NTG Clarity Networks Announces Second Quarter 2019 Financial Results
(TheNewswire)
Toronto, ON - TheNewswire - August 16, 2019 - NTG Clarity Networks Inc. (TSXV:NCI), a world leader in the telecommunications OSS/BSS market, today reported revenues for the first half of 2019 of $5,651,642 compared to $6,656,899 during the first half of 2018 (All amounts in Canadian dollars). Second quarter 2018 revenues were $2,035,298, as compared to $2,607,838 during the same period in 2018. Q2 revenues were lighter than in 2018 due mainly to the completion of a contract in Kuwait.
Gross margin for Q2 2019 was $975,171 or 48%, compared to $1,231,633 or 47% for the same period in 2018. For the six months ended June 30, 2019, gross margin was $2,559,130 or 45%, compared to $2,779,464 or 42% for the same period in 2018.
G&A expenses for the three months ended June 30, 2019 were $467,061 compared to $484,087 in Q2 2018, as management worked to reduce expenses. This 4% reduction was due to the continued reduction of salaries as we reduce staff and salaries as contracts allow.
Selling expenses were also reduced by 19% during Q2/19 and totaled $495,273 compared to $612,418 during the second quarter of 2018. Selling and marketing expenses consist primarily of sales staff remuneration, commissions, travel, and consulting.
Year to date 2019, NTG Clarity reported positive income from operations of $434,632 compared to $820,140 during the same period in 2018. Factors contributing to challenges continue to include end of service (severance) salary costs due to reductions of selling and G&A staff as well as rental expense obligations.
Working capital as at June 30, 2019 was ($4,270,909) compared to ($4,861,655) as at December 31, 2018. The Company has no long-term debt.
Income statement highlights for the three and six months ended June 30, 2019 and 2018
------------------------------------------------------------------------------------ | |3 Months Ended |6 Months Ended | |----------------------------------------------------------------------------------| | |June |June |June |June | | |30, |30, |30, |30, | | |2019 |2018 |2019 |2018 | |----------------------------------------------------------------------------------| |REVENUE |$ |2,035,298|$ |2,607,838|$ |5,651,642|$ |6,656,899| |----------------------------------------------------------------------------------| |COST OF SALES | |1,060,127| |1,376,205| |3,092,512| |3,877,435| |----------------------------------------------------------------------------------| |GROSS PROFIT |$ |975,171 |$ |1,231,633|$ |2,559,130|$ |2,779,464| |----------------------------------------------------------------------------------| |Expenses | |1,253,383| |1,389,596| |2,491,387| |2,679,099| |----------------------------------------------------------------------------------| |Foreign | |30,283 | |(190,640)| |178,974 | |(181,791)| |exchange loss | | | | | | | | | |(gain) | | | | | | | | | |----------------------------------------------------------------------------------| |Net Income before taxes | |(308,494)| |32,677 | |(111,231)| |282,156 | |----------------------------------------------------------------------------------| |Other comprehensive (loss)| |19,325 | |(16,308) | |126,780 | |(105,305)| |----------------------------------------------------------------------------------| |Net Income after taxes |$ |(289,170)|$ |16,369 |$ |15,549 |$ |176,850 | |----------------------------------------------------------------------------------| | | | | | | | | | | |----------------------------------------------------------------------------------| |Per Share |$ |(0.005) |$ |0.000 |$ |0.00 |$ |0.004 | ------------------------------------------------------------------------------------Balance Sheet Highlights for the six months ended June 30, 2019 and December 31, 2018
------------------------------------------------------------- | |June 30, 2019 | |Dec. 31, 2018 | |-----------------------------------------------------------| |Current Assets |$ |7,466,097 | |$ |6,369,085 | |-----------------------------------------------------------| |Current Liabilities|$ |11,737,006 | |$ |11,230,740 | |-----------------------------------------------------------| |Long-Term Debt |$ |– | |$ |– | |-----------------------------------------------------------| |Shareholder’s |$ |(2,945,005)| |$ |(3,330,273)| |Equity | | | | | | -------------------------------------------------------------Outlook
Looking towards the future, we have returned to profitability in 2019.
In the past, we have used a direct sales model for products and service sales. We are continuing this model with our current customers; however, we have developed a new sales model to increase our marketing reach. Partnerships and subcontracting agreements will expand our reach and capitalize on the marketing and sales abilities of large corporations.
This new strategy will allow us to focus on our core business while helping us introduce our products and services to a wider audience of potential customers. New contracts under this strategy include:
- a subcontracting agreement with a well respected Global Technology provider to supply telecom and IT resources in the Middle East
- a Manpower Service Framework agreement with a large system integrator in the Gulf area to provide manpower services in the IT field
- a Services Agreement and PO with a large financial sector bank in the Middle East to supply technology resources.
Additionally, we are focusing on opportunities in both the onshore and offshore markets and will be launching a new service to enhance its sales reach, particularly in these areas.
In an unrelated matter, the Company announced that 200,000 share options will be issued for Mr. M. Saleem Siddiqi, 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 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 in 1992, NTG Clarity has delivered networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 250 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:[email protected]
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