Good day, and welcome to the TransAct Technologies Third Quarter 2022 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Ryan Gardella, Investor Relations. Please go ahead, sir. Thank you. Good afternoon, and welcome to TransAct Technologies third quarter 2022 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 Bart Shuldman and President and CFO Steve DeMartino. Today's call will include a discussion of our company's key operating strategies, the progress on those initiatives, and details on our third quarter financial results. We will then open the call to participants for questions. As a reminder, this conference call contains forward-looking 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 company, please refer to the company's SEC filings, including its reports on Forms 10-K and 10-Q. TransAct undertakes no obligations to revise or update any forward-looking statements to reflect events or circumstances that occur after the call. 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 website. With that, I'd like to turn the call over to Bart. Thank you, Ryan, and thank you to everyone joining us on the call today. Our third quarter results reflect the accumulation of many months of incredible work by the TransAct team across every facet of the company. I'm incredibly proud of all of you at TransAct and know every team member contributed to the success we are seeing. After a very difficult couple of years, I believe we are finally reaching an inflection point in the business and could not be more excited for the future. Last quarter, I discussed the efforts on the engineering and operations side to get production back to normal, tasking our teams with solving problems related to the ongoing worldwide parts shortage issue. I am thrilled that our production lines are back in full swing and to say that we delivered a near record number of casino and point-of-sale printers in the third quarter, and we broke a number of company sales records. First, at a high level, on the food service technology or FST side, we set record highs in terms of sales dollars for total FST revenue, label revenue, and total recurring FST revenue, which I'll go into more detail shortly. On the casino and gaming side, we saw another double-digit percentage increase in sales on the domestic side of our business, and yet another triple-digit sales increase on the international side. Suffice to say, our R&D and operations work to ramp up production was a massive success. Barring any unforeseen issues, we believe this momentum will continue. Before I go through the market results, I also wanted to provide you an update on our cost-cutting initiatives and price increases, which I discussed in last quarter's call and was in full effect by September of the third quarter of 2022. These cost-cutting measures, combined with the revenue growth, resulted in a significant improvement in the flow-through of our top-line revenue to the bottom-line profitability. We were thrilled to see our gross margin increase by 540 basis points. Let me step to the side. Ryan, Mitch Sacks is texting me that he's on hold for 10 minutes, so can somebody figure that out. Let me start again. Sorry. It's modern technology. These cost-cutting measures, combined with the revenue growth, result in a significant improvement in the flow-through of our top-line revenue to the bottom-line profitability. We were thrilled to see our gross margin increase by 540 basis points while achieving both positive net income and positive Adjusted EBITDA. What a great job by the TransAct team to get us to this point. Sales teams, you did a fantastic job. Now let's go through our markets in more detail, starting with FST. I cannot be more pleased with our results, and as I just mentioned, we set a number of records. Our FST recurring revenue crossed over $2.5 million for the first time in a quarter, setting a new record high of nearly $2.6 million. While we saw increases across all three components of our recurring revenue, label sales saw a particularly strong quarter and also set a new record high in terms of sales dollars. Combined with record high software sales and adding in the hardware sales in the quarter, we reached total FST revenue in the quarter of $3.7 million, which, as I already mentioned, is a record for total FST sales dollars in a quarter. While a lot of the positive momentum can be credited to our newly expanded sales force, please keep in mind that we have said in the past that our typical sales cycle are well over a year, and the expanded team has only been in place for less than six months. Some just joined us a few weeks ago. I am really excited to see their early success, which we believe is setting the stage nicely for future performance. They have made significant inroads in the SMB vertical and have started to carve out new use cases for our industry-leading BOHA! Terminal and Workstations, particularly in the grocery market, where we see as important to the TransAct brand going forward. The economics of the grocery aisle resemble very large convenience stores with heavy label usage, but with some additional software layered on top. Now let's talk about paid terminal count. In the third quarter, we added 988 paid terminals for a total of 11,929 currently in the quarter. I'm sorry. Currently, I'm getting text messages, Ryan, that people can't get into the call. Now let's talk about paid terminal count. In the third quarter, we added 988 paid terminals for a total of 11,929 currently in the market. We continue to be optimistic about our results for the remainder of the year, but I am optimistic for 2023 and the future due to all the new sales opportunities our new sales team have identified. Speaking of our sales pipeline, we continue to believe it is as robust or perhaps even more than ever. We are seeing great traction with a number of valuations currently underway across some well-known international brands, and our sales team is in high gear working to close deals. While it will take time to close some of the opportunities in the pipeline, there is a real need for our technology, and we believe we will see positive momentum carry on throughout the end of the year and into 2023. With that in mind, we are reiterating our recurring FST revenue guidance for the full year of $8 million-$10 million. Now I would like to speak about one large opportunity that should become a great success story for TransAct. We have been given the approval to go into a final test with a very large QSR, and the goal between our two organizations is to begin the sales process with their franchise organization in July 2023. This is a very large opportunity for TransAct, and we just have to finish some final design work and then the final field test. We believe this will be the largest sales opportunity in the company's history for our BOHA! Technology. Before moving on, I wanted to touch on our ARPU for the quarter, which came in at $936 versus $861 sequentially. Our record FST recurring revenue helped fuel this gain, particularly with the strong performance from our label business. As a reminder, our target ARPU continues to be $1,000-$1,200 per year. However, we are now selling a number of BOHA! terminals that will replace our old 9700 AccuDate Food Safety Terminal, which will not generate any recurring revenue from the beginning. While these units are included in our ARPU calculation and drag down the number a bit, the purchase price of these will be higher than our typical BOHA! Terminal or Workstation sale, which will fall under hardware rather than recurring revenue. The BOHA! Terminals and Workstations will also get our customers onto our portal-based system and gives us the opportunity to upsell each to our different app offerings. Now let's talk about the gaming and casino market. Once again, we could have sold more product, but the incredible demand is outstripping our supply even as we ramp production up significantly. For the third quarter, casino and gaming sales were $7.6 million, which is up almost 92% year-over-year. As I mentioned, we saw a solid double-digit gain in our domestic sales and yet another triple-digit gain in our international markets. Our international success was achieved without much sales into the Macau market, which is still affected by the Chinese COVID lockdown policy. As many people know, our competitor in the casino market appears to have production issue, and we took on the task of ramping production as quickly as possible despite the product shortages in the marketplace to help our slot manufacturers with their sales to the casinos. One slot manufacturer personally told me, "Bart, we bailed them out." There is no doubt the word is out that TransAct has supply, and new customers are coming in from across the globe to buy our Epic line of printers. We continue to actively work on ways to increase our production to meet this record demand. We plan on increasing production even more in the fourth quarter of 2022, and we should experience higher sales as we ship more printers in the fourth quarter than we did in the third quarter. In addition, we are planning to increase production even more in the first quarter of 2023 to meet the demand we are experiencing from our customers around the world. We learned and heard a lot at the G2E show this year in Las Vegas and working hard to produce more printers. I'd like to thank everyone we met at G2E for coming out and seeing our booth and product demonstrations. We had BOHA! in the booth and pleased to see casinos wanting to learn more about our back-of-the-house technology. We generated sales leads at G2E for BOHA! and have added this market to our focus list. It is fantastic to be back out at trade shows like G2E, interacting with all our customers and prospects, and showing them the power of our technology solutions all in one place. Now let's move on to our POS automation market. We were also the beneficiary of a competitor's inability to supply the market here as we sold and shipped a huge amount of our Ithaca 9000 printers to our key customer. The additional supply allowed us to begin fulfilling backlog orders as well, and together, this resulted in sales of over $5.2 million, which was over 300% above our POS automation sales from the prior year. It is important for us to continue our POS printer line and get to a constant level of production as this leads us to dive further into the POS customers to cross-sell our BOHA! system. In closing, I want to quickly recap what I believe to be the highlights of the quarter. In FST, we're seeing fantastic momentum in certain markets and feel confident in our growing pipeline going forward. We experienced record highs in our FST revenue. In casino and gaming, we are actively taking share in every geographic market we serve across the board due to the incredible success of our team, teams to ramp up production with all the operations, R&D, and sales work we did. Our international sales were a real highlight, and we continued to see demand from these customers. Our price increases and cost reduction program resulted in positive net income and Adjusted EBITDA in the very first quarter they were fully implemented. We entered the fourth quarter of 2022 with $19 million of backlog. Taken together, it's hard to imagine a better quarter for TransAct as a whole. With that, I'd like to hand the call over to Steve to go over the numbers. Before I do, I do hope people finally got through. I don't know why they're having problems getting through on this call, and I can only apologize this is happening. Okay, I'd like to hand over the call to Steve to go over the numbers. Steve? Thanks, Bart. Thanks to everyone for joining us this afternoon. Let's turn to our third quarter 2022 results in more detail. Total net sales for the third quarter were $17.9 million, which was up 68% from $10.6 million in the third quarter of 2021. Sales from our food service technology market, or FST, were up 14% to a record $3.7 million compared to the third quarter of 2021. FST hardware sales decreased by 6% to $1.2 million, largely on lower sales of our first generation AccuDate 9700 Terminal to McDonald's. While sales of our BOHA! Terminals and Workstations remained relatively flat. We added 988 paid terminals during the third quarter 2022 and finished with a total of 11,929 in the market. Our recurring FST sales, which include software and service subscriptions as well as consumable label sales, were $2.6 million, also a record high and up 27% from the $2 million in the prior year period and up 18% sequentially. This improvement was due to record label and software sales in the quarter, as well as higher service revenue. Our ARPU for the third quarter of 2022 was $936, which was up sequentially from $861 in the second quarter of 2022. The continued ARPU recovery is due to higher FST recurring revenue, which we have seen accelerate over the past two quarters. Our casino and gaming sales were $7.7 million, which was up 92% from the third quarter of 2021 and 19% sequentially from the second quarter of 2022. Our international sales were up almost 190% year-over-year and have continued to be very strong as we are actively picking up market share, especially in Europe, due to competitive dynamics. Domestic sales were also very strong, up 42% year-over-year. We also implemented our second price increase late in the third quarter, which began to positively impact our top line. As we mentioned last quarter, we're continuing to see record demand, and although we've been able to increase production substantially, even in the face of the worldwide supply shortages, we still sold out of casino and gaming printers in the quarter. We are ramping up production even more in the fourth quarter, but still expect to be supply limited against all the demand we're experiencing. POS automation sales more than quadrupled in the third quarter of 2022, increasing 340% from the prior year to $5.2 million. This jump resulted from significantly higher sales of our Ithaca 9000 printer to McDonald's due to additional competitive dynamics with another key supplier being unable to deliver product in the quarter. Additionally, our successful production ramp allowed us to begin to fulfill our backlog of orders, which we were unable to fulfill sooner due to the ongoing chip shortage. Moving to the TransAct Services Group or TSG sales. Overall, TSG sales were down 42% to $1.1 million. This decrease was largely due to unusually high spare parts sales to a customer for our legacy lottery printers during the third quarter of last year that didn't repeat to the same extent this quarter. As a reminder, the TSG market is no longer a focus for us, and we expect sales to gradually wind down over time. Moving down the income statement, our third quarter gross margin was 45.9% compared to 40.5% in the prior year quarter. Gross margin was positively impacted by 68% higher sales, especially in the casino and gaming market, as well as two rounds of price increases we instituted late in Q1 and again in September 2022 to mitigate higher product and shipping costs related to the chip and parts shortages. While we originally anticipated gross margin to dip in the third quarter, the leverage from additional sales was more than enough to overcome this. As a result, our gross margin actually rose sequentially by 290 basis points from the second quarter. Our operating expenses for the third quarter increased $1.9 million or 32% from the significantly lower COVID impacted spending levels of the prior period. However, sequentially, expenses were down 7% to $7.8 million as a result of our cost savings initiatives. Breaking this down a little bit, our engineering and R&D expenses increased 6% to $2 million, largely due to the impact from hiring additional software developers in late 2021 for the continued development of BOHA! software. On a sequential basis, our engineering and R&D expenses were down 9% due to our cost reduction initiatives. Our selling and marketing expenses increased 45% to $2.7 million due to additional investment in marketing programs, the return of trade show and travel spending to pre-COVID spending levels, and the further expansion of sales and customer support staff to support our BOHA! products. However, sequentially, our selling and marketing expenses were down 17%, again, due to our cost reduction initiatives. Lastly, our G&A expenses increased 43% to $3.1 million. This increase included an across-the-board salary increase, the hiring of additional accounting and finance staff, recruiting fees, higher professional fees, as well as expenses related to the rollout of our new ERP system, NetSuite. Turning to operating income, we generated operating income of $387,000, or 2.2% of net sales in the third quarter of 2022, which compares to an operating loss of $1.6 million in the prior year period. Now, the bottom line, we recorded net income of $528,000, or $0.05 per diluted share, compared to net income of $901,000, or $0.09 per diluted share in the year-ago period. However, our EPS of $0.09 for the prior year third quarter included a $2.2 million gain on the forgiveness of the PPP loan from the SBA under the CARES Act. After removing this gain, we incurred an adjusted net loss during the third quarter of 2021 of $1.3 million or $0.13 loss per share. Finally, as Bart mentioned, I'm pleased to report that we generated positive Adjusted EBITDA of $1.2 million in the third quarter of 2022 compared to negative $1.2 million in the prior year period. In terms of liquidity, we finished the quarter with $6.4 million of cash and $2.25 million of debt outstanding under our newly amended Siena credit facility. Based on our internal projections, we believe we have sufficient cash on hand and borrowing capacity under our Siena credit facility to fund our business through at least the end of 2023. With that said, I'd like to turn the call back over to Bart for any closing remarks. Bart? Thanks, Steve. Once again, a great job. Before I open the call to questions, I want to let our shareholders know that I'll be in New York City next week attending two investor conferences. Hopefully I will see many of you, and we gladly meet you at the conferences or if necessary, for coffee or drinks or dinner after. Just let me know. With that, operator, please open the call to questions. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using the speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We'll take our first question from the line of Jeff Martin with Roth Capital Partners. Steve, hope you're doing well. I apologize. I was one of those that had a tough time getting on the call. Bart, you mentioned a large QSR order or, you know, potential customer in the pipeline. Just curious how, you know, how long you've been working with them and what stage that, you know, is currently in. You gave us a timeline of mid-year 2023. You know, what needs to happen between now and then? It'd It'd be helpful. Thanks. Yeah. We've been working with them for quite a while. They had some requirements that we worked on that we're just about finishing up. We went in and demonstrated the final product to them and got the thumbs up. Said based on the response we got, we checked off all the boxes, is how they put it. We'll finish that up now that they approved it and start our test, our final field test, as we get to the end of the spring. The two organizations both think that we could start a rollout July, early July of 2023. It's a franchise organization, so we get the license to sell, which we think, you know, that we're gonna get great support from corporate, but we'll begin our selling to the franchisees right around the beginning of July of 2023. Okay. Care to disclose how many franchisees they have? Well, I actually don't know how many franchisees they have. I know that they have the addressable market that we're going after between all the different geographic areas is probably gonna approach 20,000 stores. You may have touched on this in your prepared remarks, but just in terms of pipeline development, you know, what kind of progress did you see in the quarter? Are we starting to get to the point where, you know, larger restaurant organizations are less focused on labor issues and, input, you know, inflation costs? You know, just curious if you're seeing any kinda undamming of the sales process with respect to a back-of-the-house, you know, purchase decision. Yeah. You know, if you kinda break up our FST business into three markets, right? You've got the convenience store market, and that's, you know, all about getting into fresh food and the growth of fresh food at convenience stores. I think we all understand that. We've got a bunch more that we're working with. You know, that business continues to move forward. The grocery aisle is another area that we're focused on, again, that has to do with fresh food and the demands of the FDA on labeling, and that also has a couple of large opportunities in there. We'll add a fourth now, the casino market. Clearly the response we got at G2E was very positive. You know, casinos run basically restaurants, so it's kind of a no-brainer. It's kind of a different operation. They do a lot with kitchens and things like that, commissaries, but the need for the things that we can provide are there, so we'll move that forward. Then the last one, Jeff, has been restaurant customers. One in particular I was able to mention because that one we've been given the okay. It's just that we got to finish up some work for them and then go out and sell to the franchisees. There's quite a few restaurants in the pipeline that are moving forward. We are seeing that the restaurants, while still focused on their labor shortages and their high inflationary issues, they are receptive to us coming in, demonstrating the technology, and moving forward with trials, evaluation units in their location at the headquarters, and then potentially doing, you know, field trials. We are starting to see that turn, Jeff, where restaurants are opening up to our technology. Okay. Then I may have missed it. Did you give an updated terminal installations guidance for the year? I know you reiterated the- No. recurring revenue piece, but We didn't. No, we didn't. You know, we're running at about 1,000 a quarter on turn-ons. We're just gonna keep going forward and work with some of these large opportunities. We now have three people in what we call digital sales, because those close very quickly. There you have the chef, the CEO, owner, all in the same position. Once they get a demonstration of the technology, they get it, they get the savings, they get how it's going to be helpful for them. Those tend to close quicker. There we see the sales cycle much quicker than the bigger people. We've said that all along. When we talk about sort of the takeaways from the G2E show, and you obviously had that very valuable sign that said, "Printers available." Can you talk about what that has meant for your printer business? Can you also talk about, you know, understanding you've standardized on a chip, how much supply you're actually getting versus the demand side of the equation? Yeah. Yeah, great question, George. The demand side continues to surprise us. We ramped up in the third quarter. Now mind you, we were capacity constrained in the third quarter as we put a third production line on and got it up to speed by September. Then, of course, the fourth quarter, that third line is going to run. We've now decided to put a fourth line in. The demand, while we have a $19 million backlog, we actually have orders we have not accepted yet because we can't give out delivery dates, which would drive that backlog probably north of $30 million. The casino market continues to impress us with the demand. You know, what we've heard from our customers is they've got a backlog of orders that they're You know, they've had their own supply issue that they're going through, and getting fixed and ramping up their production. We heard from one in particular, slot manufacturer that's ramping up their production to meet the demand that they're seeing. You know, we're just ramping up as quickly as possible. It'll be clearly record sales. I think the fourth quarter will be record sales for casino, and then the first quarter is gonna be, if we can get that fourth line and get all the chips in, you know, we'll have another record in the first quarter. You will see that our inventory is up a little, George. Mostly that's parts that we've bought. To get ahead of this, we bought a lot of our new chips because that chip is standardized across all of our products now. We bought a lot of those chips, and we're buying where we know we've had issues before. We're going out and buying those chips or those electronics also. Again, the goal is to get that third line up and running the fourth quarter and get the fourth line up and running in the first quarter next year to meet this demand that, you know, we're seeing. Like I said, if we entered all the orders we have or been told we're getting, that backlog would probably exceed $30 million right now. I just want to make sure I distinguish the governor to your growth and your ability to ship. I'm thrilled to hear you have high inventory of chips. It is no longer a chip issue, it is now a production issue that you can manage via hiring and building out these- Look, there's no doubt that a lot of the issues that we faced just three months ago have been resolved by us designing around it and also going to our new processor. George, I can't tell you 100% that we're not going to get a call tomorrow and some part that we were expecting, whether it's a motor driver or a sensor, turns out that we find ourselves not getting the volume that we thought we would get. Right now, you know, right now it's capacity of production, but I can't promise you 100% that when we ramp up to the fourth line, that all of a sudden we find out the chips. The chips, I think we're in good shape. There are some other electronics that pop in and out of issues in getting the parts. I will say that the good news is, George, that the spot market tends to have those products now. It's one way we were able to get to the numbers in the third quarter and the numbers we think we're going to get into the fourth quarter was because we found the chips on the spot market and we're able to buy it, and hence why we have those price increases in place to be able to absorb that extra cost. So I can't promise you, George, that there won't be a part out there that pops up. As my operations people like to still call it's Whac-A-Mole, but there's not as many whacks we're having to make. The last question, if I look at your, what I will define as potential backlog of $30 million versus your backlog of $19 million, that delta is a number of orders that my assumption is can't be fulfilled by some of your competitors because they don't have the capacity. Is that a reasonable assumption? In other words, most of those potential backlog orders should ultimately be recognized. Yeah. Look, they're just waiting for delivery dates from us. What we need to do is to stabilize and to get that production up through the fourth quarter into the first quarter, and then we'll share our delivery dates with those customers. What they're doing is they're showing us purchase orders. It's up to us to match those purchase orders to the production and delivery. Yeah, those orders will get entered. It's just getting, you know, a firm commitment from our production people that what day are we gonna ship or what week we're gonna ship those products. You know, we're very excited about it. We're starting to get confident of where we are. We are a bit surprised by the volume of orders and how many, because we thought by putting in the third line, that was enough, and clearly it's not. We'll put the fourth line in, and we'll manage through it. We'll manage it and then take those orders and, you know, begin to get those orders on our books. Now, remember, once we ship something, it's out of backlog. We'll be shipping every week and all that. We've got plenty that we have not entered onto our books yet. Well, here's to a fifth and a sixth later next year. Congrats on the results. We'll take our next question from the line of Mitchell Sacks with GS Asset Management. Your line is open. Can you hear me? Mr. Sacks? Can you hear me now? Yes. Oh, good. Hey, congrats on the quarter, guys. First question's around the backlog. With respect to the $19 million, when would you expect that $19 million to be fulfilled over what period of time? Most of it's for the fourth quarter and some for the first quarter. Yeah, the majority of it over the next six months, Mitch. Okay. In terms of the additional orders that you're holding off on, just kind of if you could just talk through a little bit in terms of the gating factors now are those production lines as opposed to parts. Assuming that you have a third production line up, what is it a step change in terms of capacity, or is it just particularly like another third, you know, it basically increased capacity by a third effectively? You know, it's just getting the production line up. Again, I cannot 100% say to you that we won't run into a part issue out there that will surprise us. Right now, it's capacity of the line. We're trying to ramp up really quick. You know, it just takes time to get all the plastic parts, all the metal parts, you know, everybody to ramp their production up. It's not just electronics, it's all the pieces that go into that printer. We're getting more and more confident as we got through Q3 and able to hit some good numbers in Q3, that we'll hit our numbers in Q4, knowing what our customers are asking us for Q1, which will be more than what we'll do in Q4, potentially more than what we'll do in Q4 because they're asking for it. You know, it's up to us to supply them. Great. In terms of the QSR opportunity, is that purely a franchise organization, or do they also have corporate stores or where you're testing the product, the BOHA!? Yes. They're both, but they're mainly franchised operations. Okay. They have some corporate stores. You would be billing then the franchisees, not corporate for the recurring revenue and for the equipment? That's right, Mitch. Okay, cool. On the rollout front- The rollout will start. The agreement that we have is that we can start selling to the franchisees in July. You know, I can't tell you is that gonna be a quick ramp up, a slow ramp up. That we don't know. But from a need standpoint, they need the technology. So it's just gonna be a matter of how quickly they, the franchisees decide to buy the equipment. But it's definitely meeting a need of theirs. Are you in conversations with the large franchise groups, or who's pushing this? Is it being pushed bottom up or top down, or you're coming at it from both directions? It was pushed bottom up and top down. There were some real needs in the marketplace, and through our friends in the franchise world, they ended up doing some testing on our behalf. They really loved what we could do for them, while we have been talking to the corporate office for well over a year. It was a combination. It was really needed, Mitch. I can't get into more details than that, but they really needed it. It's just a matter of time, given all that McDonald's, all that the customer is doing. Yeah. I'm on medication for my back, so it's... I'm sorry to say. Anyway. It's okay. It is what it is. Okay. Cool. Great. Thanks a lot, Bart. You got it. Our next question comes from the line of Jeff Martin with Roth Capital Partners. Please go ahead. Thanks. Bart, wanted to see if there's any insight into 7-Eleven and their integration of Speedway. Are we growing closer to potential in knowing whether they'll roll out the labeling BOHA! Terminal to their Speedway units? Yeah. Was also curious if. Not- No. No. If you could give us an update on. We're no closer to- Yeah. Yeah, go ahead. I'm sorry. Go ahead. I'm sorry. I was just also curious on an update in general with 7-Eleven. I know it had a sluggish start to the year, partly because of the integration focus. Anything you can update us on would be helpful. Yeah. The second half of this year has been their big focus in integrating Speedway. There's no doubt, bunch of layoffs. I think 900 people got laid off. Even some of the people that we worked with got laid off. So, you know, we're in a hold and steady mode with them, and we'll see what they do with Speedway. I don't think it's unknown that the fresh food program has been very successful for them. What their ideas of Speedway, they're very tight-lipped about that, and whether they'll roll out the fresh food program to those stores yet. Okay. I was just curious if you could give us some relative perspective on label sales in the quarter. I mean, you had a good recurring revenue quarter for FST. You know, are we at a level where you think we're at a fairly predictable and sustainable level, label sales or was there some catch-up in the quarter? No. Good question. Thank you, Jeff. No, it's becoming predictable now. You know, as long as we don't get hit, and I hate to say it this way, but as long as we don't get hit with a major flu outbreak, a major COVID outbreak. You know, if you look at the first quarter, we were dealing with that, and that causes, you know, transactions to go down, and therefore, you know, our customers pull back on the amount of labels they buy because they're doing less transactions. Now we're in full swing, right? I mean, there's been no virus, no major issue out there. It's been steady Eddie for their business. You know, you gotta think every time we put out 1,000 terminals, and let's say 800 of them are recurring revenue terminals, because, you know, some go out where we're just replacing the 9,700, you know, we are gonna get a bunch of revenue from those. That's adding to the baseline revenue that we got last quarter. We added another, as we said, 900+ terminals into the marketplace. Some of them have label sales, and those terminals that have label sales with it drove our label business up. It's gonna be the same thing in the fourth quarter. It's getting those incremental units out the door, getting them in place, getting them online, and then the follow-through of the software revenue, the service revenue, should they buy a service contract, and without a doubt, the label business will grow that recurring revenue line. Okay, great. I think you mentioned the AccuDate didn't ship a lot of terminals this quarter. Does that mean we might see, you know, a significant hardware uptick in FST in the ensuing quarter or two related to the AccuDate replacement cycle? Steve, I think we shipped a lot of 9700s in the quarter. 9700s were down in the quarter compared to last year. Oh, compared to last year. Okay. Okay. Yeah, compared to last year. Yep. Yeah. Look, it's an existing product that's running out of. You know, the technology is old, and there are things that we're gonna do. I was referring to the BOHA! Terminal that's essentially replacing the AccuDate 9700. Or am I misunderstanding that? Oh, yeah. What's the question? I just wanted to clarify if you had mentioned that you didn't have a lot of those BOHA! Terminals that replaced the AccuDate in the quarter, and if there's some, you know, potential for some significant FST hardware sales in the next couple of quarters as a result of some pent-up demand. Well, in a lot of cases, we're not selling the 9700 anymore. It's a product that's 10 years old and, you know, what we're doing is we're working with our different restaurant companies that bought the ninety-seven hundred and switching them to the terminal or the workstation. There is that pent-up demand once they make that decision. You gotta remember that when a restaurant run by a franchisee, let's call it, is running the 9700, they've got to go to each machine to update the menu items, right? They go with their jump drive, they stick it in the machine. The 9700 is updated with the latest menu, and then they go to the next store. With the terminal or the portal solution, you go to your computer and say, "Update," you know, "Here's the menu item, and update all the terminals in the field," and press a button, and 10 seconds later, all the terminals are updated. The question that we have, Jeff, is when we talk to these customers that are starting to look at the terminal to replace the 9700, will they replace it on a onesie-twosie, or will they just say, "This is just such a better technology, and I can update all my terminals at one time, not have to send somebody on the road and make sure all the terminals are updated." Will they roll it out even quicker? We don't know that answer yet. Okay. The reason I asked the question is I believe on the last quarter call, we talked about tens of thousands of potential replacements. I'm just curious if there was. There are. Much traction to date and if there's, you know, any visibility in the next couple of quarters where that might become a significant volume for you and therefore translate into some significant FST hardware revenue. That was really what I was getting at. Oh, yeah. No, Jeff, you're on the right track. Exactly. No, that's what we're working on. It's exactly what we're working on. As they move over to the terminal, it's gonna drive significant. I mean, this one opportunity I talked about on the call, you know, it's over 10,000. So it's just a matter of time to get that done and then turn them over to, you know, modern technology from the 2012 technology. So it will. Yep. Great. That's it for me. Thanks. That does conclude today's question and answer session. At this time, I'll turn the conference back to you gentlemen for any additional or closing remarks. Yeah. Let me apologize once again for whatever problems people had in getting on the call. We'll clearly dive into it and find out how that doesn't happen again. I do really thank all of our shareholders for the support. There's no doubt that 2020, 2021 were not fun years for us, and then when we came out of it, we had to deal with some significant part shortage issues that the world is dealing with. I thank my team at TransAct for getting us through it and getting us back to profitability, and then getting things like the casino business to understand that we have product and now buying a lot of it. I thank our shareholders. I thank you for the support. I thank the TransAct team. What a job they did. Look forward to talking to you again on our next quarter call and also for those that will be in New York City next week, I hope to see you and say hello. Thanks, everybody. This concludes today's call. Thank you for your participation, and you may now disconnect.