SOURCE: NewMarket Technology, Inc.

August 15, 2007 08:51 ET

NewMarket Technology, Inc. 2nd Quarter 2007 Revenue Increases 30% Over 2nd Quarter 2006 to $21.9 Million and Net Income Increases 26% Year Over Year

Shareholder Webcast Scheduled at 4:30 EDT Friday, August 17, to Review YTD Performance and Update 2007 Financial Outlook

DALLAS, TX--(Marketwire - August 15, 2007) - NewMarket Technology, Inc. (OTCBB: NMKT) announced today that the company has filed SEC Form 10-Q reporting the Company's performance for the second quarter of 2007. NewMarket has reported $21.9 million in revenue for the second quarter of 2007, reflecting a 30% increase in revenue over the second quarter of 2006. Net income for the second quarter was $606,406, a 26% increase over $481,502 for the same period last year. Net income for the first six months of 2007 was $1.2 million, a 31% increase over $916K for the same period last year.

Financial Highlights

Balance sheet:

--  Stockholders' equity increased 34% from same quarter last year ($52.1m
    v. $38.9m)
--  Stockholders' equity increased 15% year-to-date ($52.1m v. $45.2m)
--  Working capital increased 320% from same quarter last year ($17.2m v.
--  Total assets increased 13% from same quarter last year ($70.8m v.

Statement of Operations:

--  Revenue for 2nd quarter 2007 increased 30% from 2nd quarter 2006
    ($21.9m v. $16.9m)
--  Revenue for first 6 months 2007 increased 17% from first 6 months 2006
    ($40.0m v. $34.2m)
--  Operating expense percentage decreased, 20% of sales in 2nd quarter
    2007 v. 24% of sales in 2nd quarter 2006
--  Net income (before currency translation) for 2nd quarter 2007
    increased 26% from 2nd quarter 2006 ($606k v. $482k)
--  Net income (before currency translation) for first 6 months 2007
    increased 31% from first 6 months 2006 ($1.2m v. $916k)

2007 Financial Outlook Update

NewMarket is an aggressive, high growth emerging market and emerging technology company that regularly sets aggressive financial objectives. These aggressive objectives have resulted in the company growing from less than $1 million in revenue in 2001 to $77.6 million in revenue in 2006 with a net income of $5.8 million. NewMarket has previously announced a $120 million revenue target for 2007.

The annualized revenue run rate simply based on the first six months financial performance is approximately $80 million. Not included in the annualized number is any consideration of NewMarket's three year history of generating on average approximately 38% more revenue in the second half of the fiscal year than the first. Taking this seasonal performance trend into consideration, the current revenue run rate suggests NewMarket is on track to realize $95 million in annual revenue for 2007. The achievement of the $120 million revenue target requires NewMarket to successfully convert into sales a current pipeline of over $25 million in additional potential contracts.

The contract pipeline, and progress in adding to the pipeline, will be reviewed in the webcast this Friday. In summary, management does not intend to step back from the goal of achieving the $120 million revenue target. However, management will provide details on the steps necessary for NewMarket to realize additional sales from the current pipeline of new business. Correspondingly, management will update the annual revenue target from a singular high goal of $120 million into a range of revenue with a minimum anticipated and maximum of $120 million.

Second Quarter Financial Webcast

NewMarket management will review YTD financials in a Webcast scheduled for 4:30 PM EDT on Friday, August 17, 2007. The Webcast can be accessed 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, Cisco Systems, 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.

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 Five 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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