NEW YORK, April 24 /PRNewswire-FirstCall/ -- Newtek Business Services, Inc. ( http://www.newtekbusinessservices.com/ ), a direct distributor of financial and business products and services to the small and medium-sized business market, announced today that it anticipates filing its annual Form 10-K for the year ended December 31, 2005 on or before Wednesday, May 3rd. The company previously announced that, due to the late filing, it has received an initial determination letter from the Nasdaq Stock Market that the Company was subject to delisting due to non-compliance with the timely filing requirements. The Company expects to file shortly and come into full compliance with all applicable Nasdaq and SEC requirements.
In addition, Newtek announced that it is addressing the problems which caused its late filing and will shortly add additional personnel to its accounting, finance and legal staffs. Due to the Company's rapid growth in the past two years, as well as the new regulatory requirements in the changing, post-Sarbanes Oxley Act environment, the past level of staff support has proven inadequate to ensure timely financial reporting. The Company's Board of Directors and senior management will be monitoring closely this restructuring of the Company's key personnel and are committed to taking all necessary steps to ensure full compliance in the near future.
The Company anticipates no material changes in its previously announced results for the year ended December 31, 2005. It also anticipates no restatement of any prior period financial statements.
About Newtek Business Services, Inc.
Newtek Business Services, Inc. is a direct distributor of business services and financial products to the small to medium-sized business market. According to the SBA, there are over 23 million small businesses in the United States which in total represent 99.7% of all employers, generate 60 - 80 percent of all new jobs annually and generate more than 50% of non-farm GDP. Since 1999, Newtek has helped these business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses. Newtek focuses on providing its 60,000 customers with access to financial, management and technological resources that enable them to better grow and compete in today's marketplace. Newtek's products and services include:
-- Newtek Small Business Finance: U.S. government-guaranteed small
business lending services;
-- Newtek Merchant Solutions: electronic merchant payment processing
solutions;
-- Newtek Insurance Agency: commercial and personal insurance;
-- Newtek Web Hosting: domain registration, hosting, web design and
development;
-- Newtek Data Storage Services: data backup, archival and retrieval
services;
-- Newtek Financial Information Systems: outsourced digital bookkeeping;
and
-- Newtek Tax Services: tax filing, preparation and advisory services.
The statements in this release may contain forward looking statements relating to such matters as anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward looking statements. In order to comply with the terms of the safe harbor, Newtek Business Services, Inc. notes that a variety of factors could cause its actual results to differ materially from the anticipated results expressed in the Company's forward looking statements such as intensified competition and/or operating problems and their impact on revenues and profit margins or additional factors as described in Newtek Business Services' 2004 annual report on Form 10-K.
Contacts:
Newtek Business Services
Barry Sloane
Chairman of the Board & CEO
212-356-9500
