Contact Information: Contact: NewMarket Technology, Inc. Investor Relations ir@newmarkettechnology.com 214-722-3065
NewMarket Technology, Inc. Releases Letter to Shareholders Discussing Record Sales Growth in 2008
| Source: NewMarket Technology, Inc.
DALLAS, TX--(Marketwire - July 14, 2008) - NewMarket Technology, Inc. (OTCBB : NMKT ) today
released a Letter to Shareholders from CEO Philip M. Verges. The letter is
included in its entirety below.
Dear Fellow Shareholders:
Friday's stock market performance is yet another blow to all of our shared
concerns regarding the U.S. economy. The Dow Jones Industrial Average
dipped below both the technical and psychological level of 11,000, a number
we haven't seen since July of 2006. The Nation's key home mortgage lenders
Fannie Mae and Freddie Mac are in essence being bailed out by the Federal
Government, having been given direct access to the discount window at the
Federal Reserve. We also saw the failure of California's IndyMac, the
largest retail bank to go under amid the mortgage crisis. Based upon
Morningstar's database of public companies, approximately 55% of all public
companies, regardless of the stock market they trade on, are sitting within
25% of their 52 week lows. However, like many small and medium sized
businesses, NewMarket's sales are growing. In fact, NewMarket is having
its best sales year ever.
Small and medium business historically outperforms big business in down
economies. Little narrative analysis is available as to why small and
medium business fair well in down economies. Nevertheless, readily
available data shows the performance of small and medium sized business
exceeding the performance of big business in down economies.
It is my speculation that in some ways, a weak economy levels the playing
field between big and small companies. In a growing economy, big business
has an advantage over small business when it comes to accessing commercial
and investment banking capital. In a weak economy, commercial and
investment banking capital becomes a bit harder to get. This scarcity of
capital has a greater impact on big business, because their size does not
allow them to adapt quickly and change amidst the weakening economy. They
need to make increasing use of commercial capital at a time when it is
becoming scarce. They need it to support their bulky operations that are
too big to change in a timely manner. On the flip side, small and medium
sized businesses are quite accustomed to scarce capital. They deal with
that issue in good times and in bad. This fact of life is built into their
daily operations. This gives them the advantage of experience when access
to capital becomes limited for all companies.
Some shareholders take exception at my use of the word "small" or "medium"
when I refer to NewMarket. The Company has reached approximately $100
million in annual sales, and some have difficulty regarding such a sales
figure within a "small" or "medium" context. Let me first say that there
is, in fact, no single textbook definition of a small company. U.S.
Government standards define small businesses based upon a mixture of
statistics including a company's industry, revenue, and number of
employees, just to name a few. Point being is that there isn't a simple
"apples to apples" comparison that defines a small business. If you look
globally, definitions of small business become even more muddled.
Let me explain how "small" applies to NewMarket. In U.S. economic terms,
the label of "small" in regard to the size of a business generally refers
to organizations with less than 500 employees. While NewMarket has over
500 employees globally (less than 1000 in total), we have less than 100
employees in North America. Most of our North American employees are
engaged in the delivery of goods and services to North American clients.
Only a few of our North American employees are involved in the management
and oversight of NewMarket's foreign operations. We are very much a small
business in the U.S. and due to our efforts to balance our international
streams of revenue, the majority of our record sales growth in 2008 is
coming from our operations in the U.S.
Over half of the U.S. employment comes from small business, as does half of
the U.S. GDP. I assure you, NewMarket is not the only small or medium
business realizing better than usual sales growth in 2008. Indeed, I
believe small and medium sized businesses will carry the U.S. economy
through the current economic down turn. They will do this by being quick to
adapt and by being accustomed to the scarcity of capital. They will absorb
the jobs lost through big business layoffs by creating new jobs that are
suitable to the current economic environment. Beyond simply carrying the
economy through this downturn, I believe it will be small and medium
businesses that lead the U.S. economy back to health.
We are excited about our growth in 2008 and look forward to reporting our
second quarter results. We appreciate shareholder emails and calls to the
company and encourage all shareholders with questions to contact us at
214-722-3065 or ir@newmarkettechnology.com.
Thank you for your continued investment and support.
Philip M. Verges
CEO and Founder
NewMarket Technology, Inc.
Corporate E-mail Updates
To be added to NewMarket Technology's e-mail database to receive company
updates, please send an e-mail to ir@newmarkettechnology.com.
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 communication contains forward-looking statements that involve risks
and uncertainties. The statements in this communication 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.