Revenue during the quarter grew 12.27 percent to $13.60 million from $12.12 million in the previous year period. Gross margin for the quarter expanded 268 basis points over the previous year period to 44.23 percent. Total expenses were 85.86 percent of quarterly revenues, down from 96.03 percent for the same period last year. This has led to an improvement of 1017 basis points in operating margin to 14.14 percent.

Operating income for the quarter was $1.92 million, compared with $0.48 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1.92 million compared to $0.48 million in the prior year period. At the same time, adjusted operating margin improved 1017 basis points in the quarter to 14.14 percent from 3.97 percent in the last year period.

Bart Shuldman, chairman and chief executive officer of TransAct, commented, "Sales growth for our AccuDate terminals, our casino and gaming business and our lottery business, combined with our ongoing focus on controlling costs, drove operating results growth in the fourth quarter including a 12% rise in net sales, a 155% increase in net income and a 156% rise in Adjusted EBITDA compared to the fourth quarter of 2015. Our AccuDate terminal solutions continue to gain customer traction following the successful expansion of our portfolio to include the AccuDate 9700, PRO and XL. The significant evolution of these products over the last several years, which we have achieved with the help of the many customers with whom we have engaged, has led us to design and introduce the AccuDate XL, a restaurant and food service management solution that goes far beyond the original food safety functionality. With this significant opportunity in front of us and the innovative technology we are providing, we are now renaming this market opportunity as 'restaurant solutions'. Our casino and gaming market also concluded the year strong and we continued our product leadership in this market by introducing the new Epic Edge printer and the new Epicentral SE. The 2016 fourth quarter results benefited from shipments to our international distributor to satisfy increased demand for roll-fed thermal printers in an expanding market for sports wagering in Europe and Australia as well as from the expansion of an existing domestic Epicentral deployment. Finally, our lottery business was again strong in the fourth quarter as we successfully addressed increased global demand.