News

Tidel reports earnings, ATM shipments up

August 18, 2002

HOUSTON -- Tidel Technologies, Inc. (Nasdaq: ATMS) announced improved results for the quarter ended June 30, with revenues of $6.2 million, an increase of $1.4 million, or 30 percent, over the previous quarter and an increase of $1.2 million, or 24 percent, from the same quarter a year ago.

According to a news release, the increase was largely due to business with new customers, including some customers outside the U.S. International sales were $1.1 million, representing 18 percent of total revenues for the quarter, compared with $726,000, or 15 percent of revenues for the same quarter of 2001.

Tidel says that it shipped 1,004 ATMs in the latest quarter, representing a 53 percent increase over the 657 units shipped in the previous quarter and an increase of 51 percent over the 666 units shipped in the comparable quarter of the prior year.

For the nine months ended June 30, 2002, revenues were $15.6 million, a decrease of 14 percent from revenues in the comparable period of the prior year of $18.0 million, excluding sales of $11.8 million to Credit Card Center, formerly Tidel's largest customer, which is no longer in business.

Tidel shipped 2,338 ATM units for the nine months ended June 30, 2002, a decrease of 22 percent from the 2,997 units shipped to customers other than CCC in the previous year. During the nine months ended June 30, 2001, Tidel shipped 2,339 ATM units to CCC.

Tidel incurred a net loss of $1.0 million for 2002's third quarter, compared to a net loss of $16.4 million in the same quarter of 2001. For the nine months ended June 30, 2002, Tidel incurred a net loss of $5.1 million, compared to a net loss of $14.5 million for the same period in 2001.

The results for 2001's third quarter included a provision for bad debts of $18.0 million related to the collection of accounts receivable from CCC, and a charge of $2.5 million applicable to the write-off of certain deferred financing costs as a result of the "put" of Tidel's subordinated convertible debentures.

Tidel has incurred interest expense of $675,000 per quarter, including penalty interest of $405,000 per quarter, on its subordinated debentures since the debt was "put" back to Tidel in June 2001. Although this interest has been and continues to be accrued, Tidel has made no cash payments of interest to the debenture holders since June 2001.

Tidel says its management continues to negotiate with the holders of its subordinated convertible debentures to restructure the past due obligations. In addition, discussions are in progress with other lenders and equity investors for the purpose of obtaining capital to restructure and/or refinance the convertible debentures and the revolving credit facility with JP Morgan Chase. If a refinancing has not occurred by August 30, Tidel may seek an extension of the maturity of the revolving credit facility.

Also according to the release, James T. Rash has ended his medical leave of absence and resumed his duties as Tidel's chief executive officer.