Tidel reports increased sales

HOUSTON -- Tidel reported that sales of ATM products rose sharply thanks to the introduction of its new Ignition series in October 1998. The number of units shipped in the first quarter increased 45 percent compared to the same quarter a year ago.

As expected, the average sales price per ATM declined versus the same period last year as the company offered discounts on the remaining inventories of AnyCard model ATMs. The company expects to sell the remaining inventory of the AnyCard ATM -- which is the predecessor to the Ignition series ATM -- in its fiscal second quarter.

Discounting of AnyCard ATMs caused the overall gross profit margin for the fiscal first quarter to decline to 33.2 percent from 36.5 percent a year ago. Margins for the first quarter were up slightly compared to Tidel's fiscal fourth quarter 1998, and the company expects margins to increase upon liquidation of remaining AnyCard inventory.

Before-tax income increased from approximately $288,000 in 1997 to $400,000 in 1998, due to the increased sales and reductions in operating costs.

CEO Mark K. Levenick said, "We are gratified by the market's acceptance of our new Ignition series ATMs. We expect a significant increase in shipments of this product during the second quarter due to the signing of several new major distributors, and the growing demand for the product from our existing customer base. Second quarter results should be further enhanced by the first shipments of our new cash controller model, the TACC IV."

Tidel also announced that it's on schedule for the rollout of the Chameleon, the industry's first Internet transaction machine, in May 1999. The company hopes to complete negotiations with selected technology partners in the first quarter.