SOURCE: Quintek Technologies

November 14, 2005 21:03 ET

Quintek Reports Record First Quarter Results for the Quarter Ending September 30, 2005 With Revenues Increasing 506% Over the Same Quarter 2004

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- November 14, 2005 -- Quintek Technologies, Inc. (OTC BB: QTEK), a global provider of Business Process Outsourcing (BPO) and best-of-breed technology consulting services, today announced record results for the quarter ending September 30, 2005.

The company reported revenues totaling $693,359 and $114,266 for the three months ended September 30, 2005 and 2004, respectively. This represents an increase of $579,093 for the three months ended September 30, 2005, which is a 506% increase over the prior year. The company attributes the increase from changing the company's sales focus to the services business.

Cost of sales for the three months ended September 30, 2005 increased to $479,624 versus $84,481 for 2004. The increase of $395,143 consisted primarily of labor, facility and equipment lease costs relating to the business outsourcing services, whereas cost of sales during fiscal 2004 consisted primarily of labor and production costs.

Operating expenses totaled $804,302 and $1,202,109 for the three month period ended September 30, 2005 and 2004, respectively. The $397,807 decrease in operating expenses represents 33% lower operating costs, which resulted from a decrease in sales-related expenses and stock-based compensation for officers, directors, employees and consultants.

Robert Steele, Quintek CEO, commented, "These results come on the heels of some very strong annual growth rates, which were just released in our year-end results." He added, "Management is focused on growing this company, and this represents two back-to-back banner quarters."

Andrew Haag, CFO, stated, "We are pleased with the reduction in operating expenses." Haag added, "Reducing operating expenses while growing revenues should have continued positive impact on Quintek's financial condition and the valuation of this company."

About Quintek Technologies, Inc.

Quintek Technologies, Inc. (OTC BB: 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. 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.

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, 2005 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:

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

    Communications:

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