NTG Clarity Networks Inc.

NTG Clarity Networks Inc.

June 29, 2011 11:07 ET

NTG Clarity Networks Inc. Announces First Quarter 2011 Results

TORONTO, ONTARIO--(Marketwire - June 29, 2011) - NTG Clarity Networks Inc., (TSX VENTURE:NCI), a world leader in the telecommunications OSS market, today reported its first quarter 2011 revenues of $1,764,760 as compared to $1,304,374 in the same period last year (All amounts in Canadian dollars). This increase in revenue was due to the revenue from projects awarded late last year.

The Company reported a net income for the three months ended March 31, 2011 of $277,886, compared to a net income of $59,620 for the comparable period last year.

"To build on our success, we will continue to aggressively market in the Middle East as it has large infrastructure and telecom projects. NTG Clarity's brand name is gaining increased recognition worldwide as a reliable, quality supplier to telecom and network service providers. This is an enormous market and we will continue to improve our market share through the enterprise and wireless areas of the business. We expect to achieve further revenue growth throughout 2011 as we deliver on recently acquired contracts, service these contracts on an ongoing basis, and penetrate new market opportunities."

International Financial Reporting Standards (IFRS)

In February 2009, the AcSB confirmed that IFRS adoption will be mandatory in Canada for publicly accountable entities beginning January 1, 2011. Consolidated interim financial statements for the quarter ending March 31, 2011 have been prepared in accordance with IFRS. As per IFRS 1, we have applied IFRS retrospectively as of the transition date (January 1, 2010) for comparative purposes. We have adjusted amounts previously reported in 2010 financial statements prepared in accordance with pre-conversion Canadian GAAP (see Q1 2011 MD&A and Q1 consolidated interim financial statements for details).

The difference for the Company from Canadian GAAP to IFRS is the valuation of NTG's software product, NTS. No other items were impacted by the conversion to IFRS.

Income statement highlights for the three months ended March 31, 2011 and 2010
Mar. 31, 2011Mar. 31, 2010
Cost of revenue1,060,822716,578
Gross Profit703,938587,796
Foreign exchange loss (gain)77,65485,955
Net Income for the period$277,886$59,620
Balance Sheet highlights as at March 31, 2011 and December 31, 2010
Mar. 31, 2011Dec. 31, 2010
Current Assets$4,076,230$3,954,896
Current Liabilities$2,238,838$2,083,137
Long-Term Debt$280,865$346,959
Shareholder's Equity$9,741,546$9,439,015


NTG Clarity Networks' vision is to be a global leader in providing networking solutions. Established in 1992, NTG Clarity is a leader in Canada in delivering networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 200 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.


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.

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