TransAct Technologies Inc (TACT) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the TransAct Technologies First Quarter of 2024 earnings call. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Ron <unk> agenda of Endesa generic strategy. You may begin course.

女士們、先生們，美好的一天，歡迎參加 TransAct Technologies 2024 年第一季財報電話會議。此時，所有參與者都處於僅聽模式。正式演講後將舉行問答環節。如果有人在會議期間需要接線員協助，請按下電話鍵盤上的星號零。請注意，本次會議正在錄製中。現在，我將把會議移交給Ron Endesa通用策略的議程。你可以開始課程了。

Welcome to TransAct Technologies' First Quarter 2024 Earnings Call. Today, we'll be discussing the results announced in our press release issued before market open. Joining us from the Company is CEO, John Dillon, President and CFO, Steve DeMartino. Today's call will include discussion of the Company's key operating strategies, progress on these initiatives and details on our first quarter financial results. We'll then open the call to participants for questions.

歡迎參加 TransAct Technologies 的 2024 年第一季財報電話會議。今天，我們將討論開市前發布的新聞稿中公佈的結果。加入我們公司的還有執行長 John Dillon、總裁兼財務長 Steve DeMartino。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第一季財務業績的詳細資訊。然後我們將開始向參與者提問。

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 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. Kodak 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聲明，對於業務和公司固有風險的完整列表，實際結果可能存在重大差異，請參閱公司向 SEC 提交的文件，包括其 10 K 和 10 Q 表格報告。柯達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 may 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 the company website and with that, I'd like to turn the call over to John Johnson.

今天的電話會議和網路廣播可能包括SEC G 條例含義內的非GAAP 財務指標。調節表發布以及公司網站，我想將電話轉給約翰·約翰遜。

Thank you, Ryan, and good morning, everyone or evening as the case may be, and thank you for joining us today at a high level, the quarter came in mostly as expected. Total sales were $10.7 million, which is down as expected, 52% year over year, mostly due to the dynamics that we discussed at the last call relative to casino and gaming, FST., that's foodservice technology. Recurring revenue increased to $2.4 million versus a year ago period. FST. was a bit lighter than expected because two of the larger expected transactions slipped into Q2 and have been or will be closed shortly further we are seeing strong demand for our FST. technology from our large QSR clients worldwide USA, North America, Europe and even Middle East and Africa are placing orders on a less positive note, one of our large clients can see Vignette's store client is moving to a smartphone application deployment model, single smartphone, and it will replace a considerable amount of our label sales revenue from the ARPU calculations. And while we enjoy the revenue from label sales, it's not an important revenue stream for us. Nonetheless, it will impact our numbers going forward. Before we go any deeper into the financials, I wanted to take a step back and talk a little bit about Tranzact as a business and discuss where we stand today as well as what we have in store for the future. It's been just barely over a year since I took over as Chief Executive and since then, I believe we've made considerable progress operationally by refocusing and retraining and new sales team, cutting expenses and spending rolling out and winning important approvals for our new Baja T2 product and introducing a couple of new metrics for investors to help us track our progress while encouraged by what the team has accomplished so far, I want to spend some time talking today about the future for TransAct rather than the past. I think we have a great organization and transact. It has core strengths, fundamental goodness, and I believe there's still considerable room for us to explore untapped potential and better define ourselves as an agile industry agnostic transaction validation platform that delivers tailored business solutions to our clients and route for products like casino and gaming printers and our bowl Hub platform might appear as serving two very separate markets with disparate goals. The reality is both our industry-based solutions that leverage both hardware and software to validate transactions in the moment at the point of occurrence and for a number of reasons, casino and gaming and restaurants back of the house are at two different stages in their transaction validation lifecycle. I mean, we recognize that for casinos, there will always be a need for transaction validation, even if many players eventually switch from paper to electronic form of validation, we are also well-positioned to do that. And then this is a question I get frequently. And while we believe there will always be a place for paper receipts and gaming environments, transact is moving with the market, introducing cutting-edge technology to clients and providing custom solutions such that mini transaction validation capabilities are possible. For example, sports betting is now the fastest growing gaming segment at mini casinos which is why we introduced a purpose-built printer called the Epic 80 and soon this will be replaced by the TR. 80, which is the next generation for this exact application and working with our OEM clients to design and optimized printers for kiosks. Competitor solutions typically involve hastily, redesigned existing products that put it into position where it's either difficult to service prone to air hard to operate or both.

謝謝瑞安，大家早上好，或晚上好，視情況而定，感謝您今天以高級別加入我們，本季的情況基本上符合預期。總銷售額為 1,070 萬美元，年減 52%，符合預期，這主要是由於我們在上次電話會議中討論的與賭場和遊戲（FST）有關的動態，即餐飲服務技術。經常性收入與去年同期相比增加至 240 萬美元。FST。比預期要淡一些，因為其中兩筆較大的預期交易已進入第二季度，並且已經或將很快結束，我們看到對 FST 的強勁需求。來自美國、北美、歐洲甚至中東和非洲的大型QSR 客戶的技術正在以不太積極的方式下訂單，我們的一個大客戶可以看到Vignette 的商店客戶正在轉向智慧型手機應用程式部署模型，單一智慧型手機，它將取代我們 ARPU 計算中相當一部分的唱片銷售收入。雖然我們享受標籤銷售帶來的收入，但這對我們來說並不是一個重要的收入來源。儘管如此，這仍將影響我們未來的數字。在我們更深入地了解財務狀況之前，我想退後一步，談談 Tranzact 作為一家企業，並討論我們今天的處境以及我們為未來做好的準備。自從我接任執行長以來，僅僅一年多時間，我相信，透過重新調整重點、重新培訓新的銷售團隊、削減開支和推出新 Baja 並贏得重要批准，我們在營運方面取得了相當大的進展T2 產品並為投資者引入了一些新指標來幫助我們追蹤我們的進展，同時對團隊迄今為止所取得的成就感到鼓舞，我今天想花一些時間談論TransAct 的未來而不是過去。我認為我們有一個很棒的組織和交易。它具有核心優勢、基本優點，我相信我們仍有很大的空間來探索未開發的潛力，並更好地將自己定義為一個靈活的行業不可知交易驗證平台，為我們的客戶提供量身定制的業務解決方案以及賭場和遊戲印表機等產品的路線我們的碗中心平台可能看起來服務於兩個目標不同的非常獨立的市場。現實情況是，我們基於行業的解決方案利用硬體和軟體在交易發生時立即驗證交易，並且由於多種原因，賭場、遊戲和餐廳後台處於交易的兩個不同階段驗證生命週期。我的意思是，我們認識到，對於賭場來說，總是需要交易驗證，即使許多玩家最終從紙質驗證轉向電子形式的驗證，我們也有能力做到這一點。這是我常被問到的問題。雖然我們相信紙本收據和遊戲環境總是會有一席之地，但 transact 正在與市場同步發展，向客戶引入尖端技術並提供客製化解決方案，使微型交易驗證功能成為可能。例如，體育博彩現在是迷你賭場中成長最快的遊戲領域，這就是為什麼我們推出了一款名為 Epic 80 的專用印表機，很快它將被 TR 取代。 80，這是該應用程式的下一代產品，並與我們的 OEM 客戶合作設計和優化自助服務終端印表機。競爭對手的解決方案通常涉及匆忙重新設計現有產品，使其要么難以維修，要么難以操作，要么兩者兼而有之。

And on the Bauhaus side, an example we've talked about in the past few months has been our entry into assisted living communities where our technology is used to monitor temperatures in refrigerators and freezers for controlled medicinal use in their storage areas. And medication storage has not traditionally been service. We advertise, but that doesn't mean we are more than equipped to take it on. We worked diligently with this client to ensure we could provide a custom solution utilizing the Baha platform to meet their unique particular requirements. And the FST. is simply one market that can be won with our Baha platform. And we believe we have the ability to enter other markets with the same solution as well. So these small steps towards entering new verticals and applying our technology strengths in new ways and existing verticals are symbolic of all the opportunity there is for our services to grow and expand. We believe there are opportunities like these across a range of spaces from places we've already previously been like lottery and banking, totally new whitespace opportunities that may not even know yet they can benefit from our technology as an example. And those of you who have been with us for a long time, remember, we used to have substantial market segment back in the two thousands up until about 2017 was our banking business. Specifically, if you recall, our bank jet jet printers were used at bank teller stations all over the United States. It was a great market for us, but obviously banking has changed. But the point is that we have been in many other vertical markets and we do a good job of it with updated products and a revised go-to-market strategy. We believe there's a lot of possibilities here for us. It draws transact as a company with a legacy of design wins in multiple verticals spanning multiple decades. And that ability has not disappeared. We have those roots, it's part of our DNA, and I think we have the opportunity to find more and new ways to win in different markets as a leading transaction validation and verification platform. We've already identified a few opportunities to explore. Don't worry. We're staying very focused on the markets we're serving today, but the opportunities exciting in these adjacent markets for our technology in the long term, we believe that we can apply ourselves to a wider array of industries.

在包浩斯方面，我們在過去幾個月討論的一個例子是我們進入輔助生活社區，我們的技術被用來監測冰箱和冰櫃的溫度，以便在其儲存區域控制醫療用途。傳統上，藥物儲存並不是服務。我們做廣告，但這並不代表我們有能力應對這項挑戰。我們與該客戶勤奮合作，確保我們能夠利用 Baha 平台提供客製化解決方案，以滿足他們獨特的特殊要求。還有金融服務時間。這只是我們的 Baha 平台可以贏得的市場。我們相信我們也有能力以相同的解決方案進入其他市場。因此，進入新的垂直領域並以新的方式和現有的垂直領域應用我們的技術優勢的這些小步驟象徵著我們的服務成長和擴展的所有機會。我們相信，在我們之前已經涉足的領域，如彩票和銀行業等一系列領域中，都存在著這樣的機會，這些全新的空白機會可能甚至不知道它們可以從我們的技術中受益。那些長期與我們合作的人請記住，直到 2017 年左右我們的銀行業務之前，我們曾經擁有兩千個相當大的市場區隔。具體來說，如果您還記得的話，我們的銀行噴射印表機已在美國各地的銀行出納站使用。這對我們來說是一個巨大的市場，但顯然銀行業已經改變了。但關鍵是我們已經進入了許多其他垂直市場，並且透過更新的產品和修訂的上市策略做得很好。我們相信這裡對我們來說有很多可能性。作為一家在數十年的多個垂直領域取得設計勝利的公司，它吸引了人們的注意。而這種能力並沒有消失。我們有這些根源，它是我們 DNA 的一部分，我認為我們有機會找到更多新的方法來作為領先的交易驗證和驗證平台在不同市場中獲勝。我們已經確定了一些探索的機會。不用擔心。我們仍然非常專注於我們今天所服務的市場，但從長遠來看，這些鄰近市場對我們的技術來說是令人興奮的機會，我們相信我們可以將自己應用於更廣泛的行業。

So having said that, let me move on to some key points from the quarter, and then I'll pass it back to Steve for a more detailed review.

話雖如此，讓我繼續討論本季度的一些關鍵點，然後我會將其轉交給史蒂夫進行更詳細的審查。

Of the financials on the FST. side, our foodservice technology, we saw revenues of $3.3 million, down about 5% year over year with recurring revenues of $2.4 million, which was up about 3% year over year. We delivered 901 via terminals, resulting in 856 net new installations and we ended the quarter with 15,370 online terminals in service. As the initial cohort are bought, terminal install base begins to hit contract renewals. We do experience a minimum amount of churn in the quarter. We don't report that yet because it's too early to get significant metrics. That's something that I expect to report in the future but that's the difference between the terminals we sell and then the net new installations. So sometimes we'll lose a few terminals as somebody goes out of business or whatever. And that's an important metric that eventually as we get better statistics, we'll probably begin to report our T. two product continues to be well received by customers and prospects as well. And I believe this new product will be crucial to our growth going forward. However, as I mentioned in the past, we expect progress to be lumpy quarter to quarter where small business and these are big purchases. Typically when a business or a company that's going to become a client has to change a process in the back of the house. So we expect it to be lumpy and we expect rollouts to be somewhat inconsistent, but we have a lot of optimism for the future here.

FST 上的財務狀況。在我們的餐飲服務技術方面，我們的收入為 330 萬美元，年減約 5%，經常性收入為 240 萬美元，年增約 3%。我們透過終端交付了 901 台終端，淨新增安裝量為 856 台，本季結束時，我們有 15,370 台線上終端投入使用。隨著第一批產品的購買，終端安裝基礎開始實現合約續約。我們在本季確實經歷了最低限度的客戶流失。我們還沒有報告這一點，因為現在獲得重要指標還為時過早。這是我希望在未來報告的內容，但這就是我們銷售的終端與淨新安裝終端之間的差異。因此，有時我們會因為有人倒閉或其他原因而失去一些終端。這是一個重要的指標，最終當我們獲得更好的統計數據時，我們可能會開始報告我們的 T.2 產品也繼續受到客戶和潛在客戶的好評。我相信這款新產品對我們未來的發展至關重要。然而，正如我過去提到的，我們預計每個季度的進展將是不穩定的，其中小型企業和這些都是大額採購。通常，當要成為客戶的企業或公司必須改變內部流程時。因此，我們預計它會很不穩定，而且我們預計推出會有些不一致，但我們對未來非常樂觀。

The new FS. two pipeline growth metric, which measures the quarter-over-quarter difference in our fourth quarter. Looking forward pipeline, that grew about 4% quarter over quarter. So it's going in the right direction. We scrub it carefully and we're paying a lot of close attention to what's in the pipeline. And as I pointed out earlier, we've added eight new customers in the last quarter with the potential to purchase as many as 10,000 terminals or more over the next 12 to 24 months. And that's adding to the 12 new customers that we added in the prior quarter.

新的FS。兩個管道成長指標，衡量第四季的環比差異。展望管道，季度環比成長約 4%。所以它正在朝著正確的方向發展。我們仔細清理它，並且密切注意管道中的內容。正如我之前指出的，我們在上個季度增加了 8 個新客戶，有可能在未來 12 到 24 個月內購買多達 10,000 台或更多終端。這是我們在上一季新增 12 名客戶的基礎上增加的。

Next, I want to provide an update on the status of seven 11. Occasionally some of you asked me about it in April seven, 11 corporation informed us that they would be moving to a net new system and moving off the Beaumont terminal there in the first generation, we had obviously hoped that we would sell in the Terminal two. This loss was due to a cost cutting project where virtually all of their in-store applications are going to be run on a single cellphone. These applications include point of sale. They're replacing their point-of-sale system, their inventory system, Waste Management ordering and all the other back-of-the-house and front-of-the-house applications that they operate in a single store. They're all going to be moved to this in our system by the end of the second quarter in 2024. While this is a disappointing development, we wanted to note that Baja was not specifically targeted. It had nothing to do with the decision to make at the executive level at headquarters. And we're not taking it personally as it were, and it's not due to any problems with our product or services, but rather was a result of a long effort to create and institute their own technology. We really didn't have much perspective on this. We were somewhat unaware of this until the termination There are several admins, parent company Seven & i Holdings generates tens of billions of dollars in revenue and staff, hundreds of engineers and even then in allegedly took years to build and roll out this very specific one-off product that is customized specifically for a single store seven 11 business. This development will impact approximately 5,400 terminals in our installed base and will reduce recurring revenue at an annualized rate of approximately $3.6 million, largely label sales. And this has been reflected in the updated guidance range that we're going to provide I also wanted to briefly mention our international QSR win that I have referenced in prior calls. The rollout has been an incredible success so far and we have started receiving an increasing number of orders for locations around the world. We couldn't be more thrilled with the positive reception and believe this is an opportunity that could provide over 1,000 volt terminal sales quarter over quarter over quarter. We believe the worldwide footprint we have already will expand even wider.

接下來我想介紹一下七十一的最新情況。有時你們中的一些人會問我這個問題，4 月7 日，11 公司通知我們，他們將遷移到一個全新的系統，並在第一代中將博蒙特航站樓移走，我們顯然希望我們可在二號航站樓出售。這一損失是由於一項成本削減項目造成的，該項目幾乎所有店內應用程式都將在一部手機上運行。這些應用程式包括銷售點。他們正在更換銷售點系統、庫存系統、廢物管理訂購以及在單一商店中運營的所有其他後台和前台應用程式。到 2024 年第二季末，它們將全部轉移到我們的系統中。雖然這是一個令人失望的進展，但我們想指出，巴哈並不是專門針對的。這與總部執行層所做的決定無關。我們並不認為這是針對我們個人的，這也不是由於我們的產品或服務出現任何問題，而是長期努力創建和建立自己的技術的結果。我們對此確實沒有太多的看法。直到終止之前我們都沒有意識到這一點。和推出這個非常具體的產品客客產品是專為單店七十一業務定制的。這項發展將影響我們安裝基礎中約 5,400 個終端，並將以年化約 360 萬美元的速度減少經常性收入，主要是標籤銷售。這已經反映在我們將提供的更新指導範圍中，我還想簡要提及我在先前的電話會議中提到的我們的國際 QSR 勝利。到目前為止，推出取得了令人難以置信的成功，我們已經開始收到越來越多來自世界各地的訂單。我們對這種積極的反響感到無比興奮，並相信這是一個可以逐季提供超過 1,000 伏特終端銷售的機會。我們相信我們已經在全球的足跡將會擴大。

And then finally, moving on, I want to mention that we have a large sushi client that is converting from our original terminal to the new barge terminal to T2. We expect this will generate hundreds of additional sales of the T. two terminals over the next 12 to 18 months, most of more probably occur in 2024.

最後，我想提一下，我們有一個大型壽司客戶，正在從原來的航站樓轉換為 T2 的新駁船航站樓。我們預計，這將在未來 12 至 18 個月內增加數百台 T. 2 終端的銷量，其中大部分可能會在 2024 年發生。

Moving on to casino and gaming, we reported revenue of $5.7 million for the quarter. That was down 64% from the prior year. And we've been discussing the changing dynamics in this largely duopoly market for the past several quarters and wanted to update everyone on how we see it progressing first on the competitive side, we believe our main competitor has reentered the market and we are seeing some of the pricing pressure we expected as this occurs, we're taking the appropriate steps needed to make sure that we retain as much of the captured market share as possible.

接下來是賭場和遊戲，我們報告本季收入為 570 萬美元。比上年下降 64%。在過去的幾個季度裡，我們一直在討論這個主要是雙寡頭市場的動態變化，並希望向大家通報我們如何看待它在競爭方面首先取得的進展，我們相信我們的主要競爭對手已經重新進入市場，而我們看到一些鑑於這種情況發生時我們預期會面臨的定價壓力，我們正在採取必要的適當措施，以確保我們保留盡可能多的市場份額。

Second, on the inventory side, we continue to hear from most of our OEM customers that they are in an oversupplied position still. And we expect this to continue for at least the next quarter. And this dynamic continues to be the larger reason for the sequential slowdown in sales. Previously, we expected the first quarter to be the peak of this oversupply. And now we believe that this will continue through at least the second quarter with order pickup beginning in the third quarter and then going forward from there.

其次，在庫存方面，我們繼續從大多數 OEM 客戶那裡聽到，他們仍然處於供應過剩的狀態。我們預計這種情況至少會持續到下個季度。這種動態仍然是銷售持續放緩的更大原因。此前，我們預計第一季將是供過於求的高峰。現在我們相信這種情況至少會持續到第二季​​度，訂單將從第三季度開始，然後繼續向前推進。

And finally, I wanted to provide an update to our financial outlook for 2024 due to the changing dynamics around both FST. and casino and gaming, we've decided it's most prudent to adjust our financial guidance to ensure that investors have an accurate idea of where we believe our performance will B for the remainder of the year. We now are currently estimating that our full year revenues full year revenues will be between $45 million and $50 million and adjusted EBITDA will be between a negative $2.5 million and negative $3.5 million and relentlessly optimistic about the future of transact and believe that we have the right products, the right people to win in our existing markets as well as some new ones in the future.

最後，由於 FST 的動態不斷變化，我想更新 2024 年的財務展望。以及賭場和博彩業務，我們決定最謹慎的做法是調整我們的財務指引，以確保投資者準確了解我們認為今年剩餘時間我們的業績將達到什麼程度。目前，我們預計我們的全年收入將在4500 萬美元至5000 萬美元之間，調整後的EBITDA 將在負250 萬美元至負350 萬美元之間，並對交易的未來保持樂觀態度，並相信我們有權利產品、合適的人才來贏得我們現有的市場以及未來的一些新市場。

While I acknowledge a continuing need to execute, especially in the near term. It is also important and as ever, but I have complete confidence in the strength of the organization to perform. So those are my comments this morning. And now I'd like to pass it over to Steve DeMartino for a more detailed review of the financials. Steve?

雖然我承認需要繼續執行，特別是在短期內。這也一如既往地重要，但我對組織的執行能力充滿信心。這是我今天早上的評論。現在我想將其交給史蒂夫·德馬蒂諾 (Steve DeMartino)，讓他對財務狀況進行更詳細的審查。史蒂夫？

Thank you, John, and thanks, everyone, for joining us this morning. Let's turn to our first quarter '24 financial results in more detail. Total net sales for the first quarter were $10.7 million, which was down 52% compared to $22.3 million in the year ago period. Sales from our foodservice technology market or FST. for the first quarter were $3.3 million, which was down 30% sequentially and also down 5% compared to $3.5 million in the prior year period. Our recurring FST sales, which include software and service subscriptions as well as consumable label. Sales for the first quarter were $2.4 million, which was down 25% sequentially, but up 3% compared to $2.3 million in the prior year. Our ARPU for the first quarter of '24 was $663. That was down 13% compared to $764 in the first quarter of '23. As a reminder, we're currently selling a number of bulk 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 to our number in the first quarter, a large number of our terminals fell into this category, and we expect this to continue in the near future. We're working on ways to lift this number going forward, but we expect our ARPU to be in the $500 to $1,000 range for at least the rest of '24. Our casino and gaming sales were $5.7 million, which was down 64% from the first quarter of '23, primarily due to OEMs working down high levels of printing inventory that they stockpile during the supply crisis earlier '23 that has now eased as John mentioned, we expect the dynamics we experienced during the first quarter to continue continue through at least the second quarter of '24 and begin to improve in the back half of this year. Pos automation sales for the first quarter decreased 64% from the prior year to 651,000. This decline was largely the result of difficult comps as we experienced unusually high sales in '23 due to a competitor's inability to supply products. In addition, similar to the casino market during Q1, our customers were finishing up working down unusually high levels of printing inventory. They built up during the supply crisis in '23. We believe the competitors in the market are now fully back online and we are taking the appropriate steps to maintain market share. And sure, our products are in line with the new dynamics of the marketplace.

謝謝約翰，也謝謝大家今天早上加入我們。讓我們更詳細地了解 24 年第一季的財務表現。第一季淨銷售額總額為 1,070 萬美元，比去年同期的 2,230 萬美元下降 52%。來自我們的餐飲服務技術市場或 FST 的銷售。第一季的營收為 330 萬美元，比上一季下降 30%，與去年同期的 350 萬美元相比也下降了 5%。我們的經常性 FST 銷售，包括軟體和服務訂閱以及消耗品標籤。第一季銷售額為 240 萬美元，比上一季下降 25%，但與去年同期的 230 萬美元相比成長 3%。我們 2024 年第一季的 ARPU 為 663 美元。與 2023 年第一季的 764 美元相比，下降了 13%。提醒一下，我們目前正在銷售一些批量終端，但一開始並沒有附加經常性收入，但這提供了未來銷售經常性元素的機會。目前，它們對我們第一季的數量構成了拖累，我們的大量終端都屬於這一類別，我們預計這種情況在不久的將來會持續下去。我們正在研究未來提高這一數字的方法，但我們預計至少在 24 年剩餘時間裡，我們的 ARPU 將在 500 美元到 1,000 美元的範圍內。我們的賭場和遊戲銷售額為570 萬美元，比23 年第一季下降了64%，這主要是由於OEM 減少了他們在23 年初的供應危機期間儲存的高水平印刷庫存，正如約翰所提到的那樣，現在已經有所緩解，我們預計第一季的動態至少會持續到 2024 年第二季度，並在今年下半年開始改善。第一季 POS 自動化銷量年減 64% 至 651,000 台。這種下降主要是由於競爭困難造成的，因為我們在 23 年因競爭對手無法供應產品而經歷了異常高的銷售。此外，與第一季的賭場市場類似，我們的客戶正在完成降低異常高水準的印刷庫存的工作。它們是在 23 年的供應危機期間建立起來的。我們相信市場上的競爭對手現在已經完全恢復線上狀態，我們正在採取適當的措施來維持市場佔有率。當然，我們的產品符合市場的新動態。

Moving to TransAct Services Group or TSG for the first quarter, TSG sales were down 14% year over year to $1 million. This decrease was largely due to unusually high sales of legacy lottery spare parts in the prior year, which we don't expect to repeat at the same levels in '24.

轉向 TransAct Services Group 或 TSG，第一季 TSG 銷售額年減 14% 至 100 萬美元。這一下降主要是由於前一年遺留彩券備件的銷售量異常高，我們預計 24 年不會出現相同水準。

Moving down the income statement, our first quarter gross margin was a solid 52.6% which was up sequentially from 48%, but down from 55% in the prior year period. The sequential increase comes as a result of an improved sales mix and favorable overhead cost absorption somewhat offset by lower lower overall sales volume. Going forward, we expect our gross margin for the remainder of the year to be in the mid to high 40% range.

從損益表來看，我們第一季的毛利率為 52.6%，比上一季的 48% 有所上升，但低於去年同期的 55%。環比成長是由於銷售組合的改善和有利的間接成本吸收而在一定程度上被整體銷售的下降所抵消。展望未來，我們預計今年剩餘時間的毛利率將在 40% 的中高範圍內。

Our operating our total operating expenses for the first quarter decreased by 18% from the prior year first quarter to $6.9 million and were flat sequentially year over year decline came as a result of our previously disclosed savings achieved from the cost cutting efforts we began to put in place late in the third quarter last year. We estimate that these actions will produce operating expense savings of about $3 million on an annualized basis, and we experienced the full effect of these reductions during the first quarter.

我們第一季的總營運費用比去年第一季下降了 18%，至 690 萬美元，與上一季度持平，同比下降是由於我們之前披露的通過開始削減成本的努力而實現的節省。三季末到位。我們估計，這些行動將每年節省約 300 萬美元的營運費用，並且我們在第一季體驗到了這些削減的全部效果。

Breaking down our operating expenses a bit. Our engineering and R&D expenses for the first quarter were down 13% year over year to $2 million. Our selling and marketing expenses decreased 24% year over year to $2.1 million, and our G&A expenses decreased 16% year over year to $2.9 million for the first quarter, our operating loss was $1.3 million or a negative 12.2% of net sales. And this compares to operating income of $3.8 million or 17.1% of net sales in the prior year period. On the bottom line, we recorded a net loss of $1 million or a $0.1 loss per diluted share for the first quarter, and this compares to net income of $3.1 million or $0.31 per diluted share in the year ago period. Our adjusted EBITDA for the quarter was negative $701,000, and this compares to positive $4.5 million for the first quarter of last year.

稍微細分一下我們的營運費用。第一季我們的工程和研發費用年減 13% 至 200 萬美元。第一季我們的銷售和行銷費用年減 24% 至 210 萬美元，一般管理費用年減 16% 至 290 萬美元，營業虧損為 130 萬美元，佔淨銷售額負 12.2%。相較之下，去年同期營業收入為 380 萬美元，佔淨銷售額的 17.1%。總而言之，我們第一季淨虧損 100 萬美元，即稀釋後每股虧損 0.1 美元，去年同期淨利為 310 萬美元，即稀釋後每股虧損 0.31 美元。本季調整後 EBITDA 為負 701,000 美元，而去年第一季為正 450 萬美元。

Taking a quick look at our balance sheet, it continues to remain solid. We ended the quarter with $10.6 million in cash with only the minimum required $2.25 million of outstanding borrowings on our credit facility. With Siena lending.

快速瀏覽我們的資產負債表，它仍然保持穩健。截至本季末，我們的現金為 1,060 萬美元，而我們的信貸額度中只有最低要求的 225 萬美元未償還借款。與錫耶納貸款。

And finally, before I open the call to Q&A, I wanted to address the expected impact our new guidance ranges anticipate to have on our projected cash flow for '24, even with a projected adjusted EBITDA loss of negative $2.5 million to $3.5 million for '24, we expect the business to be only slightly cash flow negative for the full year, we expect to sell down our inventories as we move through the year, which now sit at $19.2 million and believe this combined with liquidation of receivables resulting from lower sales levels will likely be enough to fund a good portion of our projected EBITDA loss. So given these factors, we believe we will easily have enough cash to fund our business for at least the next 12 months.

最後，在我開始問答之前，我想談談我們的新指導範圍預計對 24 年預計現金流量產生的預期影響，即使預計調整後 EBITDA 損失為負 250 萬美元至 350 萬美元。我們預計該業務全年的現金流量只會略有負數，我們預計將在今年內出售庫存，目前庫存為1,920 萬美元，並相信這與銷售額下降導致的應收賬款清算相結合水平可能足以彌補我們預期的EBITDA 損失的很大一部分。因此，考慮到這些因素，我們相信我們將輕鬆擁有足夠的現金來為至少未來 12 個月的業務提供資金。

And with that, I'd like to turn the call over to the operator for questions. Operator?

因此，我想將電話轉給接線員詢問問題。操作員？

Thank you, sir. Ladies and gentlemen, we will now be conducting a question and answer session during last call. A question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to leave the question queue for participants making use of speaker equipment. It may be necessary to pick up your handset before pressing So peers.

謝謝你，先生。女士們先生們，我們現在將在最後一次通話中進行問答環節。有問題，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中。您可以按星號二將問題佇列留給使用揚聲器裝置的參與者。在按下“So”鍵之前，可能需要拿起聽筒。

Our first question comes from Jeff Martin of Roth in case in case. Go ahead.

我們的第一個問題來自羅斯的傑夫馬丁，以防萬一。前進。

Thanks. Good morning, guys. John, wanted to dig in a little bit on the eight new logos on what kind of terminal volume does that represent potentially in the two FST. transactions that slipped into Q2 of those ships as of today in hand, what kind of volume are we looking at in those two as well?

謝謝。早上好傢伙。約翰想深入研究這八個新標誌，它們在兩個 FST 中代表著什麼樣的終端容量。截至今天，這些船舶的第二季交易量已經掌握，我們還看到這兩艘船的交易量是多少？

John, Jeff, thanks for the question. And I think we figure out how to not be on mute during these virtual call. So apologies for that. But just to come back to the eight transactions that are net new clients represent the potential for north of a thousand units over time. And as I mentioned in the prior call, we focused the team on selling to clients that had the potential to place a considerable amount of additional orders. We use a land-and-expand strategy. The product is, if you will, the best sales person we have on team performed well. So once it's installed and it performs and most clients want to make sure that it's going to provide the ROI and the other capabilities that were the reason for their purchase in the first place. So we start small with most clients and we expand so that's kind of where we're at with that. And we closed net new clients about 12 of them in 20 in Q2, Q1 of this year. So looking at those clients for expansion is something that we spend a lot of time on relative to the two that slipped. One of them was a large QSR that was going to place orders and at the last minute, they decided to do a security audit to make sure that everything in their shops were buttoned up and they postponed placing orders until they got that done and that delayed things for about two months. And all that business is back on track. We're shipping product and the other one was a <unk> a whole debt on a on an opportunity that was in place. I don't think we have that order yet, but we expect to get it literally in the next couple of weeks.

約翰、傑夫，謝謝你的提問。我認為我們想出瞭如何在這些虛擬通話期間不處於靜音狀態。所以對此表示歉意。但只要回到淨新客戶的八筆交易，就代表著隨著時間的推移，潛在的一千單位以上的潛力。正如我在先前的電話會議中提到的，我們的團隊將重點放在向有可能下大量額外訂單的客戶進行銷售。我們採用土地擴張策略。如果你願意的話，該產品是我們團隊中表現出色的最好的銷售人員。因此，一旦安裝並運行，大多數客戶都希望確保它能夠提供投資回報率和其他功能，這也是他們購買的首要原因。因此，我們從大多數客戶的小規模開始，然後不斷擴展，這就是我們目前的情況。今年第二季、第一季我們關閉了 20 個淨新客戶，其中約 12 個。因此，相對於下滑的兩個客戶，我們花了大量時間來尋找這些客戶的擴張。其中一個是一個大型 QSR，要下訂單，在最後一刻，他們決定進行安全審核，以確保商店裡的所有東西都已搞定，他們推遲了下訂單，直到完成為止，結果延遲了事情持續了兩個月左右。所有這些業務都回到了正軌。我們正在運送產品，而另一個是在一個已經到位的機會上欠下的全部債務。我認為我們還沒有收到該訂單，但我們預計會在接下來的幾週內收到。

And then with respect to the change of seven 11, has it? That's a Q2 event? Correct. So we had full results still in Q1 and then to on and to to get a sense of what the other convenience stores are doing in terms of the prop, Bob, utilizing the bulk terminal, thanks.

然後關於七十一的變化，有嗎？這是第二季的活動嗎？正確的。因此，我們在第一季仍然獲得了完整的結果，然後繼續了解其他便利商店在道具方面的表現，鮑勃，利用散裝終端，謝謝。

Relative to seven 11, I've seen the movie before a big company decides they want to build it in house. They're basically January, jettisoning all of their vendors and they're going to roll out a homegrown system that's taken us years to build. I don't know how much they spent on it, but it's probably a lot. And we didn't see we don't see this as a a if you will, a customer loss because our product was inferior or it's not a replacement scenario. This is a custom in-house built project. They decided it was strategically in their interest. And I think the primary reason was to just cut costs labor rates and food rates are going through the roof and seven 11 has operated typically by a single employee. And so this is going to be the individual is going to have a cell phone in their hand or related 3D printer. And that supposedly is going to handle everything in the store. I don't know how well it's going to work. They're beginning to roll it out now the only disappointment I have is we didn't have a greater perspective on that when this was going to happen. I mean until in Q. one of this year, they were still placing orders and we really weren't we were somewhat surprised by the sort of turn of events, but they were a first generation customer. They were running our older products. And while we're delighted to have clients like that, the simplicity of a seven 11 store, it is sort of below the threshold where our technology really makes a big difference. So you know, I'm happy to take business for I-many convenience store operation, but frankly, we're targeting more complex, complex systems where our technology has a much greater competitive advantage.

相對於《七十一》，我在一家大公司決定自己製作這部電影之前就看過這部電影。他們基本上是一月份，拋棄了所有供應商，他們將推出一個我們花了數年時間建造的本土系統。我不知道他們花了多少錢，但應該不少。我們沒有看到，我們不認為這是一種客戶流失，因為我們的產品品質較差，或者它不是替代方案。這是一個客製化的內部建置專案。他們認為這在戰略上符合他們的利益。我認為主要原因是為了削減成本，勞動力價格和食品價格都在飛漲，而7 11通常由一名員工營運。因此，個人手中將擁有一部手機或相關的 3D 列印機。據說這可以處理商店裡的所有東西。我不知道效果如何。他們現在開始推出它，我唯一失望的是我們沒有對何時發生這種情況有更廣闊的視野。我的意思是，直到今年第一季度，他們仍在下訂單，我們確實沒有，我們對事件的轉變感到有些驚訝，但他們是第一代客戶。他們正在運行我們的舊產品。雖然我們很高興擁有這樣的客戶，但 7-11 商店的簡單性卻低於我們的技術真正發揮巨大作用的門檻。所以你知道，我很高興接手許多便利商店的業務，但坦白說，我們的目標是更複雜、更複雜的系統，在這些系統中，我們的技術具有更大的競爭優勢。

Thank you.

謝謝。

Ladies and gentlemen, just a further reminder, if you'd like to ask a question you will from Bristow and didn't want to place yourself in the question queue. Our next question comes from Jeff Bernstein of talk about boosting capital. Please go ahead for you guys.

女士們先生們，再次提醒您，如果您想問問題，您可以從布里斯托提出問題，並且不想將自己排在問題隊列中。我們的下一個問題來自傑夫伯恩斯坦關於增加資本的討論。請你們繼續前進。

You guys were just talking a little bit faster. I was wondering if you could just go back and give the terminal numbers again. And if you could just talk about the model name of the new casino gaming terminal that you're coming out with?

你們只是說得快一點而已。我想知道您是否可以回去再次提供終端號碼。您能否談談您即將推出的新賭場遊戲終端機的型號名稱？

Yes, I'll answer the first one, I'll let Steve go back and pull up the number. And the we have had a product in the market called the 80, and we're replacing that with a new model that's called the TR. 80. We've announced that we have shipped some. We expect that to kind of go into full production here in the next few months. And it's a essentially it's a kiosk printer for sports betting. We do that sort of technology really well. It has a form factor. It's sort of a rack mounted unit is slotted right into a kiosk and in a lot of places, sports betting, as you go into a device, it's got a screen you fiddle around with the screen. You place your bets and you got to get a ticket. And we do that really well, specifically built for this purpose very much like what I was talking about where we go in and work with the client. What do you really need to do? And it's a second generation of they have basically at sports betting kiosks, printer, Catcher, Nuvera

是的，我會回答第一個，我會讓史蒂夫回去拉電話號碼。我們在市場上有一款名為 80 的產品，我們將用一種名為 TR 的新型號來取代它。80.我們已經宣布我們已經發貨了一些。我們預計將在未來幾個月內全面投入生產。它本質上是一個用於體育博彩的自助印表機。我們在這種技術上做得非常好。它有一個外形尺寸。它是一種安裝在機架上的裝置，可以直接插入資訊亭，在很多地方，體育博彩，當你進入設備時，它有一個螢幕，你可以在螢幕上擺弄。您下注並獲得一張彩票。我們做得非常好，專門為此目的而構建，非常像我所說的我們與客戶合作的地方。你真正需要做什麼？這是他們的第二代，主要用於體育博彩亭、印表機、Catcher、Nuvera

Is there and is there an Epic Central type software opportunity here in sports betting or is that it would not not really apply.

在體育博彩領域是否存在 Epic Central 類型的軟體機會，或者它並不真正適用。

And I would say it's too soon to know in sports betting, it's not so much like we need to know the personality of the person that the betting because they're deciding on a cricket match or a football game and the like. So not clear, I do believe that client intimacy is something that most of these devices are going to need. We're going to have more and more telematic SentriX system, telematic, meaning we're communicating WiFi, Bluetooth near field communication and the devices that will install in various machines have the ability or will have the ability to communicate digitally with clients maybe through their cell phone or their smart watches. And so the more you can know about your client, you know, depending on who the ultimate vendor is, the better you can service some. And so we think that things like Epic Central will be a key part of the future. But we're working with clients with our customers who are mostly OEM is OEM-ing our products to see if in fact, we can help them engineer some of their stuff into their technology, but it's early days still.

我想說，現在在體育博彩中了解還為時過早，我們並不需要了解投注者的個性，因為他們正在決定一場板球比賽或足球比賽等。所以不清楚，我確實相信客戶的親密感是大多數這些設備都需要的。我們將擁有越來越多的遠端資訊處理SentriX 系統，遠端資訊處理，這意味著我們正在進行WiFi、藍牙近場通信，並且安裝在各種機器中的設備有能力或將有能力與客戶進行數字通信，也許透過他們的手機或智慧手錶。因此，您對客戶了解得越多，您知道，根據最終供應商是誰，您就能更好地為客戶提供服務。因此，我們認為像 Epic Central 這樣的東西將成為未來的關鍵部分。但我們正在與客戶合作，我們的客戶大多是 OEM，他們正在對我們的產品進行 OEM 加工，看看我們實際上是否可以幫助他們將一些東西融入他們的技術中，但現在還處於早期階段。

Great. Thanks.

偉大的。謝謝。

Jeff, did you want the terminal numbers roughly?

傑夫，你想要大概的終端號碼嗎？

Yes,

是的，

We ended the quarter with 15,370, and we added 901 new terminals sold during the quarter.

本季結束時，我們的終端數量為 15,370 台，本季新增銷售終端 901 台。

Great,

偉大的，

Welcome.

歡迎。

Our next question comes from Rick Fearon with Accretive Capital Partners. Please go ahead.

我們的下一個問題來自 Accretive Capital Partners 的 Rick Fearon。請繼續。

Good morning. John, I wondered if you could provide it an update on the strategic alternatives.

早安.約翰，我想知道你是否可以向其提供有關戰略替代方案的最新資訊。

Well, we've announced that we have an advisory service that's helping us. We are in process and it's going as it were. We don't have anything to report at this point, but we're looking at strategy challenges and opportunities, and we're going to continue to do that. And as and if we come up with things that make a difference, we'll be sure that basically post that stuff for our investors, but trust us that we are working diligently.

嗯，我們已經宣布我們有一項可以幫助我們的諮詢服務。我們正在進行中，一切都按原樣進行。目前我們沒有任何可報告的內容，但我們正在研究策略挑戰和機遇，我們將繼續這樣做。如果我們想出一些能帶來改變的東西，我們將確保基本上為我們的投資者發布這些東西，但相信我們，我們正在努力工作。

Okay. And just to clarify, this encompasses M&A strategies,

好的。澄清一下，這包括併購策略，

that's true.

這是真的。

Okay. All right. Thank you.

好的。好的。謝謝。

Ladies and gentlemen, we have reached the end of the question and answer session. I will now hand over to John today, closing remarks.

女士們、先生們，問答環節已經結束。今天我將向約翰致閉幕詞。

Thank you. I want to thank you all for joining and listening, and I want to thank everyone for their support and feedback. As always, if you want to speak about anything about transaction-related, please reach out to me or Ryan in our IR department to get a call set up. Happy to take the calls. Happy to spend the time.

謝謝。我要感謝大家的加入與傾聽，也感謝大家的支持與回饋。像往常一樣，如果您想談論與交易相關的任何內容，請聯繫我或我們 IR 部門的 Ryan 來安排通話。很高興接聽電話。很高興度過這段時間。

Thank you, sir. Ladies and gentlemen, that concludes today's event. Thank you for attending, and you may now disconnect your line.

謝謝你，先生。女士們、先生們，今天的活動到此結束。感謝您的出席，您現在可以斷開線路了。