Toronto, ON / TNW-Accesswire / August 2, 2023 / NTG Clarity Networks Inc. (TSX.V:NCI), announces its second quarter results for the period ended June 30, 2023 (all figures in Canadian Dollars).

 

NTG’s continued hard work and dedication resulted in Q2 2023 being the highest single quarter revenue at $6.37M. Revenues for Q2 2023 were up 87% compared to Q2 in 2022. and we continued to be profitable for the quarter, despite significant currency devaluation challenges in Egypt.

 

Our gross margin for this quarter was 38% and the income from operations was $2,426,102. We expect these strong quarterly results to continue in 2023 due to the new contracts previously announced and the renewal of existing contracts.

 

Professional service revenue continues to be an important strategic source of revenue for us, given its generally recurring nature (84%). The contribution of product-related revenue was 16% in Q2 2023. We continue to focus on promoting and expanding our product offerings and our outsourcing/offshoring services.

 

Working capital continues to improve with June 30, 2023 being a deficit of $3,181,771 compared to a deficit of $3,557,883 at December 31, 2022.

 

Income statement highlights for the three and six months ended June 30, 2023 and 2022

 

	3 Months Ended					6 Months Ended
	June 30, 2023		June 30, 2022			June 30, 2023		June 30, 2022
REVENUE	$	6,373,261	$	3,403,633		$	12,500,439	$	7,724,237
COST OF SALES		3,947,159		1,464,883			7,818,259		4,404,552
GROSS PROFIT	$	2,426,102	$	1,938,750		$	4,682,180	$	3,319,685
Expenses		1,083,792		1,109,818			2,095,807		2,179,993
Foreign exchange loss (gain)		(176,066)		52,097			(200,731)		(35,853)
Net Income from operations		1,166,244		776,835			2,386,725		1,175,545
Other expenses		291,297		260,691			423,707		532,421
Other - Exchange (loss) gain on translation		(176,684)		(324,782)			(627,012)		102,580
Net Income after taxes	$	698,261	$	191,362		$	1,336,006	$	745,704
Per Share	$	0.00	$	0.00		$	0.01	$	0.01

 

 

Balance Sheet Highlights for the six months ended June 30, 2023 and December 31, 2022

 

	June 30, 2023		December 31, 2022
Total Assets	$	10,014,812	$	8,167,611
Total Liabilities	$	15,422,333	$	14,944,739
Deficit	$	(20,215,612)	$	(22,178,630)
Shareholder’s Equity	$	(5,407,522)	$	(6,777,128)

 

Outlook

KSA’s robust economy, due in large part to strong oil prices, continues to show increasing demand for our products and services. Customers recognize our quality of work and track record, resulting in large increases in the volume of work from our major customers and expansion into several new customers.

 

We now have more customers making use of the technical, IT and professional services we offer through our Egypt Offshore Centre. This centre is growing fast and we aim to make it one of the leading offshore centres 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.

 

Trade shows and demos have provided the opportunity to present our software product; NTGapps digital toolbox. Our dedicated team of sales personnel are targeting new customers in KSA, specifically small and medium enterprises (SME) across multiple verticals that 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.

 

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