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QIS Update #15 2013 - July 11th 2013



Included in this update:

  • NTG Clarity Networks announces record second quarter financial results
  • Virtutone Networks announces June 2013 monthly wholesale revenues

 


 

We have recently posted a new opportunity in the Financings section of the website. The complete details of NTG Clarity’s 2-year 10% convertible debenture can be viewed at www.smallcaps.ca/financings . This offering is available to accredited investors who meet the exemption requirements of the placement. Anyone wanting more information is invited to call QIS Capital at 250-377-1182 or email us at info@smallcaps.ca.

 

Please feel free to email us anytime at info@smallcaps.ca or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.




 

NTG Clarity Networks Inc. (NCI:TSX-V)
Website: www.ntgclarity.com
Current Price: $0.20 (coverage commenced Feb. 4/10 - $0.045)

 

NTG Clarity Networks Inc. has announced announce record second quarter 2013 financial results. The company experienced a 76% increase in revenues during the second quarter of 2013 to $2,149,380 compared to $1,223,697 during the same period in 2012. (All amounts in Canadian dollars).

 

NTG has generated more than $2 million in sales this quarter. This increase in revenue was mainly due to demand for the company’s professional services and product licenses. For the six months, the company posted revenues of $3,636,252 compared to $2,284,168, an increase of 59%. Gross margin was 63% for the second quarter of 2013, and 57% for the six months. Gross margins in the prior year were 39% for both the 3 and 6 month period.

 

Net income for the second quarter of 2013 increased by 299% to $829,403 or $0.03 per share and exceeded the entire annual profit from 2012. For the first half of 2013, net income rose 595% to $1,031,467 as compared to $148,341 in the first half of 2012. The increase in profitability was due mainly to increased revenues in product licenses which are market oriented and highly profitable.

As at June 30, 2013, NTG Clarity had positive working capital, net of all debt, of $1,836,806 ($0.06 per share).

 

 

LATEST FINANCIAL RESULTS
  3 Mos. Ended Jun. 30 6 Mos. Ended Jun. 30
  2013 2012 2013 2012
Revenues $2,149,380 $1,223,697 $3,636,252 $2,284,168
Cost of Sales 793,825 744,991 1,581,150 1,396,072
Gross Profit 1,355,555 478,706 2,055,102 888,096
Selling and G&A Exp. 473,381 183,260 862,131 494,983
Forex Loss (gain) (173,248) (56,277) (203,388) (17,630)
Interest Expense 39,586 54,085 78,541 99,609
Net Income 829,403 207,771 1,031,467 148,341
per share $0.027 $0.008 $0.034 $0.006

 

BALANCE SHEET
(as at Jun. 30, 2012)
Current Assets $ 4,976,854
Total Assets 8,058,315
Current Liabilities 2,981,888
Long-Term Debt 158,160
Shareholders' Equity 4,906,620

 

During the first half of 2013, NTG Clarity announced several new projects for leading mobile operators in the Gulf region, which includes NTS installations/enhancements, professional service resources and data migration. The revenue from these projects is estimated at over US$9.5 million, the bulk of which is expected to be completed during 2013.

 

At the end of June 2013, NTG Clarity made application to the TSX Venture Exchange to raise capital to fund these new projects. Subsequent to quarter end, the company received conditional approval from the Exchange for a private placement of up to $1,000,000 subordinated convertible debentures that will mature two years from closing and will bear an interest rate of 10%. The debentures are convertible, at the option of the holder, into common shares at a price of $0.25 per share at anytime during the duration of the debenture. These funds will be used as working capital to fund the company's growth.

 

In an unrelated matter, NTG Clarity announced the renewal of the Investor Relations contract with QIS Capital and is awarding 100,000 share options at a price of $0.20 per share to vest within one year.

 

QIS Capital: NTG Clarity has started to demonstrate the increase in revenues and earnings from the recently announced contracts. With net income of $1.0 million ($0.034 per share) for the first half of 2013, the company is well on its way towards a record year. It is important to note that revenues over the past four quarters are now $6.4 million with associated earnings of $1.7 million ($0.055 per share). NTG Clarity is presently trading at only 3.6 times trailing earnings. The company also has positive working capital, net of debt of $1.8 million or $0.06 per share.

 

NTG Clarity is currently working on a 2-year 10% convertible debenture available to accredited investors. The debenture is convertible into common shares at a price of $0.25 at the option of the holder. Anyone wanting more information is invited to call QIS Capital at 250-377-1182 or email us at info@smallcaps.ca.




 

Virtutone Networks Inc. (VFX:TSX-V)
Website: www.virtutone.com
Current Price: $0.22 (coverage commenced Sep. 9/11 - $0.10)

 

Virtutone Networks Inc. has announced that its wholesale division has produced over $2.2 million in revenue for the month of June.

June was a bit under our target as one of our major customers was upgrading their switch, but we have seen that traffic resume back to its previous levels and more in the last week of June. said Jason Allen, Chief Executive Officer of Virtutone. We are projecting a very strong month in July, as revenues and margins continue to increase.

The company looks forward to providing continued updates.

 


 

Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 696,500 shares and 400,000 convertible debentures of NTG Clarity Networks Inc. and 935,000 shares of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.

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