-- Corporate Overview: Technology Services, Next Generation Technologies,
Fast Growth Global Economic Region Focus, North American Focus, and
Equity Income Strategy
-- Revenue, Margin and Sales Update
-- $43.7 M YTD Revenue with $2 M Net Income before currency
translation
-- $25 M in recent customer contracts, revenue anticipated to be
recognized in second half of year, boosting annualized financials
-- $19.2 M Chinese Operations YTD Profitable Revenue
-- $12.6 M Latin American Operations YTD Profitable Revenue
-- Capital Structure Update
-- Mobility Computing and Everex Update
-- Managed Services Update; turning recurring customer relationships into
recurring steady income contracts
-- Update on Subsidiary Independent Listings
-- Advisory Board
Second Quarter Results & Recent Letter to Shareholders
Earlier this week, the Company filed SEC Form 10-Q reporting its
performance for the second quarter of 2008. A copy of the 10-Q is available
for review on the SEC's website at www.sec.gov. NewMarket reported $43.7
million in revenue for the first six months of 2008 with net income before
currency translation of $2 million. Net income has increased 71% in the
first six months of 2008 compared to the same period last year. Revenue
has increased 9% compared to the same period last year.
Yesterday, CEO Philip Verges released a letter to shareholders addressing
the Company's $120 million 2008 revenue goal. Highlights from the letter,
which is available in its entirety at
http://biz.yahoo.com/iw/080821/0427224.html, include:
-- $25 million in recent customer contracts signed as of July 31, 2008
-- Management's plan to augment sales from its base of recurring
customers, which delivered $93.1 million in revenue last year, with revenue
from recent sales contracts
-- Historically stronger sales in the second half of the year. In 2006
and 2007 sales were 26% and 32% higher respectively in the second six
months of the year.
In light of the higher than anticipated recent sales contracts and taking
into account the Company's seasonality which has historically resulted in
higher revenue and net income in the third and fourth quarters, management
indicates the Company is on track to meet or exceed its $120 million
profitable 2008 revenue forecast. NewMarket reported 2007 revenue of
$93.1 million with a net income of $7.3 million.
Second Quarter Financial Highlights
-- Stockholders' equity increased 20% compared to same quarter last year
($62.7m v. $52.1m)
-- Total assets increased 10% compared to same quarter last year ($77.9m
v. $70.8m)
-- Revenue increased 4% compared to same quarter last year ($22.8m v.
$21.9m)
-- Net income (before currency translation) for 2nd quarter
2008 increased 43% from 2nd quarter 2007 ($843k v. $589k)
-- Net income (after currency translation) for 2nd quarter 2008 increased
161% over 2nd quarter 2007 ($1.5m v. $579k)
Corporate Information and E-mail Updates
To find out more about NewMarket Technology or to be added to NewMarket
Technology's e-mail database to receive company updates, 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.
Contact Information: Contact: NewMarket Technology, Inc. Investor Relations ir@newmarkettechnology.com 214-722-3065 www.newmarkettechnology.com