CinTel Corp. Reports Revenue Increase of 1,735% and Gross Profit Increase of 801% for Quarter Ending March 31, 2006 Business Editors / High-Tech Writers
LOUISVILLE, Ky.--(BUSINESS WIRE)--May 25, 2006-- According to financial statements filed last week, CinTel Corp. (OTCBB:CNCN), a leader in the Internet traffic management (ITM) market, has reported total revenue of $2.3 million for the quarter ended March 31, 2006. The total revenue for the quarter increased a remarkable 1,735% when compared to the same period ending in 2005. The growth can be partly contributed to CinTel's global system integration projects and strategic alliances overseas, such as business transactions with the Republic of Korea Air Force and KT (Korea Telecom). CinTel expects significant new revenue streams to open with the products distributed by Hyundai HDS and KT Corp this year. CinTel also expects its other business segments will further add to its strong revenue numbers.
While CinTel's total revenue showed tremendous growth, the Company's gross profit rose 801%. This was due partly because some items in the sales transactions were third party equipment and did not carry the same gross margin from which CinTel normally benefits.
While CinTel experienced phenomenal growth for the quarter, its operating expenses actually decreased from $505,179 to $481,093 when compared to the same period ending March 31, 2005. The decline in operating expenses was primarily due to a reduction of fixed charges through restructuring. These changes included reduction of staff, entertainment fees, travel expenses, and other office related adjustments. The efforts by senior management to reduce unnecessary expenses will continue as they strive to provide the best service possible with minimum waste.
"Management is delighted to announce such positive results for our first quarter of 2006. We believe these results will enhance other project's value and speak to the strength of our management team as well as the viability of our business model," said Sang Don Kim, CEO of CinTel.
According to numerous industry sources, CinTel sales are expected to exceed current numbers during the next quarter and surpass by a large number last year's overall numbers with the demand for our expanded product lines as the company continues to improve our offerings to support our customer's ever growing needs.
CinTel and their partners continue to aggressively engage its resources to identify and establish strategic partnerships with companies on the cutting edge of technology development as well as complete acquisitions that are consistent with its business model.
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