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NTG Clarity Networks Inc. Announces Year End 2010 Results

TORONTO, ONTARIO--(Marketwire - 04/26/11) - NTG Clarity Networks Inc., (TSX-V:NCI - News), a world leader in the telecommunications OSS market, today reported its year end results for the fiscal year ended December 31, 2010 (all figures in Canadian Dollars).The Company reported revenues of $6,356,699 for 2010, an increase of 4% from $6,114,421 during the same period last year. Net income for the year was $668,610, a 203% increase over net income of $220,556 in 2009. Net income per share increased by 200% from $0.009 to $0.027.During the fourth quarter of 2010, NTG Clarity achieved revenues of $1,716,184 and net income of $387,233 or $0.015 per share.Earnings for 2010 showed a significant improvement over 2009 results particularly in the fourth quarter due to completed contracts for software, software licensing, and support. The Company expects revenues from software, licensing, and support to continue to increase during 2011.Due to the continued profitability of the Company, NTG further strengthened its balance sheet and now has positive working capital of $1,871,759 ($0.07 per share) and long-term debt of only $346,959."During 2010, we implemented an aggressive marketing program for the Middle East that resulted in contracts with major carriers, increased our revenues and earnings and positioned us for growth" said Ashraf Zaghloul, Chairman and CEO."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."

 

Income statement highlights for the year ended December 31, 2010 and 2009

December 31, 2010 December 31, 2009
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Revenue $ 6,356,699 $ 6,114,421
Cost of revenue 3,235,898 3,117,841
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Gross profit 3,120,801 2,996,580

Expenses 2,407,128 2,403,119
Foreign exchange loss (gain) 45,063 372,905
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Net income for the period $ 668,610 $ 220,556
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Balance Sheet Highlights as at December 31, 2010

December 31, 2010 December 31, 2009
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Current Assets $ 3,954,896 $ 3,927,909
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Current Liabilities $ 2,083,137 $ 1,963,984
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Long-Term Debt $ 346,959 $ 367,945
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Shareholder's Equity 2,615,252 1,818,222
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In an unrelated matter, the Company announced that it will take advantage of the extension available to file its first quarter 2011 financial statements and will file by June 29, 2011.ABOUT NTG CLARITY NETWORKS INCNTG 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.FORWARD LOOKING INFORMATIONCertain 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.