HUNTINGTON BEACH, Calif., April 21, 2005 (PRIMEZONE) -- Quintek Technologies, Inc. (OTCBB:QTEK), a provider of 21st-century Business Process Outsourcing (BPO) and document-management services that raise efficiency and lower costs for data-intensive industries, today announced the availability of a business development summary for first calendar quarter of 2005, which highlights positive growth in the number of signed contracts with blue-chip customers, as well as continued increases in identified on-the-radar future sales.
In the first quarter, Quintek announced six separate agreements to provide BPO and electronic document management services to various major corporate customers. The company also hired or promoted key executives to strengthen its sales and marketing efforts in major, potentially lucrative markets.
"Quintek's growth and success, represented during the first quarter of 2005, demonstrates the effectiveness of the current strategies for increasing revenues and expanding the customer base to include major corporate customers and partners," commented Robert Steele, CEO of Quintek. He added, "We have signed or expanded a number of short, medium and long-term agreements that are providing a continuous stream of revenue."
This information follows the company's mid-quarter announcement reporting substantial growth of its identified sales pipeline to more than $27.9 million in signed or near-closed contracts, with an additional $19.3 million in potential business. The company experienced strong growth in the fourth quarter of calendar year 2004 as well, with Quintek's wholly owned subsidiary, Quintek Services Inc. (QSI), reporting that revenues for the quarter ended Dec. 31, 2004, increased 314% over the same quarter of 2003.
"The achievements we've summarized today show that Quintek is on track to continue growing sales and revenues," stated Steele. "Our sales team is doing an excellent job maintaining and expanding the sales pipeline."
Quintek's recently announced agreements and other strategic milestones for the first calendar quarter of 2005 include the following:
-- A new contract to provide key information technology functions
as part of an advanced pilot project with a multi-billion dollar
document solutions partner. The partner is one of the world's
best-known and largest providers of document solutions and
business services. The end user of Quintek's services is a
multi-national pharmaceutical company that develops vaccines
and drugs to treat infectious diseases, cancer and other
conditions.
-- Expansion of the scope of a contract with a national provider of
consumer loans with annual revenues of more than $20 billion per
year. The customer signed a five-year services agreement with
Quintek in July of 2004, and Quintek began billable work under
this agreement in September 2004. This advanced contract phase
calls for an increased scope of work, representing larger volumes
with additional responsibilities. The expansion is expected to
increase Quintek's monthly billings with the customer for the
near and long term, with revenues for the life of the agreement
to total in excess of $5 million. Quintek has identified an
additional $10 million in potential business from this customer.
-- Finalization of contracts totaling $350,000 to provide BPO
services for two leading healthcare industry document imaging
contractors. The contracts call for Quintek to provide a range
of high volume document-management services for the
document-intensive health care industry.
-- Commencement of billable work under an extensive three-year
services agreement with a national provider of document
solutions and business services. Quintek executed a
subcontractor agreement with the customer in May 2004. Over the
past 9 months Quintek has assisted the customer in providing key
BPO services for a number of customers under the agreement. The
newest contract under the agreements represents the initial
multi-year statement of work with a multi-billion-dollar
customer. The end-user of the services is a global medical
company with revenues exceeding $10 billion annually.
-- Commencement of a contract to provide next-generation accounts
payable solutions for a global industrial organization reporting
more than $3 billion in annual revenues. The value of the
contract is expected to bring Quintek approximately $1.2 million
in revenues over the next three years.
-- Received approval for an additional $500,000 leasing facility
through its leasing partner VenCore Solutions LLC. Quintek will
use the lease facility to purchase equipment to be used for
servicing its QSI subsidiary's service agreements.
-- Promotion of Chris de Lapp to the position of National Sales
Manager, where he will take a sharply expanded leadership role
in directing the company's continued national sales expansion.
Throughout the course of his career, Mr. de Lapp has closed more
than $83 million in long-term contracts, including more than $8
million in long-term contracts in his first year with Quintek.
-- Addition of David Lequeux to Quintek's business development team,
with a focus on extending Quintek's reach and client contacts in
the health care industry. Mr. Lequeux, an experienced sales
professional with a proven record of quota achievement in complex
technical sales, will serve as an executive sales representative
in charge of new business.
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. For more information, visit http://www.quintek.com. For more investor-specific information, including daily and historical Company stock quote data and recent news releases, please visit http://www.trilogy-capital.com/tcp/quintek. To read or download the Company's Investor Fact Sheet, visit http://www.trilogy-capital.com/tcp/quintek/factsheet.html.
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.