CAMARILLO, Calif., March 10, 2004 (PRIMEZONE) -- Quintek Technologies, Inc. (OTCBB:QTEK) announced today that it is experiencing an expansion of the revenue base, which is being generated from its previously disclosed concentration into the services segment of its business.
For the quarter ended December 31, 2002, gross service revenue represented 21% of total sales. In the quarter ended December 31, 2003, gross service revenue represented 63% of sales, an increase of over 300% compared to the same quarter of 2002.
Also, for the quarter ended December 31, 2003 Quintek completed three network upgrades. Gross revenue from these upgrades represented approximately 19% of sales.
Management's plan, which was disclosed in January of this year, detailed an expansion into various service aspects of Quintek's core business. By creating offerings in the service segment, Quintek is addressing the full spectrum of potential client requirements within the broader framework of its move to becoming a full-service provider of cradle to grave document management solutions.
Andrew Haag, Quintek CFO, commented, "As we continue to increase the value and utility of services offered, we should continue to see the revenue base from these services expand rapidly and provide balance to our revenue stream."
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, 2003 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.