News ReleaseNTG Clarity Announces Record-Setting Year-End 2023 Financial Results With Revenue of $27.7M and Profit of $2.3M
NTG Clarity Networks Inc.
Toronto, ON / T he N ewswire - Accesswire / April 29, 2024 / NTG Clarity Networks Inc. (TSX.V:NCI; OTC: NYWKD) reports its fourth quarter and year end results for the fiscal year ended December 31, 2023 (all figures in Canadian Dollars). The following is NTG Clarity CEO Ashraf Zaghloul’s letter to shareholders for year-end 2023. 2023 has been a historic year for NTG Clarity. With every quarter breaking all-time revenue records, we’re experiencing growth never before seen in our more than 30 years in business. Revenues for 2023 were up 57% to $27.7M compared to $17.65M in 2022 with a profit of $2.3M in 2023, up 190% from $788K in 2022, making three consecutive profitable years. With a global trend of enterprises undergoing rapid digital transformation, both our offerings of outsourced software development resources and proprietary software products have seen rapidly growing demand that shows no signs of slowing down. Since embracing our new offshore model in 2021, we’ve been able to connect more clients with talented candidates faster, accelerating their digital transformation journeys. All while at a lower cost to clients and a higher margin for us. This is the primary driver behind our profitability in the last three years. To accommodate the increase in demand, we expanded our Egypt Offshore Center by opening a new office in Cairo, Egypt in 2023. This office in the Al-Aghouza district along the Nile River, our third in Cairo, has since become our flagship offshore resource campus, with space for more than one hundred new staff and room to expand further when needed in the future. In 2023, we solidified our commitment to education, training, and personal development by opening the NTG School which is part of the NTG Academy, in cooperation with the Egyptian Ministry of Education. This partnership aims to equip Egyptian secondary technology school students with a dual curriculum, integrating NTG’s specialized technology training alongside the ministry’s curriculum. NTG proudly dedicates a team of educational engineers ensuring comprehensive training for the next generation in the exciting field of digital transformation. Although most of our growth was due to increased demand for our outsourcing services, our software product line is picking up. Many of our existing customers in the Finance, Telecom, and IT sectors are embracing the NTGapps platform as a way to rapidly develop business apps to simplify day-to-day operations with no developer resources required. New customers in sectors like Food & Beverage and Logistics & Distribution are also signing on to have end-to-end ERP systems developed on our NTGapps platform. We continue to improve our working capital, with our deficit down 41% to $2,092,663 from 2022 to 2023. Our growth in 2023 has enabled us to prioritize getting legacy debts repaid. Going into 2024, we also look forward to paying down our long-term debts incurred when refocusing the business in 2019. Our non-current liabilities are majority management-owned and relatively low-cost with flexible repayment terms. We kick-started this growth and repayment process in December 2023 with the closing of a private placement with proceeds of $1,110,000, to be used for accounts payable and other corporate initiatives. As our revenues continue to grow and we remain comfortably self-funded, we’re constantly looking for ways to invest and grow even faster. In July 2023, we received approval from shareholders to perform a five-to-one share consolidation. Although the consolidation has not been executed by the end of 2023, we’re looking forward to cleaning up our count of shares outstanding and bringing a little more stability to the stock with a higher price per share. Shareholders can also enjoy higher earnings per share due to the lower share count, but also due to our strong growth trajectory. Income Statement Highlights for the Year Ended December 31, 2023 and 2022 Balance Sheet Highlights Outlook Entering 2024, we’d like to share NTG Clarity’s Commitment to: Customers by providing flexible, quality services at a competitive price. We accelerate and simplify the digital transformation journey for our clients by providing the right solution delivered by passionate professionals both on their sites and offshore. People by helping our staff grow and develop personally and professionally. We empower our staff to build and deliver challenging projects while providing opportunities for training and career advancement both internally and outside NTG. Shareholders by continuing our growth trajectory and profitability. With purchase orders on-hand and contracts we expect to close, we project our 2024 revenue to approximately double to $50 Million. With three years of consistent profitability under our belt, we’re actively identifying opportunities to make sure as much of this new revenue as possible flows on to the bottom line. Community by passing our experience down to the next generation. We provide youth education and employment opportunities tailored to the modern job market through NTG School. We’re very excited to continue our successful growth into 2024 and use our growing funds to create value for our shareholders by reinvesting into further growth, and also paying down our longer-standing debts. I’d like to thank you, our valued investors, for your continued confidence. Looking forward to another successful year in 2024. About NTG Clarity Networks Inc. NTG Clarity Networks’ vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 600 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry’s leading 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. For Further Information: Adam Zaghloul, Vice President, Strategy & Planning NTG Clarity Networks Inc. Ph: 905-305-1325 Fax: 905-752-0469 Email: adam@ntgclarity.com Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
April 29, 2024 05:00 PM Eastern Daylight Time
