NCI:CC - NTG Clarity Announces $50M Revenue Target for 2024 with Announcement of New POs for Work Valued at $6.5M CAD
(TheNewswire)
Toronto, ON / TheNewswire / March 18,2024 / NTG Clarity Networks Inc. (TSX.V:NCI, OTC: NYWKF); NTG Clarity is excited to announce its 2024 revenue targetof $50M (at an estimated gross margin of 40%), and that it hasreceived 14 new purchase orders (POs). These POs are for $6.5M CAD innew work and renewals for new and existing customers in the Financial,Telecom, Utilities, and Food & Beverage sectors.
These contracts -- for both outsourced professionalservices and software solutions -- will result in the placement ofmore than 100 staff onsite and offshore to service these customers.The breakdown of the work is as follows, with all customers in theMiddle East unless otherwise noted:
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$2.55M in POs new work:
$1.8M for Outsourced Professional Services:
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$1.2M to provide offshore staff for three months for anexisting customer in the Digital Solutions sector
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$637K across two POs to provide onsite and offshorestaff to two existing customers in the Financial sector
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$750K for Software Products:
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$216K to provide our NTGapps software platform for newcustomer in the Utilities sector in Canada
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$162K to provide software support for our NTGappsplatform for an existing customer in the Financial sector
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$135K to provide a Utility Billing solution built onour NTGapps platform for a new customer in the Utilitiessector
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$115K to build an ERP system on our NTGapps platformfor a new customer in the Food Beverage sector
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$108K to build an ERP system on our NTGapps platformfor an existing customer in the Financial sector
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$14K to further customize our NTGapps platform for anexisting customer in the Telecom sector
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Product contracts typically come with recurring revenuefrom support, maintenance, and change requests.
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$3.9M in POs for renewal work:
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$3.847M for Outsourced Professional Services:
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$3.6M to renew onsite and offshore staff for one yearfor an existing customer in the Financial sector
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$159K to renew onsite staff for six months for anexisting customer in the Telecom sector
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$91K to renew onsite staff for one year for an existingcustomer in the Financial sector
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$53K for Software Products:
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$53K across two POs to expand our NTGapps platform foran existing customer in the Telecom sector
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NTG’s current work on hand (which includes unbilledPOs as of January 1, 2024, and new POs received and previouslyannounced since then) is approximately $40M, the majority of which is expected to be completed in 2024. Thisputs NTG well on the path to reach our 2024 revenue target of $50Mwith a targeted bottom-line profit of 10%.
With the revenue from these POs, and an improvedcapital structure following our announced share consolidation, we lookforward to continuing to prioritize our two focuses for 2024:
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Continuing our growthtrajectory . With demand increasing –especially for our outsourced professional services offering – weexpect growth to continue through 2024 and beyond. As previouslymentioned, NTG’s revenue target for 2024 is $50M.
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Drive further profitability. With three years of consistent profitabilityunder our belt, we’re actively identifying opportunities to makesure as much of this new revenue as possible flows on to the bottomline. NTG’s 2024 bottom line profit margin target is 10%.
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With this increased profitability, management looksforward to paying down existing liabilities and improving thecompany’s balance sheet.
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Combined with the share consolidation, shareholders canlook forward to seeing rapidly improving earnings and profit per sharewith this growth.
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“We are elated to see our strong growth from 2023continue into 2024 with this set of new contracts from new andexisting customers alike,” said Adam Zaghloul, Vice President –Strategy & Planning of NTG Clarity. “In addition to new andexpanded contracts with existing long-time customers, it is excitingto see several orders for our proprietary NTGapps software platformincluding a new customer in North America.”
With over 30 years of experience and a strong presencein the digital transformation market in the Middle East and worldwide,NTG Clarity is well positioned capitalize on this accelerating growthand be one of the major players in the space.
About NTG Clarity NetworksInc.
NTG Clarity Networks’ vision is to be a global leaderin digital transformation solutions. As a Canadian company establishedin 1992, NTG Clarity has delivered software, networking, and ITsolutions to large enterprises including financial institutions andnetwork service providers. More than 600 IT and network professionalsprovide design, engineering, implementation, software development andsecurity expertise to the industry’s leading enterprises.
Forward Looking Information
Certain statements contained in this press releaseconstitute forward-looking information. These statements relate tofuture events or future performance. The use of any of the words“could”, “inte nd”, “expect”, “believe”, “will”,“projected”, “estimated” and similar expressions andstatements relating to matters that are not historical facts areintended to identify forward-looking information and are based on NTGClarity’s current beliefs or assumptions as to the outcome andtiming of such future events. Actual future results may differmaterially.
In particular, this press release containsforward-looking information with respect to anticipated financial andoperating results, work in process, customer demand, repayment ofindebtedness and earnings growth. Various assumptions or factors aretypically applied in drawing conclusions or making the forecasts orprojections set out in forward-looking information. Those assumptionsand factors are based on information currently available to NTGClarity. The material factors and assumptions include general economicconditions, market conditions, interest rates, exchange rates, accessto capital, availability of personnel, protection of intellectualproperty rights and competitive conditions in the networking, IT andnetwork enabled software solutions industry.
NTG Clarity cautions the reader that the above list ofrisk factors is not exhaustive. The forward-looking informationcontained in this release is made as of the date hereof and NTGClarity is not obligated to update or revise any forward-lookinginformation, whether as a result of new information, future events orotherwise, except as required by applicable securities laws. Due tothe risks, uncertainties and assumptions contained herein, investorsshould not place undue reliance on forward- looking information. Theforegoing statements expressly qualify any forward-looking informationcontained herein.
Certain forward-looking information in this pressrelease may also constitute “financial outlook” within the meaningof applicable securities legislation. Financial outlook involvesstatements about NTG Clarity’s prospective financial performance orposition and is based on and subject to the assumptions and riskfactors described above in respect of forward-looking informationgenerally as well as any other specific assumptions and risk factorsin relation to such financial outlook noted in this press release.Such assumptions are based on management’s assessment of therelevant information currently available, and any financial outlookincluded in this press release is made as of the date hereof andprovided for the purpose of helping readers understand NTG Clarity'scurrent expectations and plans for the future. Readers are cautionedthat reliance on any financial outlook may not be appropriate forother purposes or in other circumstances and that the risk factorsdescribed above or other factors may cause actual results to differmaterially from any financial outlook.
For Further Information:
Adam Zaghloul, Vice President, Strategy &Planning
NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: adam@ntgclarity.com
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
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