News ReleaseNTG Clarity Announces $50M Revenue Target for 2024 with Announcement of New POs for Work Valued at $6.5M CAD
NTG Clarity Networks Inc.
Toronto, ON / TheNewswire / March 18, 2024 / NTG Clarity Networks Inc. (TSX.V:NCI, OTC: NYWKF); NTG Clarity is excited to announce its 2024 revenue target of $50M (at an estimated gross margin of 40%), and that it has received 14 new purchase orders (POs). These POs are for $6.5M CAD in new work and renewals for new and existing customers in the Financial, Telecom, Utilities, and Food & Beverage sectors. These contracts -- for both outsourced professional services and software solutions -- will result in the placement of more than 100 staff onsite and offshore to service these customers. The breakdown of the work is as follows, with all customers in the Middle East unless otherwise noted: $2.55M in POs new work: $1.8M for Outsourced Professional Services: $1.2M to provide offshore staff for three months for an existing customer in the Digital Solutions sector $637K across two POs to provide onsite and offshore staff to two existing customers in the Financial sector $750K for Software Products: $216K to provide our NTGapps software platform for new customer in the Utilities sector in Canada $162K to provide software support for our NTGapps platform for an existing customer in the Financial sector $135K to provide a Utility Billing solution built on our NTGapps platform for a new customer in the Utilities sector $115K to build an ERP system on our NTGapps platform for a new customer in the Food Beverage sector $108K to build an ERP system on our NTGapps platform for an existing customer in the Financial sector $14K to further customize our NTGapps platform for an existing customer in the Telecom sector Product contracts typically come with recurring revenue from support, maintenance, and change requests. $3.9M in POs for renewal work: $3.847M for Outsourced Professional Services: $3.6M to renew onsite and offshore staff for one year for an existing customer in the Financial sector $159K to renew onsite staff for six months for an existing customer in the Telecom sector $91K to renew onsite staff for one year for an existing customer in the Financial sector $53K for Software Products: $53K across two POs to expand our NTGapps platform for an existing customer in the Telecom sector NTG’s current work on hand (which includes unbilled POs as of January 1, 2024, and new POs received and previously announced since then) is approximately $40M, the majority of which is expected to be completed in 2024. This puts NTG well on the path to reach our 2024 revenue target of $50M with a targeted bottom-line profit of 10%. With the revenue from these POs, and an improved capital structure following our announced share consolidation, we look forward to continuing to prioritize our two focuses for 2024: Continuing our growth trajectory. With demand increasing – especially for our outsourced professional services offering – we expect growth to continue through 2024 and beyond. As previously mentioned, NTG’s revenue target for 2024 is $50M. Drive further profitability. 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. NTG’s 2024 bottom line profit margin target is 10%. With this increased profitability, management looks forward to paying down existing liabilities and improving the company’s balance sheet. Combined with the share consolidation, shareholders can look forward to seeing rapidly improving earnings and profit per share with this growth. “We are elated to see our strong growth from 2023 continue into 2024 with this set of new contracts from new and existing customers alike,” said Adam Zaghloul, Vice President – Strategy & Planning of NTG Clarity. “In addition to new and expanded contracts with existing long-time customers, it is exciting to see several orders for our proprietary NTGapps software platform including a new customer in North America.” With over 30 years of experience and a strong presence in the digital transformation market in the Middle East and worldwide, NTG Clarity is well positioned capitalize on this accelerating growth and be one of the major players in the space. 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 contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “inte nd”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on NTG Clarity’s current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking information with respect to anticipated financial and operating results, work in process, customer demand, repayment of indebtedness and earnings growth. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to NTG Clarity. The material factors and assumptions include general economic conditions, market conditions, interest rates, exchange rates, access to capital, availability of personnel, protection of intellectual property rights and competitive conditions in the networking, IT and network enabled software solutions industry. NTG Clarity cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and NTG Clarity is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward- looking information. The foregoing statements expressly qualify any forward-looking information contained herein. Certain forward-looking information in this press release may also constitute “financial outlook” within the meaning of applicable securities legislation. Financial outlook involves statements about NTG Clarity’s prospective financial performance or position and is based on and subject to the assumptions and risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this press release. Such assumptions are based on management’s assessment of the relevant information currently available, and any financial outlook included in this press release is made as of the date hereof and provided for the purpose of helping readers understand NTG Clarity's current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook. 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.
March 18, 2024 05:01 PM Eastern Daylight Time
