Business
NTG Clarity Networks Announces 2019 Year-End Financial Results
(via TheNewswire) Toronto, ON - T heNewswire - June 12, 2020 - NTG C...
About this update from Ntg Clarity Networks Inc.
[{"type":"text","content":"NTG Clarity Networks Announces 2019 Year-End Financial Results(via TheNewswire)\n \n \nToronto, ON - TheNewswire - June 12, 2020 - NTG Clarity Networks Inc. (TSXV:NCI) reports its year end results for the fiscal year ended December 31, 2019 (all figures in Canadian Dollars).\n\n \n \nDespite management's efforts to raise funds and obtain short term loans, reduced cash flow continued to significantly affect NTG's ability to finance its ongoing work, which caused a slowdown of projects during 2019. These issues resulted in lost revenue over the year. Further to this, management was focused almost entirely on its credit facilities during the second half of the year, and while the Company was able to emerge from the formal bank demand for payment and avoid receivership, management's focus on these issues did not allow for regular operations or new sales which resulted in drastically lower revenue. On a positive note, the debt assignment as announced in December 2019, resolved this Company from any principal installment repayments until the end of August 2020. This has allowed management to again focus on operations and sales. In the latter part of the fourth quarter, several projects picked up resulting in a 55% increase in Q4 revenue compared to the same quarter last year. \n\n \n \nSales for the year ended December 31, 2019 were $8,626,429 representing a 26% decline from the $11,706,467 recorded in the prior year. The gross margin in 2019 was 26% compared to 44% in 2018. Realistic margins are anticipated to be between 30-40%, based on the product mix. The Company posted a net loss of $9.2 million for the year including a number of write-offs and one-time payments, compared to a net loss of $0.4 million in the previous year.\n\n \n \nNTG Clarity's operating expenses were up to $6,896,496 in 2019 compared to $4,211,666 in the prior fiscal year. This is primarily because of a one-time End of Service provision for Executives and a substantial foreign exchange loss.\n\n \n \nIncome Statement Highlights for the Year Ended December 31, 2019 and 2018\n\n \n\n\nDecember 31, 2019\n\n\n\n\nDecember 31, 2018\n\n\n \n\n\nREVENUE\n\n\n\n\n$\n\n\n\n\n8,626,429\n\n\n\n\n$\n\n\n\n\n11,706,467\n\n\n \n\n\nCOST OF SALES\n\n\n \n\n\n6,373,463\n\n\n \n\n\n6,571,900\n\n\n \n\n\nGROSS PROFIT\n\n\n\n\n$\n\n\n\n\n2,252,966\n\n\n\n\n$\n\n\n\n\n5,134,567\n\...