-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TS9UNl5feqCGTM0o5FNieLoV1Lfslzn8ybMgM7OeWu56TTmqNmeQku8EbuFIcIpw iSG4fW4Seu4sBRKNBMhaNQ== 0000914039-97-000340.txt : 19971111 0000914039-97-000340.hdr.sgml : 19971111 ACCESSION NUMBER: 0000914039-97-000340 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970927 FILED AS OF DATE: 19971110 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANSACT TECHNOLOGIES INC CENTRAL INDEX KEY: 0001017303 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 061456680 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-21121 FILM NUMBER: 97711527 BUSINESS ADDRESS: STREET 1: 7 LASER LANE CITY: WALLINGFORD STATE: CT ZIP: 06492 BUSINESS PHONE: 2032691198 MAIL ADDRESS: STREET 1: 7 LASER LANE CITY: WALLINGFORD STATE: CT ZIP: 06492 10-Q 1 FORM 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 27, 1997 -------------------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to: Commission file number: 0-21121 TRANSACT TECHNOLOGIES INCORPORATED (Exact name of registrant as specified in its charter) DELAWARE 06-1456680 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 7 LASER LANE, WALLINGFORD, CT 06492 (Address of principal executive offices) (Zip Code) (203) 269-1198 (Registrant's telephone number, including area code) Former address: (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 Months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES /x/ NO / / APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES / / NO / / APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
CLASS OUTSTANDING AS OF OCTOBER 24, 1997 - --------------------------- ---------------------------------- COMMON STOCK, $.01 PAR VALUE 6,808,800
2 TRANSACT TECHNOLOGIES INCORPORATED INDEX
PART I. Financial Information: Page No. - ------- ---------------------- -------- Item 1. Financial Statements Consolidated condensed balance sheets as of September 27, 1997 and December 31, 1996 3 Consolidated statements of income for the three months and nine months ended September 27, 1997 and September 28, 1996 4 Consolidated condensed statements of cash flows for the nine months ended September 27, 1997 and September 28, 1996 5 Notes to consolidated condensed financial statements 6 Item 2. Management's Discussion and Analysis of the Results of Operations and Financial Condition 7 PART II. Other Information: Item 6. Exhibits and Reports on Form 8-K 10 Signature 11 EXHIBIT INDEX Exhibit 11 Computation of Per Share Earnings 12 - ----------
2 3 TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED CONDENSED BALANCE SHEETS
SEPTEMBER 27, December 31, (In thousands) 1997 1996 -------------- ------------- ASSETS: (UNAUDITED) Current assets: Cash and cash equivalents $ 1,535 $ 1,041 Receivables 8,141 5,445 Inventories 8,762 7,370 Other current assets 914 628 -------- -------- Total current assets 19,352 14,484 -------- -------- Plant and equipment, net 4,604 3,964 Excess of cost over fair value of net assets acquired 2,116 2,246 Other assets 76 90 -------- -------- $ 26,148 $ 20,784 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Note payable to Tridex $ -- $ 1,000 Accounts payable 3,624 2,463 Accrued liabilities 2,902 2,412 -------- -------- Total current liabilities 6,526 5,875 -------- -------- Other liabilities 690 502 -------- -------- Shareholders' equity: Common stock 68 67 Additional paid-in capital 13,676 13,186 Retained earnings 5,198 1,169 Cumulative valuation adjustment (10) (15) -------- -------- 18,932 14,407 -------- -------- $ 26,148 $ 20,784 ======== ========
See notes to consolidated condensed financial statements. 3 4 TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED ------------------ ----------------- SEPTEMBER 27, September 28, SEPTEMBER 27, September 28, (In thousands, except per share data) 1997 1996 1997 1996 -------- -------- -------- -------- Net sales $ 16,040 $ 10,794 $ 45,623 $ 31,019 Cost of sales 10,975 7,139 31,243 20,557 -------- -------- -------- -------- Gross profit 5,065 3,655 14,380 10,462 -------- -------- -------- -------- Operating expenses: Engineering, design and product development costs 617 572 2,074 1,878 Selling, general and administrative expenses 1,884 1,505 5,715 4,466 -------- -------- -------- -------- 2,501 2,077 7,789 6,344 -------- -------- -------- -------- Operating income 2,564 1,578 6,591 4,118 -------- -------- -------- -------- Other income (expense): Interest, net 5 (5) (11) (5) Other, net (17) (2) (24) 279 -------- -------- -------- -------- (12) (7) (35) 274 -------- -------- -------- -------- Income before income taxes 2,552 1,571 6,556 4,392 Income taxes 970 644 2,527 1,732 -------- -------- -------- -------- Net income $ 1,582 $ 927 $ 4,029 $ 2,660 ======== ======== ======== ======== Net income per common and common equivalent share: Primary $ 0.23 $ 0.58 ======== ======== Average common and common equivalent shares outstanding 7,014 6,925 ======== ======== Pro forma net income per common and common equivalent share: Primary $ 0.16 $ 0.48 ======== ======== Pro forma average common and common equivalent shares outstanding 5,909 5,570 ======== ========
See notes to consolidated condensed financial statements. 4 5 TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (UNAUDITED)
NINE MONTHS ENDED ------------------------------ SEPTEMBER 27, September 28, (In thousands) 1997 1996 ------------- ----------- Cash flows from operating activities: Net income $ 4,029 $ 2,660 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,250 833 Gain on sale of securities available for sale -- (285) Loss on disposal of equipment 8 9 Changes in operating assets and liabilities: Receivables (2,696) (1,758) Inventories (1,392) (731) Other current assets (286) (294) Other assets (37) (18) Accounts payable 1,161 528 Accrued liabilities and other liabilities 678 993 ------- ------- Net cash provided by operating activities 2,715 1,937 ------- ------- Cash flows from investing activities: Purchases of plant and equipment (1,688) (1,398) Proceeds from sale of securities available for sale -- 510 Proceeds from sale of equipment 42 7 ------- ------- Net cash used in investing activities (1,646) (881) ------- ------- Cash flows from financing activities: Borrowings under bank revolving credit facility 1,200 -- Repayment of borrowings under bank revolving credit facility (1,200) -- Repayment of intercompany indebtedness to Tridex (1,000) (7,500) Net proceeds from issuance of stock 44 8,991 Net transactions with Tridex prior to initial public stock offering -- (1,087) Other 376 (6) ------- ------- Net cash used in financing activities (580) 398 ------- ------- Effect of exchange rate changes on cash 5 -- ------- ------- Increase in cash and cash equivalents 494 1,454 Cash and cash equivalents at beginning of period 1,041 -- ------- ------- Cash and cash equivalents at end of period $ 1,535 $ 1,454 ======= =======
See notes to consolidated condensed financial statements. 5 6 TRANSACT TECHNOLOGIES INCORPORATED NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly its financial position as of September 27, 1997, the results of its operations for the three and nine months ended September 27, 1997 and September 28, 1996, and changes in its cash flows for the nine months ended September 27, 1997 and September 28, 1996. The December 31, 1996 consolidated condensed balance sheet has been derived from the Company's audited financial statements at that date. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 1996 included in the Company's Annual Report on Form 10-K. The financial position and results of operations of the Company's foreign subsidiaries are measured using local currency as the functional currency. Assets and liabilities of such subsidiaries have been translated at end of period exchange rates, and related revenues and expenses have been translated at weighted average exchange rates. The aggregate effect of translation adjustments so calculated for periods prior to the Company's initial public offering on August 22, 1996 (the "Offering"), which would ordinarily be included as a separate component of shareholders' equity, is de minimus. Transaction gains and losses are included in other income. The results of operations for the three and nine months ended September 27, 1997 and September 28, 1996 are not necessarily indicative of the results to be expected for the full year. Certain amounts have been reclassified to conform with the current financial statement presentation. 2. Earnings per share: Primary net income per common share for the three and nine months ended September 27, 1997 were based on the weighted average number of shares outstanding during the period after consideration of any dilutive effect of stock options and warrants. Primary net income per common share for the three and nine months ended September 28, 1996 were based on the pro forma weighted average number of shares outstanding during the period, as if all shares issued to the Company's former parent, Tridex Corporation ("Tridex"), prior to the Offering had been outstanding throughout the periods presented. In February of 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard No. 128, "Earnings per Share." The Company will adopt this standard, as required, at the end of this year. Had this standard been adopted in 1997, the Company's reported basic earnings per share for the three and nine months ended September 27, 1997 would have been $0.23 and $0.60, respectively. 3. Inventories: The components of inventories are:
September 27, December 31, (In thousands) 1997 1996 ------------- ------------ Raw materials and component parts $7,439 $5,828 Work-in-process 798 810 Finished goods 525 732 ------ ------ $8,762 $7,370 ====== ======
4. Other income, net: Other income, net for the nine months ended September 28, 1996 included a gain on the sale of securities available for sale of $285,000. 6 7 5. Commitments and contingencies: The Company has a long-term purchase agreement with Okidata, Division of Oki America, Inc., for certain printer components. Under the terms of the agreement, the Company receives favorable pricing for volume purchases over the life of the contract. In the event anticipated purchase levels are not achieved, the Company would be subject to retroactive price increases on previous purchases. Management currently anticipates achieving purchase levels sufficient to maintain the favorable prices. 6. Significant events: On March 31, 1997, Tridex distributed its 5,400,000 shares, or approximately 80.3%, of the Company's stock pro rata to Tridex's shareholders and the Company ceased to be a subsidiary of Tridex. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION Certain statements included in this report, including without limitation statements in this Management's Discussion and Analysis of the Results of Operations and Financial Condition, which are not historical facts may be deemed to contain forward looking statements with respect to events the occurrence of which involves risks and uncertainties, including, without limitation, the Company's expectation regarding gross profit and operating income. RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 27, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER 28, 1996 NET SALES. Net sales into each of the Company's four vertical markets for the current and prior year's quarter were as follows:
Three months ended Three months ended (In thousands) September 27, 1997 September 28, 1996 ------------------------ ------------------------ Point of sale $ 6,119 38.2% $ 6,154 57.0% Gaming and lottery 7,383 46.0 2,831 26.2 Financial services 1,396 8.7 1,047 9.7 Kiosk 1,142 7.1 762 7.1 ------- ----- ------- ----- $16,040 100.0% $10,794 100.0% ======= ===== ======= =====
Net sales for the quarter ended September 27, 1997 increased $5,246,000, or 49%, to $16,040,000 from $10,794,000 in the prior year's quarter, substantially due to increased shipments into the gaming and lottery market. Shipments of the Company's on-line lottery printers increased approximately $4,000,000, to approximately $5,800,000, or 36.2% of net sales, in the current quarter, from approximately $1,800,000, or 16.7%, in the prior year's quarter. Additionally, shipments of the Company's gaming printers for use in video lottery terminals increased approximately $700,000 from the prior quarter. Sales into the kiosk market increased by $380,000, or 50%, due to increased shipments of the Company's thermal kiosk printers. The remainder of the increase primarily reflects increased shipments into the financial services market. Sales of the Company's POS printers during the current quarter were slightly lower compared to the prior quarter due to a softening in U.S. demand for these printers, largely offset by an increase in international POS printer shipments. The Company's international sales in the quarter were $1,845,000, or 11.5% of net sales, compared to $350,000, or 3.2% of net sales in the prior year's quarter. GROSS PROFIT. Gross profit increased $1,410,000, or 39%, to $5,065,000 from $3,655,000 in the prior year's quarter, primarily as a result of the higher volume of sales. The gross margin declined 2.3%, to 31.6% from 33.9%, due primarily to a larger proportion of printer sales at lower average selling prices resulting from volume discount pricing, particularly in the gaming and lottery market. The Company expects that its gross margin will remain relatively stable. However, operating income as a percentage of net sales has increased (see "Operating Income" below). 7 8 ENGINEERING, DESIGN AND PRODUCT DEVELOPMENT. Engineering, design and product development costs increased by $45,000, or 8%, to $617,000 from $572,000 in the three months ended September 28, 1996, and decreased as a percentage of net sales to 3.9% from 5.3%. The increase was due to additional product design and development costs, primarily for new products in the kiosk market, and to a lesser extent, new products and enhancements to existing products in the POS market. SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative expenses increased $379,000, or 25%, to $1,884,000 from $1,505,000 in the prior period. Selling expenses increased approximately $50,000. General and administrative costs increased approximately $329,000, reflecting increased incentive compensation and additional administrative staff expenses to support higher business volumes. Additionally, the Company experienced an increase of general and administrative expenses in the current quarter as the result of operating as a stand alone, public company. In the prior year's period, such expenses were allocated from Tridex, its former parent. Selling, general and administrative expenses decreased as a percentage of net sales to 11.7% from 13.9%, as management continues to closely control these costs. OPERATING INCOME. Operating income increased $986,000, or 62%, to $2,564,000 from $1,578,000 in the prior year's quarter. Operating income increased as a percentage of net sales to 16.0% from 14.7%, reflecting the Company's ability to control operating expenses while increasing sales. INCOME TAXES. The provision for income taxes for the quarter ended September 27, 1997 reflects an effective tax rate of 38.0% and reflects benefits resulting from certain tax credits and the establishment of a foreign sales corporation. The effective tax rate in the prior period's quarter was approximately 41.0%. NET INCOME. Net income for the current quarter was $1,582,000, or $0.23 per share, as compared to $927,000, or $0.16 per share (pro forma), in the prior year's quarter. Weighted average shares outstanding increased to 7,014,000 shares from 5,909,000 shares (pro forma) in the prior year's quarter. NINE MONTHS ENDED SEPTEMBER 27, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER 28, 1996 NET SALES. Net sales into each of the Company's four vertical markets for the current and prior year's nine-month period were as follows:
Nine months ended Nine months ended (In thousands) September 27, 1997 September 28, 1996 ----------------------- ------------------------- Point of sale $16,816 36.9% $15,586 50.3% Gaming and lottery 19,271 42.2 9,525 30.7 Financial services 3,981 8.7 3,759 12.1 Kiosk 5,555 12.2 2,149 6.9 ------- ----- ------- ----- $45,623 100.0% $31,019 100.0% ======= ===== ======= =====
Net sales for the nine months ended September 27, 1997 increased $14,604,000, or 47%, to $45,623,000 from $31,019,000 in the prior year's period, substantially due to increased shipments into the gaming and lottery market. Shipments of the Company's on-line lottery printers increased approximately $8,500,000, to approximately $13,700,000, or 30.0% of net sales, in the current period, from approximately $5,200,000 or 16.8% in the prior year's period. Additionally, shipments of the Company's printers for use in video lottery terminals increased approximately $1,800,000 from the prior year's period. The increase in sales of printers for on-line lottery and video lottery terminals was somewhat offset by lower sales of certain other gaming printers. In addition, approximately $3,600,000 of the total increase was the result of increased shipments of the Company's thermal kiosk printers. The remainder of the increase primarily reflects increased shipments into the POS and financial services markets. The Company's international sales in the current nine month period were $7,140,000, or 15.7% of net sales, compared to $1,411,000, or 4.5% of net sales in the prior year's period. 8 9 GROSS PROFIT. Gross profit increased $3,918,000, or 37%, to $14,380,000 from $10,462,000 in the prior year's period. The increase is primarily the result of the higher volume of sales. The gross margin declined 2.2%, to 31.5% from 33.7%, due primarily to a larger proportion of printer sales at lower average selling prices resulting from volume discount pricing, particularly in the gaming and lottery market. The Company expects that its gross margin will remain relatively stable. However, operating income as a percentage of net sales has increased (see "Operating Income" below). ENGINEERING, DESIGN AND PRODUCT DEVELOPMENT. Engineering, design and product development costs increased by $196,000, or 10%, to $2,074,000 from $1,878,000 in the nine months ended September 28, 1996, and decreased as a percentage of net sales to 4.5% from 6.0%. The increase was due primarily to additional product design and development costs for new products in the POS and kiosk markets, the enhancement of existing products in the POS market, and to a lesser extent, compensation-related costs for additional engineering staff. SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative expenses increased $1,249,000, or 28%, to $5,715,000 from $4,466,000 in the prior year's period. Selling expenses increased approximately $337,000 due primarily to increased commissions resulting from higher volumes of unit sales principally in the kiosk and POS markets and, to a lesser extent, increased advertising and sales promotion costs for new POS product introductions. General and administrative expenses increased approximately $912,000, primarily reflecting an increase of general and administrative expenses incurred by the Company as a stand alone, public company. In the prior year's period, such expenses were allocated from Tridex, its former parent. Additionally, the increase reflects increased incentive compensation and additional administrative staff expenses to support higher business volumes. Selling, general and administrative expenses decreased as a percentage of net sales to 12.5% from 14.4%, due primarily to management's continuing efforts to control these expenses. OPERATING INCOME. Operating income increased $2,473,000, or 60%, to $6,591,000 from $4,118,000 in the prior nine month period. Operating income increased as a percentage of net sales to 14.5% from 13.3%, reflecting the Company's ability to control operating expenses while increasing sales. OTHER INCOME. Other income (expense) for the nine months ended September 28, 1996 included a gain of $285,000 from the sale of securities acquired in the sale of the Company's solenoid product line in 1994. INCOME TAXES. The provision for income taxes for the nine months ended September 27, 1997 reflects an effective tax rate of 38.5%. The effective rate in the comparable prior period was 39.4%. NET INCOME. Net income for the current period was $4,029,000, or $0.58 per share, as compared to $2,660,000, or $0.48 per share (pro forma), in the prior year's period. Weighted average shares outstanding increased to 6,925,000 shares from 5,570,000 shares (pro forma) in the prior year's period. LIQUIDITY AND CAPITAL RESOURCES The Company generated cash flows from operations of $2,715,000 and $1,937,000 for the nine months ended September 27, 1997 and September 28, 1996, respectively. The Company's working capital was $12,826,000 at September 27, 1997 compared with $8,609,000 at December 31, 1996. The current ratio was 2.97 to 1.0 at September 27, 1997 and 2.47 to 1.0 at December 31, 1996. The increase in working capital and net operating assets for the nine month period was funded primarily through cash from operations. On August 22, 1996, the Company sold 1,150,000 shares of its common stock at a price of $8.50 per share in the Offering. On September 18, 1996, the Company issued an additional 172,500 shares upon exercise of the underwriters' over-allotment option. Net proceeds from the Offering (including the exercise of the underwriters' over-allotment option) were approximately $8,991,000 after payment of $2,250,000 of Offering expenses. In conjunction with the Offering, the Company also repaid $7,500,000 of a total of $8,500,000 of intercompany indebtedness to Tridex and issued a $1,000,000 subordinated promissory note to Tridex. The note, which bore interest at the rate paid by Tridex under its revolving credit facility, was repaid on February 14, 1997. 9 10 Prior to the Offering, the Company participated in Tridex's centralized cash management system. While under this system, cash deposits from the Company were transferred to Tridex on a daily basis and Tridex funded the Company's disbursement bank accounts as required. On August 22, 1996, the Company ceased to participate in the Tridex cash management system. On August 29, 1996, the Company entered into an agreement with Fleet National Bank ("Fleet") to provide the Company with a $5,000,000 revolving credit facility (the "Credit Facility"). The Credit Facility expires on June 30, 1998, bears interest on outstanding borrowings at Fleet's prime rate (8.50% at September 27, 1997), and bears a commitment fee of one quarter of one percent on any unused portion of the Credit Facility. The Credit Facility also permits the Company to designate a LIBOR rate on outstanding borrowings with a margin of 1.5 percentage points over the market rate. The Credit Facility is secured by a lien on substantially all of the assets of the Company, imposes certain financial covenants (including, among other things, a minimum tangible net worth, a maximum leverage ratio, a minimum current ratio and a minimum interest coverage ratio) and restricts the payment of cash dividends and the creation of liens. The Company was in compliance with all covenants under this facility at September 27, 1997 and expects to be in compliance with these covenants for the remainder of 1997. During the nine months ended September 27, 1997, the Company borrowed and repaid $1,200,000 under the Credit Facility. The Company's capital expenditures were approximately $1,688,000 and $1,398,000 for the nine months ended September 27, 1997 and September 28, 1996, respectively. These expenditures primarily included tooling and factory machinery and equipment. The Company's total capital expenditures for fiscal 1997 are expected to be approximately $2,300,000. The Company believes that cash flows generated from operations and borrowings available under the Credit Facility, if necessary, will provide sufficient resources to meet the Company's working capital needs, finance its capital expenditures and meet its liquidity requirements through December 31, 1997. PART II. OTHER INFORMATION ITEM 6. Exhibits and Reports on Form 8-K a. Exhibits Exhibit 11 Computation of Per Share Earnings Exhibit 27 Financial Data Schedule b. Reports on Form 8-K The Company did not file any reports on Form 8-K during the quarter covered by this report. 10 11 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TRANSACT TECHNOLOGIES INCORPORATED ---------------------------------------- (Registrant) November 7, 1997 /s/ Richard L. Cote ---------------------------------------- Richard L. Cote Executive Vice President, Secretary, Treasurer and Chief Financial Officer 11 12 TRANSACT TECHNOLOGIES INCORPORATED EXHIBIT 11 COMPUTATION OF PER SHARE EARNINGS (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED ------------------------------ -------------------------------- SEPTEMBER 27, September 28, SEPTEMBER 27, September 28, 1997 1996 1997 1996 ------------- ------------- ------------- ------------- PRIMARY: EARNINGS: Net income $1,582,000 $ 927,000 $4,029,000 $2,660,000 ========== ========== ========== ========== SHARES: Weighted average common shares outstanding 6,788,000 5,901,000* 6,761,000 5,567,000* Dilutive effect of outstanding options and warrants as determined by the treasury stock method 226,000 8,000 164,000 3,000 ---------- ---------- ---------- ---------- 7,014,000 5,909,000* 6,925,000 5,570,000* ========== ========== ========== ========== EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE: Primary $ 0.23 $ 0.16* $ 0.58 $ 0.48* ========== ========== ========== ==========
* Weighted average common shares outstanding and primary earnings per common and common equivalent share for the three and nine months ended September 28, 1996 are presented on a pro forma basis. 12 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM TRANSACT TECHNOLOGIES INCORPORATED QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 27, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-27-1997 1,535 0 8,289 148 8,762 19,352 10,828 6,224 26,148 6,526 0 0 0 68 18,864 26,148 45,623 45,623 31,243 31,243 24 0 11 6,556 2,527 4,029 0 0 0 4,029 0.58 0
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