino

Thanks, Bart for this everyone us joining and afternoon. thanks to

decreased or hardware ‘XX. on XX% a sales Service results XXXX up was from which sales quarter Technology third third $XX.X more of Let’s million, for Total from Sales turn net quarter quarter ‘XX. were to million in third detail. in Food our the FST, lower our $X.X first the up $XX.X $X.X McDonald’s. of generation of sales largely million to our were XXXX terminal X% the AccuDate quarter to record to market, FST million, third by compared to XX%

market. workstations While of remained XXXX sales of and XXX Terminals during the finished our with in paid the relatively We flat. BOHA! XX,XXX third terminals a added total and quarter

as sales well prior XX% high record record label million, well up due FST higher service subscriptions, software up service consumable the XX% recurring the software a improvement and quarter which million was sales the sequentially. and revenue. in from in year period, Our This also $X as sales includes as a and were $X.X label as to and

the third $XXX, of quarter which up recovery second which over for recurring the quarters. ARPU higher continued quarter Our was accelerate ARPU in the was is due sequentially to ‘XX XXXX. $XXX from two seen FST we’ve past The revenue,

and $X.X were Gaming which up million, quarter from XX% from the the Casino of quarter ‘XX. sales ‘XX sequentially was XX% second and Our third

the our to Our very increase XXX% quarter, especially we impact very almost positively competitive to price we strong, up are up third our to strong, in international actively line. Europe and sales as in due picking up sales market year-over-year. XX% also top began late dynamics. be implemented also were were And have second continued which year-over-year, share, Domestic

last continuing in production supply demand. although to Gaming worldwide able of we’re to And in face still Casino record quarter. even mentioned see and substantially, we’ve the As printers the we out the been sold in shortages, the quarter, of we increase

higher additional to to the demand we’re in the printers limited year more all competitive from ‘XX, due increasing sales unable supplier This resulted more product be in significantly key POS being experiencing. with quarter, to $X.X another our XXXX deliver prior Ithaca Automation the still to dynamics, to quarter. against jump in million. supply of McDonald’s sales from XXX% ramping production but fourth quadrupled quarter up We’re the than third even the expect

Additionally, production were due to shortage. our the allowed we orders, to begin ramp our which unable to chip to backlog fulfill fulfill successful us sooner of ongoing

XX% quarter. sales third lottery that customer the This decrease legacy year, $X.X our last didn’t largely Moving the or quarter down same to during sales. to a to TransAct TSG parts Services to TSG spare were Group was this million. to unusually Overall due sales repeat printers for of high extent

longer the us, gradually a to market TSG expect time. wind no and is reminder, a sales As focus down over we for

and was XX.X% higher QX rounds income Moving quarter. in and statement, of price XXXX shortages. parts as in shipping in margin gross the in we XX.X% down was the compared two higher Gaming related market, chip by impacted margin positively as mitigate well quarter Gross increases XX%. the year instituted again product and and sales, Casino our third the especially prior to late costs September to to

While quarter, enough the margin overcome to third additional sales anticipated more from the we dip gross originally was leverage in to than this.

sequentially As basis quarter. a result, our points second gross margin actually the XXX by rose from

the XX% for prior expenses increased quarter impacted million the operating significantly $X.X Our period. levels spending of the third from or COVID lower

cost to However, little a of as were savings expenses sequentially initiatives. X% $X.X result down million this a our bit. down Breaking

X% software. for from to reduction Our initiatives. due due engineering BOHA! a On developers X% engineering down to R&D of and and basis, largely $X cost were R&D expenses impact software million, the late sequential to hiring in XXXX increased expenses continued additional our development the our

additional selling to and million expenses and and products. expansion support of levels in to to support marketing increased pre-COVID travel the marketing of due investment further trade show spending our to customer and spending return staff programs, Our sales $X.X BOHA! XX% the

sequentially However, cost selling due initiatives. expenses down and marketing XX%, to were reduction our again, our

as accounting additional Lastly, fees, hiring included $X.X as to salary the our ERP board well NetSuite. professional of increase to new million. XX% higher This related and an of the across increase, recruiting staff, system, G&A rollout the expenses our increased expenses finance fees,

net recorded third we compares income year operating to diluted $X.X which loss or an to income, of of compared of And on the net per $XXX,XXX quarter sales of in share X.X% income we $XXX,XXX the net operating $X.XX share, the or $XXX,XXX to income per in prior million generated line, of diluted Turning operating period. $X.XX ago of or in period. year bottom the ‘XX,

I’m loan under removing the EPS the of adjusted quarter a third finally, per in incurred SBA Bart the period. XXXX, prior an third to EBITDA to third million loss And million report of our during positive the for gain, gain of adjusted the $X.XX the Cares of After mentioned, However, the forgiveness as $X.X this included year on $X.XX we compared that $X.X generated of PPP negative $X.X million million we Act. prior year ‘XX loss net the of share. or in pleased quarter $X.X from quarter

of In to to terms that back based internal And a end hand Siena credit and with like of to $X.X with of and capacity closing liquidity, under newly believe our we our any our debt And on $X.XX through business at we under projections, we over quarter on the of fund said, the finished ‘XX. credit outstanding remarks. facility call for amended the million borrowing Bart, sufficient cash least cash facility. have Siena turn Bart? I’d million

Bart Shuldman

Once again, great a Thanks, Steve. job.

the we’d I know to I’ll I or that drinks call you for open in conferences, York be dinner City gladly after. many meet conferences. and you Hopefully, let Before see will attending of two necessary want New to the at investor week, or I coffee if next questions, our or shareholders

let operator, Just know. call me open to With that questions. please the

Operator

Capital Jeff our We’ll line Thank with Instructions] Partners. you. ROTH from question [Operator of take first the Martin

Jeff Martin

QSR ‘XX how needs then? hope working pipeline. know I’m between the is Thank tough a order you you a doing helpful. you’ve and apologize, time was And you. know and on customer that what I or of happen long you us timeline now with gave that be you what mid-year to It’d them currently? been you stage of those know call. well. Steve, know mentioned just getting had in you’re you one Bart, a I curious large the

Bart Shuldman

Yeah.

them had about we’re requirements a we’ve on, some And finishing just we that worked been that they So quite working while. up. for with

got based we put up demonstrated thumbs boxes and them to it. how the final and they went we checked off on product in all the the got we, So the is response

they of And which of get fuel so two could test, July, and but license to beginning that we the the that begin the sell, going great selling a things bode our our early end franchisees so test XXXX. know from final to support It’s organization we’re we’ll organizations approved our rollout you as that start finish franchise of we’ll that a up get it XXXX. think get around the spring. corporate, of to to we start the right And now we July the July we

Jeff Martin

disclose they to how franchisees have? care many And Okay.

Bart Shuldman

know franchisees going many I geographic that different addressable we’re probably Well, know how areas they actually have. they don’t is between that the XX,XXX have the stores. market approach to all after, going

Jeff Martin

yep. Yep, Okay.

– in progress Okay, this remarks, see then did know curious to know in focused you with to get labor larger less if restaurant house the the issues costs? the are of organizations great. any you of where may we in know starting Are touched you’re input kind development you just of to purchase but what of undamming know pipeline quarter? respect on kind back your And inflation the and seeing you on of process have decision? prepared you terms Just a sales point you

Bart Shuldman

Yeah.

you convenience food market. getting the all into you’ve fresh stores. know you about right, and of three got know FST convenience store the if that’s And our So at business into you up break food growth of fresh kind markets, that’s

there. the add opportunities at another couple know we’re very to got continues And GXE focused, forward. the grocery We’ll Clearly the fresh more area FDA got all the again, has now, with also that Casino food demands aisle labeling has was fourth on that that that and a you with. in bunch do of a we large we’re we that market. of positive. response that working and to we’ve move understand think business a is I The

it’s of be the You are need can know, It’s and a the operator. do can that kind restaurants a Casinos so kitchens run different that provide things like a basically for They lot no there. brainer. we commissaries. with of kind things But it different, a

new had then news the our mention, customers. has and first, you closing one, the the they’re the a Jeff food. So up inflation able is starting trying in been the team, the the last okay, And quite our no pandemic mostly because implemented in that’s both years that a on they to over some particular, then, as pick course, got sales restaurant restaurant. traction restaurant we’ll to the we’re shortages and and friends the some to online one opened in that and have we restaurants of the we’re One sell we’ve was know there’s finish But market that are food market, good up. that forward. for them, move sendoff sales very as a been and labor last see just with dealing I high we we and real team, some of once hardest and doubt on and to large they market And couple pipeline there just to labor forward. given the then lot few been work is I that moving could out sell much franchisees, it’s think go but brought in And

that trials, in demonstrating then we know their evaluation and inflationary coming are high while on moving their us issues, location units and at So labor the technology receptive potentially and forward trials. with and you the still their field doing to are shortages headquarters in, focused the they restaurants, seeing

are we turn, see opening to starting up technology. So, our to restaurants Jeff, are where that

Jeff Martin

terminal installations guidance for reiterated – the Okay. But And it. know I gave then I you updated an year. have you may missed the

Bart Shuldman

No.

Jeff Martin

revenue Recurring –

Bart Shuldman

No, We we didn’t. didn’t.

keep forward we’re because opportunities, a happen large some going these of And they work barring let and know quarter the with have we going are turn-ons. pipeline, and happen. many them we’re opportunities that it’s so just You about X,XXX you know running coming you on to into when know at

Jeff Martin

some I’ll going I’m yield. to questions. come Okay, additional with back great.

Operator

Craig-Hallum. question line Sutton with of our take next We’ll George from the

George Sutton

Thank you. Bart, congratulations on great the numbers.

salespeople of cycle the six over months. on fact of So a relative to year lot discussion brought new sales the the your a that traditional you around past and

yet of become the the are suggestion front was has because that anything have be news, really there Or of? I we hearing was, that we better not cycle folks should even Am in aware sales those correctly? productive. think I accelerated

Bart Shuldman

You of speed, weren’t ready. restaurants Look, salespeople know also up it’s but our coming kind both. to the

you’ve store on instance, But into the you need walking bunch think for for of going a I grocery now. people trials fresh us Casino got a just up combination and market, that as food got also GXE offerings, So couple we’ve that have are both. the The labeling of we market technology Show, some their that in the mix. there’s a to right at showed opened of exciting Casinos where

kind know and which you right, wider, this grow, start So then you the going we’ve is need what that going that is combination you the see, being it’s that of know a force just funnel get to bottom. it’s sales pipeline to and you we just fact at wider down larger close the know the to come got seeing

digital Because us helpful very the the is have once demonstration SMB other market. you going them. get close people position. CEO, the the been they same in get sales. chef, we We now get get And call for that’s three for the what’s have to there a savings, all they healthy owner, those our they of they in it technology, what The be thing quickly, very

close quicker. to those so tend And

So there than sales roll we’ve people see quicker much we and up. the bigger set cycle that the

George Sutton

sign business? available. about demand And How said, meant can you you from and talk the for on much standardized understanding obviously is equation? getting had know takeaways GXE So the talk side Show valuable of you your also about actually chip. supply Can when that printer a we you versus printer very you’re the you’ve what sort has the about that of that talk

Bart Shuldman

question, Yeah, George. yeah. Great

actually side a and production – in line fourth continues us. to we backlog it give to we then, north the that demand quarter we’ve by we were on third now in. because drive going course, dates, decided backlog, well, out and not of delivery probably is the a as the And the would to line accepted fourth surprise third fourth line have run, line third quarter, got third speed million. demand, ramped put that orders in $XX September. that can’t yet, quarter up up we we you, put to million So the have $XX we We of mind which a have capacity-constrained

So backlog they’ve we’ve from our you market the demand a record that with their that own and first record get all and as the we’re think and then And quarter through their their issue heard We that the of the Casino another up have sales, quickly we’re supply the know in meet they’re in ramping up manufacturer demand. ramping quarter. first heard fourth Casino get in they’re going can record one fixed fourth we’ll and they’ve quarter you It’ll they’re customers had us chips orders production know clearly seeing. will slot the is from going know ramping just I production. to And possible. we – be, line know if as be a be the that got impress for to sales you continues is, you getting to particular, what that up

that’s we You inventory that little, up our parts mostly a that is will George see bought.

bought chip lot of ahead this, a chips, So to of our our is now. get of new because we products standardized all that across

been we in exceed said, that off we’re fourth get So up have buying the we backlog where of if and line this ended running running up lot the we right you and the quarter issues and demand before, or out know those going we’re to electronics told next we also, first And know $XX buying or we’ve in chips fourth like meet quarter and third get year again, those the those goal I you now. and had seeing. we’re to is bought line probably week getting, chips this a know the million would we’re that

George Sutton

want just make I to Governor that hear thrilled you chips. inventory your I’m sure to ability growth of high I your So distinguished have and ship. to And to

via now chip hiring issue. no is It can issue building that manage longer and these, production it out is So correct? a you a

Bart Shuldman

of it no doubt our a that three just to that you I the can’t around faced tell processor. we’re to had new resolved designing lot ago tomorrow. there’s going by a we call XXX% issues months Look, been also George, us that not going get and

And whether were driver volume sensor ourselves get. expecting, out some a find that motor not would the turns a we thought we part that that it’s getting we we or

there’s So on to And way in those able out we of the to going now. cost. good fourth right some news out the numbers is, chips, the will market now It’s the say fourth hence tends a third get the were ramp because that all quarter. we we can’t to then we’re we’re promise found that you be extra I of to getting line, I the a those to we in get But good of to spot we’re and have it’s absorb into issues and capacity I pop that George buy that in price we find when have the that other electronics XXX% the able products in one the to parts. quarter increases production. market why to sudden in know think up spot you shape, the chips able that we was place numbers it. And think

So many pops whacks not promise there’s up to there call it’s still you, I make. as it that a whack-a-mole, people like having there out we’re be my as to operations won’t can’t George but that part

George Sutton

a of last assumption backlog your, I million. will what million versus some orders by So your don’t potential a The $XX the ultimately orders look – those Is most as is, be reasonable recognized. number $XX because fulfilled That assumption? of of define other that of be capacity. my it I of in competitors, should they words, have that at is because potential delta if your can’t backlog question, backlog

Bart Shuldman

– purchase stabilize then delivery the Look Yeah. into need production that fourth But up dates they’re is we with And just dates what we’re waiting they’re – share from customers. do to us. and delivery those showing the get through first orders. is, we’ll working to they’re quarter for us doing And our to quarter.

purchase delivery. those production match orders to up and the it’s So to then to us

people firm So know we’re just yeah, will what going getting orders those ship those day going we products. you are or from to to commitment production ship what a week entered. get that our It’s

put was those manage You are the bit and line because we’ll fourth you and we take we enough. know, get know third we’ll confident then of clearly about so surprised orders it’s manage thought we the we’re it orders volume through we’ll And by where begin it, those our excited starting by And we’re the orders on and many, it, of that are, how get a line, in very to and to not books. putting in.

Now something got backlog, remember, week we we’ve every that once ship it’s not plenty we’ll we that yet. books so, but of shipping our have so and all entered out be onto

George Sutton

sixth a next and to the later here’s on a fifth year. Well Congrats results –

Operator

our take Asset line question of Sacks the We’ll next Management. GS from Mitchell with

is open Your line –

Bart Shuldman

Mitch?

Mitchell Sacks

you hear Can me? Hey.

Operator

Mr. Sacks?

Mitchell Sacks

me you hear now? Can

Bart Shuldman

Yeah.

Mitchell Sacks

Good. Hey, Congrats. Congrats on quarter the guys.

First around the question is backlog.

going million $XX period would when to what respect expect $XX that with you so the filled to over be time? of And million,

Bart Shuldman

the it’s of for for quarter and Most first quarter. some the fourth

Steve DeMartino

Yeah, I months, next majority Well, it say. Mitch. six over the yeah, the of would

Mitchell Sacks

the Okay. orders of that you’re additional And holding on. in terms then off

are talk Just the in opposed bit just kind now gating lines to as you production if factors of, so of parts. could a through terms those little

does terms that just a up. you is is change of third, third have capacity a increased effectively? step technically it Or capacity? production Assuming basically third in by another it line What – a

Bart Shuldman

trying quick. we part it’s And just get into cannot right it’s that Again, will You the – issue that the their getting there us. production XXX% won’t metal now you surprise you a parts, to capacity line But parts know I of production up. the to the run say all plastic it to to takes time ramp up. know ramp know just to everybody really all you up line we’re out

we’ll what customers they’re hit it’s asking are our into more it’s knowing you potentially us in because So will numbers supply to just pieces getting than do up for we to to than for. what in numbers And go be know QX, more the it. through will asking our more more able QX, us QX, printer. we’re in it’s which what good all confident – QX, And as got that some and and that QX not that electronics, hit

Mitchell Sacks

also do QSR of they BOHA! you’re terms the that franchise where Or purely is in organization? stores And product, have Great. The the a opportunity, corporate testing

Bart Shuldman

have franchise mainly but Yes, corporate stores. some operations. they’re They both they’re

Mitchell Sacks

and be franchisees, the would recurring you corporate So revenue the equipment? them not billing the for for

Bart Shuldman

right, That’s right. That’s Mitch.

Mitchell Sacks

– And then the on cool. Okay,

Bart Shuldman

the And rollout that that, franchisees is will selling start. we in have the The agreement we can to July. start

slow But up, they a we that tell a I You standpoint, need don’t be going know. know up. need That ramp from you the technology. quick to a ramp can’t

a But going the just to matter be a the they of quickly need how franchisees equipment. meeting to – theirs. it’s buy definitely of it’s decide So

Mitchell Sacks

bottom it conversations down you directions? with top franchise you pushed or are from coming in up or this? at pushing or And both large the It being who’s are groups

Bart Shuldman

the do doing So we pushed some up There some testing were real for ended in was down. friends bottom loved really and world, in behalf, marketplace what top on the franchise through needs our they our up could it and them.

year. talking While, a well the office corporate we have been to over

medication really So a it I’m that. a doing. of It on was time, more that just for they all I Yeah, is combination. get needed my than But the really all is – McDonald’s That. details needed. was That that back. it, can’t matter customer given into

what I’m is. – it’s say, anyway, sorry but So, it is to it

Mitchell Sacks

Bart. Okay, cool. Great. a lot, Thanks

Bart Shuldman

it. You got

Operator

go Our next of the Jeff with Martin question comes Capital from ahead. Partners. line ROTH Please

Jeff Martin

their knowing on we X-Eleven and Terminal labeling integration and to to BOHA! they’ll Thanks. Bart, there’s Speedway? potential terminal? the out of if insight see Are whether closer you know growing any their to to Speedway wanted roll

Bart Shuldman

Yeah.

Jeff Martin

was then also – curious And

Bart Shuldman

No, no. –

Jeff Martin

Yeah, us on go give If update – an ahead. you could

Bart Shuldman

ahead. sorry. I’m sorry. I’m Go

Jeff Martin

the of be in an to just partly year, helpful. they I focus? also would with because you general, had update So update, can on know was start on sluggish integration the us anything curious I a X-Eleven.

Bart Shuldman

Yeah.

The the worked second half laid there’s integrating with some XXX of of off. even big people we that layoffs I laid off, this no doubt, and think got been people in bunch got of focus year has their Speedway,

they’re with the their hold to they’ll Program do that whether with them. mode stores roll unknown in the and know, successful Fresh steady that. But been ideas Food I what Fresh Speedway. those has out they about tight very a very don’t think for yet. we’re you Food lipped Speedway, So of And them. And it’s we’ll see Program what

Jeff Martin

perspective When curious just some had FST. label relative on Okay. sales you a And if then was in the quarter. could quarter give you revenue for I us good recurring

at there quarter? we are catch where up a was you in we’re sustainable Or know level the You at sales? fairly and think some of label predictable level

Bart Shuldman

you, now. it’s question, No, thank predictable good No, becoming Jeff.

we to outbreak You if therefore that at down. I say don’t major they’re long with get they quarter, as COVID with hit, but as we know hate our because know we transactions to get And long a this dealing know hit you doing go of a you look the as major way, as back and it the don’t buy, outbreak, on you pull customers first causes and that, were know labels less you transactions. amount flu

And from where go recurring quarter. we are know say, know just every terminals, in virus, mean, of got business. revenue Steady to revenue we that you we’re know Now there. X,XXX been out the and a the issue XXX you full terminals think, last out no there’s I bunch swing, right. those. to been that’s baseline time their put to It’s out because replacing them got And revenue get going we let’s are some you major XXXX we’re of for no you Eddie adding

XXX into marketplace. So plus we added another as the terminals we said,

them label Some label and those of label it’s drove business our – have that going the up, thing sales to labels it in with be terminals the sales, same those quarter. fourth have

incremental should door, grow them a label getting buy service those place, a and line. the business contract and revenue, So it’s in the software revenue, out of that the through they the recurring getting them without online, doubt, getting will revenue units then follow the service

Jeff Martin

great. That Okay, related didn’t replacement you in quarter. ensuing or in to know this And hardware cycle? see uptick AccuDate, mentioned AccuDate ship think the you a might of a I the we quarter terminals the FST lot then two mean, significant

Bart Shuldman

lot Steve, we I in the shipped quarter. a XXXXs of think

Steve DeMartino

to last XXXXs were quarter the year. down in compared

Bart Shuldman

year. last to Compared

Okay, okay.

Steve DeMartino

last Compared Yeah. year. to

Bart Shuldman

were Yeah. and is old running we’re there it’s going out – – Look, do know it’s an technology that’s existing that the product things of to you

Jeff Martin

But I was –

Bart Shuldman

That was –

Jeff Martin

Terminal essentially that’s the referring replacing was my to Am I that? I misunderstanding XXXX. the BOHA! AccuDate

Bart Shuldman

Yeah.

So question? what’s the

Jeff Martin

the some to pent up know I couple as of demand? of hardware of in clarify, the next a that Terminals significant quarter. had mentioned have for quarters just in you some some that didn’t replaced if the potential And lot there’s a you AccuDate those BOHA! you wanted FST if result sales

Bart Shuldman

product old, we’re restaurant what You bought the and we’re cases, that lot know XX a know switching we’re A not XXXX different XXXX companies working is, in you our years them to the workstation. terminal anymore. of of doing selling and that’s the the with

the stick they is a updated machine to a update So drive, menu there XXXX running decision, to got when right. it a to let’s up got the is they’ve with is each franchisee, running once is They jump pent and update that that they go or the terminal update to remember demand you make they to and go your later, you updated. items, restaurant a in – that, solution, latest machine, the computer go with door, XXXX, the it, door. call the next the press here’s you item next the in menu, field to the portal menu seconds next terminals the button the know the door, all and then the terminals with the and And and say, are all go XX

So Jeff Will they on the or don’t to a onesie-twosie answer it time we are that somebody yet. not all update all they can are the I at and terminals We they one my technology updated. the on customers sure have this it send Will talk quicker? replace we have, better is, make even just road say, XXXX. look replace question that at know just and these to starting to a out terminal terminals is roll when that such to the

Jeff Martin

potential is, quarter I replacements. last talked of believe about question reason the The this asked thousands call on we tens Okay. I of

So I if just curious was was there –

Bart Shuldman

are. There are – There

Jeff Martin

revenue. hardware traction FST what become And at. was where therefore and might the know That really visibility Much you next I that of was significant translate into if there’s in to-date. insignificant getting quarters for volume you any like couple

Bart Shuldman

Exactly. Yeah. terminal, drive the over as exactly you going on It’s about No, No, they the opportunity No, right you’re it’s what it’s over the we’re there’s on is the what Jeff, talk and significant. that’s XX,XXX. one to we’re on. you’re move to working to right in working call know track. in mean, Exactly. I track.

from just it’s them So a the XXXX matter time turn to technology over to done, then that modern get technology. and know you of

So it will.

Bart Shuldman

That’s Great. it Yeah. Thanks. for me.

Operator

turn closing conference I’ll remarks. conclude for And question-and-answer that to any time, At back or does this gentlemen, the session. additional today’s you,

Bart Shuldman

Yeah.

and at So came to TransAct lot Casino into that, we on product I for And and their we’ll clearly back of our then getting to do deal whatever significant understand support. then problems issues years thank how that that happen parts me with us. dealing call, to out doesn’t getting buying a find some of when getting getting had with. again, through the not for had again. really we thank we it. my now were and team in all then dive XXXX-XXXX have out for profitability. once the apologize it fun no let people business And for There’s of And doubt that is things us shortage that world I the like us shareholders,

thank that week, again I think next see support. the a team, talking they So also New those on hope next forward and the our shareholders, to our and I job City hello. quarter and call did for in to I will I say look you to for thank what TransAct you be York you

So everybody. thanks,

Operator

may for concludes This you call. now your today’s Thank participation and disconnect. you

TransAct Technologies (TACT) 13 Nov 222022 Q3 Earnings call transcript