Contact Information: Contact: NewMarket Technology, Inc. Investor Relations ir@newmarkettechnology.com 214-722-3065 http://www.newmarkettechnology.com
NewMarket Technology, Inc. Announces Plans to Increase Profitability From Systems Integration Operations in China
| Source: NewMarket Technology, Inc.
DALLAS, TX--(Marketwire - December 12, 2008) - NewMarket Technology, Inc. (PINKSHEETS : NMKT )
today announced plans for the Company's technology systems integration
subsidiary in China to increase its stake and profitability in the Chinese
market. Based on recent forecasts, China's 2009 GDP is projected to be
8.8%, compared to the United States' 0.8%. NewMarket Technology provides
technology products and services in emerging markets globally and currently
has operations in China, Singapore, and Latin America, reporting $76
million in revenue through the first nine months of this year from all
operations combined. The Chinese subsidiary is a U.S. company with its
primary office in Shanghai, reporting $30.3 million in revenue for the
first nine months of this year.
As part of the plan to increase its presence and profitability in China,
NewMarket Technology's subsidiary in China, China Crescent Enterprises,
Inc., plans to increase its ownership in one of its Chinese operating
subsidiaries by 25%. China Crescent currently has a 51% ownership in the
Chinese subsidiary and plans to acquire the increased position from the
Chinese operating subsidiary's minority shareholder. That subsidiary
currently focuses on hardware and software systems integration. Through the
Company's increased ownership in the Chinese operating subsidiary, net
income would correspondingly increase as the Company continues to mature.
China Crescent has focused on the growing need in China for computer
hardware and software since its inception in 2005. China, as with other
emerging markets, has a ravenous appetite for hardware and support services
to build out its nationwide computer infrastructure.
Forbes Says Look East for Growth
Forbes recently published an article addressing the need for U.S.-based
companies to look East, specifically to China and India for continued
growth. China's 2009 GDP is projected to be 8.8%, compared to the United
States' 0.8%. During past financial crises, China and India have not had
strong enough purchasing power to absorb the financial stress of other
international markets. But with a rapidly increasing middle class in those
countries, expected to reach 290 million in China by 2011, that is
changing.
To read the article in its entirety, go to:
http://www.forbes.com/2008/10/28/china-india-growth-oped-cx_rm_1029meredith.html.
Year-to-Date Financial Performance
NewMarket Technology has reported $76 million in revenue and $3.7 million
in the first nine months of 2008, a 20% revenue increase and 36% net income
increase over the same period last year. $30.3 million in revenue has come
from the Company's Chinese operations in the first nine months of 2008. The
Company's 2008 revenue objective is $120 million.
A more detailed overview of the Company's year-to-date performance is
available through the Company's third quarter Webcast. A link to the
Webcast archive is available on the Company's corporate Website Investor
Relations page at www.newmarkettechnology.com/investor-relations.htm titled
"NewMarket Technology 3rd Quarter 2008 Financial Review" under "Current
Events and Communications."
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.