Business
NTG Clarity Networks Announces Second Quarter 2020 Financial Results
(via TheNewswire) Toronto, ON - TheNewswire - July 31, 2020 - NTG C...
About this update from Ntg Clarity Networks Inc.
[{"type":"text","content":"NTG Clarity Networks Announces Second Quarter 2020 Financial Results(via TheNewswire)\n \n \nToronto, ON - TheNewswire - July 31, 2020 - NTG Clarity Networks Inc. (TSXV:NCI) (OTC:NYWKF), announces its second quarter results for the period ended June 30, 2020 (all figures in Canadian Dollars). \n\n \n \nThe ongoing COVID-19 pandemic presents a significant source of economic uncertainty and there have been impacts on NTG sales activities and collections have slowed.\n\n\n \nTowards the end of June 2020, NTG's offices re-opened with the Egypt office starting a gradual return with enhanced health and safety protocols. Employees working at customer sites are following customer's protocols for working onsite or remotely.\n\n\n \nConsolidated revenue for the three and six months ended June 30, 2020 was $1,651,209 and $4,125,975 compared to $2,035,298 and $5,651,642 for the same periods in 2019 and is made up of product-related revenue and professional services. \n\n \n \nGross margin for Q2 2020 was $627,252 compared to $975,171 for Q2 2019. Percentages were (38% compared to 48% for Q2 2019). For the six months ended June 30, 2020 the gross margin was $1,514,660 or 37%, compared to $2,559,130 or 45% for the same period in 2019. \n\n \n \nSelling and marketing expenses for the three and six months ended June 30, 2020 were $193,961 and $467,250 respectively compared to $467,061 and $866,056 in the previous year. This 58% decrease in the selling and marketing in the quarter (46% year to date) was the direct result of customer and office closures as required by COVID-19. Travel, trade shows and customer visits were suspended, and salaries were reduced during the period.\n\n \n \nG&A expenses for the three and six months ended June 30, 2020 were $1,191,283 and $1,788,003 respectively compared to $495,273 and $1,079,468 in the previous year. G&A costs have increased significantly in this period due to:\n\n\n \n\n\n- End of Service (severance) salary accruals in the amount of approximately $512,626.\n\n\n\n- The retention of highly skilled personnel (considered to be the Corporation's main assets) in anticipation of the re-start of existing projects put on hold due to COVID-19. Salaries and consulting costs were booked into G&A expenses. \n\n\n\n\n \nIn Q2 2020 there were no salaries accrued or paid for employees and management in...