Toronto, ON / ACCESSWIRE / November 26, 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), a world leader in the telecommunications OSS/BSS market, today reported record third quarter 2014 revenues of $4,557,801 as compared to $3,767,669 in the same period last year, a 21% increase. Year to date revenues are $11,386,745 compared to $7,403,921 in 2013, a 54% increase (All amounts in Canadian dollars).
The Company reported net income for the three months ended September 30, 2014 of $1,102,674 before taxes or $712,674 after taxes, compared to net income of $784,669 (no taxes) for the comparable period last year. For the nine month period, pre-tax earnings were $2,286,897 or $0.06 per share this year compared to $1,816,136 or $0.06 per share last year. The Company booked income taxes of $740,000 for the nine months ended September 30, 2014, resulting in net after tax income of $1,546,897 or $0.04 per share.
As at September 30, 2014, NTG Clarity had positive working capital of $6,235,279 ($0.17 per share) and no long-term debt.
Income statement highlights for the three and nine months ended September 30, 2014 and 2013
-------------------------------------------------------------------------------------- | |3 Months Ended |9 Months Ended | |------------------------------------------------------------------------------------| | |September |September |September |September | | |30, |30, |30, |30, | | |2014 |2013 |2014 |2013 | |------------------------------------------------------------------------------------| |REVENUE |$ |4,557,801|$ |3,767,669|$ |11,386,745|$ |7,403,921| |------------------------------------------------------------------------------------| |COST OF SALES | |2,374,706| |2,102,245| |6,075,169 | |3,683,395| |------------------------------------------------------------------------------------| |GROSS PROFIT |$ |2,183,095|$ |1,665,424|$ |5,311,576 |$ |3,720,526| |------------------------------------------------------------------------------------| |Expenses | |953,931 | |839,203 | |3,126,986 | |2,066,226| |------------------------------------------------------------------------------------| |Foreign | |126,491 | |41,552 | |(102,307) | |(161,836)| |exchange loss | | | | | | | | | |(gain) | | | | | | | | | |------------------------------------------------------------------------------------| |Net Income before taxes| |1,102,674| |784,669 | |2,286,897 | |1,816,136| |------------------------------------------------------------------------------------| |Net Income after taxes |$ |712,674 |$ |784,669 |$ |1,546,897 |$ |1,816,136| |------------------------------------------------------------------------------------| | | | | | | | | | | |------------------------------------------------------------------------------------| |Per Share |$ |0.02 |$ |0.02 |$ |0.04 |$ |0.06 | --------------------------------------------------------------------------------------
Balance Sheet Highlights for the nine months ended September 30, 2014 and December 31, 2013
------------------------------------------------------------- | |September 30, 2014 | |Dec. 31, 2013 | |-----------------------------------------------------------| |Current Assets |$ |11,507,495| |$ |7,323,086| |-----------------------------------------------------------| |Current Liabilities|$ |5,272,216 | |$ |2,962,225| |-----------------------------------------------------------| |Long-Term Debt |$ |0 | |$ |82,986 | |-----------------------------------------------------------| |Shareholder’s |$ |9,133,624 | |$ |7,263,837| |Equity | | | | | | -------------------------------------------------------------
Management is very pleased with the Company's financial performance YTD in 2014. Revenues are now ahead of pace for projections set earlier this year, and with pre-tax earnings up more than 25% during the first nine months of the year, NTG Clarity is delivering another record year for its shareholders. The new office in Qatar is now contributing to revenue and the new Kuwait office is now set up. These will expand our sales reach in those countries as well as the Gulf region.
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. Our NTS software and dedicated professionals continue to be in high demand. Additional software contracts announced in the last few months reflect our customer's satisfaction with NTG's products and services.
Also, as mobile applications have been the fastest growing technology trend, NTG's mobile application development is being increasingly chosen as a leading product in these markets. NTG provides mobile application development and outsourcing of experienced resources to the industry. We also develop apps, for our customers and our own products, including front ends to NTS and the technology development of Mi-World Mall Inc. of which we own 53%. Set for soft launch in December 2014, Mi-World will provide customers with a smart phone-based shopping experience and access to local community organizations and information and we are actively marketing this software to international companies.
On November 20, 2014 NTG Clarity filed with the TSX Venture Exchange a notice of intention to make a normal course issuer bid to purchase for cancellation up to one million of the Company's issued and outstanding common shares. The purchases are to be made through the facilities of the TSX Venture Exchange or other recognized marketplaces during the period from Nov. 27, 2014, to Nov. 26, 2015, or the date by which NTG Clarity has purchased the full allotment of shares. Purchases pursuant to the bid will be made by Global Maxfin Capital Inc. on behalf of the Company. Given the strong financial performance and stable financial position of the Company, the board of directors of NTG Clarity do not believe that the current market prices of NTG Clarity's shares reflect the underlying value of the Company and thus believe that the purchase and cancellation of its shares represent a good use of available capital and will be advantageous to existing shareholders.
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.
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 $0.23 per share and will vest six months from date of issuance.
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 250 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: [email protected]
Kristine Lewis, President, NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: [email protected]
SOURCE: NTG Clarity Networks Inc.