(TheNewswire)
Toronto, ON - TheNewswire - November 14, 2023 - NTG Clarity Networks Inc. (TSX.V:NCI ) ( OTC:NYWKF) , announces its third quarter resultsfor the period ended September 30, 2023 (all figures in CanadianDollars).
Revenues were up 67% in the quarter ($7M compared to$4.2M in Q3 2022) and 64% YTD ($19.5M compared to $11.9M in 2022). Ourgross margin for the year was 44% and the income from operations was$3,273,075.
Our trend of rapid revenue growth has continued in 2023with Q3 2023 having the highest single-quarter revenue ever of$7,003,553. This is due significantly increased revenue fromexisting customers and 13 new customers in KSA that contributed 16.6%of the YTD revenue (25.1% of Q3 2023 revenue).
Professional service and outsourcing/offshoring revenuecontinues to be a strategic source of revenue for us. Given itsgenerally recurring nature, and along with the continued expansion ofour Egypt Offshore Centre, outsourcing contributed 95% (88% YTD) ofour quarterly revenue.
Working capital continues to improve with September 30,2023 being a deficit of $3,004,572 compared to a deficit of $3,557,883at December 31, 2022, decreasing the deficit by 16% YTD.
Incomestatement highlights for the three and nine months ended September 30,2023 and 2022
3 Months Ended | 9 Months Ended | |||||||
Sept 30, 2023 | Sept 30, 2022 | Sept 30, 2023 | Sept 30, 2022 | |||||
REVENUE | $ | 7,003,553 | $ | 4,185,208 | $ | 19,503,993 | $ | 11,909,446 |
COST OF SALES | 3,920,316 | 2,381,755 | 11,738,575 | 6,786,307 | ||||
GROSS PROFIT | $ | 3,083,237 | $ | 1,803,453 | $ | 7,765,418 | $ | 5,123,138 |
Expenses | 2,034,026 | 1,243,298 | 4,953,919 | 3,955,714 | ||||
Foreign exchange loss (gain) | 437,913 | 183,170 | 237,182 | 147,317 | ||||
Income from Continuing Operations | 611,298 | 376,985 | 2,574,317 | 1,020,107 | ||||
Other - Exchange (loss) gain on translation | (101,418) | 57,504 | (728,430) | 160,084 | ||||
Total Comprehensive Income for the Period | $ | 509,880 | $ | 434,489 | $ | 1,845,887 | $ | 1,180,192 |
Per Share | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.01 |
Balance Sheet Highlights for the nine months ended September 30,2023 and December 31, 2022
September 30, 2023 | Dec. 31, 2022 | ||||
Current Assets | $ | 6,616,475 | $ | 4,710,722 | |
Current Liabilities | $ | 9,621,047 | $ | 8,268,605 | |
Deficit | $ | (19,604,313) | $ | (22,178,630) | |
Shareholder’s Equity | $ | (4,842,741) | $ | (6,777,128) |
Outlook
NTG has had incredible growth this year with eachquarter breaking revenue records, and with Q3 having the highestsingle-quarter revenue ever. Consolidated revenue for Q3 2023 was$7,003,553, up 67% from $4,185,208 for the same period in 2022.Year-to-date revenues are up by 64% from 2022 ($19,503,993 compared to$11,909,446).
Egypt’s unconsolidated revenue is increasing;however, the continuing devaluation of the Egyptian pound has resultedin reduced revenue on translation. Since 2021, as well as supportingEgypt’s legacy customers, management has been focusing ontransforming NTG Egypt into a supplier of offshore services forinternational customers through our Egypt Offshore Centre. Thistransformation will reduce our exposure to the volatile EgyptianPound, while making our services available to international markets.Our new Cairo office, announced in August 2023, is now open and we areaccommodating our expanding offshore professional service workforce.
KSA continues to be the major contributor to ourrevenue growth with $15,304,687 YTD; an increase of 146% over the sameperiod last year. There is an increasing demand for our products andservices as the region undergoes its digital transformation, with 13new customers in the banking, real estate, and government sectors, aswell as increasing work from our major existing customers in theregion. We have been in the region for over 17 years and customersrecognize our quality of work and track record.
As of the September 30, 2023, NTG has a backlog of$18.7M in unbilled amounts for POs/contracts on hand. This amountexceeds the total revenue for 2022 and puts us in a healthy positionto continue our profitability and organizational growth.
Transactions
At the AGM held on held on July 7, 2023, shareholdersvoted to consolidate the common shares of the Company on the basis ofup to five (5) pre-consolidation common shares for eachpost-consolidation common share. Management has no plans to proceed in2023, but will be reviewing in early 2024. Should they decide to goahead, approval would still be needed from the Board andregulators.
About NTG Clarity NetworksInc.
NTG Clarity Networks’ vision is to be a global leaderin providing networking solutions. As a Canadian company establishedin 1992, NTG Clarity has delivered networking, IT and network enabledapplication software solutions to network service providers and largeenterprises. More than 600 IT and network professionals providedesign, engineering, implementation, software development and securityexpertise to the industry’s leading 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:
Adam Zaghloul, Vice President, Strategy &Planning
NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: adam@ntgclarity.com
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