Contact Information: Contact: NewMarket Technology, Inc. Investor Relations 214-722-3065 ir@newmarkettechnology.com
NewMarket Technology, Inc. Announces Information Statement Filed With SEC by Publicly Traded Chinese Operating Subsidiary in Support of NewMarket Dividend Plan
| Source: NewMarket Technology, Inc.
DALLAS, TX--(Marketwire - March 25, 2009) - NewMarket Technology, Inc. (PINKSHEETS : NMKT )
today announced that its publicly traded Chinese operating subsidiary has
filed a definitive Form 14C Information Statement with the Securities and
Exchange Commission (SEC) and has mailed a copy of the definitive
information statement to its stockholders of record. This action supports
NewMarket's previously announced intention to exchange its preferred
convertible stock position in the Chinese operating subsidiary for two new
classes of preferred stock. One of the two new classes of preferred stock
will create a non-convertible controlling interest for NewMarket.
Consequently, the potential issuance of new common shares in Chinese
operating subsidiary may be reduced accordingly. The second new class of
preferred stock will be designated for conversion into common stock to be
used in a planned stock dividend distribution to NewMarket shareholders on
a pro rata basis. The Company's Chinese operating subsidiary previously
filed a preliminary information statement on January 9, 2009.
The Chinese operating subsidiary's management believes the current share
price does not reflect its operational performance. The Chinese subsidiary
company's trailing 12 months revenue as of September 2008 was approximately
$42 million with a net income of about $900,000 and its annual revenue in
2007 was $40 million with a net income of $400 thousand.
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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.