NewMarket Technology Inc. Releases Update of Homeland Security Strategy; New Year to Bring Refreshed Technology and Business Platform
Friday , December 23, 2005 09:30 ET
DALLAS, Dec 23, 2005 (BUSINESS WIRE) -- NewMarket Technology Inc. (OTCBB:NMKT) today released an update of its Homeland Security Strategy. NewMarket entered the Homeland Security market in March 2004 with the acquisition of DCI, a defense industry systems engineering firm. Since that time, NewMarket has won a number of notable contracts with organizations that include L3 Communications and foreign United States allied governments. NewMarket has also acquired additional technology assets to expand its portfolio of Homeland Security products and services.
Earlier in 2005, NewMarket became the majority shareholder in Defense Technology Systems Inc., a publicly listed Homeland Security company. Defense Technology is a distressed, early development stage company refocused on the Homeland Security market after the collapse of its previous data networking operation. The revitalization of Defense Technology has been slower than anticipated due to conflicts between NewMarket and Defense Technology management. Defense Technology recently announced the appointment of Russell Medina as the new Chief Executive Officer. Mr. Medina brings a wealth of defense industry experience to the Company as a retired career Army Officer and graduate of the United States Military Academy at West Point, NY. While the revitalization of Defense Technology is behind, Defense Technology will be central to NewMarket's Homeland Security strategy.
Independent of NewMarket's overall business, Homeland Security remains an early development stage operation. Defense Technology provides NewMarket with an independent publicly listed company dedicated to the development of a Homeland Security business. Over the Counter listings provide an ideal environment to capitalize early development stage businesses. Overcoming the legacy of Defense Technology's collapsed data networking business will be a first priority. Once unburdened by its prior operational history, Defense Technology will provide NewMarket with an independent platform for rapidly expanding its Homeland Security operations.
Defense Technology operations are being restructured to optimize its own available resources with the resources available from NewMarket. As DCI is primarily a systems integrator and NewMarket is rich with systems integration resources, DCI will be sold. Defense Technology will tap NewMarket for systems integration resources and eliminate the expense of carrying redundant operational overhead. The DCI sale will create a complementary Homeland Security business partner that will broaden Defense Technology's sales resources, as DCI currently markets offerings that will be maintained by Defense Technology and NewMarket.
NewMarket will begin immediately to move its other Homeland Security assets into Defense Technology. Soon, NewMarket's wireless broadband assets will become part of Defense Technology. Defense Technology will also acquire Homeland Security assets independent of NewMarket.
This week, Defense Technology was moved off of the Over the Counter Bulletin Board Exchange. The Company remains publicly listed and will continue to trade as an Over the Counter security, as opposed to an Over the Counter Bulletin Board security. While the move was unplanned and ultimately the result of the overall revitalization slow down, which in turn resulted from the previous differences between NewMarket and Defense Technology management, the move will actually facilitate an accelerated clean up of the prior operational legacy. The less stringent compliance requirements will enable Defense Technology to concentrate limited resources on resolving balance sheet issues and getting up to date on required financial filings. Defense Technology anticipates moving back to the Over the Counter Bulletin Board Exchange within the next six months and distributing shares to NewMarket shareholders as previously announced.
In 2002, NewMarket launched a paradigm changing initiative to create a new business model for continuously launching emerging technologies. The Over the Counter markets are instrumental to this paradigm changing initiative. In 2002, NewMarket was facing the legacy of a previously failed dot com operation. Defense Technology's legacy does not compare. The NewMarket share price in 2002 was sub-penny and there was no market for the stock. NewMarket now has a trailing twelve month profitable revenue of over $40 million. NewMarket management has learned along the way and improved its approach to its paradigm changing initiative launched in 2002. Today, NewMarket is confident and enthusiastic about building this paradigm changing initiative into Defense Technology.
"It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness;
-- Charles Dickens
