NYWKF - NTG Clarity Networks Announces a Positive Second Quarter 2021
(TheNewswire)
Toronto, ON – T heNewswire - August 18, 2021 - NTG Clarity Networks Inc.(TSXV:NCI) , announces itssecond quarter results for the period ended June 30, 2021 (all figuresin Canadian Dollars).
We have continued our road back to profitability withthe fourth straight quarter of positive results. This quarter’s netincome was $459,813, making the total for the four consecutivepositive quarters of $1,229,374. Our gross margin for this quarter was40% and the income from operations was $689,818.
The COVID-19 pandemic continues to present asignificant source of economic uncertainty however despiterestrictions on travel, market/trade shows and client/potential clientvisits, our collections have remained current and we have no bad debtrecorded in Q2 2021. Our outsourced resources and project-focusedstaff are continuing to work remotely as much as possible. Officestaff in Egypt is rotating between working from the office and workingremotely.
In April, we announced the receipt of a ContractPurchase Agreement with a major financial institution in the MiddleEast to provide onshore and offshore professional resources. Theestimated annual revenue would reach $3.6 million. This is anextension of existing work/resources and will add extraresources.
In May, we announced the receipt of multiple purchaseorders for a total estimated amount of $900K in contract value toprovide IT, telecom and professional resources.
In June, we introduced our NTGapps Digital Toolbox,which is built on the NTG Smart2Go platform. This cloud-based suite ofdigital tools helps Telecom Operators perform their jobs in a simple,efficient manner. The orders received as of this date are valued atapproximately $1.1 Million. For more information, please visit www.ntgapps.com .
Consolidated revenue for the three and six months endedJune 30, 2020 was $2,621,252 and $4,919,559 compared to $1,651,209 and$4,125,975 for the same periods in 2020 and ismade up of product-related revenue and professional services.
Gross margin for Q2 2021 was $1,038,059 compared to$627,252 for Q2 2020. Percentages were (40% compared to 38% for Q22020). For the six months ended June 30, 2020 the gross margin was$2,124,773 or 43%, compared to $1,514,660 or 37% for the same periodin 2020.
Selling and marketing expenses for the three and sixmonths ended June 30, 2021 were $136,343 and $354,463 respectivelycompared to $193,961 and $467,250 in the previous year. This 30%decrease in the selling and marketing in the quarter (24% year todate) was the direct result of restrictions on travel, trade shows andcustomer visits required by COVID-19.
G&A expenses for the three and six months endedJune 30, 2021 were $293,464 and $713,545 respectively compared to$1,191,283 and $1,788,003 in the previous year. G&A costs havedecreased significantly in this period due to:
-
- one time End of Service (severance) accruals added inQ2 2020 ($512,626) was not present in Q2 2021. Only adjustments wereadded in Q2 2021.
- qualified resources previously on the bench due toCOVID-19 are now billable.
- lower insurance costs in KSA due to a change ininsurance carrier.
Working capital as at June 30, 2021 was a deficit of$5,751,702 compared to a deficit of $6,336,678 at December 31, 2020.
Incomestatement highlights for the three and six months ended June 30, 2021and 2020
| 3 Months Ended |
| 6 Months Ended |
| June 30, 2021 |
| June 30, 2020 |
| June 30, 2021 |
| June 30, 2020 |
| REVENUE |
| $ |
| 2,621,252 |
| $ |
| 1,651,209 |
| $ |
| 4,919,559 |
| $ |
| 4,125,975 |
| COST OF SALES |
| 1,583,194 |
| 1,023,957 |
| 2,794,786 |
| 2,611,315 |
| GROSS PROFIT |
| $ |
| 1,038,059 |
| $ |
| 627,252 |
| $ |
| 2,124,773 |
| $ |
| 1,514,660 |
| Expenses |
| 674,520 |
| 1,747,782 |
| 1,426,666 |
| 2,688,882 |
| Foreign exchange loss (gain) |
| (81,566) |
| (121,668) |
| (77,942) |
| 223,162 |
| Net Income before taxes |
| 445,104 |
| (998,862) |
| 776,049 |
| (1,397,384) |
| Other - Exchange (loss) gain on translation |
| 14,709 |
| (20,853) |
| (66,510) |
| (221,068) |
| Net Income after taxes |
| $ |
| 459,813 |
| $ |
| (1,019,715) |
| $ |
| 709,539 |
| $ |
| (1,618,452) |
| Per Share |
| $ |
| 0.004 |
| $ |
| (0.01) |
| $ |
| 0.01 |
| $ |
| (0.02) |
Balance Sheet Highlights for the six months ended June 30, 2021 andDecember 31, 2020
| June 30, 2021 |
| December 31, 2020 |
| Current Assets |
| $ |
| 2,724,949 |
| $ |
| 2,154,910 |
| Current Liabilities |
| $ |
| 8,476,651 |
| $ |
| 8,491,588 |
| Long-Term Debt |
| $ |
| 7,316,794 |
| $ |
| 7,217,784 |
| Shareholder’s Equity |
| $ |
| (11,383,802) |
| $ |
| (12,536,069) |
Outlook
In 2021, we continue our road back to profitabilitywith the fourth straight quarter of positive results. Though weanticipate the COVID-19 pandemic will continue to have an impact onour customers and operating activities, we are working to adjust tochanging circumstances.
Providing the offshoring and outsourcing of ourtechnical, IT and professional services resources has proven to be asuccessful strategy as working remotely has become increasing popular.This has helped us grow and expand our business into new verticalsthat include government and financial sectors. We are looking forwardto more contracts such as those announced in Q1 and Q2 2021.
The NTG roadmap for the foreseeable future is tointroduce 4 new tools every month to the NTGapps Digital Toolbox. Thisnew concept will allow the Telecom Operators to have immediate accessto the digital tools that meet their needs. NTGapps are easilyintegrated into the operators’ existing systems with very littleeffort. For more information, visit www.ntgapps.com .
In an unrelated matter, the Company announced thatshare options will be issued for each independent member of the Boardof Directors for the Company; Saleem Siddiqi will receive 250,000share options; and Zeeshan Hasnain will receive 250,000 share options.Each option will be exercisable at a price of $0.05 per share and willvest immediately.
About NTG Clarity NetworksInc.
NTG Clarity Networks’ vision is to be a global leaderin providing networking solutions. As a Canadian company establishedin 1992, NTG Clarity has delivered networking, IT and network enabledapplication software solutions to network service providers and largeenterprises. More than 275 network professionals provide design,engineering, implementation, software development and securityexpertise to the industry’s leading network service providers andenterprises.
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.
The TSX Venture Exchange does not accept responsibilityfor the adequacy or accuracy of this release.
For Further Information:
Kristine Lewis, President, NTG Clarity NetworksInc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: klewis@ntgclarity.com
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