(via Thenewswire.ca)
Toronto, ON / TheNewswire / August 26, 2016 / NTG Clarity Networks Inc. (TSX.V:NCI), a world leader in the telecommunications OSS/BSS market, today reported second quarter 2016 revenues of $5,077,129, as
compared to $3,031,041 in 2015, a 68% increase. (All amounts in Canadian dollars). For the first half of 2016, revenues were
$7,510,462 as compared to $8,033,202, a 7% decline.
In Q4 2015 and the first half of 2016, we significantly expanded our location and customer base
with new customers in KSA, Egypt and Kuwait. As a result, our selling and G&A increased significantly as we incurred expenses
for our new offices/staff in Oman and Kuwait and for new sales personnel. The uncertainty in the Middle East due to lower oil
prices has delayed the awarding of new projects and we have been experiencing longer lead time to close new projects. However with
the stability and increase of oil prices, renewals and new projects are starting up again. We are working to reduce G&A costs,
as contracts allow, and continue to work to optimize marketing and selling costs, based on our revenue.
Gross margin for the three months ended June 30, 2016 increased to 49% (Q2 2015: 40%), and for the
six months was 42% (2015: 37%) as we work to optimize the costs of delivering our products and services. New projects are up and
running and resource/maintenance costs have levelled out. We expect gross margins to stabilize between 40-45% as the product mix
will vary.
Of particular note during the second quarter, we recorded a loss on foreign exchange of $801,614
compared to a gain of $259,038 during the same period in 2015. As a result, the net loss in Q2 2016 was $1,009,297 compared
to net income of $166,270 in Q2 2015. The second quarter net loss was 50% smaller than Q1 2016 as we are
working to increase sales from new offices, and to lower costs and improve
margins.
As at June 30, 2016, NTG Clarity had positive working capital of $902,783 and no long-term
debt.
Income statement highlights for the three and six months ended June 30,
2016 and 2015
| |
3 Months Ended
|
6 Months Ended
|
| |
June 30, 2016
|
June 30, 2015
|
June 30, 2016
|
June 30, 2015
|
|
REVENUE
|
$
|
5,077,129
|
$
|
3,031,041
|
$
|
7,510,462
|
$
|
8,033,202
|
|
COST OF SALES
|
|
2,606,941
|
|
1,820,542
|
|
4,344,273
|
|
5,067,884
|
|
GROSS PROFIT
|
$
|
2,470,188
|
$
|
1,210,499
|
$
|
3,166,189
|
$
|
2,965,318
|
|
Expenses
|
|
2,593,073
|
|
1,390,760
|
|
4,940,921
|
|
2,342,202
|
|
Foreign exchange loss (gain)
|
|
801,614
|
|
(259,038)
|
|
816,126
|
|
(561,108)
|
|
Net Income before taxes
|
|
(924,499)
|
|
78,777
|
|
(2,590,858)
|
|
988,759
|
|
Other comprehensive (loss)
|
|
(84,798)
|
|
|
|
(404,896)
|
|
|
|
Net Income after taxes
|
$
|
(1,009,297)
|
$
|
166,270
|
$
|
(2,995,754)
|
$
|
888,759
|
| |
|
|
|
|
|
|
|
|
|
Per Share
|
$
|
(0.03)
|
$
|
0.00
|
$
|
(0.08)
|
$
|
0.02
|
Balance Sheet Highlights for the six months ended June 30, 2016 and
December 31, 2015
| |
June 30, 2016
|
|
Dec. 31, 2015
|
|
Current Assets
|
$
|
9,394,655
|
|
$
|
11,887,900
|
|
Current Liabilities
|
$
|
8,491,882
|
|
$
|
7,220,191
|
|
Long-Term Debt
|
$
|
0 |
|
$
|
0 |
|
Shareholder’s Equity
|
$
|
6,692,301
|
|
$
|
9,592,137
|
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.
We have had challenges over the last few quarters as we position ourselves for future growth. We
have had net losses resulting in a deficit to carry forward, however we have reduced our losses from Q1 to Q2 2016. With the
stabilization of oil prices, we are on the path to return to profitability.
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 350 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
Investor Relations
Ph: 250-377-1182
Fax: 250-377-1183
Email: info@smallcaps.ca
Kristine Lewis, President, NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: klewis@ntgclarity.com
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