NewMarket Technology, Inc. Issues Update on Continued Rapid Revenue Growth Beyond $77.6 Million in 2006 and Plan to List Subsidiaries and Issue Dividends
CEO Publishes Letter to Shareholders
DALLAS, TX – October 18, 2007 -- NewMarket Technology, Inc. (OTCBB: NMKT) today released a letter to shareholders from the Company’s CEO, Philip M. Verges. The letter updates shareholders on the Company’s initiative to strengthen and reinforce the staffing, processes and procedures to support continued revenue and profit growth. The initiative will also support the Company’s plans to list additional subsidiary operations and subsequently distribute public subsidiary stock to NewMarket shareholders through dividend declarations. NewMarket revenue has grown 7,996% in five years to $77.6 million in 2006 with $5.8 million in net income. The Company has made progress with its plans to independently list subsidiary operations with the recent successful listings of both NewMarket China, Inc (OTCBB: NMCH) and NewMarket Latin America (OTC: NLAI).
The CEO’s letter to shareholders is included in its entirety below.
Dear Fellow Shareholders:
It was an exciting surprise to receive the award for NewMarket ranking first in the Dallas-Forth Worth MTBC and Deloitte Tech Titan Fast 50 for a second consecutive year. You can see highlights of the awards ceremony on YouTube. http://www.youtube.com/watch?v=k4OjMbgDJyc
In addition to our top ranking in Dallas-Fort Worth, NewMarket ranked third in the State of Texas. The results for the 2007 Deloitte Technology Fast 500 rankings for all North America will be out shortly. NewMarket ranked number five in the Deloitte Technology Fast 500 in 2006.
Ongoing Rapid Organic Growth
NewMarket continues to demonstrate record setting revenue growth, even though we are approaching two years since our last acquisition. The Company’s Brazilian operation, UniOne, was our last acquisition and was purchased in the first quarter of 2006. The acquisition gave a boost to 2006 revenue, contributing to NewMarket’s growth from $50 million in revenue in 2005 to $77.6 million in revenue in 2006. NewMarket will substantially exceed 2006 annual revenue this year without the contribution of a recent acquistion.
Increased Accounting and Reporting Staff, Updated Process and Procedure
In addition to aggressively pursuing organic sales growth, the Company has intensively looked inward this year to solidify our internal staffing, processes and procedures to support continued revenue and profit growth. It has also been important to look internally to continue support of our plans to list subsidiary operations and subsequently distribute public subsidiary stock to NewMarket shareholders through dividend distributions. Furthermore, we do want to see NewMarket graduate in the future to a big board exchange.
Meet NewMarket and Learn About Emerging Market Opportunities in
China, South East Asia, South America, Africa and Beyond
NewMarket will conduct the Company's annual Town Hall meeting Thursday, January 17, 2008 at 3:30 pm CST in Dallas, Texas, at the Fairmont Hotel. The Company will review 2007 financial performance and plans for continued growth in 2008 through both the company's systems integration offerings and the introduction of emerging technologies into global emerging markets such as in Asia and South America. The Town Hall will also include detailed information on the Company's subsidiaries, NewMarket China and NewMarket Latin America.
Additionally, on Friday, January 18, 2008, NewMarket will host a seminar focusing on emerging technologies and emerging and frontier economies. The seminar will be an opportunity for shareholders and interested investors to learn more about the use of emerging technologies and the opportunity for rapid growth within high growth economies worldwide.
Those interested in attending the NewMarket town hall meeting should contact Whitney Marks at firstname.lastname@example.org or 214-722-3052 to RSVP and obtain more information.
Technology Market May Have Gust of Wind In Its Sails
While the overall economy in the United States has experienced some recent setbacks, most recently featuring the subprime mortgage challenges, the technology sector has otherwise been enjoying some success. Reuters released an article yesterday about the technology sector lifting NASDAQ’s overall performance: http://www.wallst.net/news/news.asp?Source=REUTERSNEWS&id=121
Tobin Smith of Fox News “Bulls and Bears” recently released a video clip report on what he believes is a coming “swoosh up” in the technology sector. http://www.changewave.com/tv/2007/09/CWIA_WW_TheNextBullRun_091907.html?sid=8TF165
At NewMarket, we believe we have implemented an innovative strategy to continually introduce new technologies to market in a business model that can sustain profitability. We have enhanced that strategy by building operations in some of the worlds leading emerging economic markets, most notable being China and Brazil of “BRIC” (http://en.wikipedia.org/wiki/BRIC)
. We have managed to establish operational experience and mass over the last five years. We have worked diligently this year to bring our internal staffing, process and procedures up to the level to support our rapid growth to date and rapid growth in the future. If the technology market analysts are correct in their speculation of an overall improving technology market sector, we feel NewMarket is in position to optimize the opportunity.
CEO & Chairman
NewMarket Technology, Inc.