CAMARILLO, Calif., Oct 15, 2003 (PRIMEZONE) -- Quintek Technologies, Inc. (OTCBB:QTEK) announced that it has filed its 10K-SB annual report online.
Management is pleased to report progress on restructuring and retiring the debt of the Company. During the eight months prior to September 30, 2003, management focused on reducing the outstanding debt and liabilities in default.
On January 30, 2003 Quintek's employees and prior management team signed agreements to convert $252,213 of monies owed into 1,008,854 shares of Series A Preferred Stock at a rate of ($0.25) twenty five cents per share. During the six month period ended June 31, 2003, the Company received commitments to convert $198,268 of debt into 724,077 shares of Series A Preferred stock and 648,256 shares of Series B Preferred stock at a rate of ($0.25) twenty five cents per share. Through September 30, 2003 we received agreements to convert $20,148 in outstanding past due payables into Series C Preferred stock at ($1.00) one dollar per share. These conversions will become effective at a later date based on other terms and conditions Through September 30, 2003 we received agreements to convert $74,452 in outstanding past due payables into $60,183 of three year promissory notes bearing an annual interest rate of 8%.
Andrew Haag, CFO of Quintek stated, "The converted debt amount of just over $500,000, represents a significant portion of our current liabilities and signifies a strong vote of confidence from investors, creditors and vendors. The agreements that have been put in place should allow Quintek to operate in an environment that is more conducive to growth." Haag added, "Our ability to receive more favorable terms for debt and equity and reduce the amount of monies in default should allow us to focus on the next phase of restructuring and turning around Quintek. The next phase will consist of aggressively building and growing Quintek's core business while advancing key business development opportunities." Haag commented further, "Management will continue to work to create a healthier economic environment within the Company, thereby opening the doors for new opportunities to grow and expand Quintek Technologies."
About Quintek
Quintek is the only manufacturer of a chemical-free desktop microfilm solution. The company currently sells hardware, software and services for printing large format drawings such as blueprints and CAD files (Computer Aided Design), directly to microfilm. Quintek does business in the content and document management services market, forecast by IDC Research to grow to $2.4 billion by 2006 at a combined annual growth rate of 44%. Quintek targets the aerospace, defense and AEC (Architecture, Engineering and Construction) industries. Quintek's printers are patented, modern, chemical-free, desktop-sized units with an average sale price of over $65,000. Competitive products for direct output of computer files to microfilm are more expensive, large, specialized devices that require constant replenishment and disposal of hazardous chemicals.
"Safe-Harbor" Statement under the Private Securities Litigation Reform Act of 1995
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, 2002 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.