Toronto, ON - TheNewswire - May 29, 2023 - NTG Clarity Networks Inc. (TSX.V:NCI), announces its first quarter results for the period ended March 31, 2023 (all figures in Canadian Dollars).

NTG’s continued hard work and dedication resulted in Q1 2023 being the highest single quarter revenue at $6.1M. Revenues for Q1 2023 were up 40% compared to Q1 in 2022 and we continued to be profitable for the quarter, despite significant currency devaluation challenges in Egypt.

As previously announced, going forward, NTG will continue to focus on promoting and expanding the following:

1.        Our product offerings that provide a higher profit margin. We are focused on our NTGapps digital transformation platform that integrates with our Network Asset Management product. Digital Transformation is one of the current key objectives of most organizations and NTGapps provides a tool to enable these organization to achieve this goal in using a phased approach while integrating with their legacy systems. We believe that NTGapps is one of the best digital transformation platforms available. It enables our customers to consolidate their end-to-end business software and integrate with specialty third-party platforms, enhancing operational efficiency and saving clients time that can instead be used to create new revenue streams.

2.        Our outsourcing/offshoring services. These services provide good cash flow and margin for the business. They help in acquiring new customers on a short sale cycle. This gives us the opportunity to introduce our products to these customers. NTG has invested in expanding our Offshore Centre in Egypt and that has proven to be very successful.

 

Income Statement Highlights for the Three Months Ended March 31, 2023 and 2022

	March 31, 2023		March 31, 2022
REVENUE	$	6,127,177	$	4,320,604
COST OF SALES		3,871,100		2,939,669
GROSS MARGIN	$	2,256,078	$	1,380,934
Operating Expenses		1,060,261		1,070,174
Foreign Exchange (Gain) Loss		(24,665)		(87,950)
Other Expenses		132,410		271,730
Net Income from continuing operations	$	1,088,073	$	126,980
Other – Exchange Gain (Loss) on Translation		(450,328)		427,362
Total Comprehensive Income for the Period		637,745		554,342
per share (basic)	$	0.004	$	0.00
per share (fully diluted)	$	0.004	$	0.00

 

Balance Sheet Highlights

	March 31, 2023		December 31, 2022
Total Assets	$	9,826,280	$	8,167,611
Total Liabilities	$	15,950,013	$	14,944,739
Deficit	$	(21,090,557)	$	(22,178,630)
Shareholder’s Equity	$	(6,574,211)	$	(6,777,128)

 

Outlook

The gulf region’s robust economy, due in large part to strong oil prices, has shown an increasing demand for our products and services. Customers continue to recognize our quality of work and track record and this has resulted in large increases in the volume of work from our major customers and expansion into several new customers, primarily in the financial and government sectors.

 

Some customers are now making use of the technical, IT and professional services we offer through our Egypt Offshore Centre. This center is growing fast and we aim to make it one of the leading offshore centers in the region. We are excited about the increasing demand for this offering model as we expand our business into new verticals that include government and financial sectors.

 

With the demand for our software product; NTGapps digital toolbox, we anticipate being able to continue to expand into new verticals. As NTGapps includes tools related to Telecom operators and small and medium enterprise (SME) end-to-end business operations, we are already seeing demand in the financial and government sectors and we see this as an opportunity to present our product for use in other verticals.

 

We now 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 2023. For more information, visit www.ntgapps.com.

  

In an unrelated matter, the Company announced that share options will be issued for each member of the Company’s Board of Directors; Ashraf Zaghloul and Kristine Lewis will receive 300,000 share options each; Saleem Siddiqi and Zeeshan Hasnain will receive 150,000 share options each. Each option will be exercisable at a price of $0.05 per share and will vest immediately.

  

About NTG Clarity Networks Inc.

NTG Clarity Networks’ vision is to be a global leader in providing networking solutions. As a Canadian company established 30 years ago in 1992, NTG Clarity has delivered networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 500 network professionals provide design, engineering, implementation, software development and security expertise to the industry’s leading network service providers and 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.

 

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

 

For Further Information:

Kristine Lewis, President, NTG Clarity Networks Inc.

Ph: 905-305-1325

Fax: 905-752-0469

Email:klewis@ntgclarity.com