HUNTINGTON BEACH, Calif., March 18, 2005 (PRIMEZONE) -- Quintek Technologies, Inc. (OTCBB:QTEK), a provider of 21st-century Business Process Outsourcing and document-management services that raise efficiency and lower costs for data-intensive industries, today announced substantial growth of its identified sales pipeline to more than $27.9 million in signed or near-closed contracts. Robert Steele, Quintek CEO, made the announcement.
Quintek also reported an additional $19.3 million in potential business that has been identified and is in their sights. The sales pipeline refers to business through the Company's wholly owned subsidiary Quintek Services Inc. (QSI).
"The long-term service agreements we are executing and the quality of our partners will be the driving force behind the growth of our business," said Mr. Steele. "The steady increase in financial commitments from investors and customers during the past year has already started QSI on a path of rapid growth. Shareholder and investor confidence has been secured by the immense potential that exists in the Business Process Outsourcing industry for a company such as Quintek, which can provide industry-leading services and products with an unbeatable competitive edge."
In the nine months since Quintek last disclosed its projected revenue figures, the Company has increased the size of the sales pipeline by more than 200%. It has converted more than 50% of the value of the previously disclosed pipeline into closed deals. Additionally, the more than $19 million is expected to start maturing in the coming months, representing further dramatic potential revenue increases.
"This is the fastest sales pipeline growth I have experienced within a company whose business focus has been so recently reestablished," said Bob Brownell, President of QSI. "The rapid growth in revenues and customer confidence in our company is clearly a testament to the team that we have assembled and the quality of services we are delivering to the marketplace."
Quintek's sales pipeline is comprised of mixture of closed deals and proposals with potential customers. The total pipeline value of $27.9 million is comprised of contracts that pay over three to five years. The total amount is broken down into 4 categories, identified by their estimated percentage toward closing: 27% closed deals, 46% in the 90-100 percent category, 7% in the 50- 90 percent closing category and 19% in the 10-50 percent closing category. Quintek has also executed a number of Sales Teaming Agreements (STA) with companies covering targeted vertical markets, and has developed partnerships to deliver comprehensive solutions to the marketplace. These agreements are expected to result in a steady flow of additional business and revenue growth for the Company.
About Quintek Technologies, Inc.
Quintek Technologies, through its wholly owned subsidiary Quintek Services, Inc. (QSI), delivers 21st-century Business Process Outsourcing (BPO) services and solutions that enable organizations of any size 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 computer applications and Information Lifecycle Management (ILM). Quintek provides a range of mission-critical information and document-management solutions to organizations in document-intensive industries, including government, public utilities, healthcare, insurance, financial, legal, telecommunications and manufacturing. The Company has built steady growth on a strategy of providing superior services and solutions, and continues to exploit the steadily increasing growth in BPO and ILM marketplaces; 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.
Safe Harbor Statement
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, timely development of products, inability to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.