Quintek Reports Record Revenues Second Year in a Row for Fiscal Year Ending June 30, 2006
Quintek Technologies, Inc. (OTCBB: QTEK)
Revenues Increase 49% Over 2005 Record Revenue Growth
HUNTINGTON BEACH, CA–(MARKET WIRE)–Sep 28, 2006 — Quintek Technologies, Inc. (OTC BB:QTEK.OB – News), a global provider of Business Process Outsourcing (BPO) and best-of-breed technology consulting services, today announced record revenues for the year ending June 30, 2006. This is the company’s second year in a row of record increasing revenue.
Last year, the company’s revenues increased 418% in 2005 and totaled $1,547,923 and $298,653 for the twelve months ended June 30, 2005 and 2004, respectively. This year the company closed the year with $2,307,402 in revenues for the twelve months ended June 30, 2006. This is the second year in a row of record revenues for Quintek. The difference of $759,479 represents a 49% increase over the $1,547,923 for the twelve months ended 2005. The increase was due primarily to our investment in sales and marketing efforts and resultant increase in new sales contracts.
Additionally, the company closed the year ending June 30, 2006 with record cash on hand of $410,007 as compared to $12,669 cash on hand for the year ending June 30, 2005. This dramatic improvement of $397,338 was primarily due to a funding that closed in May. The company is set to receive another $1.1 million as part of this financing and can receive in excess of $3.5 million from the successful exercise of warrants issued to this investor at prices ranging from $0.05 per share to $0.08.
Basic and diluted net loss per share was reduced 80% from a loss of $0.10 per share in 2005 to a loss of $0.02 per share in 2006. Net loss for 2006 was $2,945,710 as compared to $7,417,687 a difference of $4,471,977, representing a 60% reduction in net loss, a dramatic improvement over the prior year. Net cash used in operating activities was $1,208,903 compared to $1,418,456 for 2005. This represents an improvement of 15% from 2005 to 2006.
For the twelve months ended June 30, 2006 and 2005, cost of revenue was $1,522,814 and $1,070,001, respectively, an increase of $452,813 (42%). Cost of revenue for both periods consisted mostly of labor and production costs. Cost of revenue increased in 2006 due to an increase in revenues from new sales contracts we received.
As of June 30, 2006, our total assets were $1,417,374 compared to $1,402,264 as of June 30, 2005. The assets increased by $15,110 (1.1%) primarily due to receipt of cash funding.
Robert Steele, Quintek CEO, commented, “We are pleased that Quintek has achieved yet another year of record revenues, continuing to grow revenues another 49% on top of the 418% increase over last year’s record.” He added, “We have received financing from an active microcap institution and are dedicated to continued growth. We are committing capital to sales and marketing efforts and are experiencing a strong surge in the level of interest from new customers.”
Andrew Haag, CFO, stated, “We have improved our financial condition on many fronts; increased revenues, reduced losses and more cash on hand to drive growth.” Haag continued, “As reported in this filing, Quintek is experiencing significant growth rates. The company is experiencing heightened levels of interest from new customers due to increased sales and marketing and is working towards several material business developments for 2007.”
About Quintek Technologies, Inc.
Quintek Technologies, Inc. (OTC BB:QTEK.OB – News), through its wholly owned subsidiaries Quintek Services, Inc. (QSI), and Sapphire Consulting Services, Inc., provides services to enable Fortune 500 and Global 2000 corporations to reduce costs and maximize revenues.
QSI delivers Business Process Outsourcing (BPO) services and solutions that enable companies to secure and manage their key data processing demands with optimal efficiency and minimal costs. As a next-generation technology company, Quintek is unhindered by outdated information technology systems, and thus is able to deploy best-of-breed solutions in all aspects of BPO. The Aberdeen Group, a provider of IT market intelligence, forecasts 13% annual growth for the BPO industry through 2005, when the market is projected to reach $248 billion.
Sapphire Consulting Services, Inc. offers a broad range of supply chain management consulting services. Sapphire assists organizations to create a higher level of customer satisfaction, enhance supply chain capability and achieve consistent competitive advantage through reduced product cost, reduced inventory investment and improved supply chain security. A study by IDC found the SCM services market will expand from $26.1 billion in 2002 to $40.5 billion in 2007, representing a five-year compound annual growth rate (CAGR) of 9.2%
For more information, visit http://www.quintek.com.
This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding potential sales, the success of the company’s business, as well as statements that include the word “believe” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Quintek to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in Quintek’s Annual Report on Form 10-KSB for the fiscal year ended June 30, 2004 and any subsequent reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and Quintek assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, inability to timely develop products or services, inability to deliver products or services when ordered, inability of potential customers to pay for ordered products or services, and political and economic risks inherent in domestic and international trade.
Quintek Technologies, Inc.
Chief Financial Officer
(714) 848-7741, Ext. 14
Source: Quintek Technologies, Inc.
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