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Toronto, ON - TheNewswire - October 15, 2024 / NTG Clarity Networks Inc. (TSX.V:NCI, OTC: NYWKF); NTG Clarity (“NTG” or the “Company”) is pleased to announce a positive revision to its previously announced 2024 financial guidance. Driven by a sustained and rising demand for our services, from both new and existing customers, we now expect revenue of $55 million for 2024, a 10% increase over our previous projection of $50 million, alongside a revised net income margin target of 14%, up from the 10% previously forecast.
The decision to revise upward follows a sustained period of exceptional performance. NTG has delivered thirteen consecutive quarters of last-twelve-month revenue growth, with the last seven quarters setting new all-time highs. This momentum has been further reinforced with the recent announcement of our largest multi-year contract to date, alongside a current backlog exceeding $70 million in unbilled purchase orders and contracts on hand as of August 31. These developments highlight NTG’s growing reputation as a key player in the digital transformation space across the Middle East and worldwide.
As laid out above, NTG has strategically increased its full-year net income target to 14%, up from the 10% previously forecast. While this margin is lower than our most recent quarter, it reflects investments being made to expand our Egypt Offshore Center and expand our sales team in Saudi Arabia. These investments are critical to supporting NTG’s long-term growth strategy while positioning the Company continue to capitalize on emerging opportunities in key markets.
Importantly, with our existing cash flow positive operations and completion of our successful capital raise in September 2024, NTG is fully capitalized to execute on continued growth into 2025 and beyond. With this growth comes an increase in headcount. NTG’s team is now made up of more than 900 IT and network professionals, up from more than 700 earlier this year. The majority of new staff are entirely billable to our clients, working offshore or onsite at their offices.
“Our continued performance reflects the strong demand we’re seeing for services,” said Adam Zaghloul, Vice President of Strategy & Planning at NTG Clarity. “This updated guidance puts us on track to nearly double our 2023 revenue, while more than tripling our net income. The scale of digital transformation initiatives across the markets we operate in is surpassing our most ambitious projections.”
Saudi Arabia continues to be the cornerstone of NTG’s operations, contributing ~95% of the Company’s revenue. As the region's largest economy, it offers stability and an expanding market for NTG’s services. Importantly, recent geopolitical conflicts in the Middle East have had no impact on NTG's operations or its ability to execute its growth strategy, further underscoring the resilience of the Company's business model in the region.
About NTG Clarity Networks Inc.
NTG Clarity Networks’ vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 900 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry’s leading enterprises.
Forward Looking Information
Certain statements in this release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The company assumes no obligation to update forward looking statements should circumstances or management's estimates or opinions change.
For Further Information:
Adam Zaghloul, Vice President, Strategy & Planning
NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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