Toronto, ON / TheNewswire / 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 team has resulted in Q1 2024 having the highest-ever single quarter revenue at $11.75M, up 92% compared to Q1 2023. This makes the sixth consecutive quarter setting all-time revenue records, while maintaining profitability with $2.37M in profit for Q1 2024. This is up 273% from Q1 2023 and is already more profit than we saw in the entire fiscal year of 2023.

For the first time since 2015, we had a positive working capital of $245,930 as of March 31, 2024, compared to a deficit of $2,092,663 on December 31, 2023. With funds from our accelerating growth, we have reduced our long-term debt by $251,506 this quarter, including $150,000 towards the outstanding indebtedness held by a numbered Company.

 

Income Statement Highlights for the Three Months Ended March 31, 2024 and 2023

	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

 

Balance Sheet Highlights

	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 its focus on diversifying its economy away from Oil & Gas by investing in digital transformation, AI, infrastructure, tourism, entertainment, and being a hub for financial activities in the region as a part of its Vision 2030 economic development plan, we expect the strong demand for our services to continue as these sectors rapidly build out technical infrastructure and software. KSA continues to be the primary contributor to our revenue growth with $10,603,543 YTD; an increase of 129% over the same period last year. There is an increasing demand for our products and services with new existing customers in the region. We have been in the region for over 17 years and customers recognize our quality of work and track record.

 

Since 2021, as well as supporting NTG Egypt’s legacy customers, management has transformed NTG Egypt into a supplier of offshore services for international customers through our Egypt Offshore Centre. This strategy allows us to pay expenses in the devaluing Egyptian Pound, while collecting revenue in stronger currencies such as the Saudi Riyal, which is pegged to the US Dollar.

 

Since embracing our new offshore model, we have been able to connect more clients with talented candidates faster, accelerating their digital transformation journeys, all the while at a lower cost to them and consistent margins for us. This is a large driver behind our growth profitability in the last three years.

 

We have a dedicated team of sales personnel that are targeting new customers in this currently booming KSA economy. We are targeting small and medium enterprises (SME) across multiple verticals that now include the medical sectors and the food industry, in addition to the telecom and financial sectors. We anticipate the sales of NTGapps to increase significantly in 2024. For more information, visit www.ntgapps.com.

 

As we continue through 2024, we continue to strive to deliver on NTG’s four-part commitment to:

 

1. Customers by providing flexible, quality services at a competitive price. 

   • We accelerate and simplify the digital transformation journey for our clients by providing the right solution delivered by passionate professionals both on their sites and offshore.  

2. People by helping our staff grow and develop personally and professionally. 

   • We empower our staff to build and deliver challenging projects while providing opportunities for training and career advancement both internally and outside NTG. 

3. Shareholders by continuing our growth trajectory and profitability. 

   • With purchase orders on-hand and contracts we expect to close, we project our 2024 revenue to be approximately $50 Million. 

   • With three years of consistent profitability under our belt, we are actively identifying opportunities to make sure as much of this new revenue as possible flows to the bottom line, with a targeted 2024 profit margin of 10%. 

4. Community by passing our experience down to the next generation. 

   • We provide youth education and employment opportunities tailored to the modern job market through the NTG Academies, School, and on-the-job training. 

 

We look forward to continuing our growth through 2024 and beyond, using our growing funds to create value for our shareholders by investing in growth initiatives and also continuing to pay down our longer-standing debts.

 

About NTG Clarity Networks Inc.

NTG Clarity Networks’ vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 700 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry’s leading enterprises.

 

Forward Looking Information

Certain statements in this release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.

 

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

 

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 its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.