SOURCE: Quintek Technologies, Inc.

May 15, 2007 17:10 ET

Quintek Quarterly Revenues Increase 49% Over Prior Quarter

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- May 15, 2007 -- Quintek Technologies, Inc. (OTCBB: QTEK), a global provider of Business Process Outsourcing (BPO) and best-of-breed technology consulting services, announced today that its revenues for the quarter ending March 31, 2007 increased 49% over the quarter ending December 31, 2006. Additionally the Company reported net income of $319,393 or $.002 per share. The material increases in revenues are the result of increased business from new customers. The net income is the result of the increased fair value of warrants issued and reduced operating expenses.

The Company's revenues for the quarter ending March 31, 2007 totaled $594,064, an increase of $94,185 or 19% over the quarter ending March 31, 2006, which were $499,879. The revenues for the Quarter ending March 31, 2007 also represent an increase of $196,781 or 49% over the revenues for prior quarter, ending December 31, 2006, which were $397,283. The increasing revenues are the result of increased sales to new customers from the sales efforts previously announced by the company.

Quintek reported a net income of $319,393 or $0.002 per share versus a net loss of ($1,340,190) or ($0.010) per share for the three months ended March 31, 2007 and 2006 respectively, reflecting an increase of $1,659,583. The increased net gain and net income number for the quarter resulted from increased fair value of issued warrants and decreased operating expenses.

The Company's operating expenses decreased $863,977 from $1,358,494 for the three month period ended March 31, 2006 to $494,517 for the three month period ended March 31, 2007. The decrease resulted primarily from a decrease of approximately $802,759 in stock-based compensation for officers, directors, employees and consultants. The Company's non-operating income increased $815,244 to $663,194 for the three months ended March 31, 2007 from and expense of $152,050 for the three months ended March 31, 2006. The increase was primarily due to changes in the fair value of issued warrants of $818,509. The interest expense totaled $87,281 and $140,421 for the three months ended March 31, 2007 and 2006, respectively. The decrease in interest was due to a decrease in the amount of debt we have issued.

Andrew Haag, Quintek CFO, stated, "The financial results for Quintek are improving, as we are posting impressive revenue gains and have reported net income of $0.002 per share." He added, "We previously announced revenue increases for this quarter of 49%, an impressive number which shows how our efforts to reduce operating expenses are impacting the Company's performance. The resultant decrease in operating expenses will provide us room to grow financially and increase profits from our business." Haag continued, "The improved financial performance of the Company is something we expect to continue, and we appreciate the patience of our investors while we transition this Company to profitability."

James Kernan, Quintek's CEO, stated, "The results of the Company's latest quarter are encouraging. However, we do not want to set an expectation of profitability from our recent net income results." Kernan added, "We do however expect to continue to be in a position to deliver solid revenue increases. Quintek is a growing company and I would not have joined if I was not highly confident that we can continue to grow and sell through the challenges of the past." He concluded, "I have stated before that efforts are great, though it is the results that matter. Today Quintek released results that are demonstrating our increased focus on cutting costs and expanding sales."

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