NTG Clarity Networks Inc.

NTG Clarity Networks Inc.

August 28, 2012 10:47 ET

NTG Clarity Networks Inc. Announces Second Quarter 2012 Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - NTG Clarity Networks Inc. (TSX VENTURE:NCI) a leader in the telecommunications OSS/BSS market, today reported second quarter 2012 revenues of $1,223,697, compared to $1,464,371 in the same period last year (all amounts in Canadian dollars). Gross margin for the period was 39% compared to 35% for the same period in 2011.

The Company reported a net income for the three months ended June 30, 2012 of $207,771 ($0.01 per share), compared to a net income of $163,387 for the comparable period last year. The increase in profitability was due in large part to product sales that have higher margins.

As at June 30, 2012, NTG had positive working capital of $750,743 and long-term debt of only $124,479.

Income statement highlights for the three months ended June 30, 2012 and 2011
June 30, 2012 June 30, 2011
Revenue $ 1,223,697 $ 1,464,371
Cost of revenue 744,991 955,259
Gross Profit 478,706 509,112
Expenses 327,212 412,722
Foreign exchange loss (gain) (56,277 ) (66,997 )
Net Income for the period $ 207,771 $ 163,387
Balance Sheet highlights as at June 30, 2012 and December 31, 2011
June 30, 2012 Dec. 31, 2011
Current Assets $ 4,308,136 $ 3,390,605
Current Liabilities $ 3,557,393 $ 2,561,419
Long-Term Debt $ 124,479 $ 167,978
Shareholder's Equity $ 2,852,597 $ 2,688,819

Management is very pleased with the Company's second quarter performance and is optimistic that this positive trend will continue throughout the remainder of 2012. NTG's performance improved during Q2 as a result of new contract announcements during the first half of the year along with ongoing operations. In January 2012, NTG secured a one year contract to supply a leading mobile operator in the Gulf region with professional services resources valued at $1.3M CDN. This contract has since been expanded. Also, subsequent to the quarter end, in August 2012, NTG received a PO to upgrade and expand the NTS/BSS installation at a major customer site. This project has a value of $1.9M CDN. These contracts will continue to be rolled out during the second half of 2012.

In an unrelated matter, the Company announced the following members of the Board of Directors will have stock options issued to replace expired options; Sinclair Stevens; 100,000 options, M. Zafar Farooqui; 100,000 options, M. Adel Zaghloul; 132,500 options, Kristine Lewis; 100,000 options and Ashraf Zaghloul; 200,000 options. Each option will be exercisable at a price of $0.10 per share and will vest upon issuance.


NTG Clarity Networks' vision is to be a global leader in providing networking solutions. Established in Canada in 1992, NTG is a leader in delivering networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 150 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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