NMKT, was at 1.25 in April, .61 now
Low O/S - 64 million
NewMarket Technology Inc. To Acquire Gaozhi Communications Of Shanghai, China; NewMarket Forecasts $10 Million in 2005 Revenue From China
9/21/2004 9:23:00 AM
Gaozhi Communications Acquisition Is Initial Step in Duplicating NewMarket Business Model in China
DALLAS, Sep 21, 2004 (BUSINESS WIRE) -- NewMarket Technology, Inc. ( NMKT ) announced today entering into a definitive letter of agreement to acquire Gaozhi Communications in Shanghai, China. Gaozhi Communications is currently operated by Gaozhi Science and Technology Development Ltd. NewMarket will acquire a majority interest in Gaozhi Communications for cash and Gaozhi Science and Technology will remain as the second largest shareholder.
NewMarket Technology has previously announced an upcoming Asia Pacific Information Technology Trade Mission for technology professionals and investors. The Trade Mission is scheduled for departure on Oct. 10, 2004. Professionals and investors will have the opportunity to visit Gaozhi Science and Technology Development Ltd. and Gaozhi Communications. Trade Mission participants will be briefed in detail on the Gaozhi Communications Business Plans for 2005. The 2005 Business Plans will be published in a news release and SEC form 8K Information Filing in conjunction with the briefing in Shanghai.
"We believe our initial forecast for $10 million in 2005 revenue from China is conservative," said Philip Verges CEO of NewMarket. "We are already close to signing substantial new sales contracts through Gaozhi Communications with client companies well-recognized in North America and Western Europe. Our business development team in Beijing has also developed an impressive follow-on acquisition pipeline to rapidly expand upon the initial opportunity with Gaozhi Communications. The NewMarket Business Model has grown our North America operations from just over $2 million in revenue in 2003 into an operation that we project will deliver $24 million in revenue in 2004. We strongly believe the potential in China for the NewMarket Business Model is substantially greater than in North America."
New Market recently announced increasing its 2004 booked revenue forecast from $20 million to $24 million. The Company forecasts a profitable annualized revenue run rate of over $50 million by year-end. Reported revenue for the first six months of 2004 exceeded $10 million with a marginal second quarter loss of $75,000. More than 40% of the growth from the First to Second Quarter was generated from organic growth with the balance of the growth resulting from acquisition. The current NewMarket sales pipeline exceeds $25 million over the next twelve months and management anticipates the majority of growth over the next six months to result from organic sales.
The Information Technology Outsourcing Trade Mission will depart for Singapore on Sunday 10, October arriving on the 11th. The Trade Mission group will have an opportunity to visit NewMarket Operations beginning on Tuesday the 12th. On Thursday the 14th, the group will travel to Shanghai to tour NewMarket Operations and the Operations of NewMarket's Joint Venture Partner, GaozhiSoft. Trade Mission participants that need to depart early can plan for a departure from Shanghai on Sunday 17, October. The remaining participants will travel from Shanghai on Sunday to Beijing to visit additional Information Technology Outsourcing resources with a planned departure on the morning of Wednesday 20, October. The schedule will also include time for all participants to visit local attractions during each stop on the Trade Mission.
About NewMarket Technology, Inc. ( www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp. The Company has expanded sales into Asia and Latin America through the acquisitions of Infotel Technologies in Singapore and RKM IT Solutions of Caracas, Venezuela. After the second quarter of 2004, NewMarket has booked over $10 million in revenue and achieved a revenue run rate of more than $40 million.
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