TransAct Technologies Incorporated (NASDAQ:TACT) Q2 2023 Earnings Call Transcript

John Dillon: 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. 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.

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

John Dillon: 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. 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.

Operator: 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.