Business
NTG Clarity Networks Announces First Quarter 2017 Financial Results
(via TheNewswire) Toronto, ON / TheNewswire / May 30, 2017 / NTG Clarity Networks Inc....
About this update from Ntg Clarity Networks Inc.
[{"type":"text","content":"NTG Clarity Networks Announces First Quarter 2017 Financial Results(via TheNewswire)\n\n \nToronto, ON / TheNewswire / May 30, 2017 / NTG Clarity Networks Inc. (TSX.V:NCI), announces its first quarter results for the period ended March 31, 2017 (all figures in Canadian Dollars).\n\n \n \nNTG Clarity's financial performance continued to be challenged during the first quarter of 2017, as a result of lower oil prices, which affected customer projects in the Middle East, as well as from the devaluation of the Egyptian pound and related challenges for working in that country. However, the Company achieved improvement in revenues, significantly lower costs, and recorded a much lower net loss compared to the same period last year. Management is continuing the aggressive cost reduction strategy initiated in Q3 2016, to bring the Corporation back to profitability. The beginning of the effects of these measures are apparent in Q1 2017, however there are still significant cash flow constraints which are limiting the Company's ability to expand revenues. \n\n \n \nConsolidated revenue for the three months ended March 31, 2017 increased to $3,007,929 compared to $2,433,333 for the same period in 2016. Revenues were comprised of product-related revenue, professional services and a small amount for hardware/office supplies.\n\n \n \nGross margin for Q1 2017 was $584,070 compared to $696,001, or 19% compared to 29% for the same period in 2016. We continue to work toward reducing the cost of sales in order to optimize our revenue growth.\n\n \n \nNTG Clarity's operating expenses were reduced by 33% in Q1 2017 to $1,327,924 compared to $1,985,235 in the same period last year as we continue staff, salary, and selling and travel reductions to bring expenses more in line with revenue.\n\n \n \nG&A expenses for the three months ended March 31, 2017 were $735,076 compared to $1,465,251 in Q1 2016, a decrease of 50%. This significant reduction was due primarily to a reduction of salaries and consulting costs, lower occupancy costs as we continue to work on reducing rental costs, and the discontinuation of research activities related to our new software product StageEM. \n\n \n \nFor the period ended March 31, 2017, the Corporation recognized a foreign currency exchange loss of $156,293, compared to a loss of $14,512, in the same period in 2016. The...