Contact Information: Contact: NewMarket Technology, Inc. Investor Relations ir@newmarkettechnology.com 214-722-3065 www.newmarkettechnology.com
NewMarket Technology, Inc. Announces $4 Million Contract With Movistar, a Division of Telefonica
Three-Year Managed Services Contract Follows Recently Announced Corporate Realignment and Plans for $100 Million in Recurring Revenue Contracts
| Source: NewMarket Technology, Inc.
DALLAS, TX--(Marketwire - June 16, 2008) - NewMarket Technology, Inc. (OTCBB : NMKT ) today
announced a $4 million contract with Movistar
(http://www.movistar.com.ve/). Movistar, a division of Telefonica
(http://www.ve.telefonica.com/), is a major mobile phone operator in Latin
America and Spain.
The contract was signed with Movistar by NewMarket's subsidiary operation
in Venezuela, RKM IT Solutions. Over the next three years, RKM will
provide Microsoft Licensing and managed services to Movistar.
Movistar began operations in Latin America in the 1990's and now services
more than 126 million customers and is the leading provider of mobile phone
services in Venezuela, Brazil, Chile, Peru and Argentina.
Earlier this year, NewMarket also announced the completion of an Oracle
Hyperion Business Intelligence implementation for Movistar
(http://www.newmarkettechnology.com/newsreleases/news-20080408_1.htm).
NewMarket Managed Services
NewMarket recently announced a consolidation of the Company's global
technology service operations to support the growth of the Company's
recurring revenue business. Bruce Noller was named to lead the consolidated
operations as the President of NewMarket Managed Services. The operations
consolidated under NewMarket Managed Services account for approximately $70
million in annual revenue. NewMarket reported $93.1 million in overall
revenue in 2007 with $7.3 million in net income. The additional,
approximately $23 million in revenue was derived through the Company's
ongoing development of new technologies.
For more information on the Company's realignment, go to
http://biz.yahoo.com/cc/4/93884.html to view Management's recent Webcast in
its entirety.
Plans for $100 Million in Recurring Revenue Contracts
NewMarket's Bruce Noller was recently interviewed by Wall Street Reporter.
In the interview, Mr. Noller discusses the plan to convert at least half of
the Company's approximate $70 million in annual technical services revenue
from project sales contracts into three-year contracts.
"The Company has a good reputation with customers and the repeat business
to prove it," explains Mr. Noller. "Now we are going to turn those repeat
customers into long-term customers. We started our campaign last year to
turn recurring customers into recurring revenue. Our plan for 2008 is to
convert half our tech services revenue into three-year contracts.
Converting half of NewMarket's approximately $70 million in tech services
revenue would result in $100 million in recurring revenue contracts."
To listen to the interview in its entirety, go to
http://wallstreetreporter.com/page.php?page=featured&tab=2&id=27794.
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.