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TIDEL REPORTS RECORD SALES AND PRODUCT SHIPMENTS
(PR Newswire; 05/11/99)
For Fiscal Second Quarter 1999
HOUSTON, May 11 /PRNewswire/ -- Tidel Technologies, Inc. (Nasdaq: ATMS) today
reported the financial results for its fiscal second quarter of 1999. The
results for the three months and six months ended March 31, 1999, together with
the comparable results from the same periods for fiscal 1998, are as follows:
Three months ended Mar. 31,
1999 1998
Revenues $10,286,247 $9,147,923
Gross Profit 3,379,032 3,457,574
Income Before Taxes 1,037,962 1,468,414
Income Taxes 412,000 --
Net Income 625,962 1,468,414
Basic EPS $0.04 $0.09
Diluted EPS 0.04 0.09
Six months ended Mar. 31,
1999 1998
Revenues $17,346,940 $15,175,909
Gross Profit 5,721,112 5,656,079
Income Before Taxes 1,438,295 1,756,555
Income Taxes 560,000 --
Net Income 878,295 1,756,555
Basic EPS $0.06 $0.11
Diluted EPS 0.05 0.10
The company achieved record product sales for both the three-month
and six-month periods ended March 31, 1999 due to record shipments of ATM
products. Unit shipments increased 34% and 38% for the three-month and six-
month periods ended March 31, 1999, respectively, compared to the same periods
a year ago. These record shipments were due to strong demand for both models
of the company's Ignition series ATM, which were introduced last October.
As expected, gross profit as a percentage of revenue declined from 37.8% for
the second quarter of 1998 to 32.8% for the same period in 1999. On a year-to-
date basis, gross profit as a percentage of revenue declined from 37.3% in 1998
to 33.0% in 1999. This decline is primarily the result of lower average sales
prices for ATM products this year compared to last year.
The average sales prices for ATM products are lower than last year due to two
factors. First, prices for the company's Ignition series ATMs are slightly
lower than sales prices for comparable products a year ago. This is due to
continued competition in the marketplace for low-cost cash dispensing
equipment. Second, the company has offered pricing discounts on its remaining
inventories of AnyCard model ATMs, the predecessor of the Ignition series ATM.
Gross profit as a percentage of sales is expected to improve upon the
liquidation of the remaining AnyCard inventory.
Income before taxes decreased from approximately $1,468,000 in the second
quarter of 1998 to $1,038,000 in the second quarter of 1999, or 29%, due to the
previously noted decline in gross profit. On a year-to-date basis, income
before taxes decreased from approximately $1, 757,000 in 1998 to $1,438,000 in
1999, or 18%. Second quarter basic earnings per share were $.04 per share, as
compared to $.09 per share for the second quarter in fiscal 1998. On a year-to-
date basis, basic earnings per share were $.06 per share in 1999, as compared
to $.11 per share in 1998. The company's earnings in 1999 were subject to
taxes at the statutory state and federal rates, while there was no provision
for taxes in the same periods a year ago.
James T. Rash, Chief Executive Officer, said, "The first six months of fiscal
1999 were very exciting and productive for Tidel. We achieved record revenues
and product shipments from our core ATM business, ended the quarter with a
modest order backlog for the first time, and signed six new top-level
distributors. In this fiscal year, we introduced the Ignition series ATM, the
breakthrough TACC IV time access cash controller, and the revolutionary
Chameleon ITM, the industry's first Internet Transaction Machine. During the
past few weeks, we have consummated major customer contracts in each of the
major product groups, which have provided a strong foundation for future
growth. We expect to recognize substantial growth in revenues from shipments
of our core products as well as shipments of these new products during the
fiscal third quarter of this year."
In 1999, Tidel announced a number of important new business developments:
New Receipt-Based Prepaid Phone Card Software
During this quarter Tidel announced a number of key developments.
In January, Tidel announced the introduction of the industry's first receipt-
based prepaid phone card software designed for ATM resellers. The breakthrough
software delivers phone card information directly on the ATM receipt and allows
Tidel ATM patrons to purchase unlimited amounts of prepaid long distance in
five-dollar increments.
New Product -- the TACC IV
On the product side, Tidel announced the introduction of its
next-generation Timed Access Cash Controller ("TACC") product -- the TACC IV --
which contains the most significant improvements to the product line since its
introduction more than twenty years ago. Tidel has shipped over 100,000 TACC
products to more than 30 countries since inception, and the company will be
aggressively marketing the new TACC IV to new customers and its existing
customer base.
Contract to Sell Chameleon ITMs
Tidel announced that it has signed a customer contract to sell
Chameleon Internet Transaction Machines to Los Angeles-based Cash Technologies,
Inc. Bruce Korman, Cash Tech's Chairman and CEO indicated that Cash Tech could
deploy as many as 2,000 units during the initial contract period. This first
"volume" order for the ITM establishes Chameleon ITM as the first interactive
multimedia kiosk that combines support for the limitless e-commerce options of
the Internet with traditional ATM banking functionality.
Alliance to Sell Ignition Series ATMs
Tidel announced that one of its largest distributors, Financial
Technologies Inc. ("FTI"), has formed an alliance with Red Crown Marketing to
offer turnkey ATM packages to over 2,600 BP Amoco dealers and jobbers
representing more than 15,000 stations nationwide. FTI and Red Crown have
created a powerful alliance to offer the latest in ATM technology to BP Amoco
dealers and jobbers with Tidel as FTI's preferred equipment provider.
About Tidel
Tidel Technologies, Inc. is a Texas-based manufacturer of
automated teller machines and cash security equipment designed for specialty
retail marketers. Tidel pioneered the dial-up ATM in 1992, and is the fastest
growing major U.S. manufacturer of ATMs. Tidel's common stock trades on The
Nasdaq Stock Market(R) under the symbol ATMS.
This press release contains forward-looking statements that
involve risks and uncertainties that may cause the company's actual experience
to differ materially from that anticipated. These forward-looking statements
include projections of revenue and net income; issues that may affect revenue
or net income; plans for the future; and assumptions relating to the foregoing.
Estimates are based on reliable information and past experience. However,
operating results are affected by a wide variety of factors, many of which are
beyond the control of the company. Factors include, but are not limited to,
the levels of orders which are received and can be shipped in a quarter;
customer order patterns and seasonality; costs of labor, raw materials,
supplies and equipment; technological changes; competition and competitive
pressures on pricing; and economic conditions in the United States and
worldwide. Additionally, factors and risks affecting operating results include
those described in the company's registration statements and periodic reports
filed with the U.S. Securities and Exchange Commission. SOURCE Tidel
Technologies, Inc.
-0- 05/11/99 /CONTACT: Leonard Carr, Senior Vice
President of Tidel Technologies, Inc., 713-783-8200, [email protected]; or
Mark Trinske, Investor Relations, Trinske Communications, Ltd., 303-665-7760,
[email protected], for Tidel Technologies, Inc./
(ATMS) CO: Tidel Technologies, Inc.; Chameleon Internet Transaction
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