NCI:CC - NTG Clarity Networks Announces Year-End 2022 Financial Results with $788K Profit and Q4 Revenue of $5.74M
(TheNewswire)
Toronto, ON - TheNewswire - April 27, 2023 - NTG Clarity Networks Inc. (TSX.V:NCI) reportsits fourth quarter and year end results for the fiscal year endedDecember 31, 2022 (all figures in Canadian Dollars).
The hard work and dedication resulted in 2022 havingthe highest revenue in NTG’s recent history, with Q4 2022 being thehighest single quarter revenue. Revenues for 2022 were up 48% to$17.65M compared to $11.895M in 2021 and we are profitable for theyear, despite significant currency devaluation challenges in Egypt.
Revenue for Q4 2022 was $5,742,867 and the net loss was$391,759; compared to a revenue of $4,132,046 and a net profit of$416,748 in Q4 2021. We expect these strong quarterly revenues tocontinue in 2023 due to the new contracts announced in 2022.
The loss in Q4 is attributed to the devaluation of theEgyptian pound. By the end of 2022 the EGP’s value dropped fromaround 12.3 EGP to the Canadian dollar in January to about 18.2 EGP inDecember 2022, a 48% drop in value. NTG Egypt's unconsolidated revenueof approximately 76.9M EGP in 2022 translated to around $4.29M CAD atyear end, resulting in a devaluation of over $1.1M CAD. This wasrecorded as a reduction in revenues for Q4 2022 of approximately$410K, and just over $750K in exchange loss on translation and foreignexchange loss.
To reduce the FX risk going forward and increasemargins, we are focusing on offshoring resources in Egypt, which willbe paid in USD.
Going forward, NTG will focus on promoting andexpanding the following:
1. Our product offerings that provide ahigher profit margin. We are focused on our NTGapps digitaltransformation platform that integrates with our Network AssetManagement product. Digital Transformation is one of the current keyobjectives of most organizations and NTGapps provides a tool to enablethese organization to achieve this goal in using a phased approachwhile integrating with their legacy systems. We believe that NTGappsis one of the best digital transformation platforms available. Itenables our customers to consolidate their end-to-end businesssoftware and integrate with specialty third-party platforms, enhancingoperational efficiency and saving clients time that can instead beused to create new revenue streams.
2. Our outsourcing/offshoring services.These services provide good cash flow and margin for the business.They help in acquiring new customers on a short sale cycle. This givesus the opportunity to introduce our products to these customers. NTGhas invested in expanding our offshore centre in Egypt and that hasproven to be very successful.
IncomeStatement Highlights for the Year Ended December 31, 2022 and2021
| December 31, 2021 |
| December 31, 2021 |
| REVENUE |
| $ |
| 17,652,313 |
| $ |
| 11,895,943 |
| COST OF SALES |
| 10,929,917 |
| 5,307,491 |
| GROSS PROFIT |
| $ |
| 6,722,396 |
| $ |
| 6,588,452 |
| Operating Expenses |
| 4,468,091 |
| 3,992,545 |
| Other Expenses |
| 1,006,448 |
| 1,225,819 |
| Exchange loss on translation |
| 459,423 |
| 6,130 |
| Comprehensive Income |
| $ |
| 788,434 |
| $ |
| 1,363,958 |
| per share (basic) |
| $ |
| 0.01 |
| $ |
| 0.01 |
| per share (fully diluted) |
| $ |
| 0.00 |
| $ |
| 0.01 |
| December 31, 2022 |
| December 31, 2021 |
| Total Assets |
| $ |
| 8,167,611 |
| $ |
| 6,490,706 |
| Total Liabilities |
| $ |
| 14,944,739 |
| $ |
| 14,409,518 |
| Shareholder’s Equity |
| $ |
| (6,777,128) |
| $ |
| (7,918,812) |
Outlook
KSA’s robust economy, due in large part to strong oilprices, has shown an increasing demand for our products and services.Customers continue to recognize our quality of work and track recordand this has resulted in large increases in the volume of work fromour major customers and expansion into several new customers,primarily in the financial sector.
Some customers are now making use of the technical, ITand professional services we offer through our Egypt Offshore Centre.We are excited about the increasing demand for this offering model aswe expand our business into new verticals that include government andfinancial sectors.
With the demand for our software product; NTGappsdigital toolbox, we anticipate being able to continue to expand intonew verticals. As NTGapps includes tools related to small and mediumenterprise (SME) end-to-end business operations, we are already seeingdemand in the financial and government sectors and we see this as anopportunity to present our product for use in other verticals.
We now have a dedicated team of sales personnel thatare targeting new customers in this currently booming KSA economy. Weare targeting small and medium enterprises (SME) across multipleverticals that now include the medical sectors and the food industry,in addition to the telecom and financial sectors. We anticipate thesales of NTGapps to increase significantly in 2023. For moreinformation, visit www.ntgapps.com .
As of the beginning of 2023, NTG has a backlog of$20.95M in unbilled amounts for POs/contracts on hand. This amountexceeds the total revenue for 2022. This put us in a healthy positionto continue our profitability going forward and contributes to thegrowth of our organization. Additionally, we are expecting to renewseveral contracts with major customers that are coming up for renewalwithin the next six months.
About NTG Clarity NetworksInc.
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 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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