Greetings, and welcome to the TransAct Technologies Q3 2023 earnings call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ryan Gardella, Investor Relations. Thank you, sir. You may begin. Thanks, Cal. Good afternoon, and welcome to TransAct Technologies Q3 2023 earnings call. Today, we'll be discussing the results announced in our press release issued after market close. Joining us from the company is CEO, John Dillon, and President and CFO, Steve DeMartino. Today's call will include a discussion of the company's key operating strategies, the progress on those initiatives, and details on our Q3 financial results. We will then open the call to participants for questions. As a reminder, this conference call contains statements about future events and expectations, which are forward-looking in nature. Statements on this call may be deemed as forward-looking, and actual results may differ materially. For a full list of risks inherent to the business and the company, please refer to the company's SEC filings, including its reports on forms 10-K and 10-Q. TransAct undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after the call. Today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G. When required, reconciliation of all non-GAAP financial measures are the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release, as well as on the company's website. And with that, I'd like to turn the call over to John. John? Hey, Ryan, thank you, and good afternoon, everyone, and thank you for joining us today. So I'm pleased with our progress. We're making it operationally across the organization, and I'm happy to report fairly solid results for the quarter. That said, I'm the first to acknowledge that we've still got some work to do. There's a lot of work to be done, and changes that we've made and continue to make are gonna take some time. It's always take time to produce the results that, you know, we know we need, and we know that helps the company deliver the future that we want. So on the top line, results were in line with basically what we expected for the quarter and discussed in the last call. Net sales, $17.2 million, was down sequentially year-over-year, 4%, and approximately 14% down sequentially. The sequential decline was a result of lower casino and gaming sales, and I'll talk a little bit about that shortly later on the call. Operationally, I believe we made an incredible amount of progress and are very much on the right track to getting the business back to a place of sustainable strength. And before I jump into the results on a by market basis, I wanna talk a little bit about some of the specific initiatives that we have underway. So first, as we talked on prior calls, after an extensive reorganization of our FST sales team and our go-to-market GTM strategies, not only do we believe, I believe, that we have the right pieces in place, and that's people and process, and the organization to kind of make things happen. But we've also refocused our attention on the part of the market that's best placed for us to win, and we expect to see results from these changes, in the H1 of 2024. The BOHA! Platform, including the new T2 terminal, are high-end enterprise-grade products. They're designed for enterprise-type customers. These are bigger customers, that are more complex and more sophisticated, and as such, we should be focusing on enterprise-level opportunities. So with that objective in mind, what we've done is we've focused the sales team on basically the top 1,000 organizations in the United States and their operations internationally abroad to sell the BOHA! Platform. So this requires us to be more focused on lead gen and generation, the lead to close metrics, and customer acquisition costs, CAC. These are areas that we really believe are important to learning how the business operates, what works, what doesn't work, how do we improve the stuff that needs improvement? How do we do more of the stuff that works and works well? In addition, we've performed what you would consider a thorough scrub of the pipeline, and the good news is we're beginning to see quarter-over-quarter growth in vetted and qualified leads. That's a sign of early progress. In addition, as part of our commitment to transparency, it's my intention to publish a pipeline metric beginning next quarter, as well as number of net new logos for the FST business. I think that, along with the units sold, are all pretty good vectors to indicate whether we're making the progress we wanna make and whether that progress is solid. So I'm hoping to start providing those total metrics next quarter. Just to take a sidebar here or a side note, I think the best way to look at metrics is over a temporal period. In other words, having just a particular number with no context as to what it was before and what we think it's gonna be in the future, it's sort of worthless. I wanna know if something is going up or down, and is up good or is up down bad? Is down good or is down bad? And then if it's up and it's good, let's do more of that. If it's up and it's bad, let's do less of whatever it is that's causing that. I think that's the best way to instrument your business, and so we're really focused on that. Now, I will point out that, as I've mentioned before, these are long, intensive processes. These improvements take time to be implemented and for us to expect an instantaneous return is not realistic. It's really something where we're going to iterate, we're going to optimize the measurement of these things and how we manage the metrics and what they tell us over time. Also, along with this project, process, looking into, you know, the pipeline, I'm pleased to announce that we have formal approval from a global QSR to sell our new BOHA! Terminal 2 into their stores overseas, and with U.S. approval pending but expected. This is a multi-thousand unit opportunity for us and what we've already seen, the very first few orders from this win. So it's very exciting for us, and I wanted to let you know that. It is hard, however, to predict the penetration rate and the cadence of sales at this time, because, you know, different franchisees buy at different rates and things like that, as you all know. But we will provide you a more fulsome update when possible. I would also like to mention the cost cutting and rebalancing of our teams and organization as a whole. We reported that in our press release, and I think it's a really important aspect of the way we're running the business. During the quarter, we began the cost-cutting effort that included eliminating approximately 10% of our workforce through a combination of attrition and selective headcount reductions, as well as cutting other costs in sales, marketing, G&A, and engineering. When completed, more or less in the Q4, we estimate that these actions will produce an aggregate operating expense saving of approximately $3 million on an annualized basis. We will see the full effect of these cuts in 2024. So with our organization streamlined and focused, we believe we're better positioned for long-term success and enhanced profitability. I'd ask Steve, during his portion of the call, to go over the details on the Q3 numbers shortly. The third and final initiative I want to mention before jumping into results involves a Q4 development that I think we should share. In the coming weeks, we intend to engage with an advisor for the C-suite and the board of directors, to help us seek and lock down elements of our long-term strategy for our business. We believe an independent, external third-party perspective will be important to help us make decisions about areas for TransAct to focus, to ensure that we maximize value for shareholders and stakeholders. In that regard, we will provide update on this initiative as they become available. Let me discuss some results and updates on our two major markets. First, Food Service Technology, FST. Total revenue was $4.2 million, up about 13% year-over-year. Also, we're pleased to announce that the quarter produced our highest recurring revenue for FST at $3.1 million, the first time this number was over $3 million. We sold 710 new terminals in the quarter, bringing the total number of online terminals to 13,795. While I'm disappointed in the sequential slowdown, we're confident that the changes we're making on the sales side will result in more momentum in 2024, and that we should probably start seeing some uplift in the numbers from our global QSR win in the Q4 of this year. As a reminder, the BOHA! sales cycle is typically long, it's somewhat complex. It's sort of a land and span strategy, because usually they start small, but then they can continue to buy over time, and that becomes a long-standing relationship that really pays dividends. It takes the HQ, the headquarters, to sort of grant us a green light to engage with their franchisees. And this is typical with some of the most established and sophisticated franchises. And we're well on our way to getting those approvals on some key accounts, and we're optimistic that these approvals will begin to yield results as we move into 2024. Next, on the casino and gaming side. Casino and gaming revenue for the quarter was $9 million, up approximately 7%, 17% year-over-year, but down 26% sequentially. And let me provide an update on the two major forces shaping the sales in this duopoly market. First, from a competitive standpoint, we have seen only minor reentry into the market from our main competitor, but frankly, we have yet to see much, if any, of the pricing or market share erosion that we might have expected by now. And while we cannot be sure when these efforts will develop and these effects will develop, we're still fairly confident that this dynamic will shift at some point in the next few quarters. It's just hard to predict. And then second, on the inventory side, we have heard and are now continuing to hear, perhaps a bit louder, that the OEMs, the people who buy our systems and put them in their machines, are indicating that they are in somewhat of an oversupply position and are slowing their order, order rates accordingly. This was the largest reason we saw a slowdown in this quarter, and likely we'll see something similar in the Q4. We would expect a similar percentage decline in that period. So at this stage, we would continue to estimate that our go-forward net sales run rate in the market should be, as I stated in the last quarterly report, about 15%-20% higher than our pre-COVID historical averages before. However, we think this new run rate may not be fully in effect until 2024. Finally, let's go over the outlook for the remainder of the year. Given my comments on this call, we believe the most prudent approach is to raise the low end of our current net sales guidance to a range of $72.5 million-$73.5 million for the full year, and to raise our adjusted EBITDA guidance to a range of between $9.5 million and $10.0 million for the full year. These ranges take into account all the points I've discussed today, and we will update you with guidance for 2024 on our next call. I believe we have made good operational progress so far and have plenty of reasons to be confident as we move into 2024. We've been making progress on the FST side of the business as we refocus the sales team, and as I mentioned, and we're focusing on the top 1,000 organizations in the TAM, the Total Addressable Market, in the U.S. and their operations abroad. We are in the process of optimizing the business with a $3 million reduction in spend, which we expect to experience in the full year, 2024. We won approval to sell our BOHA! Terminal to the overseas stores of a global QSR and expect U.S. approval to follow. The pipeline is scrubbed, and the pipeline is growing, and we believe that we will see continuing sustainable pipeline growth going forward. Lastly, the last point is that we intend to engage an advisor to give us guidance as we consider long-term direction for the business. That's really my formal report here, and I'll now pass the call over to Steve for a more detailed review of the numbers. Steve? Thanks, John, and thank you, everyone, for joining us. Let's jump right into the Q3 results. As John mentioned, total net sales for the Q3 were $17.2 million, which was down 4% compared to $17.9 million from the same period last year. Sales from our food service technology market, or FST, for the Q3 were $4.2 million, which was up 13% from the prior year period and 9% sequentially. This increase was largely due to record highs in both BOHA! Software subscription revenue as well as label sales. We sold 710 new terminals during the Q3, bringing us to a total of 13,795 online terminals in the market at the end of Q3. Our recurring FST sales, which includes software and service subscriptions, as well as consumable label sales for the Q3, reached a record high $3.1 million, which was up 22% compared to $2.6 million in the prior year period. Our ARPU for the Q3 of 2023 was $929, fairly consistent with ARPU of $936 in the Q3 of last year. On a sequential basis, ARPU is up 19% compared to $782 in the Q2, largely due to the record recurring revenue we realized in the Q3 of 2023. As a reminder, we are currently selling some BOHA! Terminals with no recurring revenue attached to them to start. While this presents an opportunity to sell recurring elements in the future, in the near term, they represent a drag on our ARPU number. Our casino and gaming sales were $9 million, up 17% from Q3 of 2022, on the strength of domestic sales, which were up 43% year-over-year. However, sales were down sequentially 26% from the Q2, the Q2's level of $12.2 million, primarily due to OEMs working down high levels of printer inventory they stockpiled during the supply crisis earlier this year that's now eased. We expect this trend to continue into the Q4. POS automation sales for the Q3 decreased 69% from the prior year to $1.6 million. This was a result of a return to a more normalized level of sales compared to last year, when the chip shortage limited our competitors' ability to supply product, therefore making our sales unusually high. We believe this quarter represents normalized levels for our POS automation sales, and we expect to see this trend continue into Q4 and into 2024. Moving to TransAct Services Group, or TSG, sales. For the Q3, TSG sales doubled, up 101% year-over-year to $2.3 million. This increase was largely due to higher sales of spare parts and service for our legacy lottery printers. Though we had a strong Q3 of these sales and expect a similar Q4, sales of legacy lottery printer spare parts are sporadic, they're difficult to predict and can vary significantly from quarter to quarter. Moving down the income statement now. Our Q3 gross margin was 51.9%, which was down sequentially from 54.5%, but up from 45.9% in the prior year period. This comes as a result of an improved mix of higher-margin casino and gaming printer sales, as well as the continued positive effect from two rounds of price increases we instituted in 2022 and were able to maintain through the Q3 of 2023. However, looking forward, we do expect to see some downward pressure on our gross margin in the Q4 due to lower expected sales volume. Our total operating expenses for the Q3 remained relatively consistent, decreasing by 1% to $7.7 million. On a sequential basis, after removing the effect of a $1.5 million severance charge for the termination of the former CEO in the Q2, our operating expenses declined 5%. This sequential decline resulted from initial savings achieved from cost-cutting efforts we began to put in place late in Q3. We expect these cost reduction initiatives to have an even greater impact on our Q4 operating expense level. However, we don't expect to achieve the full effect from the cost-cutting initiative until 2024, which we believe will be about a $3 million annualized cost savings, expected to be realized ratably throughout 2024. Breaking down our operating expenses a bit more. Our engineering and R&D expenses for the Q3 increased 26% to $2.5 million. The increase was largely due to higher incentive compensation, as well as additional software resources and increased outside testing fees for new product launches. Our selling and marketing expenses decreased 13% to $2.4 million for the Q3 on a year-over-year basis, largely due to cost reduction initiatives, including reductions in headcount, trade shows, and overall marketing spend. Lastly, our G&A expenses decreased 8% to $2.8 million for the Q3. The decrease was largely due to lower stock and incentive compensation expense from the termination of our former CEO, as well as post-go-live support for the implementation of NetSuite we incurred in the Q3 of last year that didn't repeat. We generated operating income of $1.2 million, or 6.9% on net sales in Q3 2023, compared to $387,000 or 2.2% of net sales in the prior year period. Note that our operating margin last year was negatively impacted by lower gross margin, resulting largely from COVID-related supply chain issues. On the bottom line, we recorded net income of $906,000, or $0.09 per share, compared to $528,000 or $0.05 per share in the year ago period. Our adjusted EBITDA for the quarter improved to $1.7 million, compared to $1.2 million for the Q3 last year. And as John mentioned, for the full year 2023, we now expect to generate total adjusted EBITDA of between $9.5 million and $10 million. And lastly, our balance sheet remains solid. We finished the quarter with $11.6 million in cash and the minimum required $2.25 million outstanding borrowings on our credit facility with Siena Lending. And with that, I'd like to turn the call back over to John for any closing remarks. John? I want to thank you all for joining and listening, and I want to thank everyone for their support and feedback. We are dedicated to generating value for all of our stakeholders and shareholders and are providing a new level of transparency to the business for everyone. As always, should you want to speak on anything TransAct related, please reach out to me or Ryan in IR, and we can set up a call. Yeah, we can probably open up the call for questions now. Thank you. We'll now be conducting a question and answer session. If you would like to ask 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 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from George Sutton with Craig-Hallum Capital Group. Please go ahead. Hey, guys. This is James on for George. Thanks for taking my questions. John, as you look at the current pipeline, how would you kind of describe the mix between convenience stores, QSR, and then other potential verticals you might look to address? Well, it's interesting, on that point, because when we first got into the business, we thought restaurants would be a really hot space. But restaurants are still recovering, frankly, from the pandemic, whereas convenience stores and people doing grab and go, and even if you think grocery in-store sushi, those markets are really good, and we're finding a lot of traction there. So I think, the restaurant market space is one we're still interested in, of course, but we're finding that QSR, large QSR chains and stores with grab-and-go and also food service management companies are probably the hottest space. And as we refocus the sales organization on, if you will, the more sophisticated potential customer, there are more insertion points, and it's a more sophisticated sales process. And we've done some training. We're learning what those businesses really need, and we're seeing some pretty good traction as we move the opportunities through the pipeline. And as I mentioned before, we've added an improved lead generation process. It's targeted. It's not account-based marketing, but it's close to that. We're tracking funnel metrics at the top of the funnel, and we're tracking market qualified leads, marketing qualified leads, sales qualified leads, and we're looking at the yields at each one of the steps. And I'm really pleased with the progress the team's made. And in general, I think I can give you a pretty good health check or give you a pretty great on the health check for the team right now. And again, I think large QSRs, grab-and-go, and in particular, sushi in grocery stores are probably the three hottest markets for us, followed by food service management. Great. Congrats on signing the global QSR. Can you sort of talk about the sales process, and sort of some of the initial feedback from that customer and sort of why they selected BOHA!? Well, honestly, it's a great product. You know, we've been in this business for a while. We're very good at engineering. We're also very good at listening to our customers. And, the feedback we're getting, not just from that particular QSR, but others, is that this is the product that we've been waiting for, and we're really excited about it. And candidly, our sales team is excited about it. It always helps when the sales team believes in the product and is excited about the opportunity.... You know, when you think about the alternative, I mean, you can, you know, now that I'm here at the, as Chief Executive, I walk around at grocery stores and everywhere, and I see tablets sitting on the shelf, and power blocks and things like that. And I look at labels, and they're kind of crummy, and the ink is smeared, if that's what it is, or they don't stick on right, you know? And I'm going, there's tons of opportunity, and we're really enjoying the opportunity to weigh into that with a brand new suite of products. Great. And then just lastly, for me, sort of on engaging the advisor and what sort of sounds like evaluating some strategic options. Can you just sort of speak to all the options that are potentially on the table there? Well, yeah. You know, I mean, we're a pretty smart group of people. At least we like to think so. We got a lot of experience on our board of directors, and, you know, my job is to help shepherd the company into the future. We wanted to have an outside advisory that could, you know, help us understand the lay of the land, the competitive landscape, who's doing what, and where we fit, and help us make sure that we're on the right track. Not that I'm presaging any particular outcome. I mean, we really want to have outside perspective, because a lot of times you get too close, you know, you kind of get your blinders on because you're so focused on what's today or what's the next quarter. We really need to look over the horizon a little bit, make sure that we're considering all the options. Anything that's a good option and even options we haven't even considered, you know, we want to make sure that we fully consider. Great. Nice results, guys. All right, thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one on your touchtone telephone. Our next question comes from Jeff Martin with ROTH Capital Partners LLC. Please go ahead. Thanks. Good evening, guys. John, wanted to get a sense on the $3 million expense reduction effort. Will there be offsetting growth initiatives next year that you'll be investing in? Just thinking about it from a modeling point of view. I wouldn't say that we're going to go into any, you know, meaningful adjacent verticals, although I think that's a possibility in the future. Right now, I'm making sure that we're ship shape and that we can sail the, you know, sail through the hazards and the seas ahead. We're not cutting back on initiatives to develop and expand the business, but we want to make sure that everything that we've got working now is working well, sort of like running on an engine that has all the cylinders firing and, you know, nice, smooth camshaft, so everything's efficient. And then from there, I think that's a springboard into other initiatives from a growth standpoint. And I will make one other comment, Jeff, is that I think the TAM for FST is enormous. You know, I think it's underpenetrated at this point. There are competitors out there, but we believe that it's very substantial, and right now we don't have a headroom problem in any sort of fashion that I'm concerned about. So, you know, sky's the limit there, and we just need to demonstrate that we can go there, we can win, and we can expand, you know, our participation in that opportunity. Yep, great. And then in terms of the top 100 or top 1,000 organizations you've identified, how are you parsing those out? How do you assign them to different, you know, parts of the sales organization? And do you have structured teams for that? Just curious, to kind of maybe a little more of a look under the hood in terms of the sales and marketing engine that, that you've, you know, taken the lead generation focus with and kind of, you know, reconfigured. So, you know, really diving in and looking at what's in the TAM, the total addressable market, and then what product we have and then where should we sell it? And without any guidance, we'll take a call from anybody. We'll sell them something. We have customers that have one terminal. We have customers that have 1,000 terminals. And the question is, if we have a long sales cycle and we have a product that offers benefits for larger organizations, it would not be fully appreciated at the low end of the market in terms of, you know, the amount of spend and the amount of required features and capabilities of the technology. You know, it's sort of, we might be considered overkill, or let's just say there are other products that are maybe cheaper, that do less, but it's sufficient for the opportunity for a, you know, a single mom-and-pop operation or something like that. So what I did was I had the team say, "Well, let's look at what's the serviceable part of the TAM. Where should we go and where should we sell?" And I said: "Why don't we do an exercise and look at the different subverticals within FST?" And that was like convenience, food service management, restaurants, grocery stores, and convenience stores. And we said, Let's, let's focus on-- let's take a look and see how many people, how many organizations out there, if we won the business, could we sell them 50 units? Let's just draw a line there and see how big the TAM is. And it turns out that if you look at the number of opportunities or the number of units that you could sell, if you won 100% of everybody over 50 units versus everybody else, it turns out that that's about 2/3 of the market opportunity. And for us, that turns out to be about 1,000 organizations. So what we've done is we've basically split the sales team up into about five buckets, and those, each of the five buckets, restaurant, convenience, FSM, QSR and the Grab & Go folks. And they're targeting, they know exactly who they're supposed to sell to. We're doing lead generation based on that. Importantly, is that we're building assets that help the sales team progress the sales opportunity from step by step, from, if you will, first contact, to close, and even the stuff after you close the deal, to implementation and training and support and service, to make sure that end-to-end, you know, the customer and TransAct are fully aligned with equally, equal, equal motivation to get to goal congruency with a successful customer that loves the product and buys more. And, you know, if you sell one unit, the customer can-- and to a, to a one-unit opportunity, you're never going to sell another unit. And in the larger units that become a larger opportunity, that become lighthouse accounts, then the account management and the quality of our service and the talent of our people really makes a difference. I mean, we're not selling a commodity product, and we want to make sure that we're selling where the value is appreciated, and where we can capture, you know, a good margin for a good product that tackles much more complex problems. So that was kind of the exercise, and we're doing a lead gen associated with each of those five sub-buckets, and we're nurturing the leads through the sales funnel, and then we hand them off to the sales team. And with Tracey Winslow, who's running our revenue generation process, she's our CRO. She's on top of this every day, and we're making really good progress. You know, from an opportunity standpoint, we're making sure that we stay in touch with the opportunities. I would never say this arrogantly to a customer, but our product is good, and it's sort of like, sooner or later, you're going to need what we have, and we want to make sure that we have a chance to help you understand what it is so that, you know, we have an opportunity to engage. So if a customer says, "I'm not interested," it's really more of a not no, but a not now. There's other initiatives that they have. They may be building out more stores, they may be automating the front of the house, but sooner or later, we're probably gonna be one of the companies that you consider for the back of the house, and we want to make sure that we're front and center. And that's sort of the attitude we're taking. In some cases, the sales cycles may be long, sometimes they may be quick, but all of that focus already seems to pay off in terms of what I'm seeing in the pipeline. Great. Really appreciate the color there. And then one more, if I could. On the QSR win, wanted to clarify that I heard correctly. That basically is an international hunting license, and then the U.S. is to follow, meaning the U.S. is not part of that initial several thousand units? Is that correct? It's not part of the opportunity yet, but we expect that to follow. Okay, great. And then just wanted to clarify as well that you'll be selling software modules on this. It's not a terminal-only type of arrangement. Well, in each case, the ultimate franchisee will have some say into what applications they may or may not want, so it's hard for us to predict, but we expect there'll be software for sure. Great. Thanks for your time. There are no further questions at this time, so that concludes our Q&A session for today. I would now like to turn the floor back over to John Dillon for closing comments. Please, sir, go ahead. I'd like to, I'd like to thank all of you for joining us. As I mentioned before, if you want to follow up with us, you can reach out to me personally, or you can reach out to our IR firm and contact Ryan, and be happy to set up an appointment for a chat about the quarter and any other topics that are related to TransAct. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.