NCI:CC - NTG Clarity Reports Sixth Consecutive Record-Setting Quarterly Financials With $2.37M Profit and $11.75M Revenue
(TheNewswire)
Toronto, ON / T heNewswire / May 27, 2024 / NTG Clarity Networks Inc.(TSX.V:NCI; OTC: NYWKD) , announces its first quarter results for the period ended March 31, 2024(all figures in Canadian Dollars).
The continued hard work and commitment of NTG’s teamhas resulted in Q1 2024 having the highest-ever single quarter revenueat $11.75M, up 92% compared to Q1 2023. This makes the sixthconsecutive quarter setting all-time revenue records, whilemaintaining profitability with $2.37M in profit for Q1 2024. This isup 273% from Q1 2023 and is already more profit than we saw in theentire fiscal year of 2023.
For the first time since 2015, we had a positiveworking capital of $245,930 as of March 31, 2024, compared to adeficit of $2,092,663 on December 31, 2023. With funds from ouraccelerating growth, we have reduced our long-term debt by $251,506this quarter, including $150,000 towards the outstanding indebtednessheld by a numbered Company.
IncomeStatement Highlights for the Three Months Ended March 31, 2024 and2023
| March 31, 2024 |
| March 31, 2023 |
| REVENUE |
| $ |
| 11,755,520 |
| $ |
| 6,127,177 |
| COST OF SALES |
| 7,170,424 |
| 3,871,100 |
| GROSS MARGIN |
| $ |
| 4,585,095 |
| $ |
| 2,256,077 |
| Operating Expenses |
| 2,597,403 |
| 1,060,261 |
| Foreign Exchange (Gain) Loss |
| (312,992) |
| (24,665) |
| Other Expenses |
| 268,922 |
| 132,410 |
| Net Income from continuing operations |
| $ |
| 2,031,761 |
| $ |
| 1,088,073 |
| Other – Exchange Gain (Loss) on Translation |
| 346,105 |
| (450,328) |
| Total Comprehensive Income for the Period |
| 2,377,866 |
| 637,745 |
| per share (basic) |
| $ |
| 0.06 |
| $ |
| 0.004 |
| per share (fully diluted) |
| $ |
| 0.06 |
| $ |
| 0.004 |
| March 31, 2024 |
| December 31, 2023 |
| Total Assets |
| $ |
| 15,049,269 |
| $ |
| 12,392,158 |
| Total Liabilities |
| $ |
| 15,761,171 |
| $ |
| 15,629,301 |
| Deficit |
| $ |
| (18,437,158) |
| $ |
| (20,468,919) |
| Shareholder’s Equity |
| $ |
| (711,902) |
| $ |
| (3,237,143) |
Outlook
As the Kingdom of Saudi Arabia (KSA) continues itsfocus on diversifying its economy away from Oil & Gas by investingin digital transformation, AI, infrastructure, tourism, entertainment,and being a hub for financial activities in the region as a part ofits Vision 2030 economic development plan, we expect the strong demandfor our services to continue as these sectors rapidly build outtechnical infrastructure and software. KSA continues to be the primarycontributor to our revenue growth with $10,603,543 YTD; an increase of129% over the same period last year. There is an increasing demand forour products and services with new existing customers in the region.We have been in the region for over 17 years and customers recognizeour quality of work and track record.
Since 2021, as well as supporting NTG Egypt’s legacycustomers, management has transformed NTG Egypt into a supplier ofoffshore services for international customers through our EgyptOffshore Centre. This strategy allows us to pay expenses in thedevaluing Egyptian Pound, while collecting revenue in strongercurrencies such as the Saudi Riyal, which is pegged to the USDollar.
Since embracing our new offshore model, we have beenable to connect more clients with talented candidates faster,accelerating their digital transformation journeys, all the while at alower cost to them and consistent margins for us. This is a largedriver behind our growth profitability in the last three years.
We have a dedicated team of sales personnel that aretargeting new customers in this currently booming KSA economy. We aretargeting small and medium enterprises (SME) across multiple verticalsthat now include the medical sectors and the food industry, inaddition to the telecom and financial sectors. We anticipate the salesof NTGapps to increase significantly in 2024. For more information,visit www.ntgapps.com .
As we continue through 2024, we continue to strive todeliver on NTG’s four-part commitment to:
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Customers byproviding flexible, quality services at a competitive price.
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We accelerate and simplify the digital transformationjourney for our clients by providing the right solution delivered bypassionate professionals both on their sites and offshore.
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People byhelping our staff grow and develop personally andprofessionally.
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We empower our staff to build and deliver challengingprojects while providing opportunities for training and careeradvancement both internally and outside NTG.
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Shareholders bycontinuing our growth trajectory and profitability.
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With purchase orders on-hand and contracts we expect toclose, we project our 2024 revenue to be approximately $50Million.
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With three years of consistent profitability under ourbelt, we are actively identifying opportunities to make sure as muchof this new revenue as possible flows to the bottom line, with atargeted 2024 profit margin of 10%.
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Community bypassing our experience down to the next generation.
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We provide youth education and employment opportunitiestailored to the modern job market through the NTG Academies, School,and on-the-job training.
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We look forward to continuing our growth through 2024and beyond, using our growing funds to createvalue for our shareholders by investing in growth initiatives and alsocontinuing to pay down our longer-standing debts.
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 700 IT and network professionalsprovide des ign,engineering, implementation, software development and securityexpertise 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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