DALLAS, TX--(Marketwire - May 6, 2010) - NewMarket Technology, Inc. (
Dear Shareholders and Micro-Cap Market Participants:
Ninety days ago, Mr. Bruce Noller assumed the role of Chief Executive Officer (CEO) at NewMarket. So much has happened in that ninety days since I stepped down as CEO, I can hardly believe it's only been ninety days. On the other hand, I cannot believe it has been almost 13 years since my family founded NewMarket. I was 32 at the time. My wife and I had four children and the oldest was six. Last month I celebrated my 45th birthday. My oldest starts college in the fall and my fifth and youngest child is now eight.
Launching NewMarket in 1997 was a thrilling event. The evolution of the Company and the challenges we have faced along the way have been even more exhilarating than the thrill of that very first day. NewMarket has been an adventure, constantly breaking new ground on multiple fronts since our founding, and the adventure is far from over.
Tomorrow (May 7, 2010), I will release a Webcast review of the Company's progress over the last ninety days since Mr. Noller became CEO. I will also preview the next changes NewMarket plans to undergo as we:
1) Work to align the currently undervalued share price with the operational systems integration value the Company has built over the last 13 years
2) Continue to evolve and improve in our ongoing development of a systematic approach to introduce new enterprises to new markets one after the other
This letter is intended as a primer to tomorrow's Webcast. NewMarket has undergone a number of changes over the years as we have learned to be a better and notably unique business incubator. In fact, I have largely avoided the word "incubator" over the years in an effort to avoid being lumped in with the dozens of failed incubation models. Indeed, we have done many things differently than past incubators. I think two differentiators that stand out are:
1) The systems integration capability that we have built to roughly $100 million in annual revenue
2) Our concentration on emerging markets where the opportunity for innovation is more fertile
We have managed to recover from previous trialed initiatives to add to our building of a systematic innovation process that looked good on paper, but when implemented, did not work so well. Now we have our two strongest features firmly instituted without any burden of previous trialed initiatives that do not add value. NewMarket has a well-established and globally competitive systems integration operation concentrating services within the world's emerging markets.
Mr. Noller's mission as CEO is to further develop and expand NewMarket's systems integration operations. He began that mission last year in his previous role, where he instituted and introduced NewMarket's outsourcing services. The Company's new outsourcing services business line has made a notable contribution to revenue and net income, also improving the percentage of revenue coming from recurring contracts.
In 2008, NewMarket began moving its business incubation functions outside of the Company to reduce the financial burden that comes with developing early-stage operations. The incubation function transition to outside of the Company was completed in 2009. In 2009, NewMarket alternatively introduced the Greenfield Partnership Program. Within the Greenfield Partnership Program, NewMarket now provides services designed to assist in the development of independent early-stage businesses.
In the ongoing development and evolution of NewMarket's capacity to systematically and continuously introduce new business opportunities to new markets, the Company is now launching Project 510. Historically, the Company has concentrated on information technology as a source of business innovation. Recently, NewMarket has begun to expand beyond information technology-based innovation projects through the Greenfield Partnership Program. The purpose of Project 510 is twofold:
1) Acquire and further develop later-stage enterprises as a next step beyond the development of earlier-stage enterprises within the Greenfield Partnership Program
2) Expand NewMarket's innovation horizons beyond information technology
The number 510 is a wavelength in the green light spectrum. So, in keeping with NewMarket's expanding horizons on new, or green, opportunities, the Company has named this new program Project 510.
NewMarket's current systems integration operations are soundly developed and ready for a next stage beyond NewMarket's Greenfield Partnership Program and NewMarket's Project 510. Accordingly, NewMarket plans to package its systems integration operations into an independent, publicly-listed subsidiary solely in the systems integration business with no burden to the capital structure from over-the-counter financing. The objective of packaging the systems integration operations into a subsidiary without history or over-the-counter financing is to achieve a national exchange listing for that subsidiary where the value of the systems integration operations can be realized in the subsidiary's share price.
In the Webcast presentation tomorrow, I plan to discuss in further detail:
1) The Greenfield Partnership Program, to include a review of the current Greenfield partner companies
2) NewMarket's Project 510, including a preview of an upcoming aggressive acquisition campaign, the preparations underway to facilitate the campaign and the developing acquisition target pipeline
3) A preview of next steps to realize a national exchange listing for NewMarket's systems integration operations
We have more than a decade under our belt in the development of a unique, systematic incubation capacity. We have cleaned up from our various trials in the further development of the capacity when those did not add value. We have a sound emerging market systems integration operation to show for our efforts, and systems integration is the foundation of implementing business innovations. The Greenfield Partnership Program is developing new business opportunities at a much faster rate than any of NewMarket's previous incubation initiatives. We are as enthusiastic as ever about the ongoing development of the Greenfield Partnership Program and the introduction of NewMarket's Project 510. I hope you'll join me for the Webcast presentation tomorrow.
Thank you,
Philip Verges
Chairman
NewMarket Technology, Inc.
A link to the Webcast will be posted to the corporate website www.newmarkettechnology.com upon release Friday and will be emailed to the corporate opt-in email database.
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About NewMarket Technology, Inc. (http://www.newmarkettechnology.com/)
NewMarket provides systems integration, technology infrastructure services and emerging technology worldwide. NewMarket has a focus on providing technology and support services to rapidly growing economies where technology purchasing is on the rise. In addition to its base of operations in North America, NewMarket has operations today in the growing economies of China, Southeast Asia, Brazil and Northern Latin America. Last year the Company reported over $40 million in revenue from Asia and over $20 million in revenue from Latin America. Overall, NewMarket reported over $95 million in revenue for 2008 and reported over $98 million in profitable revenue for 2009.
Across the globe, NewMarket is a Microsoft and Oracle partner, distributes various computer hardware and peripherals from brand partners such as Dell, HP, IBM, Cisco, Sony, Epson, Canon and Sanyo and is also an authorized reseller of operating systems and various software from companies such as Red Hat, Sybase, IBM, BEA, Veritas and others. Additionally, the Company works with emerging technologies such as mobile computing, various security and wireless broadband technologies. NewMarket's rapid growth since 2002 placed the Company on the Deloitte Technology Fast 500 for 5 consecutive years. NewMarket was recognized as the third fastest growing technology company in the United States in 2006 and the number one fastest growing technology company in North Texas for two years in a row.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause NewMarket's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
Contact Information:
Contact:
NewMarket Technology, Inc.
Investor Relations
214-722-3065
ir@newmarkettechnology.com