NTG Clarity Networks Announces Record Second Quarter
NTG Clarity Networks Announces Record Second Quarter 2014 Financial Results
Monday, August 18, 2014
NTG Clarity Networks Announces Record Second Quarter 2014 Financial Results
06:00 EDT Monday, August 18, 2014
(via Thenewswire.ca)
Toronto, ON / TNW-ACCESSWIRE / August 18, 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), a world leader in the telecommunications OSS/BSS market, today reported record second quarter 2014 revenues of $3,895,196 as compared to $2,149,380 in the same period last year, an 81% increase. Year to date revenues are $6,828,945 compared to $3,636,252 in 2013, an 88% increase (All amounts in Canadian dollars).
The Company reported net income for the three months ended June 30, 2014 of $910,222 before taxes or $631,722 after taxes, compared to a net income of $829,403 (no taxes) for the comparable period last year. For the six month period, pre-tax earnings were $1,184,224 or $0.03 per share this year compared to $1,031,467 or $0.03 per share last year. The Company booked income taxes of $350,000 for YTD 2014 resulting in net after tax income of $834,224.
As at June 30, 2014, NTG Clarity had positive working capital of $5,434,931 ($0.15 per share) and no long-term debt.
Income statement highlights for the three and six months ended June 30, 2014 and 2013
|
3 Months Ended
|
6 Months Ended
|
|
June 30, 2014
|
June 30, 2013
|
June 30, 2014
|
June 30, 2013
|
|
REVENUE
|
$
|
3,895,196
|
$
|
2,149,380
|
$
|
6,828,945
|
$
|
3,636,252
|
|
COST OF SALES
|
|
2,054,493
|
|
793,825
|
|
3,700,464
|
|
1,581,150
|
|
GROSS PROFIT
|
$
|
1,840,703
|
$
|
1,355,555
|
$
|
3,128,481
|
$
|
2,055,102
|
|
Expenses
|
|
898,383
|
|
699,400
|
|
2,173,055
|
|
1,227,023
|
|
Foreign exchange loss (gain)
|
|
32,098
|
|
(173,248)
|
|
(228,798)
|
|
(203,388)
|
|
Net Income before taxes
|
|
910,222
|
|
829,403
|
|
1,184,224
|
|
1,031,467
|
|
Net Income after taxes
|
$
|
631,722
|
$
|
829,403
|
$
|
834,224
|
$
|
1,031,467
|
|
|
|
|
|
|
|
|
|
|
Per Share
|
$
|
0.02
|
$
|
0.03
|
$
|
0.02
|
$
|
0.03
|
Balance Sheet Highlights for the six months ended June 30, 2014 and December 31, 2013
|
June 30, 2014
|
|
Dec. 31, 2013
|
|
Current Assets
|
$
|
9,923,561
|
|
$
|
7,323,086
|
|
Current Liabilities
|
$
|
4,488,630
|
|
$
|
2,962,225
|
|
Long-Term Debt
|
$
|
0 |
|
$
|
82,986
|
|
Shareholder's Equity
|
$
|
8,319,344
|
|
$
|
7,263,837
|
The first half of 2014 has been a record period for NTG Clarity with revenues remaining on pace with management's projections. Net income has been more challenging with the Company now being subject to full income taxes due to significant positive earnings over the past two years. Management is working diligently to improve margins and is seeking accretive acquisitions to reduce taxes payable.
NTG Clarity also recorded additional expenses this year due to the opening of new offices in Qatar and Kuwait, which is expected to lead to increased sales going forward. Share based payments, general & administrative expenses, selling and marketing expenses, depreciation & amortization, and foreign income taxes showed increases over the prior period, while interest expenses declined due to the more favourable interest rates on the Company's new line of credit. Overall, total expenses as a percentage of revenues for the three month period dropped to 23% compared to 33% in the prior year, while 6 month expenses totaled 32% of sales in 2014 compared to 34% of sales in 2013.
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. Mobile applications have been the fastest growing technology trend with NTG's mobile application development being increasingly chosen as a leading product in these markets.