NTG Clarity Networks Announces Third Quarter 2017 Financial Results

Tickers: XTSX:NCI, PINX:NYWKF
Tags: Technology

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

Balance Sheet Highlights for the nine months ended September 30, 2017 and December 31, 2016

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

Copyright (c) 2017 TheNewswire - All rights reserved.