Smart-Tek Solutions, Inc. Expects to Recapture Revenue by Next Quarter
NEWPORT BEACH, Calif., Nov. 23, 2011 /PRNewswire/ -- Smart-Tek Automated Services, Inc., subsidiary of Smart-Tek Solutions, Inc. (OTC Bulletin Board: STTN) reported a Year to Date revenue of $15,261,133 for an increase of $5,132,188 or 50.7% over the same period prior year. During the three month quarterly period ended September 2011, Smart-Tek had a decrease in net revenues over the June, 2011 quarter of $1,773,045. This decrease was a result of the loss of a large client. Smart-Tek estimates that the revenue will be recaptured for the December 2011 quarter through the combination of new clients and organic growth.
Smart-Tek reported a Year to Date net loss from operations of ($3,199,659) compared to net income from operations of $937,473 over the same period prior year. The loss is due to a combination of one time charges of $1.8 million and the decrease in revenues. Smart-Tek expects to get net income back on track with the recapture of revenue and the net income that will be generated from the acquisition of Solvis Nurse Staffing.
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.
SOURCE Smart-Tek Solutions, Inc.