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NewMarket Technology Inc. Reports Profitable $17.3 Million First Quarter 2006 Revenue; Revenue Increased 70% and Net Income Increased 326% Over Same Period Last Year
DALLAS, May 16, 2006 (BUSINESS WIRE) -- NewMarket Technology Inc. (OTCBB:NMKT) released its first quarter financial report for 2006 on SEC Form 10Q. This is the Company's first report on Form 10Q as the Company has exceeded the requirements to file as a small business. The Company's profitable revenue of $17.3 million for the quarter exceeds the annualized revenue rate necessary to meet the forecasted $58 million in annual revenue by 17%. Net sales for first quarter 2006 increased 70% compared to $10.2 million for first quarter 2005. First quarter net income increased 326% from $102,013 in 2005 to $434,298 for 2006. Comprehensive net income, adjusted to compensate for foreign currency translation, increased 466% from $102,045 for first quarter 2005 to $577,387 for first quarter 2006. The net income reflects non cash charges for depreciation and amortization as well as deferred compensation totaling $445,605. Cash flow from operations in first quarter 2006 before adjustments to assets and liabilities increased $879,902. "NewMarket is continuing its transition from an early development stage company into a sustainable operation with fundamental financial performance and at the same time demonstrating ongoing exceptional growth," said Philip Verges, CEO and Chairman. "We are very pleased to see that we are at a revenue pace that may result in increasing our revenue growth for the year. NewMarket is building the fundamental financial momentum necessary to continue growing revenue along with net income."
The Company will release a more comprehensive overview of first quarter operations and financial performance later this week.
All interested investors that would like to have their e-mail address added to our database for receipt of all press releases and other industry information should send a request to ir*newmarkettechnology.com.
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 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. The financial results achieved have been three years of rapid, profitable growth from $2.3 million in revenue in 2003 to over $50 million in 2005.
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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They wanted to make sure you heard it the first time!
NewMarket Technology, Inc. Confirms Profitable $17.3 Million in First Quarter 2006 Revenue Tuesday May 16, 4:15 pm ET First Quarter 2006 Revenue 17% Above Annualized 2006 Forecast
DALLAS--(BUSINESS WIRE)--May 16, 2006--NewMarket Technology Inc. (OTCBB:NMKT - News) today confirmed its earlier press release regarding the filing of its first quarter 2006 financial results. The current financial report filed on Form 10-Q is the Company's first report since surpassing the requirements to file as a small business. Previous quarterly financial reports were filed on Form 10QSB. Originally, NewMarket's financial report for first quarter 2006 was inadvertently filed as a Form 10QSB, in addition, to other formatting errors. The Form 10QSB will be withdrawn from NewMarket's filings. The correct Form 10-Q was subsequently filed. To ensure NewMarket was not penalized for late filings due to the inadvertent filing of the Form 10QSB, the Company filed for an extension on Form 12b-25. NewMarket is currently in compliance with its first quarter financial filing requirements for 2006. Revenue increased 70% in Q106 to $17.3m compared to $10.2m in Q105 Gross profit increased 8% in Q106 to $5.1m compared to $4.7m in Q105 Operating expense decreased to 25% of sales in Q106 compared to 47% of sales in Q105 Net income (before currency translation) increased 326% in Q106 to $434k compared to $102k in Q105 Net income (after currency translation) increased 466% in Q106 to $577k compared to $102k in Q105 Accounts receivable decreased 23% since the end of 2005 from $15.1m to $11.5m at then end of Q106 Stockholder's equity increased 11% since the end of 2005 from $32.8m to $36.2m at the end of Q106 The Company's profitable revenue of $17.3m for the quarter exceeds the annualized revenue rate necessary to meet the forecasted $58m in annual revenue by 17% The net income reflects non-cash charges for depreciation, amortization and deferred compensation expense totaling $445,605 Cash flow from operations in first quarter 2006, before adjustments to assets and liabilities, increased $879,902 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 - News), Cisco Systems (Nasdaq:CSCO - News) and Sun Microsystems (Nasdaq:SUNW - News). 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 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. The financial results achieved have been three years of rapid, profitable growth from $2.3 million in revenue in 2003 to over $50 million in 2005.
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.
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
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More Good News for NMKT!! Currently .42 Up 3% Premarket. -----------------------------
NewMarket Technology Inc. Announces $3 Million North American Services Contract; Company Continues to Expand North American Sales with Over $40 Million in Annualized Sales from Overseas Business Wire - May 24, 2006 09:11
DALLAS, May 24, 2006 (BUSINESS WIRE) -- NewMarket Technology, Inc. (OTCBB:NMKT) today announced signing a $3 million support services contract. The contract has a three year term and the potential to increase by 30% per year. The client is a North American based telecommunications company. NewMarket provides systems integration and technology support services. In addition to offering cost competitive quality services, NewMarket differentiates from other systems integration and service firms by providing clients supplemental access to the latest research on emerging technologies to include cost effective pilots of trial emerging technology solutions. Overall, more than half of NewMarket's existing sales are overseas primarily in South America, China and South East Asia. Increasing North American sales is a current priority and the current contract demonstrates notable progress.
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 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. The financial results achieved have been three years of rapid, profitable growth from $2.3 million in revenue in 2003 to over $50 million in 2005.
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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NewMarket Technology, Inc. Releases Letter to Shareholders Addressing Questions Regarding First Quarter 2006 Financial Report; CEO and CFO Address Financial Issues Business Wire - June 08, 2006 09:07
DALLAS, Jun 08, 2006 (BUSINESS WIRE) -- NewMarket Technology Inc. (OTCBB:NMKT) today released a letter to shareholders from CEO Philip Verges and CFO Philip J. Rauch. The letter to shareholders is included in its entirety in this release:
Dear Fellow Shareholders and Interested Investors,
Only four more weeks remain in the second fiscal quarter of 2006. NewMarket is still on track to meet or exceed the recently revised forecast of $65 million 2006 profitable revenue. Continued fundamental financial performance improvement remains our primary focus. We believe NewMarket's share price is considerably undervalued when compared to national exchange listed technology service companies of similar revenue and profitability. We believe quarter after quarter fundamental financial results are the key to shareholders recognizing a healthy investment return as the market begins to value NewMarket consistent with the market value of comparable national exchange listed technology service companies.
As we are approaching the end of the second fiscal quarter, it has become apparent that a number of shareholder questions seem to be recurring regarding the first quarter financial report. Although NewMarket's financial performance in both revenue and income growth continues to convey a message of sustainability and rapid growth, many of the key financial indicators are somewhat subtle.
We encourage shareholders and interested prospective investors to view the first quarter financial report webcast on the Company's website at www.newmarkettechnology.com. If you have difficulty viewing the webcast from the Company's web site please contact ir*newmarkettechnology.com to obtain alternative access to the webcast. The webcast thoroughly covers all aspects of the first quarter financial report.
This letter is intended to address questions regarding the reported reduction in gross profit and other issues related to our first quarter results of operations.
Compared to the same period last year the Company's total gross profit increased 8% from $4.7m in the first quarter of 2005 to $5.1m in the first quarter of 2006. However, gross profit as a percentage of revenue decreased 37% from 46% of revenue in the first quarter of 2005 to 29% of revenue in the first quarter of 2006. This decrease in the percentage of revenue has been the subject of a number of questions.
Understanding NewMarket's maturing business model is important to understanding the nature of the reduced gross profit and how the reduced gross profit is part of an overall substantial financial performance improvement. The core value of NewMarket's business model lies within its continuous acquisition, development and marketing of emerging technologies. NewMarket's approach to marketing emerging technologies is to package emerging technologies with brand name mainstream technologies. To achieve this end, NewMarket maintains marketing partnerships with brand name companies such as Cisco Systems, Microsoft and Sun Microsystems. Within these brand name marketing partnerships, NewMarket sells, integrates and maintains the products of the brand name companies. In order to increase emerging technology sales, NewMarket initially must increase brand name mainstream technology sales. The gross profit margin of the brand name mainstream technology sales is generally lower than the gross profit margin associated with the sale of emerging technology products and services.
The reduced gross profit as a percentage of revenue is a reflection of NewMarket's success in expanding the sale of its mainstream brand name products and services. In conjunction with the reduced gross profit margin, revenue substantially increased 70% from $10.2m to $17.3m. The increased revenue and reduced gross profit as a percentage of revenue demonstrates the successful expansion of mainstream brand name products that will subsequently enable NewMarket to expand the sale of its higher gross profit margin emerging technology products and services. The overall first quarter financial performance is indicative of NewMarket's successfully maturing business model.
Some shareholders have raised questions regarding the results of fourth quarter of 2005 versus the first quarter 2006. Please note that both SEC and GAAP guidelines mandate that we compare quarterly results from similar periods in the presentation of our financial statements. A company is required to provide a comparison of its current results to the comparable financial period in the previous year. Comparing first quarter results of operations one year to fourth quarter results from the prior year represents an inaccurate picture due to seasonal effects on business.
Of relevance in relationship to the reduced gross profit as a percentage of revenue is the apparently counter-intuitive increase in net profit. Net profit increased 326% from $102k in the first quarter of 2005 to $434k in the first quarter of 2006. Net profit as a percentage of revenue increased 150% from 1% of revenue in the first quarter of 2005 to 2.5% of revenue in the first quarter of 2006. While perhaps subtle, an all around increase in net profit when gross profit as a percentage of revenue otherwise decreased is significant. For net profits to increase when gross profit as a percentage of revenue decreased indicates notable operational expense reductions as a percentage of revenue. In fact, general and administrative expenses not only decreased as a percentage of revenue, the general and administrative expenses actually decreased all together from $1.6m in the first quarter of 2005 to $1.1m in the first quarter of 2006. Additionally, it is important to note that net income for first quarter 2006 includes approximately $800k in non-cash expense for such items as inflation effects, amortization, depreciation and deferred compensation.
This decrease in general and administrative expenses is a result of NewMarket's exceptional performance in the integration of acquired companies. The ongoing acquisition of emerging technologies is a central aspect of NewMarket's business model. NewMarket's revenue does not grow substantially from these emerging technology acquisitions. On the contrary, we acquire the emerging technologies in order to develop the value of the emerging technology primarily by achieving the first notable sales of the emerging technology. However, the ongoing acquisition of emerging technologies without notable immediate revenue can amass significant operational expenses. The fact that NewMarket has otherwise reduced operational expenses is another demonstration of NewMarket's successfully maturing business model.
NewMarket's first quarter financial results are positive and demonstrative of a maturing business model. Understandably, a cursory review of a reduced gross profit margin as a percentage of revenue might create suspicion of a business performance problem. However, a broader review of overall increased revenue, increased net profits, reduced operational expenses and improving cash flows should mitigate and overcome any concern relating to business performance. The comprehensive first quarter financial picture is altogether strong and more importantly, is a clear indication of NewMarket's maturing business model.
We hope this letter has helped to further communicate the continuation of NewMarket's maturing business model and the overall positive nature of our first quarter financial results. We encourage shareholders and interested investors to continue to communicate with the company particularly in order to voice their concerns.
Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc
Philip J. Rauch
CFO
NewMarket Technology, Inc.
SOURCE: NewMarket Technology Inc.
NewMarket Technology, Inc., Dallas Rick Lutz, 404-261-1196 ir*newmarkettechnology.com www.newmarkettechnology.com
Copyright Business Wire 2006
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
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Here's one that is seeing green today. Lastest news:
NewMarket Technology Inc signs USD1m support service contract 06:31 a.m. 06/14/2006 Provided by
Jun 14, 2006 (M2 EQUITYBITES via COMTEX) -- NewMarket Technology Inc (NMKT), a systems innovations company, on Tuesday (13 June) announced the signing of a USD1m support services contract to an undisclosed client.
The three-year contract is expected to expand over the course of its term to exceed USD3m in revenue for the company.
NewMarket said that under the terms of the contract the company will support its client's North American operations and aid it in building revenues in that region.
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NewMarket Technology, Inc. Expands Foothold In VoIP Market with Launch of Proprietary Decision Support Solution with Sarbanes-Oxley Compliance Features Business Wire - June 14, 2006 09:00 Newmarket's VoIP Subsidiary XIPTEL Communications Continues To Build Momentum from Current $10 Million in Annualized Revenue and 2007 Forecast of $19.3 Million
DALLAS, Jun 14, 2006 (BUSINESS WIRE) -- NewMarket Technology, Inc. (OTCBB:NMKT) today announced the launch of XIPTEL's proprietary solution for managing a company's back office operations. XCCP, (Xiptel Customer Control Panel), the core component of XIPTEL's intellectual property portfolio, has been running the back office functions for XIPTEL since January 2006, and is now available to selected customers. XCCP handles the back office tasks involved with subscriber management, provisioning, support ticketing, call detail reporting and mediation, and billing. The software features a multi-level security and permissions architecture to allow subscribers, customer administrators, resellers, and system billing, engineering, and executive users to view and manage those elements necessary for day to day operations and planning.
"Customers can now get on-line access to incoming and outgoing calls whenever they want, from wherever they are," said Peter Geddis, XIPTEL's CEO. XCCP is based on open source technology, using Linux, Apache, MySQL and PHP, which avoids costly underlying license fees, and is easily scalable for high performance to drive down operating costs. The system designed to support Sarbanes-Oxley compliance includes permission-based security and allows for a variety of visual themes for reseller branding. "Today's VoIP based systems provide a long list of important features to customers," said Geddis, "but unless access to useful information and control is made easy and reliable, many of those features will remain unused. Our XCCP system solves those problems, adds real value to our company, and helps set us apart from our competition. Offering new products and services, such as XCCP, is an integral step to building our revenue base to $10 million for this year and meeting our forecast for 100% growth in 2007."
XIPTEL and Corsa Networks are divisions of IP Global Voice, Inc., a subsidiary of NewMarket Technology, Inc. XIPTEL provides a full range of hosted, managed VoIP services to the business market. Corsa Networks provides sophisticated network security solutions and managed services to commercial customers. Mr. Geddis is a 25 year telecommunications industry veteran. As COO of Qwest Communications, Mr. Geddis was instrumental in building a company from four employees and little revenue to over $400 million in revenue during his tenure. Mr. Geddis also held senior positions at Sprint, British Telecom and Pacific Bell.
All interested investors that would like to have their e-mail address added to our database for receipt of all press releases and other industry information are invited to send a request to ir*newmarkettechnology.com.
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 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. The financial results achieved have been three years of rapid, profitable growth from $2.3 million in revenue in 2003 to over $50 million in 2005.
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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