NewMarket Technology Inc. (OTCBB:NMKT) today released a webcast of the Company's Shareholder Town Hall Meeting held last Thursday, December 15th.
The following is a statement from Philip Verges, the CEO and Chairman of NewMarket Technology, encouraging shareholders, investors, and entrepreneurs to view the webcast.
"NewMarket's revenue has grown on average by 40% per quarter over the last two years. At the same time, profit has increased at a normalized rate of 400%. Shareholder equity has also increased by 400% over the last two years.
NewMarket has grown from $2.3 million in revenue in 2003 to $41 million in revenue for the trailing twelve months. The Over the Counter market has been instrumental in facilitating this growth.
Nevertheless, while the Company has been growing exponentially in the last two years, NewMarket's average share price has declined 47%. The webcast explains in detail how a company can grow, while the share price declines. Through NewMarket's own experience, the webcast outlines for all entrepreneurs how to finance a development stage company in the Over the Counter market environment. Demonstrating the overall trading dynamics of the Over the Counter Bulletin Board (OTCBB) Exchange and NewMarket's own historical trading dynamics, the webcast is helpful to OTCBB investors on how to realize healthy investment returns in development stage companies.
The primary message in the webcast is directed to our valued long-term NewMarket shareholders. The Company's intrinsic and enterprise value has grown in the last two years and that value is continuing to build upon the foundation forged during this time. However, the healthy revenue and bottom line growth fundamentals are locked inside an undervalued share price. Companies listed on national exchanges with similar services and similar revenues, but with less profit, are consistently trading at much higher Price to Sales ratios. The challenge for NewMarket is to unlock that value in the market.
Developing companies are less predictable than later stage companies. As the CEO, I have made mistakes in forecasting and prematurely setting high expectations for the future results of our early development stage operations. Even though NewMarket's overall operations have grown exponentially, my highly communicative program to inform shareholders have dampened shareholder's spirits as timelines were extended and some goals were not met (at least not yet).
Some part of the two year average share price decrease has been in reaction to shareholder's concerns from my premature communications regarding less than predictable developing aspects of NewMarket's business. Part of the decrease is due to the nature of the OTCBB market as the average traded share price for all companies listed on the entire OTCBB has decreased 50% over the last two years from $0.19 to $0.09.
The good news is that NewMarket's business value is growing as measured by shareholder's equity, as well as balance sheet, revenue and profitability growth. Now we have to get past the less than stellar communications and get off the OTCBB, so that we can meet the ultimate goal of every public company -- building shareholder value. Although, NewMarket's operations today are far more predictable than in the past, I have graduated from the school of hard knocks regarding overconfident and premature communications.
I encourage shareholders, public market investors and all entrepreneurs to view the webcast on our corporate website at www.newmarkettechnology.com. NewMarket is a case study for investors interested in the Over the Counter market, as well as being a case study for entrepreneurs trying to finance early development stage companies. Most importantly, long-term shareholders should be assured that we at NewMarket are committed to providing an impressive investment return going forward."
About NewMarket Technology Inc. (www.newmarkettechnology.com)
NewMarket Technology Inc. is a Systems Innovation Company. NewMarket has combined a traditional systems integration and support services capacity with a specialized asset-based approach to assisting its clients with the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations.
NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions to include Microsoft (NASDAQ:MSFT), Cisco Systems (Nasdaq:CSCO) and Sun Microsystems (Nasdaq:SUNW). Concurrently, NewMarket continuously seeks to acquire undiscovered emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions. NewMarket's emerging technology portfolio includes products for the Telecommunications, Healthcare, Homeland Security and Financial Services industries.
NewMarket delivers its portfolio of products and services through its global network of Solution Integration subsidiaries in North America, Latin America, China and Singapore. As a Systems Innovator, NewMarket has set itself apart from the systems integration market through the introduction of a technology business model that monetizes the value of emerging technologies to improve corporate profits and enhance shareholder value with the regular issue of dividends.
NewMarket recently announced that it ranked Number 13 on the 2005 Deloitte Technology Fast 500, a ranking of the 500 fastest growing technology companies in North America. Rankings are based on the percentage of revenue growth over five years from 2000-2004. NewMarket's revenue increased 18,082 percent during this period.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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