DALLAS, TX--(Marketwire - April 1, 2011) - NewMarket Technology, Inc. (
Dear Shareholders:
This letter is a follow-up to a Webcast I recently conducted last week. NewMarket has been rapidly evolving over the past two years. The purpose of the recent Webcast and this letter is to get the word out on the Company's latest plans for next steps in the evolutionary process to enhance shareholder value.
In this letter I provide a brief history of the Company. In an entrepreneurial approach to deliver on a founding mission to continuously introduce new technologies to market, the NewMarket business plan became somewhat complex over time. Management is working to simplify the business plan and in so doing, enhance shareholder value. The brief history below will explain how the business plan became somewhat complex and what management has done so far to simplify the plan. At the end of the letter I highlight the most recent steps underway to further simplify the NewMarket business plan and enhance shareholder value.
2002 - The Original Business Plan
NewMarket's operations today have grown from a business plan implemented in 2002 in conjunction with the reverse merger of a private business founded in 1997. The objective of the original business plan was to continually introduce new technologies to market. Remember, the late 90s was rich with innovative technology business plans and the NewMarket plan in 2002 might be fairly characterized as a holdover from the business plans in vogue in the late 90s. The first innovative technologies NewMarket worked to introduce surrounded the then early stage Voice over Internet Protocol (VoIP) telecommunications business sector.
Systems Integration and Emerging Market Expansion (And Complexity)
The Company's innovative portfolio grew across a diverse range of various information technology innovations to include products and services for the medical, military and logistics markets. To support the ongoing implementation of new technologies, NewMarket built a systems integration capacity through acquisition and organic growth. NewMarket's business plan to continually introduce new technologies to market took the Company into a number of emerging economic markets. The Company has substantial operations today in Brazil and China. Just as innovative technology strategies were in vogue in the late 90s, emerging market business plans have similarly been a high-growth trend over the last decade.
The OTC Environment and PIPE Market
As an over-the-counter (OTC) quoted company, NewMarket has relied on the private investment in public equity (PIPE) market to access capital to support its evolving business strategy. Both the OTC environment and the PIPE market have undergone substantial changes over the past decade, with dramatic changes the past two years. Those changes have impacted the Company's ability to access the necessary capital to execute on its business plan. It is also the opinion of the NewMarket founders and management that the OTC and PIPE changes have impacted the return potential on shareholder investment and the manner by which a return can be realized. In reaction to the OTC and PIPE market changes, NewMarket has worked diligently over the last two years to simplify and enhance its business plan in order to move away from ongoing reliance on either the OTC environment or the PIPE market and to ultimately enhance shareholder value.
Business Plan Simplification and Shareholder Value Enhancement
NewMarket has worked to exit the innovative technology market. Some of the Company's early-stage innovative technology holdings have been divested or shut down over the past two years (approximately). Operations today consist primarily of subsidiary systems integration operations which reside outside the United States. Instead of developing innovative technologies in house, NewMarket has worked over the past two years to partner with innovative technology companies. The partnerships have been informal, with the intent of learning from the first partnership approaches and in the future, evolving a formal partnership approach. Management continues to evaluate the ongoing evolution of NewMarket's business strategy and objective of enhancing shareholder value. In the course of that ongoing evaluation, management has recently decided to discontinue the innovative technology partnership efforts. Management believes the best course of action is to continue in further simplifying NewMarket's business strategy and focus. It is management's opinion that the sum value of the Company's subsidiary systems integration operations is greater than the overall value of the Company as represented by the current share price and corresponding market capitalization. Therefore, management intends to concentrate all efforts on improvements to the value of each of the systems integration operations and work to connect the sum value of the subsidiary operations more directly to shareholders.
Following the publication of financial results for the 2010 fiscal year, management intends to share more details on the Company's plan to improve subsidiary systems integration operations and connect shareholders more directly to the value of the subsidiary operations. Keep checking back.
Best Regards,
Bruce Noller
Chief Executive Officer
NewMarket Technology, Inc.
About NewMarket Technology, Inc. (www.newmarkettechnology.com)
NewMarket Technology's (
NewMarket's operations provide services and support for both brand-name technologies, such as Microsoft, as well as emerging technologies ranging from mobile computing to various security and wireless broadband technologies. NewMarket's rapid growth since 2002 placed the Company on the Deloitte Technology Fast 500 for 5 consecutive years. NewMarket was recognized as the third fastest growing technology company in the United States in 2006 and the number one fastest growing technology company in North Texas for two years in a row.
"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.
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NewMarket Technology, Inc.
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