NTG Clarity Networks Announces Second Quarter 2016 Financial Results

About this update from Ntg Clarity Networks Inc.

[{"type":"text","content":"NTG Clarity Networks Announces Second Quarter 2016 Financial Results(via Thenewswire.ca)\n \n \nToronto, ON / TheNewswire / August 26, 2016 / NTG Clarity Networks Inc. (TSX.V:NCI), a world leader in the telecommunications OSS/BSS market, today reported second quarter 2016 revenues of $5,077,129, as compared to $3,031,041 in 2015, a 68% increase. (All amounts in Canadian dollars). For the first half of 2016, revenues were $7,510,462 as compared to $8,033,202, a 7% decline.\n\n \n \nIn Q4 2015 and the first half of 2016, we significantly expanded our location and customer base with new customers in KSA, Egypt and Kuwait. As a result, our selling and G&A increased significantly as we incurred expenses for our new offices/staff in Oman and Kuwait and for new sales personnel. The uncertainty in the Middle East due to lower oil prices has delayed the awarding of new projects and we have been experiencing longer lead time to close new projects. However with the stability and increase of oil prices, renewals and new projects are starting up again. We are working to reduce G&A costs, as contracts allow, and continue to work to optimize marketing and selling costs, based on our revenue.\n\n \n \nGross margin for the three months ended June 30, 2016 increased to 49% (Q2 2015: 40%), and for the six months was 42% (2015: 37%) as we work to optimize the costs of delivering our products and services. New projects are up and running and resource/maintenance costs have levelled out. We expect gross margins to stabilize between 40-45% as the product mix will vary.\n\n \n \nOf particular note during the second quarter, we recorded a loss on foreign exchange of $801,614 compared to a gain of $259,038 during the same period in 2015. As a result, the net loss in Q2 2016 was $1,009,297 compared to net income of $166,270 in Q2 2015. The second quarter net loss was 50% smaller than Q1 2016 as we are working to increase sales from new offices, and to lower costs and improve margins.\n\n \n \nAs at June 30, 2016, NTG Clarity had positive working capital of $902,783 and no long-term debt.\n\n\n \nIncome statement highlights for the three and six months ended June 30, 2016 and 2015\n\n \n\n\n3 Months Ended\n\n\n\n\n6 Months Ended\n\n\n \n\n\nJune 30, 2016\n\n\n\n\nJune 30, 2015\n\n\n\n\nJune 30, 2016\n\n\n\n\nJune 30, 2015\n\n\n\n\nREVENUE\n\n\n\n\n...

More updates from Ntg Clarity Networks Inc.