Contact Information: Contact: NewMarket Technology, Inc. Investor Relations 214-722-3065 ir@newmarkettechnology.com
NewMarket Technology, Inc. Achieves Major Milestone and Unlocks Company's Potential to Grow From $100 Million in Approximate Annual Revenue to $1 Billion Target
| Source: NewMarket Technology, Inc.
DALLAS, TX--(Marketwire - October 12, 2009) - NewMarket Technology, Inc. (PINKSHEETS : NWMT )
announced on Friday a transaction to reduce approximately $2 million in
debt, ending a nearly two year long contract with a hedge fund. The
transaction will also release all of NewMarket's assets that have been held
as collateral since 2007. NewMarket is now postured to accelerate growth
and enjoy potential share price appreciation in reaction to the exit of the
senior lender.
"We had been limited in our ability to fully use all the Company's
resources to grow the Company as a result of the contract that we ended
last week," said Philip Verges, CEO of NewMarket. "Most of the Company's
assets had been held as collateral as part of the agreement with the hedge
fund. The Company's common stock was also encumbered as a security in the
agreement. Now that the hedge fund relationship is terminated, NewMarket
is in a substantially improved position to fully use the Company's
resources to support aggressive growth. Also, the Company's common stock
is now free of any appreciation resistance that may have resulted from the
agreement with the hedge fund."
4th Quarter Outlook Webcast October 13th
Further details of the transaction are scheduled to be presented in an
on-demand Webcast tomorrow. The Webcast, which will be posted to the
corporate website, is scheduled to also provide a fourth quarter outlook
and strategic update as well as an up-to-date review of the previously
announced dividend plan. The presentation will further include a PPS
potential overview based on Beacon Equity's research report on the Company
with a price target of $1.42 released earlier today. The full report is
available at http://www.beaconequity.com.
Corporate Information and E-mail Updates
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Company, please visit www.newmarkettechnology.com.
About NewMarket Technology, Inc. (www.newmarkettechnology.com)
NewMarket is a reporting company with audited financial reports filed with
the SEC. NewMarket provides systems integration, technology infrastructure
services and emerging technology worldwide. NewMarket has a focus on
providing technology and support services to rapidly growing economies
where technology purchasing is on the rise. In addition to its base of
operations in North America, NewMarket has operations today in the growing
economies of China, Southeast Asia, Brazil and Northern Latin America. Last
year the Company reported over $40 million in revenue from Asia and over
$20 million in revenue from Latin America. Overall, NewMarket reported over
$95 million in revenue for 2008.
Across the globe, NewMarket is a Microsoft and Oracle partner, distributes
various computer hardware and peripherals from brand partners such as Dell,
HP, IBM, Cisco, Sony, Epson, Canon and Sanyo and is also an authorized
reseller of operating systems and various software from companies such as
Red Hat, Sybase, IBM, BEA, Veritas and others. Additionally, the Company
works with emerging technologies such as mobile computing, various security
and wireless broadband technologies.
NewMarket's rapid growth since 2002 has 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.