Business
NTG Clarity Networks Announces First Quarter 2020 Financial Results
(via TheNewswire) Toronto, ON - T heNewswire - July 8, 2020 - NTG Cl...
About this update from Ntg Clarity Networks Inc.
[{"type":"text","content":"NTG Clarity Networks Announces First Quarter 2020 Financial Results(via TheNewswire)\n \n \nToronto, ON - TheNewswire - July 8, 2020 - NTG Clarity Networks Inc. (TSXV:NCI) (OTC:NYWKF), announces its first quarter results for the period ended March 31, 2020 (all figures in Canadian Dollars).\n\n \n \nThe following outlines the events that occurred in Q1 2020:\n\n \n \n- On February 3, 2020, after the required Stock Exchange (TSX) review, NTG's shares resumed trading.\n\n\n \n- On March 11, 2020, the World Health Organization (WHO) declared COVID-19 to be a global pandemic. Countries restricted travel, closed non-essential businesses, and asked that people stay home. NTG closed all offices and asked staff to work remotely.\n\n\n \n- On March 20, 2020, due to the global economic situation and the inability of NTG to renew its Directors and Officers insurance, the Corporation announced that the two independent Board members and one other Board member resigned from NTG's Board. Mr. Ashraf Zaghloul, Chairman and CEO, and Kristine Lewis, Director and President are the two remaining directors of NTG.\n\n \n \nConsolidated revenue for the three months ended March 31, 2020 was $2,474,766 compared to $3,616,344 for the same period in 2019 and is made up of product-related revenue and professional services. Professional service revenue continues to be an important strategic source of revenue for us, given its generally recurring nature (77%). The contribution of product-related revenue increased to 22% in Q1 2020 as we work to make product sales a more balanced part of NTG's revenue stream, however the revenue mix varies from quarter to quarter. Much of our professional services revenue arises from our product sales.\n\n\n \nThe gross margin for Q1 2020 was $887,409 or 36% compared to $1,583,959 or 44% for the same period in 2019. We continue to work in all regions to optimize the cost of sales for our revenue. \n\n\n \nG&A expenses for the three months ended March 31, 2020 were $596,720 compared to $584,195 in Q1 2019. The small increase was due to End of Service costs for terminated employees in KSA.\n\n\n \nSelling expenses for the three months ended March 31, 2020 were reduced to $273,289 compared to $398,995 in Q1 2019. We have worked to reduce selling costs in Q1 2020. Some technical personnel were re-assigned to projects and trad...