NCI:CC - NTG Clarity Networks Announces Another Successful Third Quarter 2022
(TheNewswire)
Toronto, ON – TheNewswire - November 29, 2022 - NTG Clarity NetworksInc. (TSXV:NCI) , announcesits third quarter results for the period ended September 30, 2022 (allfigures in Canadian Dollars).
Revenues were up 47% in the quarter and 53% YTD ($11.9Mcompared to $7.7M in 2021). Our gross margin for this quarter was 43%and the income from operations was $1,874,147. We expect these strongquarterly results to continue in 2022 due to the new contractspreviously announced and the renewal of existing contracts. This makes9 consecutive quarters with a positive net income.
Professional service revenue continues to be animportant strategic source of revenue for us, given its generallyrecurring nature (82%). The contribution of product-related revenuewas 18% in Q2 2022. We continue to market our NTGapps Digital Tool Boxplatform product in an effort to make product sales a more balancedpart of NTG’s revenue stream.
Working capital continues to improve with September 30,2022 being a deficit of $3,199,366 compared to a deficit of $3,757,061at December 31, 2021.
Incomestatement highlights for the three and nine months ended September 30,2022 and 2021
| 3 Months Ended |
| 9 Months Ended |
| Sept 30, 2022 |
| Sept 30, 2021 |
| Sept 30, 2022 |
| Sept 30, 2021 |
| REVENUE |
| $ |
| 4,185,208 |
| $ |
| 2,844,338 |
| $ |
| 11,909,446 |
| $ |
| 7,763,897 |
| COST OF SALES |
| 2,381,755 |
| 1,630,801 |
| 6,786,307 |
| 4,425,587 |
| GROSS PROFIT |
| $ |
| 1,803,453 |
| $ |
| 1,213,537 |
| $ |
| 5,123,138 |
| $ |
| 3,338,310 |
| Expenses |
| 1,243,298 |
| 989,129 |
| 3,955,714 |
| 2,259,911 |
| Foreign exchange loss (gain) |
| 183,170 |
| 28,393 |
| 147,317 |
| (49,549) |
| Income from Continuing Operations |
| 376,985 |
| 252,801 |
| 1,020,107 |
| 1,028,850 |
| Other - Exchange (loss) gain on translation |
| 57,504 |
| (15,130) |
| 160,084 |
| (81,640) |
| Total Comprehensive Income for the Period |
| $ |
| 434,489 |
| $ |
| 237,671 |
| $ |
| 1,180,192 |
| $ |
| 947,210 |
| Per Share |
| $ |
| 0.00 |
| $ |
| 0.00 |
| $ |
| 0.01 |
| $ |
| 0.01 |
Balance Sheet Highlights for the nine months ended September 30,2022 and December 31, 2021
| September 30, 2022 |
| Dec. 31, 2021 |
| Current Assets |
| $ |
| 3,942,952 |
| $ |
| 4,026,126 |
| Current Liabilities |
| $ |
| 7,142,318 |
| $ |
| 7,783,187 |
| Long-Term Debt |
| $ |
| 6,601,427 |
| $ |
| 6,626,331 |
| Shareholder’s Equity |
| $ |
| (6,483,671) |
| $ |
| (7,918,812) |
Outlook
Customers continue to recognize our quality of work andtrack record and this has resulted in increased work from our majorcustomers that include sales of our NTGapps software product. We havealso gained 16 new customers in various sectors which represents 19%of our YTD revenue.
Subsequent to quarter end, in October 2022, weannounced:
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multiple POs valued at approximately $900K. $390K wasfor our NTGapps product.
-
the signing of a significant Memo of Understanding(MOU) with OMB (Outsource Management Business is a division underEtisalat Services Holding) to cooperate in providing IT products andservices in the Middle East.
-
multiple POs valued at approximately $2.656M. $1.148Mwas for the upgrade of our NTS OSS/BSS product.
We attended many events and conventions this year toshowcase our products.
-
At Mobile World Congress (MWC) in Barcelona (February23-March3, 2022) we met existing and potential customers andpartners.
-
At MWC in Las Vegas (September 28-31, 2022) wepresented our network inventory and telecom in a box use cases thatsolve the urgent need for a fast, reliable digital enablement needs;all of them built using our 100% configurable platform -NTGapps.
-
At GITEX in Dubai (October 10-14, 2022), the world'slargest tech show, we signed an MOU with OMB (Outsource ManagementBusiness), a division under Etisalat Services Holding.
-
At AfricaCom in South Africa (November 8-10, 2022) weengaged in several opportunities with companies in South Africa,Tanzania, Sudan, and introduced companies to our key productsincluding NTS OSS/BSS and our NTGapps digital toolbox.
KSA’s continued economic strength, due in large partto a booming economy, has shown increased demand for our products andservices and has resulted in a 47% increase in revenue contributionfor the country this quarter. Our increased sales team and renewedfocus on the region resulted in 4 new customers in KSA contributing 8%to our YTD revenue and increasing sales by 19% in the region. With KSAbeing reported as the world’s fastest-growing major economy, we arewell-positioned to continue to grow our revenue here.
Egypt’s revenue has increased 51% over the sameperiod last year. This is due to a 200% increase in revenue from ourtop 3 customers and to 5 new customers in the region.
AboutNTG Clarity Networks Inc.
NTG Clarity Networks’ vision is to be a global leaderin providing networking solutions. As a Canadian company established30 years ago in 1992, NTG Clarity has delivered networking, IT andnetwork enabled application software solutions to network serviceproviders and large enterprises. More than 500 network professionalsprovide design, engineering, implementation, software development andsecurity expertise to the industry’s leading network serviceproviders and 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.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof 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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