TransAct Technologies Inc (TACT) 2023 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the TransAct Technologies Q2 2023 Earnings Conference Call. (Operator Instructions). This call is being recorded on Wednesday, August 9, 2023, and I would now like to turn the conference over to Ryan Gardella, Investor Relations. Please go ahead.

女士們、先生們，下午好，歡迎參加 TransAct Technologies 2023 年第二季度收益電話會議。 （操作員說明）。本次電話會議於​​ 2023 年 8 月 9 日星期三進行錄音，我現在想將會議轉交給投資者關係部門的 Ryan Gardella。請繼續。

Thanks, Chris. Good afternoon, and welcome to TransAct Technologies Second Quarter 2023 Earnings Call. Today, we'll be discussing the results announced in our press release issued after market close. Joining us from the company is CEO, John Dillon and President and CFO, Steven DeMartino. Today's call will include a discussion of the company's key operating strategies, progress on those initiatives and details on our second quarter financial results. We will then open the call to participants for questions.

謝謝，克里斯。下午好，歡迎參加 TransAct Technologies 2023 年第二季度收益電話會議。今天，我們將討論收盤後發布的新聞稿中宣布的結果。加入我們公司的還有首席執行官約翰·狄龍 (John Dillon) 和總裁兼首席財務官史蒂文·德馬蒂諾 (Steven DeMartino)。今天的電話會議將討論公司的主要運營戰略、這些舉措的進展以及第二季度財務業績的詳細信息。然後我們將向參與者開放提問。

As a reminder, this conference call contains statements about future events and expectations, which are forward-looking in nature. Statements on this call may be deemed as forward-looking and actual results may differ materially. For a full list of risks inherent to the business and the company, please refer to the company's SEC filings, including its reports on Forms 10-K and 10-Q. TransAct undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after the call.

提醒一下，本次電話會議包含有關未來事件和期望的聲明，這些聲明本質上是前瞻性的。本次電話會議的聲明可能被視為前瞻性的，實際結果可能存在重大差異。有關業務和公司固有風險的完整列表，請參閱公司向 SEC 提交的文件，包括其 10-K 和 10-Q 表格報告。 TransAct 不承擔修改或更新任何前瞻性陳述以反映通話後發生的事件或情況的義務。

Today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G. When required, reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release as well as on the company website. And with that, I'd like to turn the call over to John.

今天的電話會議和網絡廣播將包括SEC G 條例含義內的非GAAP 財務指標。如有需要，所有非GAAP 財務指標與根據GAAP 計算和呈現的最直接可比較的財務指標的對賬可在今天的媒體上找到以及在公司網站上發布。說到這裡，我想把電話轉給約翰。

Thank you, Ryan. Good afternoon, everyone, and thanks for joining today. Last time, I had a chance to present to you all, I was only about a month into the job as CEO for TransAct. And now 127 days, I counted them up and I've had at least a little bit more of an opportunity to roll up my sleeves and dig into some of the work in earnest. So I'm happy with the progress we've made and I'm going to share some of that with you today.

謝謝你，瑞安。大家下午好，感謝您今天的加入。上次，我有機會向大家介紹一下，我剛剛擔任 TransAct 首席執行官大約一個月。現在已經 127 天了，我算了一下，我至少有更多的機會捲起袖子認真地投入到一些工作中。所以我對我們所取得的進展感到高興，今天我將與大家分享其中的一些內容。

At a high level, the results came in as expected and discussed on the last call. Net sales came in at $19.9 million. Year-over-year, the increase was approximately 58% but it was a sequential decline of approximately 11% from the first quarter as we expected. And we've all tried to work hard setting the stage for success in the back half of the year and more importantly, on into '24 and beyond.

從高層來看，結果符合預期，並在上次電話會議上進行了討論。淨銷售額為 1,990 萬美元。同比增幅約為 58%，但正如我們預期的那樣，環比比第一季度下降了約 11%。我們都努力工作，為今年下半年的成功奠定基礎，更重要的是，為 24 年及以後的成功奠定基礎。

Last quarter, I talked about the fundamental goodness I found here at TransAct and as well as some of the parts of the business that were going to require some action to allow us to take advantage of the opportunities up ahead in the market. I can say that we're always done revamping the parts of the business where that needed to be done. And we've added some new internal process where there was none before. We have moved some personnel around. We've let a few go. We've added a few. I like the progress we've made and I feel that we're fully ready to add some much-needed momentum for the business.

上個季度，我談到了我在 TransAct 發現的基本優點，以及需要採取一些行動才能讓我們利用市場未來機遇的業務部分。我可以說，我們總是完成對需要完成的業務部分的改造。我們還添加了一些以前沒有的新內部流程。我們已經調動了一些人員。我們已經放走了一些。我們添加了一些。我喜歡我們所取得的進展，並且我覺得我們已經完全準備好為業務增添一些急需的動力。

The reality is that our sales teams, processes and go-to-market GTM strategies really required a pretty significant overhaul. And I'm really happy to say that the first phase of that is largely complete. I also feel confident that we now have the right people in the right places and we can now turn our attention to the other parts of the equation, predominantly focusing on execution.

現實情況是，我們的銷售團隊、流程和上市 GTM 策略確實需要進行相當大的改革。我真的很高興地說，第一階段已經基本完成。我也相信，我們現在在正確的地方擁有正確的人，我們現在可以將注意力轉向方程式的其他部分，主要關注執行。

While change takes time and shifting behaviors and habits in any business can be a long game, I'm pretty confident that we're now moving all in the right direction. Let me go over some of the results from our 2 markets. First, on our food service technology or FST market, FST revenue was $3.9 million, up about 14% year-over-year. This was led primarily by higher shipments of our AccuDate 9700 product and increased label sales.

雖然改變需要時間，而且改變任何企業的行為和習慣都可能是一場漫長的遊戲，但我非常有信心，我們現在正在朝著正確的方向前進。讓我回顧一下我們兩個市場的一些結果。首先，在我們的食品服務技術或 FST 市場上，FST 收入為 390 萬美元，同比增長約 14%。這主要是由於 AccuDate 9700 產品出貨量的增加和標籤銷量的增加。

We also added 743 net new BOHA! Terminals in the quarter, bringing the total number of our online terminals in the market up to 13,476 as of the end of the quarter, June 30, 2023. So that's up from 10,941 in the prior period a year ago. And honestly, I know we can improve on these numbers and that's one of the focuses that's pretty key for me.

我們還新增了743個網新BOHA！截至 2023 年 6 月 30 日季度末，我們市場上的在線終端總數達到 13,476 個，高於一年前同期的 10,941 個。老實說，我知道我們可以改進這些數字，這對我來說是非常關鍵的焦點之一。

Our FST sales team is rebuilt and is refocused on the #1 priority, which is selling as many of these new units as possible in the marketplace.

我們的 FST 銷售團隊進行了重組，並重新專注於第一要務，即在市場上銷售盡可能多的新設備。

We have implemented the personnel changes I mentioned where needed, and we're out there every day pitching both the new and existing clients on this freshly launched BOHA! Terminal 2. We've also made some excellent progress revamping the sales motions and GTM strategy. And while this is an iterative process that will continue to take time, we've already been seeing beginning promises of momentum and some preorders of the new terminal from some of our existing customers.

我們已經在需要的地方實施了我提到的人事變動，並且我們每天都在那裡向新客戶和現有客戶推銷這個新推出的 BOHA！ 2 號航站樓。我們在改進銷售行動和 GTM 策略方面也取得了一些出色的進展。雖然這是一個持續需要時間的迭代過程，但我們已經看到了一些現有客戶對新航站樓的初步承諾和一些預訂。

As I mentioned, after digging in a bit, I frankly found a lot of room for improvement in this GTM and its execution. While they were far from optimal, the good news is that these things are relatively all easily fixable. It's not rocket science. We just have to do it and that's why it took moving around a few people and creating a little bit of focus where one many. However, given the long sales cycle, it still is going to take time for the good work to manifest the results.

正如我所提到的，在深入研究之後，我坦率地發現這個 GTM 及其執行還有很大的改進空間。雖然它們遠非最佳，但好消息是這些問題相對來說都很容易修復。這不是火箭科學。我們只需要這樣做，這就是為什麼需要在幾個人周圍移動並在很多人中創造一點焦點。但由於銷售週期較長，良好的工作效果仍需一段時間才能顯現。

Further, as I discussed last quarter, we are very happy with the BOHA! Terminal 2. The product turned out bigger, faster, brighter, more capable and frankly, just a lot playing better than the original. And we're happy as well with the positive reception we've gotten from those customers and clients who have trialed it so far.

此外，正如我上季度討論的那樣，我們對 BOHA 非常滿意！ 2 號航站樓。該產品變得更大、更快、更亮、功能更強大，坦率地說，只是比原來的播放效果更好。我們也對迄今為止試用過該產品的客戶和客戶的積極評價感到高興。

We believe that there's a large opportunity within the existing installed customer base who are looking to upgrade from our older AccuDate 9700 product and to some extent, our earlier original BOHA! Terminal as well. As a reminder, the BOHA! sales cycle is long, I've already said that, and it's complex, but it pays dividends. And when the headquarters grants us a green light to engage with their franchisees, this typically is the case with most of the established franchises. And so once they say, yes, it's okay, we've authorized it, we've approved it, then that gives us an opportunity to go out to the individual franchisees and introduce them to the unit and basically hope for upsell and uptake. And that is really key and we're well on the way to getting some of those approvals at some of our key accounts. And we're optimistic that the approvals will begin to yield results towards the back end of 2020 -- the year -- this year and on into 2024.

我們相信，現有的已安裝客戶群中存在巨大的機會，他們希望從我們較舊的 AccuDate 9700 產品以及在某種程度上升級我們早期的原裝 BOHA！終端也是如此。提醒一下，BOHA！銷售週期很長，我已經說過了，而且很複雜，但是有回報。當總部批准我們與他們的特許經營商合作時，大多數已建立的特許經營商通常都會遇到這種情況。因此，一旦他們說，是的，沒關係，我們已經授權了，我們已經批准了，那麼這給了我們一個機會去接觸各個特許經營商，並將他們介紹給該部門，基本上希望增加銷售和吸收。這確實很關鍵，我們正在順利地在我們的一些關鍵客戶中獲得其中一些批准。我們樂觀地認為，這些批准將在 2020 年底（今年）、今年以及 2024 年開始產生結果。

Next, on the casino and gaming side. We saw total casino and gaming revenue of $12.2 million, up 87% year-over-year but down 23% sequentially from the all-time high we saw in the first quarter. There are 2 main reasons for that, the sequential decline: first, we had predicted -- as we predicted on our last call, we did see the first signs of our major competitor reentering the market and they did make some deliveries of their product in the last quarter, not a lot, but some.

接下來是賭場和遊戲方面。我們看到賭場和博彩總收入為 1,220 萬美元，同比增長 87%，但比第一季度的歷史最高水平環比下降 23%。造成這種情況的主要原因有兩個，即連續下降：首先，我們已經預測——正如我們在上次電話會議中預測的那樣，我們確實看到了我們的主要競爭對手重新進入市場的最初跡象，並且他們確實在2019 年交付了一些產品。上個季度，不是很多，而是一些。

Second, the order rate and backlog additions to our books are certainly slowing, which we believe is a result of the slot OEMs having built a large inventory position of printers in the first half of 2023. And as supply chain tensions eased, combined with the fact that some OEMs had over ordered printers just in case supply chain problems continued, we are no longer seeing manufacturers placing orders 6 to 9 months out as we had previously.

其次，我們書籍的訂單率和積壓訂單增加肯定正在放緩，我們認為這是老虎機原始設備製造商在 2023 年上半年建立了大量打印機庫存的結果。事實上，一些原始設備製造商已經超額訂購了打印機，以防供應鏈問題持續存在，我們不再像以前那樣看到製造商在6 到9 個月後才下訂單。

So we were certainly at the right place at the right time with the ability to capitalize on this influx of pent-up demand during the market recovery. And we believe this benefit -- will benefit us beyond the short-term spike in sales and profitability that was created earlier this year. We're not resting on our laurels, as you say. We have increased our casino and gaming sales staff and are actively going out to our new customers in an effort to retain as much of the market share gain as possible. A portion of those new customers will certainly become long-term buyers for our printers.

因此，我們確實在正確的時間處於正確的地點，有能力利用市場復甦期間被壓抑的需求湧入。我們相信，除了今年早些時候創造的銷售和盈利能力的短期飆升之外，這一好處將使我們受益。正如您所說，我們不會固步自封。我們增加了賭場和博彩銷售人員，並積極接觸新客戶，以盡可能多地保留市場份額。這些新客戶中的一部分肯定會成為我們打印機的長期買家。

However, we also expect to reduce pricing a little bit on these products in order to make sure that we stay competitive in the marketplace as much as possible. The prize here is a new baseline sales level as a result of the permanent increase in market share. We believe we are well positioned to capture that demand going forward. And at this stage, we would estimate that our go-forward net sales run rate in the market should be about 15% to 20% higher than our pre-COVID historical average. And we would expect this new run rate to be fully reflected in the fourth quarter of this year and on into 2024.

然而，我們還希望稍微降低這些產品的價格，以確保我們盡可能在市場上保持競爭力。這裡的獎勵是由於市場份額永久增加而達到新的基准銷售水平。我們相信，我們有能力抓住未來的需求。在現階段，我們估計我們在市場上的未來淨銷售運行率應比新冠疫情前的歷史平均水平高出約 15% 至 20%。我們預計這一新的運行率將在今年第四季度直至 2024 年得到充分體現。

Further, we hope to see some benefit from our newest casino and gaming printer to call the EPIC 888, which we believe will help us retain some of these new customers. We expect to launch this at the end of -- towards the end of the year. That launch, et cetera, will happen publicly at some point, but it's a really nice looking unit and we expect it to be a nice boost to some of the gaming and casino customers.

此外，我們希望看到我們最新的賭場和遊戲打印機 EPIC 888 帶來一些好處，我們相信這將幫助我們留住一些新客戶。我們預計將在年底推出。該發布等將在某個時候公開進行，但它是一個非常漂亮的設備，我們希望它能夠對一些遊戲和賭場客戶產生良好的推動作用。

Finally, I wanted to discuss our outlook for the rest of 2023 and provide some color on how we are seeing the business progress. As I discussed, we are, in fact, seeing the downward trajectory of casino and gaming that we did expect and spoke about last quarter, while we're taking strong action to retain as much of that business as possible. The reality is the return of our competitors as well as price reductions that we're talking about will continue to impact both our net sales and profitability on adjusted EBITDA.

最後，我想討論一下我們對 2023 年剩餘時間的展望，並就我們如何看待業務進展提供一些信息。正如我所討論的，事實上，我們看到了賭場和博彩業的下滑軌跡，正如我們上季度所預期和談到的那樣，同時我們正在採取強有力的行動來保留盡可能多的業務。現實情況是，我們的競爭對手的回歸以及我們正在談論的降價將繼續影響我們的淨銷售額和調整後 EBITDA 的盈利能力。

As such, we have decided the most prudent approach to our guidance is to maintain our current net sales guidance of $71.5 million to $73.5 million and raised our adjusted EBITDA guidance to a range of $8 million to $8.5 million for the full year 2023. These ranges take into account all of the points I have mentioned today. There's still work to be done here at TransAct, but I'm pleased with our results for the quarter and believe the company is now moving in the right direction as a whole. I believe the pieces are in place across the company from a personnel perspective but again, the impact does take time.

因此，我們決定最謹慎的指導方針是維持當前 7150 萬美元至 7350 萬美元的淨銷售額指導，並將 2023 年全年調整後 EBITDA 指導提高至 800 萬美元至 850 萬美元。這些範圍考慮到我今天提到的所有要點。 TransAct 仍有工作要做，但我對本季度的業績感到滿意，並相信公司現在整體上正在朝著正確的方向前進。我相信，從人員角度來看，這些措施在整個公司都已就位，但同樣，影響確實需要時間。

Our rebuilt FST, food service technology sales team and newly reinforced casino and gaming sales teams are now in the best position to capitalize on opportunities in front of us. And our sales cycles, particularly for FST take time, but the feedback we're getting early on is very encouraging for preorders on the BOHA! Terminal 2. While as predicted, our competitive environment in casino and gaming began to normalize in the quarter, the printer sales began to decelerate with OEMs no longer stockpiling. We are hard at work to nurture these new customer relationships to retain as much of that share as possible. So that's pretty much it. And now I'd like to turn the call over to Steve for a more detailed review of the numbers. Steve?

我們重建的 FST、食品服務技術銷售團隊以及新加強的賭場和博彩銷售團隊現在處於充分利用我們面前的機會的最佳位置。我們的銷售週期，特別是 FST 需要時間，但我們早期得到的反饋對於 BOHA 上的預訂非常令人鼓舞！ 2 號航站樓。雖然正如預期的那樣，我們在賭場和遊戲方面的競爭環境在本季度開始正常化，但隨著 OEM 不再庫存，打印機銷售開始減速。我們正在努力培育這些新的客戶關係，以保留盡可能多的份額。就這樣了。現在我想把電話轉給史蒂夫，讓他對這些數字進行更詳細的審查。史蒂夫？

Thanks, John. Thanks, everyone, for joining us this afternoon. Let's turn to our second quarter '23 results in more detail. As John mentioned, total net sales for the second quarter were $19.9 million, which was up 58% compared to the $12.6 million we reported a year ago. Sales from our food service technology market or FST, for the second quarter were $3.9 million, which was up 13% sequentially and also up 14% compared to $3.4 million in the prior year period. The increase was largely due to higher shipments of labels in our AccuDate 9700 product as well as record high BOHA! software subscription revenue.

謝謝，約翰。謝謝大家今天下午加入我們。讓我們更詳細地討論 23 年第二季度的業績。正如 John 提到的，第二季度的總淨銷售額為 1,990 萬美元，比我們一年前報告的 1,260 萬美元增長了 58%。第二季度我們的食品服務技術市場 (FST) 銷售額為 390 萬美元，比上一季度增長 13%，與去年同期的 340 萬美元相比增長 14%。這一增長主要是由於 AccuDate 9700 產品中標籤出貨量的增加以及創紀錄的 BOHA!軟件訂閱收入。

As John mentioned, we added 743 terminals in the second quarter, which gave us 13,476 in the market at the end of the quarter. While we're encouraged by the sequential increase in our FST sales, our sales initiatives will take time to implement and then flow through to our bottom line results. So we believe this number may continue to be lumpy for a while. Our recurring FST sales, which includes software and service subscriptions as well as consumable label sales for the second quarter were $2.5 million, which was up 14% compared to $2.2 million in the prior year period.

正如約翰提到的，我們在第二季度增加了 743 個終端，這使得我們在季度末的市場上有 13,476 個終端。雖然我們對 FST 銷售額的連續增長感到鼓舞，但我們的銷售計劃需要時間來實施，然後才能體現我們的底線結果。因此，我們認為這個數字可能會在一段時間內繼續不穩定。第二季度我們的經常性 FST 銷售額（包括軟件和服務訂閱以及消耗品標籤銷售額）為 250 萬美元，比去年同期的 220 萬美元增長了 14%。

Our ARPU for the second quarter of '23 was $782, which was down 9% compared to $861 in the second quarter of last year, but up sequentially by 3% compared to $761 in the first quarter. As a reminder, we're currently selling some BOHA! Terminals with no recurring revenue attached to them to start. While this presents an opportunity to sell recurring elements in the future, for now, they represent a drag on our ARPU.

我們 23 年第二季度的 ARPU 為 782 美元，與去年第二季度的 861 美元相比下降了 9%，但與第一季度的 761 美元相比環比增長了 3%。提醒一下，我們目前正在出售一些 BOHA！啟動時不附帶經常性收入的終端。雖然這提供了未來出售重複元素的機會，但就目前而言，它們拖累了我們的 ARPU。

Our casino and gaming sales were $12.2 million, which was up 87% from the second quarter of '22, but down sequentially 23% from the first quarter record high at $15.8 million. As John mentioned, this is due to a combination of the gradual reentry of our major competitor into the market as well as OEMs working down high levels of printer inventory they stockpiled during the supply crisis that's now eased.

我們的賭場和博彩銷售額為 1220 萬美元，比 2022 年第二季度增長 87%，但比第一季度創紀錄的高點 1580 萬美元連續下降 23%。正如約翰所提到的，這是由於我們的主要競爭對手逐漸重新進入市場，以及原始設備製造商減少了在供應危機期間儲存的高水平打印機庫存（現已緩解）的結果。

Despite these factors, we continue to see strength in our domestic sales, which were up 141% year-over-year. POS automation sales for the second quarter increased by 63% from the prior year $1.9 million -- to $1.9 million. This was the result of higher Ithaca 9000 sales as compared to this time last year when sales were limited due to supply chain issues that restricted our product availability. We expect sales in this market to return to more normalized levels as competitors begin ramping production and we lower prices to remain competitive.

儘管存在這些因素，我們的國內銷售仍然強勁，同比增長 141%。第二季度 POS 自動化銷售額從去年同期的 190 萬美元增長了 63%，達到 190 萬美元。這是伊薩卡 9000 銷量高於去年同期的結果，去年同期由於供應鏈問題限制了我們的產品供應，銷量受到限制。我們預計，隨著競爭對手開始提高產量，而我們降低價格以保持競爭力，該市場的銷售將恢復到更加正常的水平。

Moving to TransAct Services Group or TSG, sales. For the second quarter, TSG sales were up 30% year-over-year to $1.9 million. This increase was largely due to higher sales of spare parts and service for our legacy lottery printers. Though we had a strong second quarter, sales of legacy lottery printer spare parts can be sporadic, difficult to predict and can vary significantly from quarter-to-quarter.

轉到 TransAct Services Group 或 TSG，負責銷售。第二季度，TSG 銷售額同比增長 30%，達到 190 萬美元。這一增長主要是由於我們傳統彩票打印機的備件和服務銷量增加。儘管我們第二季度表現強勁，但傳統彩票打印機備件的銷售可能是零星的、難以預測的，並且每個季度都有很大差異。

Moving down the income statement. Our second quarter gross margin was 54.5%, down slightly from a record high of 55% in the prior year quarter, but up from 43% in the prior year period. This comes as a result of higher overall sales volume, improved mix of higher margin in casino and gaming printer sales and the effect of 2 rounds of price increases we instituted during '22 to account for increased production and shipping cost at the time.

將損益表向下移動。我們第二季度的毛利率為 54.5%，略低於去年同期 55% 的歷史高位，但高於去年同期的 43%。這是由於整體銷量增加、賭場和遊戲打印機銷售利潤率提高以及我們在 22 年期間為解決當時生產和運輸成本增加而實施的兩輪提價的影響。

However, as John mentioned, we expect to see some modest deleveraging of our gross margin due to expected price reductions across certain products, particularly in casino and gaming. As a result, looking forward to the second half of '23, we expect our gross margin to return to a level closer to our historical pre-COVID average. Our total operating expenses for the second quarter increased 15% to $9.6 million. Excluding a severance charge, which I'll talk about in a bit, our operating expenses decreased 3%. Breaking this down a bit, our engineering and R&D expenses for the second quarter increased 15% to $2.5 million. The increase was largely due to higher incentive compensation as well as additional software quality resources and increased outside testing fees.

然而，正如約翰提到的，由於某些產品（尤其是賭場和博彩產品）的預期價格下降，我們預計毛利率將出現一定程度的去槓桿化。因此，展望 23 年下半年，我們預計我們的毛利率將恢復到接近新冠疫情前歷史平均水平的水平。我們第二季度的總運營支出增長了 15%，達到 960 萬美元。除去遣散費（我稍後會談到），我們的運營費用下降了 3%。稍微細分一下，我們第二季度的工程和研發費用增加了 15%，達到 250 萬美元。這一增長主要是由於更高的激勵薪酬以及額外的軟件質量資源和外部測試費用的增加。

Our selling and marketing expenses decreased 19% to $2.7 million for the second quarter on a year-over-year basis, largely due to reduced trade show expenses and BOHA! market studies conducted in the first half of '22 that we did not repeat in '23.

第二季度我們的銷售和營銷費用同比下降 19% 至 270 萬美元，這主要是由於貿易展覽費用和 BOHA!我們在 22 年上半年進行的市場研究在 23 年沒有重複。

Lastly, our G&A expenses increased 52% to $4.4 million for the second quarter. The increase was largely due to a onetime severance charge of $1.5 million related to the resignation of our former CEO in April. Excluding this charge, G&A expenses would have been relatively flat at approximately $3 million, up only 2% year-over-year. We generated operating income of $1.2 million in the second quarter '23 compared to an operating loss of $3 million in the prior year period.

最後，我們第二季度的一般管理費用增加了 52%，達到 440 萬美元。這一增長主要是由於我們前任首席執行官 4 月份辭職而產生的 150 萬美元一次性遣散費。除去這筆費用，一般管理費用將相對持平，約為 300 萬美元，同比僅增長 2%。 2023 年第二季度我們的營業收入為 120 萬美元，而去年同期的營業虧損為 300 萬美元。

Our results last year were negatively impacted by lower sales volume associated with the COVID-related supply chain issues. On the bottom line, we recorded net income of $765,000 or $0.08 per diluted share compared to a net loss of $2.4 million or $0.24 loss per diluted share in the year ago period. Excluding the $1.5 million severance charge I just discussed, our EPS would have been $0.22 for the current quarter.

我們去年的業績受到了與新冠疫情相關的供應鏈問題導致的銷量下降的負面影響。總而言之，我們錄得淨利潤 765,000 美元，即稀釋後每股虧損 0.08 美元，而去年同期淨虧損為 240 萬美元，即稀釋後每股虧損 0.24 美元。除去我剛才討論的 150 萬美元遣散費，我們本季度的每股收益將為 0.22 美元。

Our adjusted EBITDA for the quarter improved to $3.2 million compared to an adjusted EBITDA loss of $2.5 million in the second quarter last year. As John mentioned, for '23, we now expect to generate total adjusted EBITDA of between $8 million and $8.5 million. And lastly, on the balance sheet, we finished the quarter with $10.8 million in cash and $2.25 million of debt outstanding on our credit facility with Siena Lending. And with that, operator, I think we'd like to open up the call for questions.

我們本季度調整後的 EBITDA 增至 320 萬美元，而去年第二季度調整後的 EBITDA 虧損為 250 萬美元。正如 John 提到的，我們現在預計 23 年的調整後 EBITDA 總額將在 800 萬至 850 萬美元之間。最後，在資產負債表上，本季度結束時，我們與 Siena Lending 的信貸安排中擁有 1,080 萬美元的現金和 225 萬美元的未償債務。接線員，我想我們現在可以開始提問了。

(Operator Instructions). Your first question comes from Jeff Martin, Roth MKM.

（操作員說明）。你的第一個問題來自 Jeff Martin，Roth MKM。

Hope you're doing well. John, I wanted to dig in a little bit more on what's changed with the go-to-market, how quickly that starts to produce changes in behavior and then ultimately, improved sales results?

希望你做得很好。約翰，我想更深入地了解上市帶來的變化，這種變化以多快的速度開始產生行為變化，並最終改善銷售業績？

Yes. There's a lot of stuff that you can do relative to marketing automation to use that as kind of -- you go out and you try to find somebody that's got some possibility of being interested in your product ultimately and you've got to work it all the way to the port where you close a deal. And then frankly, you've got to treat that customer well. So I call that from A to A, from awareness to advocacy. And we just really had a disconnect in my opinion, between marketing and sales.

是的。您可以做很多與營銷自動化相關的事情來使用它——您出去嘗試找到最終可能對您的產品感興趣的人，並且您必須全力以赴前往達成交易的港口的路線。坦率地說，你必須善待那個顧客。所以我稱之為從 A 到 A，從意識到倡導。在我看來，我們在營銷和銷售之間確實存在脫節。

The market opportunity is big, but we really didn't have our arms around it. And so we've implemented a number of what I would call GTM metrics related to funnel management, everything from awareness to nurture track to marketing qualified leads to sales-qualified leads and then ultimately turning over sort of conversation ready opportunities to the sales team. And you can't take a salesperson and say, well, there's a lot of potential customers out there, go get them and have them basically making all the cold calls and yet you're still doing a bunch of trade shows and getting a bunch of people to scan badges.

市場機會很大，但我們確實沒有抓住它。因此，我們實施了許多與漏斗管理相關的 GTM 指標，從意識到培養跟踪，到營銷合格的潛在客戶，再到銷售合格的銷售線索，最後將某種對話準備機會交給銷售團隊。你不能對銷售人員說，好吧，那裡有很多潛在客戶，去找他們，讓他們基本上打所有的推銷電話，但你仍然在做一堆貿易展覽並得到一堆掃描徽章的人。

And so we are putting a process in place that sort of manages that, looks at the yield at every step and then figures out is it getting better? Is it getting worse? What's work and what's not and how do we improve where it's not working as well as it should be and how do we do more of the stuff that works well. And this is just something that we didn't do much of.

因此，我們正在製定一個流程來管理這一點，查看每一步的產量，然後弄清楚它是否變得更好？情況變得更糟了嗎？什麼有效，什麼無效，我們如何改進那些沒有發揮應有作用的地方，以及我們如何做更多有效的事情。而這只是我們沒有做太多的事情。

A couple of other things are, I'm gradually implementing some metrics that I think for those of you and the investors that track companies that deliver services. I think you're going to see us reporting on attrition and expansion, net retention even customer acquisition costs and a lot of things that you find in most of the modern SaaS companies, I'm pretty familiar with most of those things. And we're creating an awareness in the team around all that and we're also finding some of the marketing initiatives that we've undertaken don't yield the best results or that the results are very expensive, and some of the other ones are easy to do and we get better results and the yield -- the conversion yields are much better.

其他一些事情是，我正在逐步實施一些我認為適合你們和跟踪提供服務的公司的投資者的指標。我認為您會看到我們報告有關人員流失和擴張、淨保留甚至客戶獲取成本以及您在大多數現代 SaaS 公司中發現的許多內容，我對其中的大部分內容都非常熟悉。我們正在團隊中建立圍繞這一切的意識，我們還發現我們採取的一些營銷舉措並沒有產生最好的結果，或者結果非常昂貴，還有一些其他的很容易做到，我們得到了更好的結果和產量——轉化率要好得多。

So a lot of the focus has been on that. We've got a great product and there's a big more or less untapped market opportunity. And that's kind of what we -- where we're putting a lot of the -- a lot of that sort of the business process focuses in place there. And it's underway, I've got a great Chief Revenue Officer. She's been with us for quite a while, but she knows all about the company, and she's kind of a take no prisoners, kind of a manager in a good way. She's got great bedside manage, but she's expecting the sales team to produce. And we've made some personnel changes. We've moved some people around. And one of the things that the 2 businesses are different, but one of the things we are focused on is account retention and continued market share penetration into the gaming and casino space, where it's a more steady eddy kind of business, but we picked up a fair amount of extra market share in the last year. And that's a keen area as well. So we're not taking our eye off that ball as well.

所以很多注意力都集中在這一點上。我們擁有出色的產品，並且或多或少存在著尚未開發的巨大市場機會。這就是我們——我們在那裡放置了很多——很多這樣的業務流程的重點。它正在進行中，我有一位出色的首席營收官。她在我們這裡已經有一段時間了，但她了解公司的一切，而且她是一個不拘一格的人，是一位很好的經理。她擁有出色的床邊管理，但她希望銷售團隊能夠發揮出色。我們還進行了一些人事變動。我們已經轉移了一些人。這兩項業務有所不同，但我們關注的事情之一是帳戶保留和對遊戲和賭場領域的持續市場份額滲透，這是一種更穩定的渦流業務，但我們撿起了去年獲得了相當多的額外市場份額。這也是一個熱衷的領域。所以我們也不會把目光從那個球上移開。

Great. And then one more, if I could. In terms of FST markets, where they stand, are large restaurant groups looking to deploy further technology at this time? Or are we still in an environment where inflation costs related to input and labor are still affecting their decision-making. And then maybe you could touch on like convenience store and like the grocery market in terms of touching on the major end markets for FST in terms of the receptiveness in this environment?

偉大的。如果可以的話，然後再來一張。就 FST 市場而言，大型餐飲集團目前是否希望部署進一步的技術？或者說，我們是否仍處於這樣一個環境：與投入和勞動力相關的通脹成本仍在影響他們的決策。然後，也許您可​​以談談便利店和雜貨市場，就 FST 的主要終端市場而言，就這種環境的接受程度而言？

Well, I think the restaurant space is still back on its heels a little bit. Prices are up. Most of them are focused on the front of the house right now. That's a more immediate payback kind of thing. I just read the toast print and it looks good. They've done a really good job, in my opinion. We see that market opportunity coming back, we're engaged. And if you get into the quick-serve restaurants, I mean, some of the large chains are very good candidates for us. I will mention because it's been mentioned before, one of the large ones is buying again from us. They kind of slowed down while they were revamping some of their stores.

嗯，我認為餐廳空間仍然有點落後。價格上漲了。他們中的大多數人現在都集中在房子的前面。這是一種更直接的回報。我剛剛讀了吐司印刷品，看起來不錯。在我看來，他們做得非常好。我們看到市場機會回來了，我們參與其中。如果你進入快餐店，我的意思是，一些大型連鎖店對我們來說是非常好的選擇。我會提到，因為之前已經提到過，其中一個大公司再次從我們這裡購買。他們在改造一些商店時放慢了速度。

We're having good conversations with some of the other large groups but in terms of your fine dining and those sorts of opportunities where maybe they've got a handful of stores or maybe 20 or 30 or 40 or 50 stores. We're focused now predominantly on the larger chains and the larger restaurant operators because the effort to sell there is pretty much the same calorie investment as it is if we're trying to get somebody who's got 30 stores. If we do get a green light from some of the franchises, the headquarters, on a couple of these large ones where the individual franchisees have an opportunity to actually decide, yes, I do want to use this. I think you're going to see -- I wouldn't call it floodgates open, but I would say I think you're going to see a real steady uptick in business throughout those franchise organizations.

我們正在與其他一些大型團體進行良好的對話，但就您的美食以及這些機會而言，他們可能擁有幾家商店，或者可能有 20 或 30 或 40 或 50 家商店。我們現在主要關注較大的連鎖店和較大的餐廳經營者，因為在那裡銷售的努力與我們試圖獲得擁有 30 家商店的人幾乎相同的卡路里投資。如果我們確實得到一些特許經營權、總部的批准，對其中一些大型特許經營商有機會做出實際決定，是的，我確實想使用這個。我想你會看到——我不會稱之為閘門打開，但我想說的是，我認為你會看到這些特許經營組織的業務真正穩定增長。

Right now, Grab and Go grocery store, Sushi as an example and food service managers or easier sales right now. I mean, everybody is still eating food and adds everything from compliance, we help you with compliance, we help you by eliminating food waste, we help you by reducing labor, and we help you by not making mistakes. And frankly, a lot of these places have a lot of head count turnover and the ability to use these systems to train people or to make sure that they don't make the errors really makes a difference.

現在，以 Grab and Go 雜貨店為例，壽司為例，食品服務經理或現在更容易銷售。我的意思是，每個人仍然在吃食物，並從合規性中添加一切，我們幫助您合規性，我們通過消除食物浪費來幫助您，我們通過減少勞動力來幫助您，我們通過不犯錯誤來幫助您。坦率地說，很多這樣的地方都有大量的人員流動，並且能夠使用這些系統來培訓人員或確保他們不會犯錯誤，這確實會產生影響。

And the economics and the ROI on the product is actually pretty excellent. So we're focusing right now where there's more low-hanging fruit. We've just done a pretty extensive market review where we're looking at the top x number of companies in every one of the different buckets. And we kind of know where we've been, where we haven't been and who needs us and who doesn't, and that's part of the go-to-market strategy that we've kind of implemented. We're targeting both the sales and marketing teams at the place where we -- the places where we think the greatest opportunity, if that makes sense.

該產品的經濟效益和投資回報率實際上非常出色。因此，我們現在的重點是那些更容易實現的目標。我們剛剛進行了一項相當廣泛的市場審查，我們正在研究每個不同類別中排名前幾位的公司。我們知道我們去過哪裡、沒去過哪裡、誰需要我們、誰不需要我們，這是我們實施的市場進入戰略的一部分。我們的目標是我們認為機會最大的地方的銷售和營銷團隊，如果這有意義的話。

(Operator Instructions). Your next question comes from George Sutton, Craig-Hallum.

（操作員說明）。你的下一個問題來自克雷格·哈勒姆的喬治·薩頓。

John, just a follow-up on something you just mentioned. You talked about the ROI being excellent for the BOHA! Terminals. I've not seen anything published or really discussed relative to ROI. So how do you actually communicate that?

約翰，只是你剛才提到的事情的後續。您談到 BOHA 的投資回報率非常高！終端。我還沒有看到任何與投資回報率相關的出版物或真正討論過的內容。那麼你如何實際傳達這一點呢？

Verbally, unfortunately, that's an area from a marketing standpoint that we're up leveling. We got a great product technically. We're very proud of it. We got great engineers. But feeds and speeds isn't why managers buy stuff. They buy it because of the business value it adds. And one of the things that I have encountered is that you can look at a brochure from TransAct and candidly, it talks about a nice bright screen, talks about 300 dpi printing. It talks about how reliable it is and those are all really important. But at the end of the day, you want to apply those things to some business problem you've got in your operation.

不幸的是，從營銷角度來說，這是我們正在提升的一個領域。我們在技術上得到了出色的產品。我們對此感到非常自豪。我們有很棒的工程師。但飼料和速度並不是經理們購買東西的原因。他們購買它是因為它增加了商業價值。我遇到的一件事是，你可以坦白地看 TransAct 的一本小冊子，它談到了漂亮的明亮屏幕，談到了 300 dpi 打印。它談到了它的可靠性，這些都非常重要。但最終，您希望將這些東西應用到您運營中遇到的一些業務問題。

And I'm working to -- if you will, add the business value dimension to our go-to-market from a sales team, whether it's prospecting, proof of concept or even here's the ROI on how much it's going to save if you buy one of these things. And frankly, the terminals easily pay for themselves in a matter of a few months, and we don't really market that way. And I think that's something that you're going to see that be part of the pointy end of the spear as we move forward.

如果你願意的話，我正在努力將業務價值維度添加到我們銷售團隊的市場推廣中，無論是勘探、概念驗證，甚至是投資回報率，如果你願意的話，可以節省多少錢購買其中一件東西。坦率地說，終端在幾個月內就可以輕鬆收回成本，而我們並沒有真正以這種方式進行營銷。我認為，當我們繼續前進時，你會看到它成為矛尖的一部分。

Great. You mentioned that with the BOHA! 2, you've got an ability to go after some of your existing terminals out there. Can you just give us a sense of AccuDate, how many of those are out there in the market that you would view as opportunistic? And if I'm specifically looking at the BOHA! 1, a relevant number there as well.

偉大的。你在 BOHA 中提到過這一點！ 2、您有能力追踪現有的一些終端。您能給我們介紹一下 AccuDate 嗎？市場上有多少您認為是機會主義的？如果我專門看 BOHA！ 1，還有相關的數字。

Steve, do you want to hit that one, because you got the numbers? .

史蒂夫，你想打那個嗎，因為你有數字嗎？ 。

Yes, George, probably I think we're mainly talking about our first gen, replacing the 9700, and there's tens of thousands of those out there.

是的，喬治，我想我們主要討論的是我們的第一代產品，它取代了 9700，而且市面上有數以萬計的產品。

The difference between those 2 is the 9700 a stand-alone unit. Works great, very reliable, good little workhorse, but it's not online, it's not connected. And ultimately, my opinion is the BOHA! Terminal can be a platform in the back of the house. And frankly, you could run any software you wanted to run. And so the fact that it's connected and for large organizations that have multiple stores, the ability to have sort of one menu as it were or different menus in different geographies or to be able to upload stats on this that and the other thing. There's just a big difference between having interconnectivity of the BOHA! Terminal 2 and the older 9700.

這兩者之間的區別在於 9700 是一個獨立的單元。工作得很好，非常可靠，很好的小主力，但它不在線，它沒有連接。最終，我的觀點是 BOHA！終端可以是房子後面的平台。坦率地說，您可以運行任何您想運行的軟件。事實上，它是相互連接的，對於擁有多個商店的大型組織來說，能夠擁有一個菜單，或者在不同地區有不同的菜單，或者能夠上傳這個和其他東西的統計數據。 BOHA 的互連性之間有很大的區別！ 2 號航站樓和較舊的 9700。

So we're pretty excited about that. We think we're going to get a lot of upgrades. The downside in all of this is a gang products we make are so darn reliable. That I love it on one hand, but on the other hand, no break. There's no planned obsolescence in these things. We've got printers out there doing workhorse printers that are out there have been working hard at work for 10 years. And we're just waiting for the customer to follow and say, it broke, could you get me another one. But with the 9700, the upgrade to being fully connected and being able to do some of the things like you can do today in the 21st century I think, ultimately, it's going to be really important for the organizations that want to use technology to gain competitive advantage.

所以我們對此感到非常興奮。我們認為我們將會得到很多升級。所有這一切的缺點是我們生產的幫派產品非常可靠。一方面我喜歡它，但另一方面，我又沒有休息。這些東西沒有計劃報廢。我們有一些打印機正在做主力打印機，它們已經努力工作了 10 年。我們只是等待客戶跟上說，它壞了，你能給我再買一個嗎？但隨著 9700 的升級，完全連接並能夠做一些像 21 世紀今天一樣的事情，我認為，最終，對於那些想要利用技術來獲取信息的組織來說，這將是非常重要的。競爭優勢。

Got you. And then final question relative to the printer side. When supply chain normalized and you were able to start shipping, you built fairly significant production capacity added lines, et cetera. Can you just give us an update on what your plans are for -- from a production capacity perspective?

明白你了。然後是與打印機端相關的最後一個問題。當供應鏈正常化並且您能夠開始運輸時，您就建立了相當大的生產能力，增加了生產線，等等。您能否從產能的角度向我們介紹一下您的計劃的最新情況？

We've got pretty good production capacity. It's all CM, contract manufacturing, and they are pretty elastic. So in that regard, we're in pretty good shape. We're probably going to add a fourth line in a different country. We haven't made an economic decision as to where is best. We've moved almost 100% -- almost -- not all, 100% of our manufacturing is not in China, but there's a little bit of stuff still left there. But I think we're going to pick another location. It may be in Asia, but that we might find an opportunity to do some manufacturing in the Americas. I haven't decided that yet, but we like the flexibility.

我們有相當好的生產能力。這都是CM、合同製造，而且非常有彈性。所以在這方面，我們的狀況非常好。我們可能會在另一個國家/地區添加第四條線路。我們還沒有做出關於哪裡最好的經濟決定。我們已經幾乎100%——幾乎——不是全部，我們的製造100%不在中國，但還有一點東西留在那裡。但我想我們會選擇另一個地點。可能是在亞洲，但我們可能會找到在美洲進行一些製造的機會。我還沒有決定，但我們喜歡這種靈活性。

We've got a really good engineering team and manufacturing and operations team. It's one of the areas where it ain't broke and don't fix it. And as you saw, I mean, we did marvelously well during the recovery from the pandemic when most companies couldn't ship, didn't have product, could be that part and we were able to come through on that front. And I give the team enormous kudos for being able to work their way through that. And as I mentioned in the call, I think we're going to retain easily 10% to 15% increase in market share, at least in the gaming and casino printing business.

我們擁有一支非常優秀的工程團隊以及製造和運營團隊。這是沒有損壞也沒有修復的區域之一。正如你所看到的，我的意思是，我們在從大流行中恢復期間做得非常好，當時大多數公司無法發貨，沒有產品，可能是那部分，而我們能夠在這方面渡過難關。我對團隊能夠克服困難表示極大的讚譽。正如我在電話中提到的，我認為我們將輕鬆保持 10% 至 15% 的市場份額增長，至少在遊戲和賭場印刷業務中如此。

There are no further questions at this time. Please proceed.

目前沒有其他問題。請繼續。

So let me wrap this up here. Bottom line, I think we put together a pretty solid quarter. I think we're doing a lot of the right work to put the company on the right track. And I mentioned that we've retooled the FST go-to-market piece, manufacturing is in good shape. We're watching expenses and optimizing the spend on marketing, the spend on sales and the new terminal, the BOHA! Terminal 2 looks to be a winner, and we're taking that to market.

讓我在這裡總結一下。最重要的是，我認為我們度過了一個相當穩定的季度。我認為我們正在做很多正確的工作來讓公司走上正確的軌道。我提到我們已經重新調整了 FST 上市部分，製造狀況良好。我們正在關注費用並優化營銷支出、銷售支出和新航站樓 BOHA！ 2 號航站樓看起來是贏家，我們正在將其推向市場。

The only other thing I'd say is I'm not done figuring out everything that I think we need to be doing here, ultimate strategy, tactics and the like. I'm 127 days in here. But we're going to be formulating and are formulating our thoughts and plans going forward. And you'll probably see us discuss things like strategy issues, initiatives and this, that and the other thing. Probably either later in this quarter or very early in Q4 after we do our earnings announcement where we really want to give the stakeholders an understanding of the opportunity ahead the future, the trade-offs and the opportunities and what we believe are the best courses of action. So that's something to be determined yet to work in progress. And I would hope everybody will stay tuned and give us a little more time to sort of vet the future and communicate that transparently to the stakeholders and that's all I have.

我唯一想說的是，我還沒有弄清楚我認為我們需要在這裡做的一切，最終的戰略、戰術等等。我在這裡已經 127 天了。但我們將會制定並正在製定我們未來的想法和計劃。你可能會看到我們討論諸如戰略問題、倡議之類的事情。可能是在本季度晚些時候或第四季度初，在我們發布收益公告後，我們真的想讓利益相關者了解未來的機會、權衡和機會以及我們認為最好的途徑。行動。所以這是一些有待確定的事情，還有待進行。我希望每個人都能保持關注，給我們更多的時間來審視未來，並與利益相關者透明地溝通，這就是我所擁有的一切。

Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。