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NTG Clarity Awarded $3.4 Million Letter of Intent



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By dquinton

Posted: Thursday Nov 16 7:12:17AM 2017

NTG Clarity is profitable again in Q3/17.  Financial results have improved every quarter over the past year.  Still some balance sheet improvement needed but if the company can continue even at this level the stock is trading at less than 3 times earnings (using Q3 annualized earnings). 

2017-11-16 06:30 PT - News Release

Ms. Kristine Lewis reports

NTG CLARITY NETWORKS ANNOUNCES THIRD QUARTER 2017 FINANCIAL RESULTS

NTG Clarity Networks Inc. has provided its financial and operating results for the third quarter of 2017. After an aggressive cost reduction process, management has successfully returned the Company to profitability in the third quarter.

Consolidated revenue for the three months ended September 30, 2017 increased to $3,309,135 compared to $3,262,742 for the same period in 2016 and is made up of product-related revenue, professional services and a small amount for hardware. Year to date revenues are down slightly to $ 10,466,021 compared to $10,773,204 in 2016 (All amounts in Canadian dollars).

For the first nine months of 2017, the gross margin was $3,721,078 or 36%, compared to $4,329,645 or 40% for the same period in 2016.

Year to date, selling expenses decreased by 21% to $1,578,237, compared to $2,008,689 in 2016. This decrease was due to restrictions implemented for travel and marketing expenses, as well as some salary reductions.

General and administration (G&A) continued to fall in the third quarter of 2017 to $901,181, compared to $1,072,884 during the same period in 2016. For the first three quarters of 2017, general and administrative costs decreased to $2,351,057 from $3,850,572 during the same period in 2016. This 39% decrease was due mainly to the continued reduction of staff/salaries and consulting costs, lower occupancy costs in Canada and Kuwait, and the reduction of research activities related to our new software product StageEM.

For Q3 2017, the Corporation recorded a net income of $131,308, compared to a net loss of ($881,497) for the same period in 2016. For the nine months ended September 30, 2017, NTG Clarity recorded a net loss of ($706,810) compared to a net loss of ($3,877,251) in 2016, an 82% improvement. Though a significant improvement over the same period in 2016, factors contributing to the year to date net loss continue to include end of service (severance) salary costs due to reductions of selling and G&A staff and rental expense obligations for offices/accommodations. We continue to work to reduce salary costs and other expenses and anticipate this effort to continue going forward.


 
Income statement highlights for the three and nine months ended September 30, 2017 and 2016

3 Months Ended 9 Months Ended
September 30, 2017September 30, 2016September 30, 2017 September 30, 2016
REVENUE $ 3,309,135 $ 3,262,742 $ 10,466,021 $ 10,773,204
COST OF SALES 1,458,379 2,099,286 6,744,943 6,443,560
GROSS PROFIT $ 1,850,756 $ 1,163,456 $ 3,721,078 $ 4,329,645
Expenses 1,776,196 1,979,723 4,605,401 6,920,644
Foreign exchange loss (gain) (58,633) 32,772 (17,506) 848,898
Exchange loss (gain) on translation 885 32,458 230,153 437,354
Reversal of impairment of unbilled revenue 425,172
Total Net Income (Loss) $ 131,308 $ (881,497) $ (706,810) $ (3,877,251)

Per Share $ 0.003 $ (0.024) $ (0.017) $ (0.107)


At the end of 2016 and throughout 2017, we have focused efforts on reducing our costs and bringing expenses in line with revenues, as the Middle East continues to grapple with a depressed economy due mainly to lower oil prices. We can see the effects of these measures in Q3 2017 as NTG Clarity was able to return to profitability. Management will continue these efforts going forward.

Subsequent to the end of the third quarter, the Company has announced new contracts totaling $4.8 million which is expected to have an immediate impact on financial and operating results for the succeeding quarters. Management continues to work on potential new contracts and is looking to capitalize on the economic improvement that is now becoming apparent in the Middle East as oil prices stabilize.

In an unrelated matter, the Company announced that 100,000 share options will be issued for Mr. Nick Hamilton-Piercy, a member of the Board of Directors for the Company. Each option will be exercisable at a price of $0.10 per share and will be to replace expired options.

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 400 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.


By cjack

Posted: Friday Apr 8 1:25:02PM 2016

Year-end results were very disappointing and did not jive well with the Q3 numbers.  It seems like a lot of expenses were suddenly realized in the audited financials that they did not book in the first three quarters.  While that is not unheard of it feels like bad internal accounting.  Receivables are huge and given their customers it makes me uneasy.  I am not really buying the growth story anymore, since so much of revenue depends on lumpy contracts...  I had high hopes for this one, but I'm ready to move on.  :(  For the rest of you, that's a clear buy signal.  :)     


By dquinton

Posted: Wednesday Mar 16 10:15:29AM 2016

NTG Clarity Awarded an Estimated $1.8 Million Utility Billing Agreement in Egypt

 

Toronto, ON and Cairo, Egypt / TNW-Accesswire / March 16, 2016 / NTG Clarity Networks Inc. (TSX.V:NCI). NTG is pleased to announce that the Company has signed Phase 1 of its largest ever Utility Billing contract, with the value of the total contract estimated to be at $1.8 Million CDN over a two-year period. The contract has been signed with one of the largest Water Utility companies in Egypt. NTG’s Egyptian Subsidiary, NTG Egypt Advanced Software, will provide NTG’s NTS Billing Solution, an ERP solution, related hardware, networks and connectivity for the client, who is in process of automating all its operations within its headquarters and over 30 branches.

 

NTG will provide this ambitious project over two phases. Phase 1 will include installing NTG’s proprietary NTS Billing solution with all its modules and mobile add-on modules, as well as the servers, desktops, printers, network appliances and network, connectivity and backup connections for over 30 branches. The value of Phase 1 is estimated to be  $660,000 CDN and will be delivered by end of August, 2016.

Phase 2 is an ERP solution to cover all the Company operations and the rest of the needed hardware, printers and other accessories. This phase is expected to be delivered by end of 2017.

NTG has been in the Utility Billing application business in Egypt since 2002, where our first full single source integrated solution was implemented successfully in Aswan Water Company. Since then, the application has been enriched with many features and several mobile application add-ons. This awarded NTG with more implementations in Egypt and Saudi Arabia, including Egypt’s largest Water Utility Company and two others.

NTG Egypt has been representing an increasing share of the Company business over the years and this project will help significantly increase its share this year.

“We are very proud to be chosen to provide this critical project and have accepted the challenge posed by the tight delivery schedule for the first phase. We are looking forward to completing this phase on time and to add more successful implementations to our Egypt Portfolio” said Adel Zaghloul, NTG Egypt Chairman and CEO.


By dquinton

Posted: Wednesday Nov 26 10:26:36AM 2014

NTG Clarity Networks Announces Record Third Quarter 2014 Financial Results

Toronto, ON / TNW-Accesswire / November 26, 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), a world leader in the telecommunications OSS/BSS market, today reported record third quarter 2014 revenues of $4,557,801 as compared to $3,767,669 in the same period last year, a 21% increase. Year to date revenues are $11,386,745 compared to $7,403,921 in 2013, a 54% increase (All amounts in Canadian dollars).

The Company reported net income for the three months ended September 30, 2014 of $1,102,674 before taxes or $712,674 after taxes, compared to net income of $784,669 (no taxes) for the comparable period last year. For the nine month period, pre-tax earnings were $2,286,897 or $0.06 per share this year compared to $1,816,136 or $0.06 per share last year. The Company booked income taxes of $740,000 for the nine months ended September 30, 2014, resulting in net after tax income of $1,546,897 or $0.04 per share.

As at September 30, 2014, NTG Clarity had positive working capital of $6,235,279 ($0.17 per share) and no long-term debt.

 

Income statement highlights for the three and nine months ended September 30, 2014 and 2013

 

 

3 Months Ended

9 Months Ended

 

September 30, 2014

September 30, 2013

September 30, 2014

September 30, 2013

REVENUE

$

4,557,801

$

3,767,669

$

11,386,745

$

7,403,921

COST OF SALES

 

2,374,706

 

2,102,245

 

6,075,169

 

3,683,395

GROSS PROFIT

$

2,183,095

$

1,665,424

$

5,311,576

$

3,720,526

Expenses

 

953,931

 

839,203

 

3,126,986

 

2,066,226

Foreign exchange loss (gain)

 

126,491

 

41,552

 

(102,307)

 

(161,836)

Net Income before taxes

 

1,102,674

 

784,669

 

2,286,897

 

1,816,136

Net Income after taxes

$

712,674

$

784,669

$

1,546,897

$

1,816,136

 

 

 

 

 

 

 

 

 

Per Share

$

0.02

$

0.02

$

0.04

$

0.06

 

 

Balance Sheet Highlights for the nine months ended September 30, 2014 and December 31, 2013

 

 

 

September 30, 2014

 

Dec. 31, 2013

Current Assets

$

11,507,495

 

$

7,323,086

Current Liabilities

$

5,272,216

 

$

2,962,225

Long-Term Debt

$

0

 

$

82,986

Shareholder’s Equity

$

9,133,624

 

$

7,263,837

 

 

Management is very pleased with the Company’s financial performance YTD in 2014.  Revenues are now ahead of pace for projections set earlier this year, and with pre-tax earnings up more than 25% during the first nine months of the year, NTG Clarity is delivering another record year for its shareholders.  The new office in Qatar is now contributing to revenue and the new Kuwait office is now set up. These will expand our sales reach in those countries as well as the Gulf region.

One of the reasons for our strong growth that continues in 2014 has been a renewed international focus on state-of-the-art technology and networking capabilities.  Our NTS software and dedicated professionals continue to be in high demand. Additional software contracts announced in the last few months reflect our customer’s satisfaction with NTG’s products and services.

Also, as mobile applications have been the fastest growing technology trend, NTG’s mobile application development is being increasingly chosen as a leading product in these markets. NTG provides mobile application development and outsourcing of experienced resources to the industry. We also develop apps, for our customers and our own products, including front ends to NTS and the technology development of Mi-World Mall Inc. of which we own 53%. Set for soft launch in December 2014, Mi-World will provide customers with a smart phone-based shopping experience and access to local community organizations and information and we are actively marketing this software to international companies.

On November 20, 2014 NTG Clarity filed with the TSX Venture Exchange a notice of intention to make a normal course issuer bid to purchase for cancellation up to one million of the Company’s issued and outstanding common shares.  The purchases are to be made through the facilities of the TSX Venture Exchange or other recognized marketplaces during the period from Nov. 27, 2014, to Nov. 26, 2015, or the date by which NTG Clarity has purchased the full allotment of shares. Purchases pursuant to the bid will be made by Global Maxfin Capital Inc. on behalf of the Company. Given the strong financial performance and stable financial position of the Company, the board of directors of NTG Clarity do not believe that the current market prices of NTG Clarity's shares reflect the underlying value of the Company and thus believe that the purchase and cancellation of its shares represent a good use of available capital and will be advantageous to existing shareholders. 

Looking towards the future, we remain committed to our growth strategy and continue to focus on growing organic operations, expanding our marketing reach geographically and enhancing our product offering. We are also looking to increase our reach through acquisitions and/or partnerships with global system integrators.

 

In an unrelated matter, the Company announced that 100,000 share options will be issued for Mr. Nick Hamilton-Piercy, a member of the Board of Directors for the Company. Each option will be exercisable at a price of $0.23 per share and will vest six months from date of issuance.


By Bobwins

Posted: Wednesday Nov 26 7:45:25AM 2014

NCI.v  +.04 to C$.33   NTG reported a good qtr  with increased revs to 4.55million and net profits of 713K or .02eps.

Paying taxes this year vs none last year so eps was similar to last year.  YTD .04eps

 


By Bobwins

Posted: Wednesday Apr 16 9:56:44AM 2014

NCI.v  -.005 to C$.335    NTG announced 2013 earnings of .05eps FD.  Q4 was down from previous qtrs, with a small profit of 131K so didn't add to eps number from Q3.  Still cheap at 7X ttm eps but expenses are up so profit margins may not be as high as it looked earlier in 2013.  

 

http://www.stockhouse.com/news/press-releases/2014/04/15/ntg-clarity-networks-announces-2013-year-end-financial-results


By Josh_Kier

Posted: Friday Mar 14 1:03:31PM 2014

NTG Clarity Awarded $3.4 Million Letter of Intent for NTG Resources

 

Toronto, ON / TNW-ACCESSWIRE / March 13, 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), is pleased to announce that the Company has received a Letter of Intent from a leading mobile operator in the Gulf region to provide software development resources, telecom consultants, and project management resources. NTG has already started work on this LOI and approximately 25% of the total amount was recognized in 2013. The remainder of the LOI is expected to be completed by the end of June 2014.

 

This is the confirmation of the extension of one of the contracts mentioned in our shareholder update release on March 12, 2014.

 

“In the last few years, we have been working hard to establish ourselves as a leading provider of quality Telecom software products and services in the Gulf region. The renewal of this contract reflects the increasing satisfaction and confidence of our customers with regards to our extensive expertise in telecom systems and operator requirements.” said Ashraf Zaghloul, NTG Clarity’s Chairman and CEO.

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 200 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:

Doren Quinton, President QIS Capital

Ph: 250-377-1182

Fax: 250-377-1183

Email: info@smallcaps.ca


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