NCI:CC - NTG Clarity Announces Record-Setting Year-End 2023 Financial Results With Revenue of $27.7M and Profit of $2.3M

(TheNewswire)

Toronto, ON / T he N ewswire - Accesswire / April 29, 2024 / NTG ClarityNetworks Inc. (TSX.V:NCI; OTC: NYWKD) reportsits fourth quarter and year end results for the fiscal year endedDecember 31, 2023 (all figures in Canadian Dollars). The following isNTG Clarity CEO Ashraf Zaghloul’s letter to shareholders foryear-end 2023.

2023 has been a historic year for NTG Clarity. Withevery quarter breaking all-time revenue records, we’re experiencinggrowth never before seen in our more than 30 years in business.

Revenues for 2023 were up 57% to $27.7M compared to$17.65M in 2022 with a profit of $2.3M in 2023,up 190% from $788K in 2022 , making threeconsecutive profitable years. With a global trend of enterprisesundergoing rapid digital transformation, both our offerings ofoutsourced software development resources and proprietary softwareproducts have seen rapidly growing demand that shows no signs ofslowing down.

Since embracing our new offshore model in 2021, we’vebeen able to connect more clients with talented candidates faster,accelerating their digital transformation journeys. All while at alower cost to clients and a higher margin for us. This is the primarydriver behind our profitability in the last three years.

To accommodate the increase in demand, we expanded ourEgypt Offshore Center by opening a new office in Cairo, Egypt in 2023.This office in the Al-Aghouza district along the Nile River, our thirdin Cairo, has since become our flagship offshore resource campus, withspace for more than one hundred new staff and room to expand furtherwhen needed in the future.

In 2023, we solidified our commitment to education,training, and personal development by opening the NTG School which ispart of the NTG Academy, in cooperation with the Egyptian Ministry ofEducation. This partnership aims to equip Egyptian secondarytechnology school students with a dual curriculum, integrating NTG’sspecialized technology training alongside the ministry’s curriculum.NTG proudly dedicates a team of educational engineers ensuringcomprehensive training for the next generation in the exciting fieldof digital transformation.

Although most of our growth was due to increased demandfor our outsourcing services, our software product line is picking up.Many of our existing customers in the Finance, Telecom, and IT sectorsare embracing the NTGapps platform as a way to rapidly developbusiness apps to simplify day-to-day operations with no developerresources required. New customers in sectors like Food

& Beverage and Logistics & Distribution arealso signing on to have end-to-end ERP systems developed on ourNTGapps platform.

We continue to improve our working capital, with ourdeficit down 41% to $2,092,663 from 2022 to 2023. Our growth in 2023has enabled us to prioritize getting legacy debts repaid. Going into 2024, we also look forward to paying down ourlong-term debts incurred when refocusing the business in 2019. Ournon-current liabilities are majority management-owned and relativelylow-cost with flexible repayment terms.

We kick-started this growth and repayment process inDecember 2023 with the closing of a private placement with proceeds of$1,110,000, to be used for accounts payable and other corporateinitiatives. As our revenues continue to grow and we remaincomfortably self-funded, we’re constantly looking for ways to investand grow even faster.

In July 2023, we received approval from shareholders toperform a five-to-one share consolidation. Although the consolidationhas not been executed by the end of 2023, we’re looking forward tocleaning up our count of shares outstanding and bringing a little morestability to the stock with a higher price per share. Shareholders canalso enjoy higher earnings per share due to the lower share count, butalso due to our strong growth trajectory.

Income Statement Highlights for theYear Ended December 31, 2023 and 2022

Balance Sheet Highlights

Outlook

Entering 2024, we’d like to share NTG Clarity’s Commitment to:

1. Customers byproviding flexible, quality services at a competitive price.

   • We accelerate and simplify the digital transformationjourney for our clients by providing the right solution delivered bypassionate professionals both on their sites and offshore.

2. People byhelping our staff grow and develop personally andprofessionally.

   • We empower our staff to build and deliver challengingprojects while providing opportunities for training and careeradvancement both internally and outside NTG.

1. Shareholders bycontinuing our growth trajectory and profitability.

   • With purchase orders on-hand and contracts we expect toclose, we project our 2024 revenue to approximately double to $50Million.

   • With three years of consistent profitability under ourbelt, we’re actively identifying opportunities to make sure as muchof this new revenue as possible flows on to the bottom line.

2. Community bypassing our experience down to the next generation.

   • We provide youth education and employment opportunitiestailored to the modern job market through NTG School.

We’re very excited to continue our successful growthinto 2024 and use our growing funds to create value for ourshareholders by reinvesting into further growth, and also paying downour longer-standing debts. I’d like to thank you, our valuedinvestors, for your continued confidence. Looking forward to anothersuccessful year in 2024.

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 in this release, other thanstatements of historical fact, are forward looking information thatinvolves various risks and uncertainties. Such statements relating to,among other things, the prospects for the company to enhance operatingresults, are necessarily subject to risks and uncertainties, some ofwhich are significant in scope and nature.

These uncertainties may cause actual results to differfrom information contained herein. There can be no assurance that suchstatements will prove to be accurate. Actual results and future eventscould differ materially from those anticipated in such statements.These and all subsequent written and oral forward-looking statementsare based on the estimates and opinions of the management on the datesthey are made and expressly qualified in their entirety by thisnotice. The Company assumes no obligation to update forward-lookingstatements should circumstances or management's estimates or opinionschange.

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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