(TheNewswire)
Toronto, ON / TheNewswire / November 16, 2017 / NTG Clarity Networks Inc. (TSX.V:NCI)
, a world leader in the telecommunications OSS/BSS market, is pleased to provide its
financial and operating results for the third quarter of 2017. After an aggressive cost reduction process, management has
successfully returned the Company to profitability in the third quarter.
Consolidated revenue for the three months ended September 30, 2017 increased to $3,309,135 compared to
$3,262,742 for the same period in 2016 and is made up of product-related revenue, professional services and a small amount for
hardware. Year to date revenues are down slightly to $ 10,466,021 compared to $10,773,204
in 2016 (All amounts in Canadian dollars).
For the first nine months of 2017, the gross margin was $3,721,078 or 36%, compared to $4,329,645 or 40% for
the same period in 2016.
Year to date, selling expenses decreased by 21% to $1,578,237, compared to $2,008,689 in 2016. This decrease
was due to restrictions implemented for travel and marketing expenses, as well as some salary reductions.
General and administration (G&A) continued to fall in the third quarter of 2017 to $901,181, compared to
$1,072,884 during the same period in 2016. For the first three quarters of 2017, general and administrative costs decreased to
$2,351,057 from $3,850,572 during the same period in 2016. This 39% decrease was due mainly to the continued reduction of
staff/salaries and consulting costs, lower occupancy costs in Canada and Kuwait, and the reduction of research activities related
to our new software product StageEM.
For Q3 2017, the Corporation recorded a net income of $131,308, compared to a net loss of ($881,497) for the
same period in 2016. For the nine months ended September 30, 2017, NTG Clarity recorded a net loss of ($706,810) compared to a net
loss of ($3,877,251) in 2016, an 82% improvement. Though a significant improvement over the same period in 2016, factors
contributing to the year to date net loss continue to include end of service (severance) salary costs due to reductions of selling
and G&A staff and rental expense obligations for offices/accommodations. We continue to work to reduce salary costs and other
expenses and anticipate this effort to continue going forward.
Income statement highlights for the three and nine months ended September 30, 2017
and 2016
|
3 Months Ended
|
9 Months Ended
|
|
September 30, 2017
|
September 30, 2016
|
September 30, 2017
|
September 30, 2016
|
REVENUE
|
$
|
3,309,135
|
$
|
3,262,742
|
$
|
10,466,021
|
$
|
10,773,204
|
COST OF SALES
|
|
1,458,379
|
|
2,099,286
|
|
6,744,943
|
|
6,443,560
|
GROSS PROFIT
|
$
|
1,850,756
|
$
|
1,163,456
|
$
|
3,721,078
|
$
|
4,329,645
|
Expenses
|
|
1,776,196
|
|
1,979,723
|
|
4,605,401
|
|
6,920,644
|
Foreign exchange loss (gain)
|
|
(58,633)
|
|
32,772
|
|
(17,506)
|
|
848,898
|
Exchange loss (gain) on translation
|
|
885
|
|
32,458
|
|
230,153
|
|
437,354
|
Reversal of impairment of unbilled revenue
|
|
|
|
|
|
425,172
|
|
|
Total Net Income (Loss)
|
$
|
131,308
|
$
|
(881,497)
|
$
|
(706,810)
|
$
|
(3,877,251)
|
|
|
|
|
|
|
|
|
|
Per Share
|
$
|
0.003
|
$
|
(0.024)
|
$
|
(0.017)
|
$
|
(0.107)
|
Balance Sheet Highlights for the nine months ended September 30, 2017 and December
31, 2016
|
September 30, 2017
|
|
Dec. 31, 2016
|
Current Assets
|
$
|
7,017,273
|
|
$
|
6,086,530
|
Current Liabilities
|
$
|
12,025,807
|
|
$
|
11,205,545
|
Long-Term Debt
|
$
|
0 |
|
$
|
0 |
Shareholder’s Equity
|
$
|
(3,083,984)
|
|
$
|
(2,820,821)
|
At the end of 2016 and throughout 2017, we have focused efforts on reducing our costs and bringing expenses in
line with revenues, as the Middle East continues to grapple with a depressed economy due mainly to lower oil prices. We can see the
effects of these measures in Q3 2017 as NTG Clarity was able to return to profitability. Management will continue these efforts
going forward.
Subsequent to the end of the third quarter, the Company has announced new contracts totaling $4.8 million which
is expected to have an immediate impact on financial and operating results for the succeeding quarters. Management continues to
work on potential new contracts and is looking to capitalize on the economic improvement that is now becoming apparent in the
Middle East as oil prices stabilize.
In an unrelated matter, the Company announced that 100,000 share options will be issued for Mr. Nick
Hamilton-Piercy, 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 be to replace expired options.
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 400 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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