NEWPORT BEACH, Calif., Oct. 18 /PRNewswire-FirstCall/ -- Smart-Tek Solutions, Inc. (OTC Bulletin Board : STTN ), Smart-Tek Solutions achieves profitability for the fiscal year ended June 30, 2010.
Smart-Tek Solutions achieves profitability for the fiscal year ended June 30, 2010. Smart-Tek Solutions today reported revenues of $12,122 versus $3,274 over the comparable prior year period for an increase of 267%.
Smart-Tek Solutions also reported Net Income of $203 for the twelve months ended June 30, 2010 versus a Net Loss of $(136) over the comparable prior year period for an increase in income of 249%.
The significant improvement in sales and earnings was primarily due to the acquisition of Smart-Tek Automated Systems which accounted for 61% of both gross profit and net income for the Company. On a standalone basis, Smart-Tek Automated Systems would have reported $496 of net income for the twelve month period ended June 30, 2010.
Brian Bonar, Chairman and CEO of Smart-Tek Solutions, commented that the results reported confirm his estimates of continued growth and profitability and expects Smart-Tek Automated Services, Inc. to continue steadily on its projected growth and profitability paths.
Mr. Bonar went on to say that once the definitive proxy and shareholder meeting arrangements are approved, the sale of the original business unit to its prior management will allow Smart-Tek to concentrate on its new core PEO business and not be distracted or diluted by disappointing results related to the original business unit.
Please visit www.smart-tekservices.com for further information.
About Smart-Tek Solutions, Inc.:
The parent, Smart-Tek Solutions, Inc., through its Smart-tek Communications Inc. subsidiary, generates revenue from the installation of security systems in construction projects. Its board is currently in negotiations to sell its original business and focus entirely on the PEO business of its wholly owned subsidiary, in order to achieve the best value for its shareholders. The original business generated $4.9 and $3.3 Million of revenue in 2010 and 2009 respectively, and ($161.6) and ($136.3) loss of earnings in 2010 and 2009 respectively.
About Smart-Tek Automated Services, Inc.:
Smart-Tek Automated Services, Inc. provides financial services to small and medium-size businesses, relieving our 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 Automated Services, Inc.