SOURCE: Quintek Technologies, Inc.

February 20, 2007 16:15 ET

Quintek Reports Second Quarter Results

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- February 20, 2007 -- 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 December 31, 2006.

The company reported revenues totaling $397,283 and $535,521 for the three months ended December 31, 2006 and 2005, respectively; a decrease of 26% or ($138,238) for the three months ended December 31, 2006. The decrease in revenues was primarily due to the loss of a major sales contract from the services business. Loss from operations declined from $662,969 to $550,854 for the quarter ending December 31, 2006. Total operating expenses for the quarter ending December 31, 2006 declined from $851,683 in the same period of 2005 to $619,138.

Quintek added several new customers in the quarter and is continuing to expand its customer base. Revenues from new customers are expected to begin to be recognized in the third quarter of fiscal year 2007. New customers include a long-term contract with a Southern California-based direct marketer, a state government bureau, a major research institution and a member of the University of California system. The additional revenues from these contracts are expected to lead to a material increase in the company's revenues.

Additionally, Sapphire Consulting Services, Quintek's wholly owned subsidiary, continued to perform well with revenues that totaled $155,421 for the quarter, up from the same quarter last year.

Robert Steele, Quintek CEO, commented, "We are moving forward towards increasing revenues from new customers. Quintek is focusing on growing its revenues organically by expanding its customer base and adding value through business developments." Steele added, "We feel strongly that 2007 will prove to be a monumental year for Quintek. Our sales efforts have been extremely effective and the market will see the results in the current quarter ending in March and the year ahead."

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. Forrester 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 in 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