Press Release Source: CinTel Corp.
CinTel Corp. Expects $12M-$14M in Contract Value to be Signed in 2005
Wednesday October 26, 11:45 am ET
LOUISVILLE, Ky.--(BUSINESS WIRE)--Oct. 26, 2005--CinTel Corp. (OTCBB:CNCN - News), a leader in Internet traffic management, announced today that it is confident that it will enter into a number of contracts before the year-end for approximately twelve to fifteen million dollars ($12,000,000 - $14,000,000 USD) in sales revenue. Mr. Sang-Don Kim, the CEO of CinTel announced, "CinTel has been preparing various product lines for new business development since securing a sales/marketing cooperation contract with Hyundai HDS last August. This new relationship between Hyundai HDS and CinTel is a win-win situation for both firms that will result in expanded markets for both companies. This new direction could be considered an entirely new horizon for a company that has traditionally only operated in the web traffic management systems market. We predict that in year 2006, the cooperative arrangement will have a hugely positive effect with respect to this new market and introduce to a more diversified product line."
Although CinTel has been in discussions with the Korean government and other clients for very sizable projects, those discussions faced delays for various reasons, and CinTel is expected to show revenues of approximately $1.2 million cumulative up to the third quarter.
Considering that CinTel showed only $1.5 million in revenues all of 2004, it may be considered not a great year for revenues. However, CinTel cautiously estimates that it will enter into contracts for supply of approximately $12 to $15 million worth of products just in this last quarter of 2005. Of this amount, CinTel will be able to recognize approximately $8 million in revenues in the fourth quarter of this year alone. We use the word "approximately," because we cannot predict with certainty the exact amount of US GAAP revenues, as recognition of revenues depends on delivery of products and payment for products delivered. In other words, the revenues just in the last quarter of 2005 will probably be five times as large as the revenues of all of 2004. We are in the final stages of negotiations for a number of large projects. CinTel will supply some new products and also the Packet Cruz iLog which is capable of analyzing log data of billions of Internet banking transactions and data transactions along with large storage and databases to some of their large financial and other institutional customers. As our clients find log data very critical, efficient management of the analysis and search of the log data is becoming vital. PacketCruz iLog is capable of automatically re-construction, compression, back-up, analysis, statistics and search of multi-terabytes of log data. PacketCruz iLog's dynamic job allocation algorithm and distributed file slicing algorithm are optimal solution for these multi-terabyte log data. In order to store and manage multi-terabytes of log data, PacketCruze iLog uses stable networked storage. PacketCruz iLog will shortly be supplied to a large Korean client along with a large network storage merchandise and provide the best log data solution for our clients. Starting in the fourth quarter of this year, CinTel is expected to catapult its sales to a new level and, depending on the result of the large projects, will diversity into other businesses. CinTel has a very bright future ahead of it.
About CinTel Corp.
CinTel Corp., while based in the U.S., has its main business operations in Korea that provide enterprise technology solutions to deliver faster internal and external network service. It is a company devoted to providing software and hardware solutions that provide faster Internet service. Founded in 1997, CinTel introduced Korea's first dynamic server load balancer, which has now evolved into a world-class product. CinTel's award-winning Internet Traffic Management (ITM) solutions are marketed to customers worldwide, enabling the Company's customers to improve Internet traffic management, service levels and user experience. CinTel maintains its position as a leader in Internet Traffic Management through continuous research and development efforts. CinTel is also a recognized leader in Content Delivery Network (CDN). CinTel offers a comprehensive line of advanced Internet Traffic Management solutions and system performance improvement solutions that help network operators meet the growing need to manage web access, secure content, improve users' experiences, and reduce server loads and bandwidth demands. For additional information, please visit: www.cintelcorp.net or contact J.D. Sparks, 502-657-6077 (O), 502-693-8022 ©, JDSparks@cintelcorp.net.
Safe-Harbor Statement
This press release may contain statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Contact:
CinTel Corp., Louisville
J.D. Sparks, 502-657-6077
Cell: 502-693-8022
JDSparks@cintelcorp.net
www.cintelcorp.net
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Source: CinTel Corp.
