re: quadtel records a profitable febuary Quadtel Records...

re: quadtel records a profitable febuary


















Quadtel Records Profitable February

Document date: Thu 20 Mar 2003 Published: Thu 20 Mar 2003 14:47:17
Document No: 152041 Document part: A
Market Flag: Y
Classification: Periodic Reports - Other
QUADTEL LIMITED 2003-03-20 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
Quadtel Ltd (ASX: QTL), is pleased to advise shareholders that
February 2003 was profitable as forecast at the company AGM in
November 2002 and the announcement made on 14 February 2003.

"Following on from our cost reduction initiatives and re-focussing
our sales efforts on higher profit margin products, achieving a
profit in the month of February completes the first phase of
re-structuring of the company" commented Bruce Ind, CEO of Quadtel.
"The next phase will be to grow monthly profits from the company's
key activities to the end of the financial year. Importantly, with a
stable profit baseline, the company is now positioned to capitalise
on its investment in China."

Quadtel's high margin products have delivered a significant
contribution to the company since December 31. The company currently
republishes titles for five vendors - ScanSoft (Dragon
NaturallySpeaking product line), Arcsoft, Panda Software, Newtech
InfoSystems and Transparent Language and the contributions from those
vendor lines are an enormous part of the gross margin for the
company. As explained in previous press releases, this model involves
less upfront working capital with royalties paid against sales,
thereby resulting in very low inventory costs.

ScanSoft who have just renewed Quadtel's agreement to republish the
latest version of their speech recognition software Dragon
NaturallySpeaking 7 have also praised this model's success. Australia
is the only country which distributes ScanSoft's products under this
business model.

Quadtel is aggressively pursuing opportunities to further widen the
scope of its high margin republishing model and is currently in
further negotiations with a number of suppliers with specific focus
in areas perceived as high growth namely DVD, Digital Imaging and
Document Management and look forward to finalising agreements in the
coming months.

For Further Information contact:
Billy Cina
P R & COMMUNICATIONS MANAGER
Tel: +61 2 8852 4651.
E-mail: [email protected]

Denis Orrock
COMPANY SECRETARY
Mobile: +61 2 8852 4628
E-mail: [email protected]