SOURCE: Quintek Technologies, Inc.

November 15, 2006 07:30 ET

Quintek Reports First Quarter Results

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- November 15, 2006 -- Quintek Technologies, Inc. (OTCBB: QTEK), a global provider of Business Process Outsourcing (BPO) and best-of-breed technology consulting services, today announced financial results for the Quarter ending September 30, 2006.

The Company reported revenues totaling $411,728 and $693,359 for the three months ended September 30, 2006 and 2005, respectively; a decrease of 40% or $281,631 for the three months ended September 30, 2006. The decrease in revenues was primarily due to the loss of a major sales contract from the services business. The Company has increased its sales and marketing efforts and is seeking new customer relationships and business developments to replace this revenue and resume its growth trend.

Quintek's subcontractor relationship for services to a major U.S. biotech customer continued to grow. Revenue from this relationship totaled $147,127 for the three months ended September 30, 2006, up from $49,004 for three months ended September 30, 2005, increasing nearly 200%. Additionally, Sapphire Consulting Services, our wholly owned subsidiary, continued to perform well with revenues that totaled $133,930 for the quarter, up from the same quarter last year.

Cost of revenue for the three months ended September 30, 2006 and 2005 were $318,489 and $479,624, respectively, a decrease of $161,135. The decrease in cost of revenue consisted primarily of lower labor costs resulting from the loss of a major sales contract and lower costs for outsourced professional services.

Robert Steele, Quintek CEO, commented, "Since closing our recent financing commitment we have been investing in sales and marketing and are seeing positive results. New outbound sales efforts are yielding a daily stream of new leads and we have been closing business from this new initiative. Recently, we closed a $550,000 two-year BPO contract with a major national retailer and we closed a nine-month imaging services contract with a California State Agency." He added, "We have been successful in targeting mortgage, manufacturing, healthcare, insurance and state government sectors, providing services to organizations across these verticals. We currently have more than 30 proposals outstanding with a contract value of more than $4 million and are confident that our revenues will grow beyond our previous levels."

Andrew Haag, Quintek CFO, stated, "In June 2006 we closed our fiscal year with record revenues of $2,307,402. Based on that growth, we received a funding round of $2 million. The first installment of this funding closed last May and we continue to receive funds from this institution to fuel our continued growth." He added, "We are focused on bringing in new business and closing business in the pipeline to continue the upward revenue trend of the Company."

About Quintek Technologies, Inc.

Quintek Technologies, Inc. (OTCBB: QTEK), through its wholly owned subsidiaries Quintek Services, Inc. (QSI), and Sapphire Consulting Services, Inc., provides services to enable Fortune 500 and Global 2000 corporations to reduce costs and maximize revenues.

QSI delivers Business Process Outsourcing (BPO) services and solutions that enable companies 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. Forester Research, Inc. estimates that the market for BPO services will grow from $19 billion in 2004 to $146 billion in 2008. Business Insights, estimated the BPO market as the fastest growing area of the IT services sector. Growing at 8% annually it is expected to grow from $112.1 billion is 2005 to $144 billion in 2008.

Sapphire Consulting Services, Inc. offers a broad range of supply chain management consulting services. Sapphire assists organizations to create a higher level of customer satisfaction, enhance supply chain capability and achieve consistent competitive advantage through reduced product cost, reduced inventory investment and improved supply chain security. A study by IDC found the SCM services market will expand from $26.1 billion in 2002 to $40.5 billion in 2007, representing a five-year compound annual growth rate (CAGR) of 9.2%.

For more information, visit http://www.quintek.com.

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, 2006 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, inability to timely develop products or services, inability to deliver products or services when ordered, inability of potential customers to pay for ordered products or services, and political and economic risks inherent in domestic and international trade.

Contact Information

  • CONTACTS:

    Quintek Technologies, Inc.

    Andrew Haag
    Chief Financial Officer
    (714) 848-7741, Ext. 14
    Email Contact

    Communications:

    Cinapsys, Inc.
    Mark Moline
    (760) 458-4899
    Email Contact