NEWPORT BEACH, Calif., Feb. 15, 2011 /PRNewswire/ -- Led by its Smart-Tek Automated Services subsidiary, Smart-Tek Solutions Inc. (OTC Bulletin Board: STTN) reported a revenue increase of 119 percent in its most recently filed Form 10-Q for the six months ending December 2010. During that same period Smart-Tek's gross profits were $2,703,395, an 81 percent increase over the comparative period in 2010. Smart-Tek Automated Services, Inc., which generated $1,229,267 in net income for the six month period ending December 31, 2010, accounted for 94 percent of the company's gross profit and 89 percent of its total revenues during the most recent two quarters.
Smart-Tek Automated Services continues capitalizing on the rising demand in the Professional Employer Organization (PEO) business, which it officially entered in August 2009. PEOs enable companies to outsource back-office operations such as payroll processing, human resources support, workers' compensation insurance, safety programs, employee benefits, and other administrative tasks. The company also offers a variety of staff leasing, temporary staffing and co-employment solutions.
"Our increase in sales activity continues to be due, in part, to the demand for better human resource (HR) outsourcing solutions from small to medium sized business owners," said Brian Bonar, Smart-Tek Solutions CEO. "I expect continued growth in our business segment and believe we are well poised to establish ourselves as an industry leader in the human resource outsourcing industry in 2011."
Complete financial statements (unaudited) with notes thereto are provided with the Company's Form 10Q filed with the Securities and Exchange Commission.
About Smart-Tek Solutions, Inc:
Smart-Tek Solutions, Inc. has two subsidiaries. IT Smart-Tek Communications Inc. subsidiary generates revenue from the installation of security systems in construction projects.
About Smart-Tek Automated Services, Inc.:
Smart-Tek Automated Services, Inc., provides financial services to small and medium-size businesses, relieving its clients from many of the day-to-day tasks that negatively impact their core business operations, such as payroll processing, human resources support, workers' compensation insurance, safety programs, employee benefits, and other administrative and aftermarket services predominantly related to staffing: staff leasing, temporary staffing and co-employment. It not only provides core services, but a wide selection of employee and employer benefits and aftermarket products.
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones and marketing arrangements and plans. Estimated revenues from its Smart-Tek Solutions, Inc. subsidiary are somewhat subjective and based on information available to the Company at the time of the determination. Also, such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the continued growth of business as planned including the fruition of new agreements in hand, existing business staying intact, and our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products and services in domestic and potential international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended , and its subsequent filings with the SEC.
SOURCE Smart-Tek Solutions, Inc.