DALLAS, TX--(Marketwire - June 18, 2009) - NewMarket Technology, Inc. (
PINKSHEETS:
NMKT)
today released a letter to shareholders previewing the anticipated release
of the 2008 annual report by Friday, June 19th 2009. The letter highlights
the Company's success at managing a small revenue growth and positive
operating income in spite of the global economic crisis as well as pointing
out the challenges reflected in the report due to the global economic
crisis. The letter is included in its entirety below.
Dear Fellow Shareholders -
About five weeks ago I published a letter to address a collection of
shareholder questions and concerns, most of which surrounded the delayed
reporting of the Company's 2008 annual report. As I draft this letter, our
2008 annual report is being formatted for release. You can expect the
report before the end of the week.
Our CFO, Philip Rauch, published a letter to shareholders on April 15,
2009, regarding the decision to delay the filing. There remain no other
reasons for the delay other than what Mr. Rauch discussed in this letter:
http://www.marketwire.com/press-release/Newmarket-Technology-Inc-975161.html
Following the release of the 2008 annual report, Mr. Rauch is scheduled to
conduct a Webcast to review the report.
Over the course of the last five weeks, we have received additional
shareholder questions and concerns. Most of those questions surrounded the
Company's absent communications since the May 8, 2009 release of my last
letter to shareholders:
http://finance.yahoo.com/news/NewMarket-Technology-Inc-CEO-iw-15185348.html
The founders and management of NewMarket Technology remain passionate about
the vision, mission and future prospects of the Company. We have learned a
great deal about the challenges inherent within the micro-cap public
markets. We continue to evolve our strategy to guide NewMarket toward a
long-term and sustainable success. We also continue to grow more
passionate about translating our experience within the micro-cap public
markets into an improved future opportunity for the shareholders of all
early stage entrepreneurial businesses.
The high growth potential entrepreneurial market is globally underserved,
underappreciated, and under financed, yet more and more vital to the global
economy every day. While trillions of dollars are being spent to aid old
"big" companies, some arguably not long for this world, innovative new
companies that can redefine a next generation global economy are being
overlooked. Additionally, with the expected rise in unemployment, we
anticipate seeing even more entrepreneurs starting innovative businesses
because their job with the old 'big' company no longer exists and other
similar jobs are also no longer available. NewMarket's position within the
entrepreneurial high growth potential market, the Company's financial
condition and the ongoing commitment of the management team have not
changed since the publication of my May 8, 2009 letter to shareholders.
As previously communicated, the Company's revenue grew in 2008 compared to
2007. The Company did not escape the challenges presented by the global
economic crisis. While revenue grew, the growth was not as much as
anticipated and the percentage of income from operations was not as high as
the previous year. In light of current global economic conditions, we took
a hard look at several balance sheet listed assets and correspondingly
wrote down the value of those assets. The write down had a substantial
balance sheet impact and corresponding
non-cash impact to the profit and loss statement. While the Company had a
positive operating income, the non-cash impact to the profit and loss
statement did result in an overall negative net income for the year.
Mr. Rauch will address the write downs, the balance sheet impact and the
profit and loss impact in more detail in his Webcast presentation. The
negative net income is disappointing, but primarily the result of balance
sheet adjustments that we believe to be healthy for the Company in the
long-term. Even after the write down and the impact to the profit and loss
statement, we believe the Company share price does not reflect the
fundamental financial value of the operations. Management is optimistic
that the publication of the 2008 annual report will end any speculation
regarding the Company's 2008 performance that may be reflected in a lower
current share price than might otherwise be expected.
After the publication of the 2008 annual report, please look for a number
of upcoming communications regarding the Company's overall business
development progress and the ongoing evolution the Company's strategy to
improve its business model.
Best Regards,
Philip M. Verges
Founder and Chief Executive Officer
NewMarket Technology, Inc.
Corporate E-mail Updates
To be added to NewMarket Technology's e-mail database to receive company
updates or to obtain more information on the Company, please send an e-mail
to
ir@newmarkettechnology.com or call 214-722-3065.
About NewMarket Technology, Inc. (
www.newmarkettechnology.com)
NewMarket helps clients maintain the delicate balance between maintaining
legacy systems and gaining a competitive edge from the latest technology
innovations. NewMarket provides certified systems integration and
maintenance services to support the prevailing industry standard solutions
from companies such as Microsoft, Oracle, Infor, 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 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.
The company has continued its rapid growth, reporting $77.6 million in
revenue with a net income of $5.8 million in 2006 and most recently $93.1
million in revenue with a net income of $7.3 million in 2007.
"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