NCI:CC - NTG Clarity Reports a Record First Quarter 2023 with $635K Profit and a Revenue of $6.1M
(TheNewswire)
Toronto, ON - TheNewswire - May 29, 2023 - NTG Clarity Networks Inc. (TSX.V:NCI) ,announces its first quarter results for theperiod ended March 31, 2023 (all figures in Canadian Dollars).
NTG’s continued hard work and dedication resulted inQ1 2023 being the highest single quarter revenue at $6.1M. Revenuesfor Q1 2023 were up 40% compared to Q1 in 2022 and we continued to beprofitable for the quarter, despite significant currency devaluationchallenges in Egypt.
As previously announced, going forward, NTG willcontinue to focus on promoting and expanding 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 Three Months Ended March 31, 2023 and2022
| March 31, 2023 |
| March 31, 2022 |
| REVENUE |
| $ |
| 6,127,177 |
| $ |
| 4,320,604 |
| COST OF SALES |
| 3,871,100 |
| 2,939,669 |
| GROSS MARGIN |
| $ |
| 2,256,078 |
| $ |
| 1,380,934 |
| Operating Expenses |
| 1,060,261 |
| 1,070,174 |
| Foreign Exchange (Gain) Loss |
| (24,665) |
| (87,950) |
| Other Expenses |
| 132,410 |
| 271,730 |
| Net Income from continuing operations |
| $ |
| 1,088,073 |
| $ |
| 126,980 |
| Other – Exchange Gain (Loss) on Translation |
| (450,328) |
| 427,362 |
| Total Comprehensive Income for the Period |
| 637,745 |
| 554,342 |
| per share (basic) |
| $ |
| 0.004 |
| $ |
| 0.00 |
| per share (fully diluted) |
| $ |
| 0.004 |
| $ |
| 0.00 |
| March 31, 2023 |
| December 31, 2022 |
| Total Assets |
| $ |
| 9,826,280 |
| $ |
| 8,167,611 |
| Total Liabilities |
| $ |
| 15,950,013 |
| $ |
| 14,944,739 |
| Deficit |
| $ |
| (21,090,557) |
| $ |
| (22,178,630) |
| Shareholder’s Equity |
| $ |
| (6,574,211) |
| $ |
| (6,777,128) |
Outlook
The gulf region’s robust economy, due in large partto strong oil prices, has shown an increasing demand for our productsand services. Customers continue to recognize our quality of work andtrack record and this has resulted in large increases in the volume ofwork from our major customers and expansion into several newcustomers, primarily in the financial and government sectors.
Some customers are now making use of the technical, ITand professional services we offer through our Egypt Offshore Centre.This center is growing fast and we aim to make it one of the leadingoffshore centers in the region. We are excited about the increasingdemand for this offering model as we expand our business into newverticals that include government and financial 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 Telecom operatorsand small and medium enterprise (SME) end-to-end business operations,we are already seeing demand in the financial and government sectorsand we see this as an opportunity to present our product for use inother 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 .
In an unrelated matter, the Company announced that share options willbe issued for each member of the Company’s Board of Directors;Ashraf Zaghloul and Kristine Lewis will receive 300,000 share optionseach; Saleem Siddiqi and Zeeshan Hasnain will receive 150,000 shareoptions each. Each option will be exercisable at a price of $0.05 pershare and will vest immediately.
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 serviceproviders and enterprises.
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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