DALLAS, TX--(Marketwire - December 4, 2008) - NewMarket Technology, Inc. (
PINKSHEETS:
NMKT)
today released a letter to shareholders from CEO Philip M. Verges. The
letter discusses the opportunity created by the current financial industry
crisis for small public issuers such as NewMarket. The letter further
addresses NewMarket's specific opportunities within the financial industry
crisis. Mr. Verges concludes the letter by outlining the topics to be
discussed in subsequent communications.
Mr. Verges has been an outspoken critic of the issues facing small public
issuers as well as an advocate of the benefits to be achieved by small and
early stage companies when participating in the small public markets.
The letter to shareholders is included in its entirety below.
Dear Fellow Shareholders,
I see opportunity in the face of what otherwise seems to be a dismal and
baffling economy. The underlying issues that have resulted in the current
financial industry crisis did not happen overnight, and they will not be
resolved overnight. However, the issues never would have been addressed
had they not led to a crisis.
The financial industry has misused and, arguably, abused the debt markets.
Regulatory oversight has been absent where it otherwise should have limited
the perpetuation of institutional investment practices that ultimately
resulted in the current financial crisis. The good news is that the issues
can no longer be swept under the carpet. The debt market abuses and
institutional investment practices that have previously skirted regulatory
oversight now have to be addressed head on.
The debt market abuses and institutional investment practices are
complicated and will not be fixed quickly. Not many people had ever heard
of a Credit Default Swap until recently, and most still cannot quite
understand what it is. Until recently, naked shorting abuses have been
discussed almost as though the abuses were an alleged practice and a
financial industry myth. Today, Credit Default Swaps and naked shorting,
among other abuses and misuses, are beginning to get the appropriate
attention necessary to build a better financial market -- a market that is
better in line with an evolving economic landscape where the majority of
gross domestic product is produced by smaller sized business within
shortening business cycles.
In addition to building an information technology business model for the
global 21st century market, NewMarket has been a pioneer in the reverse
merger and micro cap fundraising marketplace. Among other innovative
capital strategies, the Company has set out to independently list regional
operations to mitigate the risk associated with emerging market growth and
at the same time optimize the potential return to shareholders that could
be realized from emerging economic region to emerging economic region.
Along the way, the Company has faced the type of issues that often arise in
the implementation of new business practices. Likewise, the Company has
faced its fair share of criticism from time to time as it has run into road
blocks, and in turn backed up and routed a different course toward a
consistent objective.
Today, NewMarket has a fundamentally performing business operation with
established beachheads in the world's leading emerging markets. In
conjunction with our hard learned 21st century market experience, I am
confident that NewMarket is poised to be recognized by the renewed
financial industry, once the financial industry backs up from its current
road block and reroutes a new course toward generating investment returns
from a new global economic landscape.
I plan to continue to discuss the evolving financial marketplace and the
opportunity for small public issuers, specifically NewMarket, in our
upcoming communications. I plan to share the industry wide information I
have learned through experience over the last six years of managing
NewMarket in a public environment as well as the recent information I have
learned from attending the PIPES Conference and the Annual SEC Small
Business Forum in Washington D.C. Early next year, we will release a video
Webcast of our annual shareholder Town Hall. Our Town Hall this year will
be conducted in a new, innovative online format in order to reach more
shareholders than in the past. From the logged attendance to our periodic
Webcasts, we have far more shareholders able to join us online than in
person. We are also aware that due to the economic environment, travel to
our town hall in person may be prohibitive to many shareholders. We want to
make our annual Town Hall available to as many shareholders as we can, and
we feel the online format is best suited to do so. Additionally, I
encourage shareholders to write and call our investor relations group with
your questions and comments, so that we can work to incorporate those
questions and comments into subsequent communications and into the Town
Hall.
There is good news within the current financial industry crisis. The
global economic landscape has changed dramatically in the last 20 years and
the financial industry has not kept up. In fact, the financial industry
has tried to support an old economy formerly dominated by large
corporations. Some of those large corporations will not survive the
financial crisis shakeout, and, in the end, their failure will contribute
to a healthier economic future. The financial industry will react to the
crisis and it will recover and adjust to the 21st century economy.
NewMarket will be ready to be recognized as a leader as the financial
market recovers.
Thank you,
Philip 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: NewMarket Technology, Inc.
Investor Relations
ir@newmarkettechnology.com
214-722-3065
www.newmarkettechnology.com