HUNTINGTON BEACH, Calif., Feb. 16, 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, disclosed additional details and analysis regarding the recently filed Form 10-Q quarterly report. In the report the company disclosed 314% quarterly revenue gains.
Further information is also provided regarding one-time charges due to accounting adjustments in marketable securities and stock based compensation. More specifically, in the six month period ending Dec 31, 2004, the company reported a $5,618,784 loss from operations, of this amount $4,825,520 was attributable to one-time charges due to an adjustment in marketable securities, conversion of liabilities and issuance of stock based compensation. Net cash used in operations was only $825,125.
Mr. Steele, Quintek CEO, states that, "In this six month period, the company developed relationships resulting in several long term service agreements with a number of multi-billion dollar industry leaders and delivered consistent increases in revenues." Steele added, "We had an excellent quarter where revenues were stronger than all fiscal year 2004. Quintek is well ahead of revenues according to our plan."
Andrew Haag, CFO, mentioned, "The strong revenue growth that we are experiencing was overshadowed by one-time charges." Haag explained, "A closed end fund we are a shareholder of traded lower, thus creating an unrealized paper loss. However, the ownership in the fund is still a valuable current asset on Quintek's balance sheet and the fund is a large institutional shareholder of Quintek." Haag further stated, "Other one time charges from stock based compensation to officers, employees and consultants and conversions of debt to equity increased this figure."
Steele further added, "The conversions to equity and equity compensation to officers, employees and consultants represent increased confidence in Quintek's financial stability and future growth prospects. We have a great team on board to move this business forward. They believe in the growth of this company and that is evidenced by this fact."
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.