Exhibit 99.1
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CONTACT: Leonard Carr
Sr. Vice President
713-783-8200
lcarr@tidelmail.com
FOR IMMEDIATE RELEASE
TIDEL REPORTS UPDATE ON CREDIT CARD CENTER
HOUSTON, Texas -- June 14, 2001 -- Tidel Technologies, Inc. (Nasdaq: ATMS) today
reported that its former largest customer, JRA, 222, Inc. d/b/a Credit Card
Center ("CCC"), which filed for protection under Chapter 11 of the United States
Bankruptcy Code on June 6, 2001 in the United States Bankruptcy Court for the
Eastern District of Pennsylvania, had its first hearing yesterday. At
yesterday's hearing, the Court set Friday, June 15, 2001 as the date it will
rule on CCC's applications to retain legal counsel and use certain cash
collateral to pay pre-petition wages for a limited number of employees. In May
2001, Tidel had commenced various legal actions to enforce and protect its
rights with respect to amounts owed to it by CCC. These actions have been stayed
by virtue of the bankruptcy filing.
At the filing date, CCC owed Tidel the principal amount of approximately $27
million, excluding any amounts for interest and other charges. The obligation is
secured by a collateral pledge of accounts receivable, inventories and
transaction income. Tidel has not received any payments from CCC on amounts due
since January 2001. Tidel has not shipped any products to CCC since December
2000.
The financial information accompanying the original petition indicated that CCC
had total assets of approximately $34 million and total liabilities of
approximately $87 million. The preliminary data is incomplete, but detailed
schedules summarizing all assets, including the collateral pledged to secure the
amounts due to Tidel, are expected to be filed later this month. Tidel is in the
process of evaluating all available information and reviewing, in light of the
information available, the value of its pledged collateral in respect of the
current status of CCC to determine whether the anticipated proceeds from the
liquidation of such collateral exceed amounts due to the company. In the event
the value of the collateral pledged to Tidel is insufficient to support the
recoverability of any or all amounts due, Tidel could incur a significant charge
to earnings for the quarter ended June 30, 2001, or in future periods.
Tidel Technologies, Inc. is one of the nation's leading manufacturers of
automated teller machines and cash security equipment designed for specialty
retail marketers. In 2000, Tidel was the leading provider of ATMs to non-bank
locations in the U.S., and ranked 55th in Forbes' list of the 200 Best Small
Companies in America. To date, Tidel has sold more than 30,000 retail ATMs and
115,000 retail cash controllers in the U.S. and 36 other countries. More
information about the company and its products may be found on the Internet at
www.tidel.com.
"SAFE HARBOR" DISCLAIMER UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS PRESS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS, INCLUDING
STATEMENTS AS TO ANTICIPATED OR EXPECTED RESULTS, BELIEFS, OPINIONS, AND FUTURE
FINANCIAL PERFORMANCE. THE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT
EXPECTATIONS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES THAT MAY CAUSE
THE COMPANY'S ACTUAL EXPERIENCE TO DIFFER MATERIALLY FROM THAT ANTICIPATED.
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.
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