PRESS RELEASE: NewMarket Technology, Inc. Reports $34.2 Million in Profitable Revenue for First Six Months up 66% over $20.6 Million in Revenue for First Six Months of 2005
DALLAS--(BUSINESS WIRE)--Aug. 15, 2006--
Revenue Increases 63% and Net Income Increases 360% vs. Second Quarter 2005
NewMarket Technology, Inc. (OTCBB:NMKT) today released Second Quarter 2006 financials on SEC Form 10Q. The Company reported $34.2 million in revenue for the first six months of 2005 with over $1 million in net income after foreign currency translation. This represents a 66% increase in revenue over the first six months of 2005. NewMarket is ahead of pace to achieve its $65 million 2006 revenue forecast. The forecast has already been increased once this year from a previous forecast of $57 million. Management anticipates increasing the 2006 forecast again. The Company posted revenue of $16.9 million for the Second Quarter, representing an increase in revenue of 63% over Second Quarter 2005. Net income (after currency translation) for 2nd quarter 2006 was up 360% over 2nd quarter 2005.
"NewMarket is on track to exceed the current $65 million 2006 revenue forecast achieving over 3000% growth from $2.2 million in revenue with the 2002 launch of the current operations," said Philip Verges, CEO of NewMarket Technology, Inc. "We are in a phase of consolidation and foundation reinforcing. We have expanded exponentially in the last four years and we are preparing the platform for continued growth. We will grow revenue in 2006 at least 30% over 2005. More importantly, we will enter 2007 with a robust operation prepared to support the ongoing rapid growth that has been achieved since 2002. We look forward to revenue heavy third and fourth quarters as we have traditionally enjoyed and anticipate increasing our revenue forecast again for 2006."
Financial Performance Highlights
Balance sheet:
-- Working capital increased 128% from same quarter last year ($4.1m v. $1.8m)
-- Stockholder's equity up 7.5% from last quarter ($38.9m v. $36.2m)
-- Stockholder's equity up 47% from same quarter last year ($38.9m v. $26.5m)
Statement of Operations:
-- Revenue for 2nd quarter 2006 up 63% from 2nd quarter 2005 ($16.9m v. $10.4m)
-- Revenue for first 6 months 2006 up 66% from first 6 months of 2005 ($34.2m v. $20.6m)
-- Gross profit for 2nd quarter 2006 up 13% from 2nd quarter 2005 ($4.4m v. $3.9m)
-- Gross profit for first 6 months 2006 up 12% from first 6 months 2005 ($9.6m v. $8.6m)
-- Operating expense percentage down, 24% of sales in 2nd quarter 2006 v. 36% of sales in 2nd quarter 2005
-- Net income (before currency translation) for 2nd quarter 2006 up 323% from 2nd quarter 2005 ($482k v. $114k)
-- Net income (after currency translation) for 2nd quarter 2006 up 360% over 2nd quarter 2005 ($478k v. $104k)
Mr. Philip J. Rauch, Chief Financial Officer, will conduct an audio webcast on Monday, August 21, 2006, at 4:30 p.m. EDT to review the Second Quarter financial results and address pre-submitted shareholder inquiries. In the interest of maximizing the value of this webcast for all participants, please submit questions by Friday August 18th to Investor Relations at ir*newmarkettechnology.com. The call is being webcast by Vcall and can be accessed at NewMarket Technology's website at www.newmarkettechnology.com. Investors can also access the webcast at http://www.vcall.com/IC/CEPage.asp?ID=107848. The webcast will be archived and available on the NewMarket website for replay for three months.
About NewMarket Technology Inc. (www.newmarkettechnology.com)
-------------------- "I WOULD HAVE MADE A GOOD POPE." RICHARD M. NIXON Posts: 108 | From: New Orleans LA | Registered: Jul 2006
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