INTERNATIONAL TOTALIZATOR SYSTEMS REACHES SETTLEMENT WITH MAJOR CUSTOMER
INTERNATIONAL TOTALIZATOR SYSTEMS
REACHES SETTLEMENT WITH MAJOR CUSTOMER
CARLSBAD, Calif., Nov. 19 /PRNewswire/ -- International Totalizator Systems Inc.(R) (NASDAQ: ITSI) (ITS) has reached a settlement agreement with a major Taiwanese customer who, as of Sept. 30, 1991, owed the company approximately $5.8 million, payable $400,000 in 1991, $1.7 million in 1992 and $3.7 million in 1993. As scheduled payments would have been received, ITS would have delivered to the customer 1,172 terminals which have been manufactured.
Under the terms of the settlement ITS will receive in 1991 cash in the amount of $1.1 million, certain terminals and spare parts previously sold and delivered to the customer, certain other equipment owned by the customer and the company's obligation to make further terminal deliveries is terminated. The company anticipates that the major effects of the transaction will impact the fourth quarter of 1991 by increasing revenues, cash and total assets by approximately $1 million and decreasing backlog by approximately $5.8 million.
International Totalizator Systems provides ticket processing systems and equipment and data management systems.
/CONTACT: Karen Patchen of International Totalizator, 619-931-4027/
(ITSI) CO: International Totalizator Systems ST: California IN: CPR SU: DM-SE -- SD001 -- 4775 11/19/91 08:04 EST