TransAct Technologies Inc (TACT) 2023 Q3 法說會逐字稿

Greetings and welcome to the TransAct Technologies' third-quarter 2023 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 TransAct Technologies 的 2023 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Ryan Gardella, Investor Relations. Thank you, sir. You may begin.

現在我很高興向您介紹主持人瑞安·加德拉（Ryan Gardella），投資者關係部門。謝謝你，先生。你可以開始了。

Thanks, Kyle. Good afternoon, and welcome to TransAct Technologies' third-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, Steve DeMartino.

謝謝，凱爾。下午好，歡迎參加 TransAct Technologies 的 2023 年第三季財報電話會議。今天，我們將討論收盤後發布的新聞稿中宣布的結果。加入我們公司的是執行長 John Dillon；以及總裁兼財務長 Steve DeMartino。

Today's call will include discussion of the company's key operating strategies, progress on those initiatives, and details on our third-quarter financial results. We will then open the call to participants for questions.

今天的電話會議將討論公司的主要營運策略、這些舉措的進展以及我們第三季財務業績的詳細資訊。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，實際結果可能有重大差異。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聲明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, a 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's website.

今天的電話會議和網路廣播將包括 SEC G 條例含義內的非 GAAP 財務指標。如果需要，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帳可在今天的新聞稿以及公司網站。

And with that, I'd like to turn the call over to John. John?

說到這裡，我想把電話轉給約翰。約翰？

Hey, Ryan. Thank you. And good afternoon, everyone, and thank you for joining us today. I'm pleased with our progress. We're making an operationally across the organization, and I'm happy to report fairly solid results for the quarter. That said, I'm the first to acknowledge that we've still got some work to do, a lot of work to be done, and changes we've made and continue to make are going to take some time. It's always take time to produce the results that we know we need and we know that it helps the company deliver the future that we want. So on the top line, results were in line with basically what we expected for the quarter and discussed in the last call.

嘿，瑞安。謝謝。大家下午好，感謝您今天加入我們。我對我們的進展感到滿意。我們正在整個組織內進行運營，我很高興報告本季相當穩健的業績。也就是說，我是第一個承認我們仍然有一些工作要做的人，還有很多工作要做，我們已經做出和繼續做出的改變將需要一些時間。產生我們知道需要的結果總是需要時間，我們知道這有助於公司實現我們想要的未來。因此，在最重要的方面，結果基本上符合我們對本季的預期並在上次電話會議中討論。

Net sales, $17.2 million was down sequentially year over year 4% and approximately 14% down sequentially. The sequential decline was a result of lower casino and gaming sales, and I'll talk a little bit about that shortly later in the call.

淨銷售額 1,720 萬美元，年減 4%，季減約 14%。連續下降是賭場和遊戲銷售額下降的結果，我將在稍後的電話會議中討論這一點。

Operationally, I believe we made an incredible amount of progress and are very much on the right track to getting the business back to a place of sustainable strength. And before I jump into the results on a by market basis, I want to talk a little bit about some of the specific initiatives that we have underway.

在營運方面，我相信我們取得了令人難以置信的進展，並且正在走上正確的道路，讓業務恢復到可持續發展的狀態。在我按市場分析結果之前，我想談談我們正在進行的一些具體舉措。

First, as we've talked in prior calls, after an extensive reorganization of our FST sales team and our go to market GTM strategies, not only do we believe -- I believe -- that we have the right pieces in place, and that's people and process in the organization to kind of make things happen. But we've also refocused our attention on the part of the market that's the best place for us to win, and we expect to see results from these changes in the first half of 2024.

首先，正如我們在之前的電話中談到的那樣，在對我們的FST 銷售團隊和我們的GTM 上市策略進行了廣泛重組之後，我們不僅相信——我相信——我們已經準備好了正確的部分，而且組織中的人員和流程使事情發生。但我們也將注意力重新集中在最適合我們獲勝的市場部分，我們預計將在 2024 年上半年看到這些變化的結果。

The BOHA! platform, including new T2 terminal, our high-end enterprise-grade products. They're designed for enterprise-type customers. These are bigger customers; they are more complex and more sophisticated. And as such, we should be focusing on enterprise-level opportunities.

波哈！平台，包括新的T2終端，我們的高階企業級產品。它們是為企業型客戶設計的。這些是更大的客戶；它們更加複雜和精密。因此，我們應該關注企業級機會。

So with that objective in mind, what we've done is we focused the sales team on basically a top thousand organizations in the United States and our operations internationally abroad to sell the BOHA! platform. So this requires us to be more focused on lead generation, the lead to close metrics, and customer acquisition cost [cut]. These are areas that we really believe are important to learning how the business operates, what works, what doesn't work, how do we improve the stuff that needs improvement, how do we do more of the stuff that works and works well.

因此，考慮到這一目標，我們所做的就是將銷售團隊集中在美國的 1000 多家組織以及我們在海外的國際業務上，以銷售 BOHA！平台。因此，這要求我們更加關注銷售線索產生、銷售線索接近指標以及客戶獲取成本[削減]。我們確實認為這些領域對於了解企業如何運作、什麼有效、什麼無效、我們如何改進需要改進的內容、我們如何做更多有效和有效的事情非常重要。

In addition, we performed what you would consider a thorough scrub of the pipeline. And the good news is we're beginning to see quarter-over-quarter growth embedded and qualified leads. That's a sign of early progress, and in addition, as part of our commitment to transparency, it's my intention to publish a pipeline metric beginning next quarter, as well as number of net new logos for the FST business. I think that along with the units sold are all pretty good vectors to indicate whether we're making the progress we want to make and whether that progress is solid. So I'm hoping to start producing those total metrics next quarter.

此外，我們也對管道進行了徹底的清洗。好消息是我們開始看到季度環比的成長和合格的領先優勢。這是早期進展的標誌，此外，作為我們對透明度承諾的一部分，我打算從下個季度開始發布管道指標，以及 FST 業務的淨新徽標數量。我認為，與銷售的單位一起都是非常好的向量，可以表明我們是否正在取得我們想要取得的進展以及這種進展是否穩固。因此，我希望下個季度開始產生這些總體指標。

And just to take a side bar here, a side note, I think the best way to look at metrics is over a temporal period. In other words, having just a particular number with no context as to what it was before and what we think it's going to be in the future, it's sort of worthless. I want to know if something is going up or down, is up good or is up bad, is down good or is down bad. And then if it's up that then it's good. Let's do more of that. If it's up and it's bad, let's do less of whatever it's causing that. I think that's investment instrument your business. And so we're really focused on that.

順便提一下，我認為查看指標的最佳方法是在一個時間段內。換句話說，只有一個特定的數字，而沒有任何關於它之前是什麼以及我們認為它未來會是什麼的背景，它是毫無價值的。我想知道某件事是上升還是下降、上升好還是上升壞、下降好還是下降壞。如果是的話那就很好了。讓我們做更多這樣的事吧。如果情況好轉且情況很糟糕，那麼我們就少做一些造成這種情況的事情。我認為這是您業務的投資工具。所以我們非常關注這一點。

But now, I will point out that, as I've mentioned before, these are long intensive processes. These improvements take time to be implemented and for us to expect that instantaneous. Return is not realistic. It's really something where we're going to iterate. We're going to optimize the measurement of these things and how we manage the metrics and what they tell us over time.

但現在，我要指出，正如我之前提到的，這些都是長期密集的過程。這些改進需要時間才能實施，我們期望立即實現。回報並不現實。這確實是我們要迭代的事情。我們將優化這些事情的衡量以及我們如何管理指標以及它們隨著時間的推移告訴我們什麼。

Also, along with this project process looking into the pipeline, I'm pleased to announce that we have one formal approval from global QSR to sell a new BOHA! Terminal 2 into their stores overseas and with US approval pending but expected. This is a multi-thousand unit opportunity for us, and what we have already seen the first few orders from this win. So it's very exciting for us that I wanted to let you know that. It is hard, however, to predict the penetration rate and the cadence of sales at this time because different franchisees buy different rates and things like that, as you all know. But we will provide you a more fulsome update when possible.

此外，隨著該專案流程對管道的調查，我很高興地宣布，我們已獲得全球 QSR 的正式批准，可以銷售一款新的 BOHA！ 2 號航站樓將進入他們的海外商店，並正在等待美國批准，但預計會成功。這對我們來說是一個數千單位的機會，我們已經從這次勝利中看到了前幾筆訂單。所以我想讓你們知道這一點對我們來說非常令人興奮。然而，現在很難預測滲透率和銷售節奏，因為眾所周知，不同的加盟商購買不同的價格和類似的東西。但我們會盡可能為您提供更豐富的更新。

I would also like to mention the cost-cutting and rebalancing of our teams and organization as a whole. We reported that in our press release, and I think it's a really important aspect of the way we're running the business. During the quarter, we began the cost-cutting effort that included eliminating approximately 10% of our workforce through a combination of attrition and selective headcount reductions, as well as cutting of cost sales in marketing, G&A, and engineering. And when completed, more or less in the fourth quarter, we estimate that these actions will produce an aggregate operating expense savings of approximately $3 million on an annualized basis. And we will see the full effect of these cuts in 2024.

我還想提及我們團隊和整個組織的成本削減和重新平衡。我們在新聞稿中報導了這一點，我認為這是我們經營業務方式的一個非常重要的方面。本季度，我們開始削減成本，包括透過自然減員和選擇性裁員相結合的方式裁減約 10% 的員工，以及削減行銷、一般管理費用和工程方面的銷售成本。當完成後，大約在第四季度，我們估計這些行動將每年節省約 300 萬美元的營運費用。我們將在 2024 年看到這些削減的全部效果。

So with organization streamline and focus, we believe we're better positioned for long-term success and enhance profitability. And I'd ask Steve during his portion of the call to go over the details on the third-quarter numbers shortly.

因此，透過組織精簡和重點關注，我們相信我們能夠更好地實現長期成功並提高獲利能力。我會要求史蒂夫在電話會議中盡快討論第三季數據的細節。

The third and final initiative I want to mention before jumping into results involves a fourth-quarter development that I think we should share in the coming weeks. We intend to engage with an adviser for the C-suite and Board of Directors. They help us seek lock down elements of our long-term strategy for our business. We believe an independent external third-party perspective will be important to help us make decisions about areas for TransAct, the focus to ensure that we maximize value for shareholders and stakeholders, and in that regard, we will provide updates on this initiative as they become available.

在討論結果之前，我想提到的第三個也是最後一個舉措涉及第四季度的發展，我認為我們應該在未來幾週內分享。我們打算聘請首席高階主管和董事會顧問。它們幫助我們確定業務長期策略的要素。我們相信，獨立的外部第三方觀點對於幫助我們就TransAct 領域做出決策非常重要，重點是確保我們為股東和利益相關者實現價值最大化，在這方面，我們將在該計劃發佈時提供有關該計劃的最新資訊。可用的。

So let me discuss some results and updates on our two major markets. First, Food Service Technology, FST. Total revenue was $4.2 million, up about 13% year over year. Also, we're pleased to announce that the quarter produced our highest recurring revenue for FST at $3.1 million. The first time this number was over $3 million.

因此，讓我討論一下我們兩個主要市場的一些結果和最新情況。首先，食品服務技術，FST。總收入為 420 萬美元，年成長約 13%。此外，我們很高興地宣布，本季 FST 的經常性收入達到 310 萬美元。這一數字首次超過 300 萬美元。

We sold 710 new terminals in the quarter, bringing the total number of online terminals to 13,795. While I'm disappointed in the sequential slowdown, we're confident that the changes we're making on the sales side will result in more momentum in 2024 and that we should probably start seeing some uplift in the numbers from our global QSR win in the fourth quarter of this year.

本季我們銷售了 710 個新終端，使線上終端總數達到 13,795 個。雖然我對連續放緩感到失望，但我們相信，我們在銷售方面所做的改變將在2024 年帶來更大的動力，我們可能應該開始看到我們在全球QSR 中獲勝的數字有所上升。今年第四季。

As a reminder, the BOHA! sales cycle is typically long. It's somewhat complex. It's sort of a land and expand strategy because usually they start small, but then they can continue to buy over time. And that becomes a long-standing relationship that really pays dividends. It takes age for the headquarters to sort of grant us a green light to engage with their franchisees. And this is typical with some of the most established and sophisticated franchises, and we're well on our way to getting those approvals on some key accounts. And we're optimistic that these approvals will begin to yield results as we move into 2024.

提醒一下，BOHA！銷售週期通常較長。這有點複雜。這是一種土地和擴張策略，因為通常他們從小規模開始，但隨著時間的推移他們可以繼續購買。這將成為一種真正帶來回報的長期關係。總部需要一段時間才能為我們與他們的特許經營商接觸開綠燈。這對於一些最成熟和最複雜的特許經營來說是典型的，我們正在順利地在一些關鍵客戶上獲得這些批准。我們樂觀地認為，隨著 2024 年的到來，這些批准將開始產生成果。

Next, on the casino and gaming side. Casino and gaming revenue for the quarter was $9 million, up approximately 17% year over year, but down 26% sequentially. And let me provide an update on the two major forces shaping the sales in this duopoly market.

接下來是賭場和遊戲方面。該季度賭場和博彩收入為 900 萬美元，年成長約 17%，但季減 26%。讓我介紹一下影響這個雙寡頭市場銷售的兩大主要力量的最新情況。

First, from a competitive standpoint, we assume only minor reentry into the market from our main competitor. But frankly, we have yet to see much if any of the pricing or market share erosion that we might have expected by now. And while we cannot be sure when these efforts will develop and these effects will develop, we're still fairly confident that this dynamic will shift at some point in the next few quarters. It's just hard to predict.

首先，從競爭的角度來看，我們假設我們的主要競爭對手只會少量地重新進入市場。但坦白說，我們還沒有看到我們目前可能預期的定價或市場份額侵蝕的情況。雖然我們無法確定這些努力何時會展開以及這些影響何時會顯現，但我們仍然相當有信心這種動態將在未來幾季的某個時候發生轉變。這只是很難預測。

And then second, on the inventory side, we have heard and are now continuing to hear perhaps a bit louder that the OEMs, the people who buy our systems and put them in their machines, are indicating that they are in somewhat of an oversupply position and are slowing their order rates accordingly. This was the largest reason we saw a slowdown in this quarter and likely we'll see something similar in the fourth quarter would expect a similar percentage decline in that period.

其次，在庫存方面，我們已經聽到並且現在繼續聽到的聲音可能更大一些，原始設備製造商（OEM），即購買我們的系統並將其安裝到他們的機器中的人，表明他們處於某種程度的供應過剩狀態並相應地降低了他們的訂單率。這是我們在本季看到經濟放緩的最大原因，我們可能會在第四季度看到類似的情況，預計該時期也會出現類似的百分比下降。

So at this stage, we would continue to estimate that our go-forward net sales run rate in the market should be, as I stated last quarterly report, about 15% to 20% higher than our pre-COVID historical averages before. However, we think this new run rate may not be fully in effect until 2024.

因此，在現階段，我們將繼續估計，正如我在上一季報告中所說，我們在市場上的未來淨銷售運行率應比我們之前的新冠疫情前的歷史平均水平高出約15% 至20%。不過，我們認為這項新的運行率可能要到 2024 年才會完全生效。

Finally, let's go over the outlook for the remainder of the year. Given my comments in this call, we believe the most prudent approach is to raise the low end of our current net sales guidance to a range of $72.5 million to $73.5 million for the full year and to raise our adjusted EBITDA guidance to a range of between $9.5 million and $10.0 million for the full year. These ranges take into account all the points I've discussed today, and we will update you with guidance for 2024 on our next call.

最後，讓我們回顧一下今年剩餘時間的展望。鑑於我在本次電話會議中的評論，我們認為最謹慎的方法是將我們當前全年淨銷售額指導的下限提高到7250 萬美元至7350 萬美元的範圍，並將調整後的EBITDA 指導提高到介於全年分別為 950 萬美元和 1000 萬美元。這些範圍考慮了我今天討論的所有要點，我們將在下次電話會議上向您提供 2024 年的最新指導。

I believe we have made good operational progress so far, and there are plenty of reasons to be confident as we move into 2024. We've been making progress in FST side of the business as we refocused the sales team. And as I mentioned, and we're focusing on the top thousand organizations in the TAM, the total addressable market in the US, and their operations abroad. We are in the process of optimizing the business with a $3 million reduction in spend, which we expect to experience in the full year 2024. We won approval to sell our BOHA! terminal to the overseas stores of a global QSR and expect US approval to follow. And the pipeline is scrubbed, and the pipeline is growing. And we believe that we will see continued sustainable pipeline growth going forward. And lastly, last point is that we intend to engage an adviser to give us guidance as we consider long-term direction for the business.

我相信，到目前為止，我們已經取得了良好的營運進展，並且在進入 2024 年時，我們有充分的理由充滿信心。隨著我們重新調整銷售團隊的重點，我們在 FST 業務方面取得了進展。正如我所提到的，我們將重點放在 TAM 中排名前 1000 的組織、美國的整個潛在市場及其在海外的業務。我們正在優化業務，減少了 300 萬美元的支出，預計在 2024 年全年實現這一目標。我們獲得了出售 BOHA! 的批准！終端到全球 QSR 的海外商店，並預計美國將隨後批准。管道正在被清洗，並且管道正在增長。我們相信，我們將看到未來管道持續可持續成長。最後一點是，我們打算聘請一位顧問在我們考慮業務的長期方向時為我們提供指導。

That's really my formal report here, and I'll now pass the call over to Steve for a more detailed review of the numbers. Steve?

這確實是我的正式報告，現在我將把電話轉給史蒂夫，讓他對這些數字進行更詳細的審查。史蒂夫？

Thanks, John, and thank you, everyone, for joining us. Let's jump right into the third-quarter results. As John mentioned, total net sales for the third quarter were $17.2 million, which was down 4% compared to $17.9 million from the same period last year. Sales from our Food Service Technology market, or FST, for the third quarter were $4.2 million, which was up 13% from prior-year period and 9% sequentially. This increase was largely due to record highs in both BOHA! software subscription revenue as well as label sales. We sold 710 new terminals during the third quarter, bring us to a total of 13,795 online terminals in the market at the end of Q3.

謝謝約翰，也謝謝大家加入我們。讓我們直接進入第三季的業績。正如 John 所提到的，第三季總淨銷售額為 1,720 萬美元，比去年同期的 1,790 萬美元下降了 4%。第三季我們的食品服務科技市場 (FST) 銷售額為 420 萬美元，比去年同期成長 13%，比上一季成長 9%。這一增長主要是由於 BOHA! 和 BOHA! 均創歷史新高。軟體訂閱收入以及標籤銷售。我們在第三季銷售了 710 個新終端，使我們在第三季末市場的線上終端總數達到 13,795 個。

Our recurring FST sales, which include software and service subscriptions, as well as consumable label sales for the third quarter, reached a record high $3.1 million, which was up 22% compared to $2.6 million in the prior-year period. Our ARPU for the third quarter of '23 was $929, fairly consistent with our approved $936 in the third quarter of last year. On a sequential basis, ARPU was up 19% compared to $782 in the second quarter, largely due to the record recurring revenue we realized in the third quarter of '23.

我們的經常性 FST 銷售額（包括軟體和服務訂閱以及第三季的消耗品標籤銷售額）達到創紀錄的 310 萬美元，比去年同期的 260 萬美元增長 22%。我們 23 年第三季的 ARPU 為 929 美元，與去年第三季批准的 936 美元相當一致。與第二季的 782 美元相比，ARPU 環比成長了 19%，這主要是由於我們在 23 年第三季實現了創紀錄的經常性收入。

As a reminder, we are 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. In the near term, they represent a drag on our ARPU number.

提醒一下，我們目前正在出售一些 BOHA！啟動時不附加任何經常性收入的終端。雖然這提供了未來出售重複元素的機會。短期內，它們會拖累我們的 ARPU 值。

Our casino and gaming sales were $9 million, up 17% from third quarter of '22 on the strength of domestic sales, which were up 43% year over year. However, sales were down sequentially 26% from the second quarter. The second quarter's level of $12.2 million, primarily due to OEMs working down high levels of printer inventory they stockpiled during the supply crisis earlier this year that's now eased. We expect this trend to continue into the fourth quarter.

由於國內銷售年增 43%，我們的賭場和博彩銷售額為 900 萬美元，比 2020 年第三季成長 17%。然而，銷售額較第二季季減 26%。第二季的水準為 1,220 萬美元，主要是由於原始設備製造商 (OEM) 減少了今年早些時候供應危機期間庫存的大量印表機庫存，而現在這一危機已經得到緩解。我們預計這一趨勢將持續到第四季。

POS automation sales for the third quarter decreased 69% from the prior year to $1.6 million. This was a result of return to a more normalized level of sales compared to last year when the chip shortages limited our competitors' ability to supply product, therefore, making our sales unusually high. We believe this quarter represents normalized levels for our POS automation sales, and we expect to see this trend continue into Q4 and into 2024.

第三季 POS 自動化銷售額年減 69% 至 160 萬美元。這是由於與去年相比，銷售回到了更正常的水平，當時晶片短缺限制了我們競爭對手的產品供應能力，因此，我們的銷售額異常高。我們相信本季代表了我們 POS 自動化銷售的正常水平，我們預計這一趨勢將持續到第四季度和 2024 年。

Moving to TransAct Services Group or TSG sales. For the third quarter, TSG sales doubled up 101% year over year to $2.3 million. This increase was largely due to higher sales of spare parts and service for our legacy lottery printers. Though we had a strong third quarter of these sales and expect a similar fourth quarter, sales of legacy lottery printers spare parts are sporadic. They're difficult to predict and can vary significantly from quarter to quarter.

轉向 TransAct Services Group 或 TSG 銷售。第三季度，TSG 銷售額年增 101%，達到 230 萬美元。這一增長主要是由於我們傳統彩票印表機的備件和服務銷售增加。儘管我們第三季的銷售額強勁，預計第四季也將類似，但傳統彩券印表機備件的銷售情況卻很零星。它們很難預測，並且每個季度都有很大差異。

Moving down the income statement now. Our third-quarter gross margin was 51.9%, which was down sequentially from 54.5%, but up from 45.9% in the prior-year period. This comes as a result of an improved mix of higher-margin casino and gaming printer sales, as well as the continued positive effect from two rounds of price increases we instituted in 2022 and were able to maintain through the third quarter '23. However, looking forward, we do expect to see some downward pressure on our gross margin in the fourth quarter due to lower expected sales volume.

現在將損益表向下移動。我們第三季的毛利率為 51.9%，比上一季的 54.5% 有所下降，但高於去年同期的 45.9%。這是由於高利潤賭場和遊戲印表機銷售組合的改善，以及我們在 2022 年實施的兩輪漲價帶來的持續正面影響，並能夠維持到 2023 年第三季。然而，展望未來，由於預期銷售下降，我們預期第四季毛利率將面臨一些下行壓力。

Our total operating expenses for the third quarter remained relatively consistent, decreasing by 1% to $7.7 million. In other sequential basis, after removing the effect of a $1.5 million severance charge for the termination of the former CEO in the second quarter, our operating expenses declined 5%. This sequential decline resulted from initial savings achieved from cost-cutting efforts we began to put in place late in Q3. We expect these cost reduction initiatives to have an even greater impact on our Q4 operating expense level. However, we don't expect to achieve the full effect from the cost-cutting initiative until 2024, which we believe will be about a $3 million annualized cost savings expected to be realized ratably throughout 2024.

第三季的總營運支出保持相對穩定，下降 1% 至 770 萬美元。在其他連續的基礎上，在消除第二季度因解僱前執行長而產生的 150 萬美元遣散費的影響後，我們的營運費用下降了 5%。這種連續下降是由於我們在第三季末開始實施的成本削減措施所實現的初步節省。我們預計這些成本削減措施將對我們第四季的營運費用水準產生更大的影響。然而，我們預計成本削減措施要到 2024 年才能充分發揮作用，我們相信，預計到 2024 年全年將可節省約 300 萬美元的成本。

Breaking down our operating expenses a bit more. Our engineering and R&D expenses for the third quarter increased 26% to $2.5 million. The increase was largely due to higher incentive compensation, as well as additional software resources and increased outside testing fees for new product launches.

進一步細分我們的營運費用。第三季我們的工程和研發費用增加了 26%，達到 250 萬美元。這一增長主要是由於更高的激勵薪酬、額外的軟體資源以及新產品發布的外部測試費用的增加。

Our selling and marketing expenses decreased 13% to $2.4 million for the third quarter on a year-over-year basis, largely due to cost reduction initiatives, including reductions in headcount, trade shows, and overall marketing spend.

第三季我們的銷售和行銷費用年減 13% 至 240 萬美元，這主要是由於成本削減舉措，包括人員數量、貿易展覽和整體行銷支出的減少。

Lastly, our G&A expenses decreased 8% to $2.8 million for the third quarter. The decrease was largely due to lower stock incentive compensation expense from the termination of our former CEO, as well as post go-live support for the implementation of NetSuite we incurred in the third quarter of last year that didn't repeat.

最後，第三季我們的一般管理費用下降 8% 至 280 萬美元。減少的主要原因是我們的前執行長解職導致股票激勵補償費用減少，以及我們在去年第三季為實施 NetSuite 提供的上線後支持，但沒有重複。

We generated operating income of $1.2 million or 6.9% of net sales in Q3 '23 compared to $387,000 or 2.2% of net sales in the prior-year period. Note that our operating margin last year was negatively impacted by lower gross margin, resulting largely from COVID-related supply chain issues.

23 年第三季度，我們的營業收入為 120 萬美元，佔淨銷售額的 6.9%，而去年同期為 387,000 美元，佔淨銷售額的 2.2%。請注意，我們去年的營業利潤率受到毛利率下降的負面影響，這主要是由於與新冠病毒相關的供應鏈問題造成的。

And on the bottom line, we recorded net income of $906,000 or $0.09 per share compared to $528,000 or $0.05 per share in the year-ago period. Our adjusted EBITDA for the quarter improved to $1.7 million compared to $1.2 million for the third quarter last year. And as John mentioned, for the full-year '23, we now expect to generate total adjusted EBITDA of between $9.5 million and $10 million.

從底線來看，我們的淨利潤為 906,000 美元，即每股 0.09 美元，而去年同期為 528,000 美元，即每股 0.05 美元。本季調整後 EBITDA 增至 170 萬美元，去年第三季為 120 萬美元。正如 John 所提到的，我們現在預計 23 年全年的調整後 EBITDA 總額將在 950 萬美元至 1000 萬美元之間。

And lastly, our balance sheet remains solid. We finished the quarter with $11.6 million in cash, and the minimum required $2.25 million outstanding borrowings on our credit facility with Siena Lending.

最後，我們的資產負債表仍然穩健。本季結束時，我們擁有 1,160 萬美元現金，以及錫耶納貸款機構信貸安排所需的最低 225 萬美元未償還借款。

And with that, I'd like to turn the call back over to John for any closing remarks. John?

至此，我想將電話轉回約翰，讓他發表結束語。約翰？

I want to thank you all for joining and listening, and I want to thank everyone for their support and feedback. We are dedicated to generating value for all of our stakeholders and shareholders and then providing a new level of transparency to the business fairly well. As always, should you want to speak on anything TransAct related, please reach out to me or Ryan in IR, and we can set up a call.

我要感謝大家的加入與傾聽，也感謝大家的支持與回饋。我們致力於為所有利害關係人和股東創造價值，然後將業務透明度提高到一個新的水平。像往常一樣，如果您想就 TransAct 相關的任何問題發表意見，請聯絡我或 IR 的 Ryan，我們可以安排通話。

Yeah, we can probably open up the call for questions now.

是的，我們現在可以開始提問了。

(Operator Instructions) George Sutton, Craig-Hallum Capital Group.

（操作員說明）George Sutton，Craig-Hallum Capital Group。

Yes, this is James on for George. Thanks for taking my questions. John, as you look at the current pipeline, how would you kind of describe the mix between convenience stores, QS,R and then other potential verticals you might like to address?

是的，這是詹姆斯代替喬治。感謝您回答我的問題。約翰，當您審視當前的管道時，您會如何描述便利商店、QS、R 以及您可能想要解決的其他潛在垂直行業之間的組合？

Well, it's interesting on that point because we first got into the business. We thought restaurants would be a really hot space, but restaurants are still recovering, frankly, from the pandemic. Whereas convenience stores and people doing grab-and-go. And even if you think grocery in-store sushi, those markets are really good, and we're finding a lot of traction there. So I think the restaurant market space is when we're still interested in, of course. But we're finding that the QSR, large QSR chains, and stores with grab-and-go.

嗯，這一點很有趣，因為我們是第一次進入這個行業。我們認為餐廳將是一個非常熱門的領域，但坦白說，餐廳仍在從大流行中恢復。而便利商店和人們則採取即買即走的方式。即使你想到雜貨店內的壽司，這些市場也確實很好，我們在那裡發現了極大的吸引力。所以我認為餐廳市場空間當然是我們仍然感興趣的時候。但我們發現快餐店、大型快餐連鎖店和提供即取即走服務的商店。

And also, food service management companies are probably the hottest space. And as we refocus the sales organization, if you will, the more sophisticated potential customer, there are more insertion points and it's a more sophisticated sales process, and we've done some training. We're learning what those businesses really need, and we're seeing some pretty good traction.

此外，食品服務管理公司可能是最熱門的領域。當我們重新調整銷售組織的重點時，如果你願意的話，更成熟的潛在客戶，會有更多的插入點，這是一個更複雜的銷售流程，我們已經做了一些培訓。我們正在了解這些企業真正需要什麼，並且我們看到了一些相當好的吸引力。

And as we move the opportunities through the pipeline and as I mentioned before, we've added an improved lead-generation process. It's targeted. It's not an account-based marketing, but it's close to that. We are tracking funnel metrics at the top of the funnel, and we're tracking market, qualified leads, marketing-qualified leads, sales-qualified leads, and we're looking at the yields at each one of the steps. And I'm really pleased with the progress the team's made. And in general, I think I can give you a preview into healthcare or getting approvals to create on the health check for the team right now. And again, I think large QSRs, grab-and-go, and in particular, sushi in grocery stores, are probably the three hottest markets for us followed by the food service management.

正如我之前提到的，當我們透過管道轉移機會時，我們添加了改進的潛在客戶開發流程。是有針對性的。這不是基於帳戶的行銷，但也很接近。我們正在追蹤漏斗頂部的漏斗指標，我們正在追蹤市場、合格的銷售線索、行銷合格的銷售線索、銷售合格的銷售線索，並且我們正在查看每個步驟的收益率。我對團隊的進展感到非常滿意。總的來說，我想我現在可以讓您預覽醫療保健或獲得批准為團隊創建健康檢查。再說一次，我認為大型 QSR、即買即走，尤其是雜貨店的壽司，可能是我們最熱門的三個市場，其次是食品服務管理。

Great. And congrats on signing the global QSR. Can you just talk about the sales process and sort of some of the initial feedback from that customer and sort of why they selected BOHA!?

偉大的。並恭喜您簽署全球 QSR。您能否簡單談談銷售流程以及該客戶的一些初步回饋以及他們選擇 BOHA! 的原因？

Well, honestly, it's a great product. We've been in this business for a while. We're very good in engineering. We're also very good at listening to our customers. And the feedback we're getting not just from that particular QSR but others is that this is the product that we've been waiting for, and we're really excited about it. And candidly, our sales team is excited about it. It always helps from the sales team believes in the product and is excited about the opportunity.

嗯，老實說，這是一個很棒的產品。我們從事這個行業已經有一段時間了。我們在工程方面非常擅長。我們也非常善於傾聽客戶的意見。我們不僅從特定的 QSR 那裡得到的回饋，還從其他人那裡得到的回饋是，這是我們一直在等待的產品，我們對此感到非常興奮。坦白說，我們的銷售團隊對此感到興奮。銷售團隊相信產品並對機會感到興奮總是有幫助的。

When you think about the alternative. I mean, now that I'm here as a chief executive, I walk around at grocery stores and everywhere. I see tablets on the shelf and power blocks and things like that. And I look at labels that are kind of crummy the anchors smear if that's what it is, it will stick on right now. And I'm sure there's tons of opportunity, and we are really enjoying the opportunity to widen that with a brand-new suite of products.

當你考慮替代方案時。我的意思是，現在我作為執行長來到這裡，我在雜貨店和任何地方走來走去。我看到架子上有平板電腦和電源塊之類的東西。我看著那些錨點塗抹的標籤，如果是這樣的話，它現在就會黏在上面。我確信有大量的機會，我們真的很高興有機會透過一套​​全新的產品來擴大這一機會。

Great. And then just lastly for me, sort of on engaging the adviser and what sort of sounds like evaluating some strategic options. Can you just sort of speak to all the options that are potentially on the table there?

偉大的。最後對我來說，與顧問的接觸以及聽起來像是評估一些策略選擇。您能否談談可能出現的所有選項？

Well, yeah. I mean, we're pretty smart group of people, at least we'd like to think so. We got a lot of experience on our Board of Directors. And my job is to help shepherd the company into the future. And we wanted to have an outside adviser that could help us understand the lay of the land, the competitive landscape, who's doing what, where we fit, and help us make sure that we're on the right track. And not that presaging any particular outcome. I mean, you really want to have outside perspective because a lot of times you get to close, you got your blinders only because you're so focused on what's today or what's the next quarter. We really need to look over the horizon a little bit, make sure that we're considering all the options and anything that's a good option and even options we haven't even considered. We want to make sure that we fully consider.

嗯，是的。我的意思是，我們是一群非常聰明的人，至少我們願意這麼想。我們的董事會擁有豐富的經驗。我的工作是幫助公司走向未來。我們希望有一位外部顧問可以幫助我們了解情況、競爭格局、誰在做什麼、我們適合什麼，並幫助我們確保我們走在正確的軌道上。這並不是預示任何特定的結果。我的意思是，你真的想要有外部視角，因為很多時候你接近尾聲時，你只是因為太專注於今天或下個季度的事情而蒙蔽了雙眼。我們確實需要稍微放眼未來，確保我們正在考慮所有選項以及任何好的選項，甚至是我們尚未考慮過的選項。我們要確保我們充分考慮。

Great. (inaudible)

偉大的。 （聽不清楚）

All right. Thank you.

好的。謝謝。

(Operator Instructions) Jeff Martin with ROTH Capital Partners, LLC.

（操作員說明）Jeff Martin 與 ROTH Capital Partners, LLC。

Good evening, guys. John, wanted to get a sense on the $3 million expense reduction effort. Will there be offsetting growth initiatives next year that you'll be investing? Just thinking about it from a modeling point of view.

晚上好，夥計們。約翰想了解 300 萬美元的開支削減工作。明年您將投資抵銷成長計畫嗎？只是從建模的角度來思考。

I wouldn't say that we're going to go into any meaningful adjacent verticals. Although I think that's a possibility in the future. Right, now and making sure that we're ship-shape, and we can sail through the hazards in the seas ahead. We're not cutting back on initiatives to develop and expand the business. But we want to make sure that everything that we've got working now is working well, sort of like rough running on an engine that has all the cylinders firing nice, smooth camshafts. So everything's efficient. And then from there, I think that's a springboard into other initiatives from a growth standpoint.

我不會說我們會進入任何有意義的相鄰垂直領域。儘管我認為這在未來是可能的。是的，現在，確保我們的狀態良好，我們可以航行穿過前方海域的危險。我們不會削減發展和擴大業務的舉措。但我們希望確保我們現在所做的一切都運作良好，有點像在所有氣缸都燃燒良好、光滑的凸輪軸的引擎上粗暴運行。所以一切都很有效率。然後從那裡開始，我認為從成長的角度來看，這是進入其他舉措的跳板。

And I will make one other comment, Jeff. I think the TAM for FST is enormous. I think it's underpenetrated at this point. There are competitors out there, but we believe that it's very substantial. And right now, we don't have a headroom problem into the sort of fashion that I'm concerned about. So sky's the limit there, and we just need to demonstrate that we can go there, we can win, and we can expand our participation in that opportunity.

我還要發表另一項評論，傑夫。我認為 FST 的 TAM 是巨大的。我認為目前它的滲透率還不夠。那裡有競爭對手，但我們相信它是非常可觀的。現在，我們不存在我所擔心的時尚發展空間問題。因此，天空是無限的，我們只需要證明我們可以到達那裡，我們可以獲勝，我們可以擴大我們對這個機會的參與。

Yes, great. And then in terms of the top thousand organizations you've identified, how are you parsing those out? How do you assign them to different parts of the sales organization? And do you have structured teams for that? Just curious kind of maybe a little more look under the hood in terms of sales and marketing engine that you've -- taking the lead-generation focus with and kind of reconfigured.

對，很好。然後，就您確定的前千名組織而言，您是如何解析這些組織的？您如何將他們分配到銷售組織的不同部門？你們有為此組成的團隊嗎？只是好奇，也許更多地了解您所擁有的銷售和行銷引擎的幕後——以潛在客戶開發為重點，並進行了某種重新配置。

Jeff, really, diving in and looking at what's in the TAM, the total addressable market, and then you what product we have and then where should we sell it. And without any guidance, we'll take a call from anybody who will sell them something. We have customers that have one terminal. We have customers that have 1,000 terminals. And the question is if we have a long sales cycle. And we have a product that offers benefits for larger organizations that would not be fully appreciated at the low end of the market in terms of the amount of spend and the amount of required features and capabilities of the technology.

Jeff，真的，深入研究 TAM 中的內容，即整個潛在市場，然後了解我們擁有什麼產品，然後我們應該在哪裡銷售它。在沒有任何指導的情況下，我們會接到任何願意向他們出售東西的人的電話。我們的客戶只有一台終端。我們有擁有 1,000 個終端的客戶。問題是我們的銷售週期是否較長。我們的產品可以為大型組織帶來好處，但在低端市場中，就支出金額以及技術所需的特性和功能而言，這些好處不會得到充分的重視。

You know, it's sort of we might be considered overkill or let's just say there are other products that are maybe cheaper that do less, but it's sufficient for the opportunity for a single mom-and-pop operation or something like that.

你知道，我們可能被認為是矯枉過正，或者我們只是說還有其他產品可能更便宜，但功能更少，但這足以為單一夫妻店或類似的公司提供機會。

So what I did was I had the team say, well, let's look at what's the serviceable part of the TAM. Where should we go, and where should we sell? And I said, why don't we do an exercise and look at the different sub verticals within FST, and that was like convenience, food service management, restaurants, grocery stores, and convenience stores. And we said, let's focus on -- let's take a look and see how many people, how many organizations out there.

所以我所做的就是讓團隊說，好吧，讓我們看看 TAM 的可用部分是什麼。我們應該去哪裡，我們應該在哪裡銷售？我說，我們為什麼不做一個練習，看看 FST 內的不同子垂直領域，例如便利商店、食品服務管理、餐廳、雜貨店和便利商店。我們說，讓我們關心一下——讓我們看看有多少人、有多少組織。

If we won the business, could we sell them 50 units? Let's just draw a line there and see how big the TAM is. And it turns out that if you look at the number of opportunities or the number of units that you could sell, if you won 100% of everybody over 50 units versus everybody else, it turns out that that's about two thirds of the market opportunity.

如果我們贏得了生意，我們可以賣給他們 50 台嗎？讓我們在那裡畫一條線，看看 TAM 有多大。事實證明，如果你看看機會的數量或你可以出售的單位數量，如果你比其他人贏得了 100% 超過 50 單位的人，那麼這大約是市場機會的三分之二。

And for us, that turns out to be about 1,000 organizations. So what we've done is we basically split the sales team up in about five buckets ,and those of each of the five buckets, restaurant, convenience, FSM, QSR, and the grab-and-go folks. They're targeting, they know exactly who were supposed to sell to. We're doing regeneration based on that.

對我們來說，這大約是 1,000 個組織。所以我們所做的就是我們基本上將銷售團隊分成大約五個部分，這五個部分分別是餐廳、便利商店、FSM、QSR 和即拿即走的人員。他們的目標是，他們確切地知道該賣給誰。我們正在以此為基礎進行再生。

And importantly is that we're building assets that help the sales to progress the sales opportunity from step-by-step from, if you will, first contact to close and even the stuff after you close the deal to implementation and training and support and service to make sure that end to end.

重要的是，我們正在建立資產，幫助銷售人員逐步推進銷售機會，從第一次接觸到結束，甚至是完成交易後的實施、培訓和支持，以及服務確保端到端。

The customer and TransAct are fully aligned with equal lead, equal motivation to get to goal congruency with a successful customer that loves the product and buys more. And if you sell one unit, the customer and -- to a one-unit opportunity, you're never going to sell another unit. And in these larger units that become a larger opportunities that become lighthouse accounts, then the account management and the quality of our service and the talent of our people really makes a difference.

客戶和 TransAct 完全一致，具有同等的領導力和同等的動力，以實現與喜歡產品併購買更多產品的成功客戶的目標一致。如果你出售一個單位，客戶和一個單位的機會，你永遠不會出售另一個單位。在這些更大的單位中，成為更大的機會，成為燈塔客戶，那麼客戶管理、我們的服務品質以及員工的才能確實會產生影響。

We're not selling a commodity product, and we want to make sure that we're selling where the value is appreciated, where we can capture a good margin for a good product that tackles much more complex problems. So that was kind of the exercise, and we're doing the lead gen associated with each of those five sub buckets. And we're nurturing the leads through the sales funnel, and then we hand them off to the sales team. And with that, Tracey Winslow, who's running our revenue generation price, she's our CRO, and she's on top of this every day.

我們銷售的不是商品，我們希望確保我們銷售的產品價值得到升值，我們能夠為解決更複雜問題的優質產品獲取豐厚的利潤。這就是一種練習，我們正在做與這五個子類別相關的潛在客戶開發。我們透過銷售漏斗培養潛在客戶，然後將他們交給銷售團隊。崔西·溫斯洛（Tracey Winslow）負責管理我們的創收價格，她是我們的首席研究官，她每天都在負責這件事。

And we're making really good progress. We know from an opportunity standpoint; we're making sure that we stay in touch with the opportunities. I would never say this arrogantly to a customer, but our product is good and it's sort of like, sooner or later, you're going to need what we have. And we want to make sure that we have a chance to help you understand what it is so that we have an opportunity to engage. So if the customer says I'm not interested, it's really more of a not no, but not now. There's other initiatives that they have and maybe building out more stores and maybe automating the front of the house. But sooner or earlier, we're going to be -- we're probably going to be one of the companies that you consider for the back of the house. And we want to make sure that we're front and center, and that sort of the attitude we're taking.

我們正在取得非常好的進展。從機會的角度來看，我們知道；我們確保與機會保持聯繫。我永遠不會傲慢地對客戶這麼說，但我們的產品很好，而且有點像，遲早，您會需要我們擁有的產品。我們希望確保我們有機會幫助您了解它是什麼，以便我們有機會參與其中。因此，如果客戶說我不感興趣，那實際上更多的是不是不，但不是現在。他們還有其他舉措，可能會建造更多商店，也可能會實現前台自動化。但遲早，我們可能會成為您考慮的後備公司之一。我們希望確保我們處於前沿和中心位置，以及我們所採取的態度。

So in some cases, the sales cycles may be long, sometimes they may be quick, but all of that focus is already seems to pay off in terms of what I'm seeing in the pipeline.

因此，在某些情況下，銷售週期可能很長，有時可能很快，但就我在管道中看到的情況而言，所有這些關注似乎已經得到了回報。

Great. Really appreciate the color there. And then one more, if I could. On the QSR win, I wanted to clarify that -- I heard correctly -- that basically is an international hunting license and then the US is to follow. Meaning, US is not part of that initial several thousand units?

偉大的。真的很欣賞那裡的顏色。如果可以的話，然後再來一張。關於 QSR 的勝利，我想澄清一下——我沒聽錯——這基本上是國際狩獵許可證，然後美國也會效仿。意思是說，美國不屬於最初的幾千個單位？

It's not part of the opportunity yet, but we expect that to follow.

這還不是機會的一部分，但我們預計隨之而來。

Okay. And then just wanted to clarify as well that these -- you'll be selling software modules on this. It's not a terminal-only type of arrangement.

好的。然後我也想澄清一下，您將在此銷售軟體模組。它不是僅終端類型的安排。

In each case that the ultimate franchise, we will have some say into what applications they may or may not want. So it's hard for us to predict, but we expect that there will be software for sure.

在最終特許經營的每種情況下，我們都會對他們可能想要或可能不想要哪些應用程式有一定的發言權。所以我們很難預測，但我們預期一定會有軟體。

Great. Thanks for your time.

偉大的。謝謝你的時間。

There are no further questions at this time so that concludes our Q&A session for today. I would now like to turn the floor back over to John Dillon for closing comments. Please, sir, go ahead.

目前沒有其他問題，今天的問答環節到此結束。我現在想把發言權交還給約翰·狄龍，請他發表結束語。先生，請繼續。

I'd like to thank all of you for joining us. And as I mentioned before, if you want to follow up with us, you can reach out to me personally or you can reach out to our IR firm and contact Ryan and be happy to set up an appointment for a chat about that quarter and any other topics that are related to TransAct.

我要感謝大家加入我們。正如我之前提到的，如果您想跟進我們，您可以親自與我聯繫，或者您可以聯繫我們的 IR 公司並聯繫 Ryan，並很樂意安排一個關於該季度和任何問題的聊天預約。與TransAct相關的其他主題。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。