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Tidel reports record sales, pretax income in '99
HOUSTON -- Tidel Technologies, Inc. reported shipping a record 2,742 new ATMs during the three-month period ended Sept. 30, 1999, a 166 percent increase from the 1,030 units shipped in the same quarter of 1998. Unit sales reflect Tidel's best quarter ever, surpassing by 42 percent a previous shipment record of 1,937 ATMs set in the quarter ended June 30, 1999. In financial results for the fourth quarter and fiscal year ended Sept. 30, Tidel reported that pretax income jumped 421 percent from the same period in 1998. Pretax income for the quarter ended Sept. 30 was $1,913,621 or 11.9 percent of sales, compared with $367,369 or 4.3 percent of sales for the same quarter a year ago. Although net income and earnings per share for the 1999 quarter showed small increases, the amounts are not comparable due to an income tax benefit recognized in the 1998 period. Principally due to the utilization of net operating loss carryforwards, net income for the fourth quarter in 1998 included a tax benefit of $579,251, whereas net income for the same period in 1999 reflected a tax expense of $815,000. The increase in ATM shipments also resulted in record sales and gross profit for the fiscal year ended Sept. 30. Due to lower average sales prices for ATM units, however, gross profit margins declined from 36.2 percent in 1998 to 32.6 percent in 1999. Despite the lower margins, pretax income was up 20 percent from 1998 due to a relative decrease in SG&A expenses as a percentage of revenues. Net income and earnings per share for the year both declined. However, as was the case with the fourth quarter, comparison of net income for 1999 and 1998 is not meaningful due to the difference in taxes attributable to the pretax income for the respective periods. Net income for 1999 reflects an income tax expense of $1,800,000 while net income for 1998 includes a net income tax benefit of $307,251. James T. Rash, Tidel Technologies chairman and CEO, expects positive results in the first quarter of 2000. Noting that the first quarter is typically the lowest sales period of the year, Rash said, "We are presently experiencing rates of growth comparable to those recorded in the fourth quarter. As expected, we are also seeing improved gross profit margins as a result of manufacturing efficiencies and reductions in the cost of certain raw material components." Tidel plans to announce its first-quarter results on or about Jan. 20, 2000.
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