DALLAS, TX--(Marketwire - February 11, 2009) - NewMarket Technology, Inc. (
PINKSHEETS:
NMKT)
today released a letter to shareholders from CEO Philip M. Verges. The
letter, included in its entirety below, provides a brief operational update
on the Company.
Dear Fellow Shareholders:
I do not think any of us that have held NewMarket stock six months or more
are happy with the current share price. While NewMarket is far from being
the only publicly traded company to have experienced a share price decline,
I do not think many of us are taking solace in the company of others.
The financial crisis is certainly an easy explanation as to why our share
price is so low. Nevertheless, the depressed share price can lead to a
nagging concern as to the overall viability of the Company's ongoing
operations.
The purpose of this letter is to provide a brief update on the Company's
operational performance in order to alleviate any nagging concern and
furthermore to highlight the opportunities for NewMarket to flourish in
spite of the prevailing economic crisis. In upcoming communications, the
Company will present more comprehensive updates on the Company's
operations, independent subsidiary listings, senior debt facilities, and
strategic initiatives to drive ongoing growth and the alignment of
financial performance and share price.
I have a reputation for writing long letters, and I certainly have a lot to
say about the current share price, the Company's performance and the
Company's future prospects. To avoid writing a War and Peace length letter
here, I am going to stick to highlights.
In answer to some recently submitted shareholder questions, yes, we plan to
continue filing periodic financial reports in compliance with SEC reporting
requirements. Our 2008 audit is currently underway. Yes, we are also
still working toward an exchange listing. And yes, we still expect
continued sales growth and fundamental financial improvements in 2009. We
have already signed our first new major contract in 2009 expected to
contribute over $5 million in revenue this year.
Furthermore, let me provide insight into management's commitment. It is
important for you as a shareholder to know where management's commitment
comes from. Launching an early stage company and seeing a start-up through
its various stages of growth is not for the faint of heart, let alone with
the added burden of a historic, global economic crisis.
We have a big vision and a long-term view. We have had growing pains, but
our growth has been substantial. We were a less than $1 million in annual
revenue Company in 2002 and in 2007 we reported $93 million in revenue. We
continued to grow sales in 2008 with improved operating margins and we look
forward to reporting our results.
We do expect the global financial crisis to present issues. I believe it
would be naïve to think otherwise. At the same time, we also expect the
global financial crisis to present new opportunities. We are working
diligently to be prepared for those opportunities. In pursuit of such
opportunities, our management team has traveled extensively in January
meeting with regional Company management as we wrap up 2008 and kick off
2009 and evaluating those new opportunities. In upcoming communications,
we plan to discuss specific issues presented by the financial crisis and
also discuss specific opportunities.
I believe every company and every family needs to consider its future
financial prospects in a global framework. Few, if any of us will escape
feeling the impact of the global financial crisis. History is in the
making all around us and I firmly believe that out of our shared
difficulties will be forged a better economic, political and peaceful
future.
The signs of a better future are clearly present amidst the headlines of
financial woe. Central amongst those signs is the inauguration of the 44th
President of the United States -- truly a global, landmark event. The
election of the first African-American President represents the enduring
growth of democracy and a renewed hope for future democratic achievements.
Obama's Presidency is a beacon to the world that democracy and the
individual liberty it protects is not just an ideal, but a reality that can
be achieved by all.
The recent inauguration and the current financial crisis is cause for us
all to reflect on our values, personal commitments and reevaluate our
ongoing plans.
Over the past years, NewMarket has managed through the challenges of the
small business capital market to build a sound business operation. The
business operation has consistently grown every year since 2002. For the
last two years all the growth has been organic. The remaining challenge
for NewMarket to overcome in order to deliver a return on investment to its
long-term shareholders is to break through the constraints of the small
business capital markets to realize an alignment of the underlying
operational value of the company with the share price. I am resolved to
seeing NewMarket deliver a return to its long-term shareholders.
2009 will be an eventful year. The financial crisis will add its own
challenges, but at the same time we believe the financial crisis is also
creating new opportunities. We have many changes coming this year in order
to break through our current small business capital market constraints and
deliver a return to shareholders. We will continue to communicate
regularly in letters, press and multimedia presentations to keep all
informed as we navigate all of the changes that lay ahead.
Thank you for your continued support --
Philip M. Verges
Founder and CEO
NewMarket Technology, Inc.
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.
Contact Information: Contact:
NewMarket Technology, Inc.
Investor Relations
214-722-3065
ir@newmarkettechnology.com