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Company Reports 418% Increase in Revenues Over 2004 and Sixth Consecutive Quarter of Revenue Growth
HUNTINGTON BEACH, CA, Oct 13, 2005 (MARKET WIRE via COMTEX) -- Quintek Technologies, Inc. (OTC BB: QTEK), 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, 2005. This is the company's sixth consecutive quarter of increasing revenues.
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. The increase of $1,249,270 was attributable to shifting the company's sales focus to the services business. For the fourth quarter Quintek reported record quarterly revenues of $703,197 as compared to revenues of $65,088 for the fourth quarter of 2004, representing an increase of 980% over the prior year. Compared to the third quarter 2005 revenues of $408,047 this represents a 72% consecutive quarter over quarter increase in revenue.
For the twelve months ended June 30, 2005 and 2004, cost of revenue was $1,070,001 and $184,964 respectively, an increase of $885,037 (478%). Cost of revenue increased in 2005 due to increased revenues from changing the company's sales focus to the services business.
For the twelve months ended June 30, 2005, total assets increased $1,254,989 (852%) to equal $1,402,264. The increase was primarily due to growing accounts receivable, property and equipment and restricted cash. Total current liabilities equaled $2,168,067 showing a marginal decrease of $9,513 (.004%).
Net cash used in operating activities was $1,418,456 for the twelve-month period ended June 30, 2005 as compared to $595,947 for the prior twelve-month period. The (138%) increase is attributable to the efforts focused in the services business.
Operating expenses totaled $5,982,314 for the twelve-month period ended June 30, 2005 as compared to $1,083,246 for the prior twelve-month period. The majority of the $4,899,068 increase in operating expenses are non-cash items, primarily one-time charges such as the permanent decline in the value of marketable securities held as investment, an increase in stock-based compensation and increases in expenses as the company focused its efforts in the new services business.
Robert Steele, Quintek CEO, commented, "Management is focused on growing this company and these numbers show that we are achieving that goal. We have demonstrated that our business model can be profitable. We generated roughly 30% gross margins which is comparable to established companies in this space." He added, "Growing revenues leads to reaching critical mass, profitability and sustainable growth. This should result in increasing long-term shareholder value, which has always been the top priority for Quintek. We have now delivered six quarters of consecutive revenue growth and our goal is to continue to deliver year after year."
Andrew Haag, CFO, stated, "Quintek is experiencing significant growth rates. The increases in revenue and the continued strong growth of our core business should allow us to continue this long-term trend. We expect to continue with strong growth and solid gross profit margins leading to critical mass and profitability resulting in increasing shareholder value." Haag added, "We have grown assets and revenues while keeping liabilities in line. Investors will recognize the continuing growth of this company and the value that it will represent in the market over the long term."
About Quintek Technologies, Inc.
Quintek Technologies, Inc. (OTC BB: QTEK), 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%.
98 Million shares O/S Todays volume ~200,000 Market Cap: 5.9mil
On 9/14 they had a press release that they predicted revenues up over ~400% for the year. That day the stock went from 0.072 to 0.087, and had 1.5 million in volume.
Appears to be a good, solid company.
Posts: 451 | From: Kansas City, KS | Registered: Sep 2005
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