HOUSTON Tidel Technologies Inc., one of the largest makers of automated teller machines, reported a net loss of $16.4 million for the quarter that ended June 30, as it continued to feel the effects of its main distributors disintegration.
Tidel reported a profit of $2.8 million, or 15 cents a share, in the year-earlier period. Its revenue fell by more than 75% in the quarter, the third of its fiscal year, to $5 million. For the nine months revenue was $29.8 million, down more than 43%.
Tidel set aside $18 million in provisions for losses on its receivables from Credit Card Center, an ATM reseller in Philadelphia. It was also forced to write off $2.5 million of debt discount and financing costs on its convertible subordinated debt, it said.
The company said it would pursue the collection of $27 million it is due from sales of ATMs to Credit Card Center, which sold or leased the equipment to nonbank retailers.
Late last year Credit Card Center ceased its payments on the ATMs it had purchased. NCR Corp., of Dayton, Ohio, found the reseller owed it $42 million.
Credit Card Center filed in early June for Chapter 11 bankruptcy reorganization.
