Quintek Technologies, Inc. (OTCBB: QTEK)
Additional Capacity Allows for Significant Revenues Increases
HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–Aug. 8, 2006–Quintek Technologies Inc. (OTCBB:QTEK – News), a global provider of Business Process Outsourcing (BPO) and best-of-breed technology consulting services, announced today that it has increased its high-speed image processing capacity at its Orange County, Calif. facility.
“The ability to process millions of images a month from our Orange County facility will allow us to move high volumes of documents for customers with rapid turn around times. Financially, it means we can see revenues increase considerably without extensive costs related to capital expenditures,” commented Andrew Haag, Quintek CFO.
Robert Steele, Quintek CEO, stated: “We are seeing strong activity related to new proposals for business. Interest is strong in the healthcare and mortgage space from marquis customers.” He added, “Our focus is on delivering the customer the results that will result in market penetration and increased production for the company at this facility and nationwide.”
Quintek has created a state-of-the-art processing center. From its Orange County facility, Quintek provides a wide range of services including in-bound mailroom services, high-speed scanning services, data capture and data and image upload. The company provides these services to three major markets that it has valued at $4 billion annually.
Mortgage Processing:
The Mortgage Processing market is serviced by Quintek by imaging closed loan files for mortgage originators, the companies that originate and service home loans. In 2006 mortgage originations are estimated to total $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 has provided mortgage processing services for the flagship West Coast Ditech.com office GMAC, a $22 billion lender.
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 Quintek’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 percent 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 multinational water purification and chemicals provider.
About Quintek Technologies Inc.
Quintek Technologies Inc. (OTCBB:QTEK – 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, forecasted 13 percent annual growth for the BPO industry through 2005, and projected the market 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 percent.
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 of 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:
Quintek Technologies Inc.
Andrew Haag, 714-848-7741, ext. 14
ahaag@quintek.com
or
Cinapsys Inc.
Mark Moline, 760-458-4899
mark@cinapsys.com
Source: Quintek Technologies Inc.
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