July 11, 2013. Toronto
Ontario: NTG Clarity Networks
Inc., (TSX VENTURE:NCI), a world leader in the telecommunications
OSS/BSS market, is pleased to announce record second quarter 2013
financial results. The Company experienced a 76% increase in
revenues during the second quarter of 2013 to $2,149,380 compared
to $1,223,697 during the same period in 2012. (All amounts in
Canadian dollars). NTG has generated more
than $2 million in sales this quarter. This increase in revenue was
mainly due to demand for our professional services and product
licenses. For the six months, the Company posted revenues of
$3,636,252 compared to $2,284,168, an increase of 59%. Gross margin
was 63% for the second quarter of 2013, and 57% for the six months.
Gross margins in the prior year were 39% for both the 3 and 6 month
period. Net income for the
second quarter of 2013 increased by 299% to $829,403 or $0.03 per
share and exceeded the entire annual profit from 2012. For the
first half of 2013, net income rose 595% to $1,031,467 as compared
to $148,341 in the first half of 2012. The increase in
profitability was due mainly to increased revenues in product
licenses which are market oriented and highly profitable.
As at June 30, 2013, NTG Clarity had
positive working capital of $1,836,806 ($0.06 per share).
Income statement highlights for the three and six months ended June
30, 2013 and 2012
-------------------------------------------------------------------
| |3 Months Ended |6 Months Ended |
|-----------------------------------------------------------------|
| |June 30, 2013|June 30, 2012|June 30, 2013|June 30, |
| | | | |2012 |
|-----------------------------------------------------------------|
|REVENUE |2,149,380 |1,223,697 |3,636,252 |2,284,168|
|-----------------------------------------------------------------|
|COST OF SALES|793,825 |744,991 |1,581,150 |1,396,072|
|-----------------------------------------------------------------|
|GROSS PROFIT |1,355,555 |478,706 |2,055,102 |888,096 |
|-----------------------------------------------------------------|
|Expenses |699,40 |391,031 |1,227,023 |757,385 |
|-----------------------------------------------------------------|
|Foreign |(173,248) |(56,277) |(203,388) |(17,630) |
|exchange gain| | | | |
|-----------------------------------------------------------------|
|Net Income |829,403 |207,771 |1,031,467 |148,341 |
|for the | | | | |
|period | | | | |
|-----------------------------------------------------------------|
| | | | | |
|-----------------------------------------------------------------|
|Per Share |$0.03 |$0.01 |$0.03 |$0.01 |
-------------------------------------------------------------------
Balance Sheet highlights as at June 30, 2013 and December 31, 2012
-------------------------------------------------------
| |June 30, 2013 |Dec. 31, 2012 |
|-----------------------------------------------------|
|Current Assets |$ |4,976,854|$ |3,346,388|
|-----------------------------------------------------|
|Current Liabilities|$ |3 |$ |2,335,628|
| | |,140,048 | | |
|-----------------------------------------------------|
|Long-Term Debt |$ |0 |$ |82,986 |
|-----------------------------------------------------|
|Shareholder’s |$ |4,906,620|$ |3,725,448|
|Equity | | | | |
-------------------------------------------------------
During the first half
of 2013, NTG Clarity announced several new projects for leading
mobile operators in the Gulf region, which includes NTS
installations/enhancements, professional service resources and data
migration. The revenue from these projects is estimated at over USD
$9.5 million, the bulk of which is expected to be completed during
2013.
At the end of June,
2013, NTG Clarity made application to the TSX Venture Exchange to
raise capital to fund these new projects. Subsequent to quarter
end, the Company received conditional approval from the Exchange
for a private placement of up to $1,000,000 subordinated
convertible debentures that will mature two years from closing and
will bear an interest rate of 10%. The debentures are convertible,
at the option of the holder, into common shares at a price of $0.25
per share at anytime during the duration of the debenture. These
funds will be used as working capital to fund the Company's
growth.
In an unrelated matter, the Company
announced the renewal of the Investor Relations contract with QIS
Capital and is awarding 100,000 share options at a price of $0.20
per share to vest within one year.
ABOUT NTG CLARITY NETWORKS INC
NTG Clarity Networks' vision is to
be a global leader in providing networking solutions. Established
in 1992, NTG Clarity has delivered networking, IT and network
enabled application software solutions to network service providers
and large enterprises in Canada. More than 150 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
Ph: 250-377-1182
Fax: 250-377-1183
Email: info@smallcaps.ca
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