NTG Clarity Networks Announces Third Quarter Revenues October 15, 2013. Toronto Ontario: NTG Clarity Networks Inc., (TSX VENTURE:NCI), a world leader in the telecommunications OSS/BSS market, is pleased to announce third quarter 2013 financial results.
The Company experienced a 171% increase in revenues during the third quarter of 2013 reaching $3,767,669 compared to $1,386,554 during the same period in 2012. (All amounts in Canadian dollars).
This increase in revenue was mainly due to demand for our professional services and product-related business. For the nine months, the Company posted revenues of $7,403,921 compared to $3,670,722, an increase of over 100%. Gross margin was 44% for the third quarter of 2013, and 50% for the nine months. Gross margins in the prior year were 48% and 42% for the 3 and 9 month periods respectively.
Net income for the third quarter of 2013 increased by 343% to $784,669 or $0.02 per share and again exceeded the entire annual profit from 2012. For the first 9 months of 2013, net income rose 458% to $1,816,136 or $0.06 per share as compared to $325,314 or $0.01 per share in the first three quarters of 2012. The increase in profitability was due mainly to increased revenues and higher margins.
As at September 30, 2013, NTG Clarity had positive working capital of $3,869,577 ($0.12 per share).
Income statement highlights for the three and nine months ended September 30, 2013 and 2012
------------------------------------------------------------------- |A |3 Months Ended |9 Months Ended | |-----------------------------------------------------------------| |A |Sept 30, 2013|Sept 30, 2012|Sept 30, 2013|Sept 30, | | | | | |2012 | |-----------------------------------------------------------------| |REVENUE |3,767,669 |1,386,554 |7,403,921 |3,670,722| |-----------------------------------------------------------------| |COST OF SALES|2,102,245 |718,411 |3,683,395 |2,114,483| |-----------------------------------------------------------------| |GROSS PROFIT |1,665,424 |668,143 |3,720,526 |1,556,239| |-----------------------------------------------------------------| |Expenses |839,203 |406,541 |A A A A |1,163,926| | | | |2,066,226 | | |-----------------------------------------------------------------| |Foreign |41,552 |84,629 |(161,836) |A A A | |exchange loss| | | |A 66,999 | |(gain) | | | | | |-----------------------------------------------------------------| |Net Income |784,669 |176,973 |1,816,136 |325,314 | |for the | | | | | |period | | | | | |-----------------------------------------------------------------| |A |A |A |A |A | |-----------------------------------------------------------------| |Per Share |A A A A |$0.01 |A A A A |$0.01 | | |$0.02 | |$0.06 | | -------------------------------------------------------------------
Balance Sheet highlights as at September 30, 2013 and December 31, 2012
--------------------------------------------------------- |A |Sept 30, 2013 |Dec. 31, 2012 | |-------------------------------------------------------| |Cash on hand |$ |935,110 |$ |0 | |-------------------------------------------------------| |Current Assets |$ |6,267,673|$ |3,346,388| |-------------------------------------------------------| |Current Liabilities |$ |2 |$ |2,335,628| | | |,398,096 | | | |-------------------------------------------------------| |Long-Term Debt |$ |0 |$ |82,986 | |-------------------------------------------------------| |Convertible Debenture|$ |801,118 |$ |0 | |-------------------------------------------------------| |Shareholder's |$ |6,036,319|$ |3,725,448| |Equity | | | | | ---------------------------------------------------------
During the first nine months of 2013, NTG announced several new projects for leading mobile operators in the Gulf region, which includes NTS installations/enhancements, profession service resources and data migration. The revenue from these projects is estimated at over USD $9.0 million. We have since received purchase orders for these projects and work is ongoing.
In an unrelated matter, the Company announced the following members of the Board of Directors will have share options issued; M. Zafar Farooqui; 100,000 options, Sinclair Stevens; 100,000 options, Kristine Lewis; 150,000 options; M. Adel Zaghloul; 150,000 options and Ashraf Zaghloul; 150,000 options. Each option will be exercisable at a price of $0.60 per share and will vest one half upon issuance and one half in six months time.
ABOUT NTG CLARITY NETWORKS INC
NTG Clarity Networks' vision is to be a global leader in providing networking solutions. Established in 1992, NTG Clarity has delivered networking, IT and network enabled application software solutions to network service providers and large enterprises in Canada. More than 150 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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