(TheNewswire)
Toronto, ON / T heNewswire / August 10, 2022 / NTG Clarity Networks Inc.(TSXV:NCI) , announces itssecond quarter results for the period ended June 30, 2022 (all figuresin Canadian Dollars).
Revenues were up 30% in the quarter and 57% YTD ($7.7Mcompared to $4.9 in 2021). Our gross margin for this quarter was 57%and the income from operations was $1,938,750. We expect these strongquarterly results to continue in 2022 due to the new contractspreviously announced and the renewal of existing contracts. This makes8 consecutive quarters with a positive net income.
Professional service revenue continues to be animportant strategic source of revenue for us, given its generallyrecurring nature (80%). The contribution of product-related revenuewas 20% in Q2 2022. We are working on marketing our new NTGappsDigital Tool Box platform product in an effort to make product sales amore balanced part of NTG’s revenue stream. The contribution ofproduct-related revenue was higher than the same period last year (20%compared to 11% in Q2 2021). This is due to the product salesannounced at the beginning of the year.
Working capital continues to improve with June 30, 2022being a deficit of $3,419,764 compared to a deficit of $3,757,061 atDecember 31, 2021.
Incomestatement highlights for the three and six months ended June 30, 2022and 2021
3 Months Ended | 6 Months Ended | |||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||
REVENUE | $ | 3,403,633 | $ | 2,621,252 | $ | 7,724,237 | $ | 4,919,559 |
COST OF SALES | 1,464,883 | 1,583,194 | 4,404,552 | 2,794,786 | ||||
GROSS PROFIT | $ | 1,938,750 | $ | 1,038,059 | $ | 3,319,685 | $ | 2,124,773 |
Expenses | 1,109,818 | 429,808 | 2,179,993 | 1,068,008 | ||||
Foreign exchange loss (gain) | 52,097 | (81,566) | (35,853) | (77,942) | ||||
Net Income from operations | 776,835 | 689,818 | 1,175,545 | 1,134,707 | ||||
Other expenses | 260,691 | 244,713 | 532,422 | 358,658 | ||||
Other - Exchange (loss) gain on translation | (324,782) | 14,709 | 102,580 | (66,510) | ||||
Net Income after taxes | $ | 191,362 | $ | 459,813 | $ | 745,704 | $ | 709,539 |
Per Share | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.01 |
Balance Sheet Highlights for the six months ended June 30, 2022 andDecember 31, 2021
June 30, 2022 | December 31, 2021 | |||
Total Assets | $ | 6,398,118 | $ | 6,490,706 |
Total Liabilities | $ | 13,414,576 | $ | 14,409,518 |
$ | (7,016,458) | $ | (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. KSA’seconomic strength, due in large part to increasing prices for oil, hasshown increasing demand for our products and services and has resultedin a 47% increase in revenue contribution for the country thisquarter.
We are excited about the increasing demand for offshoreservices as we expand our business into new verticals that includegovernment and financial sectors. Egypt’s YTD revenue has increased73% over the same period last year.
Revenues are increasing in all sectors; however,travel/accommodation costs have also increased for cost of sales andfor marketing and sales as personnel return to onsite work and wevisit more customers. Additionally, salaries for personnel havereturned to normal amounts. We are working to keep our expenses inline while increasing the revenue.
Finally, we are looking forward to expanding into newverticals with our software product; NTGapps digital toolbox. We areincluding tools related to small and medium enterprise (SME)end-to-end business operations and have already seen demand in thefinancial and government sectors. Of particular note is the PO wereceived in March for a new customer in the medical sector to delivertheir digital products on the NTGapps platform. We have also seen anincreased demand for our Utility software and Network Asset Managementwith revenue for these products making up 20% of this quarter’srevenue.
NTG has a backlog of $8.7M in unbilled amounts for POson hand. This backlog, with the $7.7M YTD revenue projects anestimated $16.4M revenue for 2022. This is 37% greater than the totalrevenue for 2021.
Additionally, we are expecting to renew severalcontracts with major customers that are coming up for renewal withinthe next few months.
About NTG Clarity NetworksInc.
NTG Clarity Networks’ vision is to be a global leader in providingnetworking solutions. As a Canadian company established 30 years agoin 1992, NTG Clarity has delivered networking, IT and network enabledapplication software solutions to network service providers and largeenterprises. More than 400 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 than statements ofhistorical fact, are forward looking information that involves variousrisks and uncertainties. Such statements relating to, among otherthings, the prospects for the company to enhance operating results,are necessarily subject to risks and uncertainties, some of which aresignificant in scope and nature.
These uncertainties may cause actual results to differ frominformation 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 Regulation Services Provider (asthat term is defined in policies of the TSX Venture Exchange) acceptsresponsibility for 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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