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Quintek
Technologies, Inc. (OTCBB: QTEK) |
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As the DOW flirts with the 9000 mark off in the periphery the
market is beginning to show early signs of recovery. Terms like
“Baby Bull” adorn the commentary of the nightly market pundits
and indeed average investors are starting to turn their heads
back toward the financial world with cautious interest.
All the while, the strongest of companies have been weathering
the storm as best they can, downsizing, retooling business plans,
and generally doing whatever it takes to stay in the game. So
many companies have disappeared under the economic purge of the
last few years that Darwin himself would applaud the survivors.
Today, StockUpTicks is pleased to bring you a long-awaited update
from one such company, a survivor in the most conservative sense
of the word, which now stands ready for what could be a better
market and economy.
We first brought Quintek Technologies, Inc. (OTCBB: QTEK)
to your attention over a year ago when the stock rose on what
can gently be termed mercurial trading. Now, after a year
of refining its management team and business plan, we again have
the privilege of bringing you their story.
If you’re among the thousands of our readers who are now looking
to the market once again, please take the time to read about a
company strong enough to survive the storm and fortunate enough
to bask in the sunlight of a better market.
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Company
and Product Overview |
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Quintek is the only manufacturer of a desktop microfilm
printer. The company currently sells hardware, software
and services for printing large format drawings such as blueprints
and CAD files (Computer Aided Design) directly to microfilm.
"Our technology facilitates an environmentally-friendly
marriage of the industry-accepted format for design document creation,
CAD, to the industry-accepted media for long-term document storage,
microfilm."
Market Projected to Grow to $24 Billion by 2006
Quintek does business in the content and document management services
market, which IDC forecast to grow to $24 billion by 2006 at a combined
annual growth rate of 44%. Quintek targets the aerospace, defense
and AEC (Architecture, Engineering and Construction) industries.
Patented, Compact, Chemical-Free
Quintek’s printers are patented, modern, chemical-free, desktop-sized
units with an average sale price of $50,000. Competitive products
for direct output of computer files to microfilm are more expensive,
large, specialized devices that require constant replenishment
and disposal of hazardous chemicals.
Unique Design Solves a Problem and Delivers Savings
In most cases aperture cards are developed with chemical-based
microfilm technology and are then assembled manually. This is
an expensive and time consuming process. Quintek’s automated equipment
solves this costly problem for this already established market
and can deliver a return on investment in less than twelve months.
Fortune 1000 Customers
For ten years, Quintek has been selling its patented “Aperture
Card” printers to Fortune 1000 customers such as Boeing, TRW,
PG&E, Lockheed, Zenith, GTE, Westinghouse, Whirlpool and Federal
and State customers such as Caltrans, NASA and the U.S. Navy.
Cheaper, Faster and More Reliable
Electronic Digital Imaging and Document Management are now mature
technologies that are widely available. However, there are some
parts of the document lifecycle where Microfilm remains the most
efficient and economical solution. Microfilm remains the best
solution for archival of large format drawings. Microfilm
is cheaper, faster and more reliable than digital systems for
distributing drawing revisions during manufacturing and construction.
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Determined
New Management Team |
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Nothing breaths life into a company like adding top-level management
with a determined focus toward excellence. Robert Steele,
CEO, brings specific industry and technology experience while
Andrew Haag, CFO bring a wealth of financial knowledge to assist
the company in meeting its financial objectives. These two
experienced professionals from industry and finance have set in
motion an aggressive course to bring the company towards the top
of its industry. In a recent letter to shareholders, Quintek
Chairman & CEO, Robert Steele, said:
"The value of Quintek’s patented and proven technology
is unparalleled in this field. NCR (National Cash Register) spent
more than six years and $6.5 million developing the patented Chemical-Free
Microfilm (CFM) technology that is the core of our products. Quintek
has further developed this technology and over the past 10 years
has established brand recognition and goodwill in the marketplace
with its many Fortune 500 customers. Our Company has already worked
through the process of commercializing this new technology and
is well positioned to move forward rapidly."
Andrew Haag, Quintek's CFO, has set his sights on getting the company's
financial house in order. Since February, Mr. Haag has led
the effort of restructuring Quintek’s debt and creating a more stable
financial environment for the Company. Mr. Haag, with management's
cooperation, has already successfully restructured approximately
40% of the outstanding debt. The Company's goal is to reduce
the remaining debt to less than $350,000 over the quarter ending
June 30, 2003. The company is clearly focused on increasing
revenues, raising margins and improving product quality and reliability
In a May 28 news release Quintek announced that it had met its
internal sales forecast of 3 new units in the first 90 days
since management took the helm. Further, according to a
letter to its shareholders, Quintek recently set the bar
at 17 new units in the first 12 calendar months ending February
2004 with a second 12-month forecast of 59 units and during the
third 12-month period they are forecasting sales of 136 units.
Reaching these forecasts would quickly put QTEK well above
its annual record of 10 units sold -- well beyond its historical
best!
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Management
Background |
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Chairman & CEO-Robert Steele
Mr. Steele assembled and led the team that created iBrite, Inc.
a wireless / mobile software company, where they raised two rounds
of financing and established contractual partnerships with AOL
and Global Knowledge. Prior to that, Mr. Steele and two co-founders,
grew CADD Microsystems, Inc., (CMI) to be the number-one provider
of Computer Aided Design (CAD) software, training and consulting
services to the Federal Government. Mr. Steele has sold
and managed systems integration and consulting projects for the
design, engineering departments and information management departments
of major clientele such as; ABB, Lucent Technologies, The Marmon
Group, Federal Aviation Administration (FAA), General Services
Administration (GSA), and the National Reconnaissance Office (NRO).
CFO-Andrew Haag
Mr. Haag has over 10 years experience in the investment banking
industry. Mr. Haag began his career on Wall Street at Drexel Burnham
Lambert in 1987. Mr. Haag established a West Coast presence
for Auerbach, Pollock & Richardson a small-cap investment
bank. Mr. Haag assisted in the development of the firm, attracting
and referring new hires and clients to all offices, set up and
managed road shows and assisted in the structuring and funding
of offerings for corporate clientele. Mr. Haag has advised
and assisted numerous small public and private companies in securing
more than $50 million in capital.
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QTEK
Capital Structure and Financial Links |
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Total Shares Outstanding: 46.7 million
Estimated Public Float: 20 million
Market Capitalization: $4.95 million
For recent news and a current stock quote click
here
For Quintek's recent filings with the SEC click
here
Company web site: click here
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