Toronto, ON - TheNewswire - November 14, 2023 - NTG Clarity Networks Inc. (TSX.V:NCI) (OTC:NYWKF), announces its third quarter results for the period ended September 30, 2023 (all figures in Canadian Dollars).

 

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). Our gross margin for the year was 44% and the income from operations was $3,273,075.

 

Our trend of rapid revenue growth has continued in 2023 with Q3 2023 having the highest single-quarter revenue ever of $7,003,553.  This is due significantly increased revenue from existing 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 revenue continues to be a strategic source of revenue for us. Given its generally recurring nature, and along with the continued expansion of our Egypt Offshore Centre, outsourcing contributed 95% (88% YTD) of our quarterly revenue.

Working capital continues to improve with September 30, 2023 being a deficit of $3,004,572 compared to a deficit of $3,557,883 at December 31, 2022, decreasing the deficit by 16% YTD.

 

Income statement 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 each quarter breaking revenue records, and with Q3 having the highest single-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 resulted in reduced revenue on translation. Since 2021, as well as supporting Egypt’s legacy customers, management has been focusing on transforming NTG Egypt into a supplier of offshore services for international customers through our Egypt Offshore Centre. This transformation will reduce our exposure to the volatile Egyptian Pound, while making our services available to international markets. Our new Cairo office, announced in August 2023, is now open and we are accommodating our expanding offshore professional service workforce.

 

KSA continues to be the major contributor to our revenue growth with $15,304,687 YTD; an increase of 146% over the same period last year. There is an increasing demand for our products and services as the region undergoes its digital transformation, with 13 new customers in the banking, real estate, and government sectors, as well as increasing work from our major 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.

 

As of the September 30, 2023, NTG has a backlog of $18.7M in unbilled amounts for POs/contracts on hand. This amount exceeds the total revenue for 2022 and puts us in a healthy position to continue our profitability and organizational growth.

 

Transactions

At the AGM held on held on July 7, 2023, shareholders voted to consolidate the common shares of the Company on the basis of up to five (5) pre-consolidation common shares for each post-consolidation common share. Management has no plans to proceed in 2023, but will be reviewing in early 2024. Should they decide to go ahead, approval would still be needed from the Board and regulators.

 

About NTG Clarity Networks Inc.

NTG Clarity Networks’ vision is to be a global leader in providing networking solutions. As a Canadian company established in 1992, NTG Clarity has delivered networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 600 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.

 

The TSX Venture Exchange does not accept responsibility for 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