NewMarket Technology, Inc. Increases 2006 variable costs forecast to a level that they admit they need to go back to the drawing board to figure out how the model as it stands currently is a viable one...if the moneynever gets to the bottom line it doesn't much matter....all this tells me is that they willat least probably still be in business at the beginning of 2008......it means NOTHING for the share price at this point...you don't get a multiple on sales in 2006 with increasing costs and less percentage dollars hitting the bottom line....MARGINS.....
Wow...Phil has his PR spin machine going in overdrive now. No wonder why Lutz doesn't have time to answer my question "what % ownership does NMKT have in NMKT China".
Not surprising that Phil raises the revenue guidance in new PR a day after the stock price tanks on the actual results. And the letter to shareholders is riot...he mentions "emerging technology" about 20 times...yet never once has he ever given an example of a NMKT technology that's been taken to market, or will be taken. that's what you get when you have zero R&D
NewMarket Technology, Inc. and Intercell International Corporation Transaction to Result in NewMarket China Public Listing with $20 Million in Forecasted Annual Revenue
NewMarket Technology Maintains 60% Ownership in Intercell with Dilution Protection and Continued Consolidation of Subsidiary Results of Operations
DALLAS, Aug 18, 2006 (BUSINESS WIRE) -- NewMarket Technology, Inc. ( NMKT ) and Intercell International Corporation ( IICPQ ) today announced the terms of an agreement that will result in the public listing of NewMarket China, Inc. NewMarket China is currently a wholly owned subsidiary of NewMarket Technology, Inc. NewMarket China has contributed approximately $10 million in revenue to NewMarket Technology's consolidated year to date of $34.2 million in profitable revenue. As a result of the transaction with Intercell, NewMarket China will become a subsidiary of Intercell. NewMarket Technology will receive preferred stock that represents sixty percent (60%) ownership of Intercell and includes dilution protection to maintain the sixty percent (60%) ownership regardless of future Intercell financing or acquisition activity until such time that the preferred stock is converted into common. Following the finalization of all terms of the agreement, Intercell will be renamed NewMarket China, Inc.
The transaction is being executed in two agreements. A reorganization agreement exchanging 2 million shares of Intercell common stock for one hundred percent (100%) of the issued and outstanding of NewMarket China has already been disclosed in an SEC Form 8K information statement. A second agreement is yet to be finalized and filed in an SEC Form 8K. The second agreement will provide NewMarket preferred stock that represents sixty percent (60%) ownership of Intercell with dilution protection. The second agreement also provides a second class of preferred stock that represents twenty percent (20%) ownership of Intercell, but does not include dilution protection. The recipient of the second class of stock has provided past private debt financing to NewMarket China to fund business development in China.
"The transaction with Intercell is a significant development for NewMarket," said Philip Verges, CEO of NewMarket Technology. "The public listing of NewMarket's emerging technology subsidiaries is central to our strategy to not only successfully establish the initial sale of new offerings, but also to finance the development of new offerings. As we grow and move to an upgraded exchange, we believe the process of listing emerging technology subsidiaries will be more simple and straight forward. While the multiple step transaction with Intercell may be initially a little complicated, the end result is optimal for both NewMarket shareholders and Intercell shareholders. After years of investment, Intercell shareholders will get the benefit of a growing organization with notable transactions being acquired into their company. NewMarket shareholders will enjoy the public listing of a growing NewMarket asset with a tradable equity that can be used to further expand the asset through fund raising and acquisition without dilution to NewMarket Technology."
Further details of the second agreement between NewMarket and Intercell will be filed in an SEC Form 8K information statement.
Mr. Philip J. Rauch, Chief Financial Officer, will conduct an audio webcast on Monday, August 21, 2006, at 4:30 p.m. EDT to review the Second Quarter financial results and address pre-submitted shareholder inquiries. In the interest of maximizing the value of this webcast for all participants, please submit questions by Friday, August 18th to Investor Relations at ir@newmarkettechnology.com. The call is being webcast by Vcall and can be accessed at NewMarket Technology's website at www.newmarkettechnology.com. Investors can also access the webcast at http://www.vcall.com/IC/CEPage.asp?ID=107848. The webcast will be archived and available on the NewMarket website for replay for three months.
About NewMarket Technology Inc. ( www.newmarkettechnology.com)
NewMarket has combined a traditional systems integration and support services capacity with a specialized asset-based approach to assisting its clients with 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. Concurrently, NewMarket continuously seeks to acquire undiscovered emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions. NewMarket ranked Number 13 on the 2005 Deloitte Technology Fast 500, a ranking of the 500 fastest growing technology companies in North America. The Company has achieved three years of rapid, profitable growth from $2.3 million in revenue in 2003 to over $50 million in 2005.
"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.
SOURCE: NewMarket Technology, Inc.
NewMarket Technology, Inc., Dallas Rick Lutz, 404-261-1196 ir@newmarkettechnology.com www.newmarkettechnology.com
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