QTEK(.06),Quintek Targeting Three Major Markets Sized at $4 Billion Tuesday December 6, 4:06 pm ET
Company Focusing on Verticals With Established Contracts and Partnerships in Place to Spearhead Growth
HUNTINGTON BEACH, CA--(MARKET WIRE)--Dec 6, 2005 -- Quintek Technologies, Inc. (OTC BB:QTEK.OB - News), a global provider of Business Process Outsourcing (BPO) and best-of-breed technology consulting services, today announced that the company has targeted three primary vertical markets on which to focus its growth. The identified markets are Mortgage Processing, Healthcare Claims Processing and Accounts Payable Processing. The company has closed contracts with customers in these markets and developed partnerships with industry leaders within these verticals to drive continued growth. ADVERTISEMENT
Robert Steele, Quintek CEO, stated, "Quintek reported a 506% increase in revenues for the fourth quarter versus the prior year. This comes after record revenues in the company's year end results, with revenues Increasing 418% over 2004, the sixth consecutive quarter of revenue growth." Steele added, "There is much more room for growth in this multi-billion dollar space. Quintek is delivering results."
Roger Lents, Director of Sales, commented, "At this point in Quintek's growth cycle we feel it is important to focus our sales efforts on markets where we have an established footprint and relationships with solid industry partners." He added, "We are delivering services to multi-billion dollar customers that are some of the strongest names in business today. The traction we have in the mortgage, healthcare and accounts payable markets is helping us to win repeat business and further validates our business model."
Mortgage Processing
In the Mortgage Processing market QSI's services include the imaging of closed loan files for mortgage originators, the companies that originate and service home loans. In 2006 mortgage originations totaled $1.8 Trillion. The Average loan file was 200 pages. Quintek estimates that companies pay an average of $.10 per page to outsource the processing and scanning of these closed loans, creating a market for the services QSI provides in this space of approximately $260 million annually. Quintek is providing mortgage processing services for the flagship west coast office of a $22 billion lender and division of one of the largest corporations in America.
Healthcare Claims/Records Processing
The Healthcare Claims Processing services QSI provides help major healthcare providers' process claims from customers more effectively and efficiently. Providers are constantly looking for ways to cut costs and provide higher-quality service levels to their customers. In 2004 there were $15 billion of healthcare claims, with each claim averaging $.10. Using those figures as a baseline, the addressable market for services provided by QSI is $1.5 billion annually. Quintek has been processing patient records in the southern California market for various clients and partners for some time. Quintek has recently developed a partnership with Manhattan Data, Inc (MDI) to further penetrate this market.
Accounts Payable Processing
In the Accounts Payable Processing space, QSI's services save customers money by reducing the cost of processing invoices payable to vendors. Last year the estimated revenues for the Fortune 500 totaled $8.2 trillion. Companies that outsource the payables function spend an estimated 0.025% of revenue on A/P Outsourcing. Based on that number, Quintek estimates an addressable market of $1.7 billion for the services provided by QSI. Quintek has installed in-house AP solutions for customers and provides outsourced AP services for a $3 billion dollar multinational water purification and chemicals provider.
About Quintek Technologies, Inc.
Quintek Technologies, Inc. (OTC BB:QTEK.OB - News), 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%
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, 2004 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.
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