$25 Million and Going Strong: Fixler-Davis Tells How a Texas Entrepreneur and Wall Street Outsider Built a Successful High-Tech Company During High-Tech's Downslide.DALLAS -- Two years ago, amidst the demise of many high-tech companies around the country, Texas high-tech entrepreneur Philip Verges developed an idea for his fledgling company that would turn the typical business model on its ear. The idea, based on Verges' realization that a start-up high-tech company's overall business value should be measured by long-term potential instead of solely on conventional sales, has turned his Dallas-based NewMarket Technology, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :NMKT) into a profitable $25 million venture with a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of $50 million. In 2003, Verges implemented his idea to monetize a portion of NewMarket's overall business value to augment the company's profits from conventional sales. To monetize business value, Verges put each high-tech product NewMarket sold into a subsidiary company. Moving forward, as the subsidiary company matures and the overall business value increases, Verges will sell a small portion of the business to create a secondary income for NewMarket. Better yet, Verges also plans to distribute a portion of ownership in the subsidiary company to all of the shareholders of NewMarket. While technology profits are shrinking due to the globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation of the technology labor force, Verges has found a creative way to increase profits and to provide shareholders with something they haven't seen in a long time -- regular dividends. Only now, instead of receiving cash dividends, shareholders will receive stock in subsidiary companies. Better Investment Returns and Doing the Right Thing In China and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. Verges also has developed a keen sense for recognizing off-shore opportunity, primarily as it relates to high-tech innovation and available capital. As a result, he has established operations in Latin America and China and has already acquired emerging high-tech companies in Venezuela and Shanghai. The investment approach he has created for funding high-tech startups has the added benefit of bringing much needed investment dollars into developing economic regions without undue risk for the investor. All of the foreign companies then become subsidiaries of a U.S. publicly listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → . By structuring the investment in a U.S. publicly listed security Listed Security Securities that have been accepted for trading purposes by a recognized and regulated exchange. Notes: Listed securities have the advantage of higher liquidity within a regulated environment. , an investor never has to worry about repatriating investment dollars from a foreign country. With plans to build NewMarket to $75 million in sales in 2005 and to move NMKT over to a national exchange later this year, Verges is poised to help turn Texas into the Southwest's version of Silicon Valley-meets-Wall Street. In addition, he plans to introduce his unique business model to other companies during the coming months and years. Bio of a Texas High-Tech Entrepreneur As a Wall Street outsider, Verges formulated a model intended to return sustainable profits to high-tech investors. He is a Texas native and West Point graduate, gaining his first job out of the Army at Ross Perot's Electronic Data Systems (NYSE NYSE See: New York Stock Exchange :EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. ). Now 40, married to his high school sweetheart, and the father of five children, Verges will tell you he wants Texas to be the investment banking and high-tech capital of the next technology wave. Given his current track record and continued pace, he just might achieve that goal. This press release contains statements (such as projections regarding future performance) that are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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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