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NTG Clarity Networks Announces Third Quarter 2016 Financial Results
(via TheNewswire) Toronto, ON / TheNewswire / November 29, 2016 - NTG Clarity Networks I...
About this update from Ntg Clarity Networks Inc.
[{"type":"text","content":"NTG Clarity Networks Announces Third Quarter 2016 Financial Results(via TheNewswire)\n \n \nToronto, ON / TheNewswire / November 29, 2016 - NTG Clarity Networks Inc. (TSX.V:NCI), a world leader in the telecommunications OSS/BSS market, today reported third quarter year to date 2016 revenues of $10,773,204, as compared to $11,660,121 in 2016, an 8% decrease (All amounts in Canadian dollars).\n\n \n \nAs previously reported, during the fourth quarter of 2015 and the first half of 2016, the Company significantly expanded its location and customer base with new customers in Saudi Arabia, Egypt, and Kuwait. The increased costs from this expansion, coupled with the delay in new revenue due mainly to the oil price weakness, has posed significant challenges for the Corporation over the past months. This has resulted in lower than expected financial performance during 2016. To address these challenges, management continued to reduce costs during the third quarter and is in the midst of several contract negotiations to boost revenues going forward.\n\n \n \nFor the three months ended September 30, 2016, revenues were $3,262,204; a decrease of 10% over the same period in 2015. This was due to the lower revenue in KSA as renewals with some customers have been delayed. Q3 2016 revenue was 90% professional services, 2% product related and 8% hardware and field services. \n\n \n \nGross margin for the three months was 36% (Q3 2015: 43%) as the Company rolled out several new software products and services. New projects are now up and running and resource/maintenance costs have levelled out. We expect gross margins to stabilize between 40-45% as the product revenue increases.\n\n \n \nSelling expenses for the third quarter increased to $605,939 (Q3 2015: $342,754; Q2 2016: $897,278). This amount was higher compared to the same period in 2015 as we worked to obtain new customers/projects in Egypt, KSA and Kuwait. It has however improved compared to Q2 2016, as we work to control our selling costs, while continuing to expand our footprint with existing customers. \n\n \n \nGeneral and administration (G&A) decreased from Q2 levels to $1,072,884 (Q3 2015: $456,141, Q2 2016: $1,312,437). G&A expenses remain higher compared to the same period last year as we continue to retain highly skilled personnel in expectation of new projects. \n\n \n \n...