STRATEGIC PARTNERS
October 17, 2001
HOUSTON --Tidel Technologies, Inc. (Nasdaq:ATMS-news) said it sold 912 ATMs in the fourth quarter ended Sept. 30, a 37 percent increase over the 666 units sold in the previous quarter ended June 30. Neither quarter included any shipments to Credit Card Center, formerly Tidel's largest customer which has filed bankruptcy and discontinued operations.
Shipments for the quarter ended Sept. 30 represented an increase of 7 percent over the 853 units shipped to non-Credit Card Center customers in the same quarter a year ago.
For the full fiscal year 2001, Tidel sold 6,248 ATMs, consisting of 3,909 units to non-Credit Card Center customers and 2,339 units to Credit Card Center, all of which were sold in the first quarter of the year.
The 3,909 units represented a 23 increase over the 3,171 units sold to non-Credit Card Customers in fiscal 2000. Tidel sold 9,255 units to Credit Card Center in 2000.
James T. Rash, chairman and chief executive officer of Tidel, said there were positive signs of recovery for the company during the fourth quarter.
"Combined sales of ATMs for the months of July and August exceeded sales for the entire third quarter ended June 2001," Rash said. "Coming into September, order indications from customers were strong; however, this business did not materialize after the events of September 11. We believe this downturn is temporary, however, and we are optimistic with respect to sales growth in fiscal 2002.'
According to Rash, management's efforts are focused on expanding the sales channel, increasing the company's product offerings, recovering the maximum amount from the Credit Card Center bankruptcy, and restructuring Tidel's present debt obligations.
Last month, Tidel completed an agreement with the Federal Bankruptcy Court in which it and NCR will pay $8 million for an inventory of about 4,000 ATMs, manufactured by Tidel, NCR and other companies, that are still held by CCC. Tidel placed $1 million in escrow as part of the deal, and both Tidel and NCR will receive credit against accounts receivable owed by CCC to the companies.
In a separate agreement, NCR paid Tidel $1,032,300 to purchase NCR ATMs included in the acquired inventory.
According to Tidel, it expects to recover between 1,500 and 2,000 of its own ATMs from CCC, approximately one-third the total number of units for which it wasn't paid.
Tidel earlier wrote off $18 million for losses on receivables due to nonpayment by CCC, which led to a net loss of $16.4 million in its third quarter.
After missing a payment of $18 million to two of its investors, Montrose Investments Ltd. and Liberty Acorn Trust, in late August, Tidel reported that it was negotiating with the companies in regard to its financial obligations.
Full financial results for the fiscal year ended Sept. 30, 2001 will be released in mid-December upon completion of Tidel's annual independent audit.
