(TheNewswire)
Toronto, ON / T heNewswire / May 26, 2022 / NTG Clarity Networks Inc.(TSXV:NCI) , announces itsfirst quarter results for the period ended March 31, 2022 (all figuresin Canadian Dollars).
In Q1 2022, revenue was the highest Q1 since 2015 andwe have been profitable for the seventh straight quarter. Revenueswere up 88% to $4.3M compared to $2.29M in Q1 2021. Profit was$554,342 compared to $249,727 in Q1 2021, an almost 122% increase. Ourgross margin for this quarter was 32% and the income from operationswas $501,137. We expect these strong quarterly results to continue in2022 due to the new contracts announced in December 2021.
Professional service revenue continues to be animportant strategic source of revenue for us, given its generallyrecurring nature (76%). The contribution of product-related revenuewas higher than the same period last year (24% compared to 17% in Q12021). This is because of the product sales announced at the beginningof the year.
Working capital continues to improve with March 31,2021 being a deficit of $3,296,716 compared to a deficit of $3,757,061at December 31, 2021.
IncomeStatement Highlights for the Three Months Ended March 31, 2022 and2021
March 31, 2022 | March 31, 2021 | |||
REVENUE | $ | 4,320,604 | $ | 2,298,307 |
COST OF SALES | 2,939,669 | 1,211,592 | ||
GROSS MARGIN | $ | 1,380,934 | $ | 1,086,714 |
Operating Expenses | 1,070,174 | 638,201 | ||
Foreign Exchange (Gain) Loss | (87,950) | 3,624 | ||
Other Expenses | 271,730 | 113,944 | ||
Net Income from continuing operations | $ | 126,980 | $ | 330,945 |
Other – Exchange Gain (Loss) on Translation | 427,362 | (81,219) | ||
Total Comprehensive Income for the Period | 554,342 | 249,727 | ||
per share (basic) | $ | 0.00 | $ | 0.00 |
per share (fully diluted) | $ | 0.00 | $ | 0.00 |
March 31, 2022 | December 31, 2021 | |||
Total Assets | $ | 6,524,801 | $ | 6,490,706 |
Total Liabilities | $ | 13,788,295 | $ | 14,409,518 |
Shareholder’s Equity | $ | (7,263,495) | $ | (7,918,812) |
Outlook
Customers have been recognizing our quality of work andtrack record and this has resulted in increased work from our majorcustomers that include sales of our NTGapps digital toolbox product.KSA’s economic strength, due in large part to increasing prices foroil, has shown increasing demand for our products and services and hasresulted in a 47% increase in revenue contribution for the countrythis quarter.
Some customers have retained some form of the “workfrom home” model and are making use of the technical, IT andprofessional services we offer through our Egypt Offshore Centre. Weare excited about the increasing demand fo r this offering model as we expandour business into new verticals that include government and financialsectors. Egypt’s revenue has increased a significant 150% over thesame period last year.
Revenues are increasing in all sectors howevertravel/accommodation costs have increased for both marketing and salesand cost of sales as we visit more customers and personnel return toonsite work. We are working to keep our expenses in line with theincreasing 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 24% of this quarter’srevenue.
We are working on marketing our new NTGapps DigitalToolbox and low-code platform product in an effort to make productsales a more balanced part of NTG’s revenue stream. In February, weattended Mobile World Congress (MWC) in Barcelona. This is one of thebiggest events for IT and telecommunication in the world. We presentedto prospective customers and increased the awareness of NTG’sproducts and services. We look forward to marketing our NTGappsproduct in other such events throughout the year.
With the announcements made subsequent to quarter endof approximately $2M in received purchase orders, NTG has a backlog of$11.2M in unbilled amounts for POs on hand. This backlog amount isclose to the total revenue for 2021 and is in addition to the $4.3M inrevenue from Q1 2022. 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 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 400 network professionalsprovide design, engineering, implementation, software development andsecurity expertise to the industry’s leading network serviceproviders and 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.
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
Copyright (c) 2022 TheNewswire - All rights reserved.