Tidel issues results, warning

HOUSTON - Tidel Technologies Inc. reported impressive results in its 2001 first quarter, posting record shipments and revenue, while warning that future results may be reduced due to an anticipated decrease in business from its largest customer, Credit Card Center.

The public company (Nasdaq: ATMS) said its Ignition Series ATMs helped the company to a 50 percent increase in shipment (to 3,310 units) compared to the same quarter a year before. However, revenues increased just 21 percent, due to the product line's lower price-per-unit.

Net income for the quarter ending Dec. 31, 2000 was $1.9 million, a 27 percent increase. Total revenue of $16.7 million represents a 21 percent jump.

Tidel reported that it expects shipments to its largest customer, Credit Card Center, will likely be "at substantially reduced levels" in the upcoming quarter, ending in March, 2001. According to a Tidel news release, CCC sales represented 70 percent of Tidel revenues last quarter, or $11.6 million, and said CCC owes $26.7 million to Tidel through credit facilities.

CCC announced last fall that it had entered an agreement to make NCR Corp. its preferred provider of ATMs. However, Tidel said a number of new customer agreements during the quarter, including a preferred provider deal with Houston-based ISO Momentum Cash. It also expects to boost its sales efforts outside of North America.