Tuesday October 17, 2:00 pm Eastern Time
Press Release
SOURCE: Quintek Technologies, Inc.
Quintek Announces Year End Financial Results
CAMARILLO, Calif., Oct. 17 /PRNewswire/ -- Quintek Technologies, Inc. (OTC Bulletin Board: QTEK - news) is pleased to announce financial results for the year ending June 30, 2000.
Revenues of $934,214 and $638,526 were recorded for the twelve months ending June 30, 2000 and June 30 1999, respectively, representing an increase of $295,477 (46%) in year 2000. This was due primarily to an increase in sales of equipment, aperture cards, software, services, and equipment rental fees. Quintek supplied products to a variety of new customers in year 2000, including: GTE Airfone, Boeing Company, Salt River Project, Baltimore Gas & Electric, Document Management Solutions, Lufkin Industries, NASA, Whirlpool Corporation, and Carolina Power & Light.
Cost of sales was $743,906 and $674,429 in years ending June 2000 and June 30, 1999, respectively, representing a $69,477 (10%) increase in year 2000. Gross profit increased from -- 35,903 in 1999 to $190,308 in 2000, representing a $266,221 increase in year 2000. The improvement in gross margin was partially due to a reserve for obsolete inventory established in 1999.
Operating expenses totaled $6,363,949 for the twelve-month period ended June 30, 2000 as compared to $5,501,574 for the prior twelve-month period. The $862,375 (16%) increase in operating expenses was due primarily to a $1,607,43 increase in fund raising expenses, a $1,017,478 increase in consulting cost, and a $1,131,716 increase in legal and accounting expenses, which more than offsets the significant reduction in directors' compensation and other officer and employee expenses incurred in 1999.
Quintek incurred acquisition expenses of $600,000 and $1,701,394 in the years ending June 30, 2000 and 1999, respectively. In the year ending June 30, 1999, Quintek acquired Pacific Diagnostics Technologies (``PDX''), in a stock transaction, to establish a fund raising vehicle and public market for its stock. In year ending June 30, 2000, Quintek acquired Juniper Corporation, in a cash/stock transaction, in order to comply with NASD's revised policy requiring all OTC issuers to become fully reporting companies.
Net losses of $6,814,681 and $7,293,034 were reported in years ending June 30, 2000 and June 30, 1999, respectively, representing a $478,353 (7)% reduction in net loss for year 2000. The losses in both years were primarily due to stock transactions executed in support of non-operating activities, including: fund raising efforts, acquisitions, investor relations, and corporate promotion. Quintek expects to carry these losses forward to future years to offset profits and reduce income tax expense. Net loss per share was reported at -$0.43 and -$0.65 for years ending June 30, 2000 and June 30, 1999, respectively, representing a $0.22 (33%) improvement in year 2000.
On July 11, 2000, Quintek announced a strategic alliance with Imation Corp (a spin-off of 3M corporation), allowing Imation to sell, install and service its Q4300 Aperture Card Imaging System under a worldwide distribution program.
``We are very pleased with the Imation alliance,'' indicated Tom Sims, President & CEO of Quintek. ``The combining of our chemical-free technology with the Imation distribution and customer support network provides all the ingredients for success. Imation is aggressively marketing the Quintek products to their customer base at this time and response so far has been very positive. We expect to see some results this quarter, with sales increasing each successive quarter as Imation continues to build up a pipeline of customer interest.''
Quintek plans to continue in building its asset base with the objective of qualifying to meet the requirements for a Nasdaq small cap listing. As an incremental step to this objective, Quintek swapped 5,000 shares of its stock for 500,000 shares of stock in Microshield Technologies, Inc. in year 2000. Microshield has developed a novel shielding device which can be used with cell phones to keep consumers safe from radiation during phone calls. Quintek's small investment could increase substantially in value once Microshield begins to market this valuable technology early next year.
Quintek supplies laser based, chemical-free equipment, software, media, and services used to preserve digital data and insure against information loss due to catastrophic events, computer virus, and technology obsolescence. Quintek's patented technology provides the only means available today for producing aperture cards directly from digital files with a chemical-free process.
CONTACT INFORMATION:
Corporate Web Site: www.Quintek.com
Investor Relations: (956) 551-0898
Public Relations: QTEK_PR@TwoTrades.com www.TwoTrades.com
This document contains forward looking statements. There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Additional information on these and other factors will be included on future 10-Q and 10-K reports.
SOURCE: Quintek Technologies, Inc. |
