SOURCE: NewMarket Technology, Inc.

November 20, 2007 09:04 ET

NewMarket Technology, Inc. 3rd Qtr. Highlights 19% Revenue Increase to $63.5 M, 21% Net Income Increase to $2.8 M and 250% Working Capital Increase to $17.8 M

Management Team Emphasizes Long-Term Impact to PPS Growth of Continued Revenue, Profit and Balance Sheet Growth in Earnings Call

DALLAS, TX--(Marketwire - November 20, 2007) - NewMarket Technology, Inc. (OTCBB: NMKT) conducted a webcast earnings call after market close yesterday to review the Company's financial performance results for the nine month period ended September 30, 2007.

Management Discussion and Analysis on Fundamental Financial Performance and PPS

In addition to the management discussion and analysis of the Company's SEC Form 10Q filed for the period ended September 30, 2007, management reviewed the Company's plan: to continue aggressive organic revenue growth by adding to the existing customer base that includes clients such as Avon, Siemens and Pepsi; to continue to reduce expenses through the elimination of redundant overhead; to continue to improve net income through an increased percentage of higher gross margin services; and to expand working capital by increasing net assets at a faster pace than operationally incurred liabilities.

Management further discussed the Company's price per share (PPS) performance to include a review of seasonal lows in November increasing to seasonal highs in March. The PPS discussion centered on management's intent focus on continued fundamental financial performance and confidence that operational value would be conveyed in a future PPS.

Nine Months Ended September 30, 2007

The Company reported $63.5 million in revenue for the nine months ended September 30, 2007 and $2.8 million in net income. Year-to-date revenue has increased 19% compared to the same period last year and net income has increased 21%.

Three Months Ended September 30, 2007

Revenue in the third quarter increased 24% from $18.9 million in 2006 to $23.4 million in 2007. This revenue increase was due to organic growth as the Company's last acquisition was in early 2006. Third quarter net income increased 13% from $1.4 million in 2006 to $1.6 million in 2007.

Financial Performance Highlights

Balance sheet:

--  Stockholders' equity increased 29% from same quarter last year ($53.3
    v. $41.3m)
--  Stockholders' equity increased 18% year-to-date ($53.3 v. $45.2m)
--  Working capital increased 250% from same quarter last year ($17.8 v.
--  Total assets increased 15% from same quarter last year ($72.5 v.

Statement of Operations:

--  Revenue for 3rd quarter 2007 increased 24% from 3rd quarter 2006
    ($23.4m v. $18.9m)
--  Revenue for first 9 months 2007 increased 19% from first 9 months 2006
    ($63.5m v. $53.2m)
--  Operating expense percentage decreased, 14% of sales in 3rd quarter
    2007 v. 23% of sales in 3rd quarter 2006
--  Net income (before currency translation) for 3rd quarter 2007
    increased 13% from 3rd quarter 2006 ($1.6m v. $1.4m)
--  Net income (before currency translation) for first 9 months 2007
    increased 21% from first 9 months 2006 ($2.8m v. $2.3m)

Third Quarter Earnings Webcast and Recent Letter to Shareholders

The NewMarket Technology third quarter webcast from Monday, November 19, 2007 can be accessed through the Company's website under current events at:

The webcast includes results for NewMarket China, Inc. (OTCBB: NMCH) and updates on the Company's Latin American operations that are being consolidated into NewMarket Latin America, Inc. (PINKSHEETS: NLAI).

Separately, NewMarket CEO, Philip M. Verges, recently released a letter to shareholders addressing the Company's corporate maturation and continued growth, emerging market growth strategy and 2008 early outlook. The letter can be read in its entirety at:

To be added to NewMarket's corporate e-mail list for shareholders and interested investors, please send an e-mail to

About NewMarket Technology, Inc. (

NewMarket helps clients maintain the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions such as Microsoft, Oracle, SAP, Siebel and Sun Microsystems. Concurrently, NewMarket continuously seeks to acquire emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions. Some emerging technology solutions NewMarket provides include VoIP, Broadband Wireless and Security.

NewMarket delivers its portfolio of products and services through its network of Solution Integration subsidiaries in North America and the leading emerging markets around the world to include, Latin America, China and Singapore.

NewMarket ranked Number One in Texas, Number Three in the United States and Number Five in North America on Deloitte's 2006 Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. Rankings are based on percentage revenue growth over five years, from 2001-2005. The Company grew from less than $1 million in revenue in 2001 to over $50 million in profitable revenue in 2005. In 2006, the company continued its rapid growth, reporting $77.6 million in revenue with a net income of $5.8 million.


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.

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