TORONTO, ONTARIO--(Marketwire - Mar 28, 2013) - NTG Clarity Networks Inc., (TSX VENTURE:NCI), today reported its year end results for the fiscal year ended December 31, 2012 (all figures in Canadian Dollars).
2012 has seen a positive turnaround for NTG, with a significant increase in shareholders' equity and net income.
Revenues for the year ended December 31, 2012 were $5,002,537 versus $5,172,176 for 2011. The gross profit margin was 50.8% in 2012 compared to 40% in 2011. The Company recorded a net income of $776,688 in 2012 as compared to $1,097 in 2011. The significant increase in financial performance was due primarily to our focus on more profitable projects with higher margins.
General and administration expenses were $845,627 in 2012 as compared to $854,371 in 2011. Selling and marketing expenses were $280,768 in 2012 as compared to $659,829 in 2011. Interest expense was $183,980 in 2012 as compared to $258,627 in 2011.
NTG Clarity was also successful in strengthening its balance sheet during 2012. Shareholders' Equity improved by 39% to $3.7 million and long-term debt declined by 51% to $82,986. As at December 31, 2012, NTG Clarity had positive working capital of $1,010,760.
|Income statement highlights for the year ended December 31, 2012 and 2011|
|December 31, 2012||December 31, 2011|
|Cost of revenue||2,458,750||3,107,324|
|Foreign exchange loss (gain)||77,869||(102,989||)|
|Net income for the period||$776,688||$1,097|
|Balance Sheet Highlights as at December 31, 2012|
|December 31, 2012||December 31, 2011|
Our leadership team has set goals that will accelerate the company's revenue growth and increase its operating margin. These goals mainly focus on the standardization of our product offering, providing a cloud-based version of our Operations Support System/Business Support System (OSS/BSS) product called NTS to small operators, and expanding our footprint through partnerships and system integrators in target markets. This development continues in 2013.
We will continue to market in the Middle East and seek opportunities in Africa as it has large infrastructure and telecom projects. NTG Clarity's brand name is gaining increased recognition worldwide as a reliable, quality, cost-effective supplier to telecom and network service providers. This is an enormous market and we will continue work on improving our market share through the enterprise and wireless areas of the business. We expect to achieve revenue growth throughout 2013 as we deliver on recently acquired contracts, service these contracts on an ongoing basis, and penetrate new market opportunities.
Management continues to feel that the underlying value of the business is not fully reflected in its share value and is committed to adding further shareholder value through revenue growth, cost control and effective investment promotion.
ABOUT NTG CLARITY NETWORKS INC
NTG Clarity Networks' vision is to be a global leader in providing networking solutions. As a Canadian company established in 1993, NTG is in its 20th year in business, delivering networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 150 NTG 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 Corporation assumes no obligation to update forward looking statements should circumstances or management's estimates or opinions change.