Mr. Adam Zaghloul reports

NTG CLARITY ANNOUNCES $50M REVENUE TARGET FOR 2024 WITH ANNOUNCEMENT OF NEW POS FOR WORK VALUED AT $6.5M CAD

NTG Clarity Networks Inc.'s 2024 revenue target is $50-million (at an estimated gross margin of 40 per cent), and the company has received 14 new purchase orders (POs). These POs are for $6.5-million in new work and renewals for new and existing customers in the financial, telecom, utilities, and food and beverage sectors.

These contracts -- for both outsourced professional services and software solutions -- will result in the placement of more than 100 staff on site and offshore to service these customers. The breakdown of the work is as follows, with all customers in the Middle East unless otherwise noted:

• $2.55-million in POs new work:
• $1.8-million for outsourced professional services:
  • $1.2-million to provide offshore staff for three months for an existing customer in the digital solutions sector;
  • $637,000 across two POs to provide on-site and offshore staff to two existing customers in the financial sector.
• $750,000 for software products:
  • $216,000 to provide the company's NTGapps software platform for new customer in the utilities sector in Canada;
  • $162,000 to provide software support for the company's NTGapps platform for an existing customer in the financial sector;
  • $135,000 to provide a utility billing solution built on the company's NTGapps platform for a new customer in the utilities sector;
  • $115,000 to build an ERP (enterprise resource planning) system on the company's NTGapps platform for a new customer in the food beverage sector;
  • $108,000 to build an ERP system on the company's NTGapps platform for an existing customer in the financial sector;
  • $14,000 to further customize the company's NTGapps platform for an existing customer in the telecom sector.

Product contracts typically come with recurring revenue from support, maintenance and change requests:

• $3.9-million in POs for renewal work:
• $3,847,000 for outsourced professional services:
  • $3.6-million to renew on-site and offshore staff for one year for an existing customer in the financial sector;
  • $159,000 to renew on-site staff for six months for an existing customer in the telecom sector;
  • $91,000 to renew on-site staff for one year for an existing customer in the financial sector.
• $53,000 for software products:
  • $53,000 across two POs to expand the company's NTGapps platform for an existing customer in the telecom sector.

NTG's current work on hand (which includes unbilled POs as of Jan. 1, 2024, and new POs received and previously announced since then) is approximately $40-million, the majority of which is expected to be completed in 2024. This puts NTG well on the path to reach the company's 2024 revenue target of $50-million with a targeted bottom-line profit of 10 per cent.

With the revenue from these POs, and an improved capital structure following the company's announced share consolidation, the company looks forward to continuing to prioritize its two focuses for 2024:

1. Continuing the company's growth trajectory. With demand increasing -- especially for the company's outsourced professional services offering -- the company expects growth to continue through 2024 and beyond. As previously mentioned, NTG's revenue target for 2024 is $50-million.
2. Drive further profitability. With three years of consistent profitability under the company's belt, the company is actively identifying opportunities to make sure as much of this new revenue as possible flows on to the bottom line. NTG's 2024 bottom-line profit margin target is 10 per cnet.
   1. With this increased profitability, management looks forward to paying down existing liabilities and improving the company's balance sheet.
   2. Combined with the share consolidation, shareholders can look forward to seeing rapidly improving earnings and profit per share with this growth.

"We are elated to see our strong growth from 2023 continue into 2024 with this set of new contracts from new and existing customers alike," said Adam Zaghloul, vice-president of strategy and planning of NTG Clarity. "In addition to new and expanded contracts with existing long-time customers, it is exciting to see several orders for our proprietary NTGapps software platform including a new customer in North America."

With over 30 years of experience and a strong presence in the digital transformation market in the Middle East and worldwide, NTG Clarity is well positioned capitalize on this accelerating growth and be one of the major players in the space.

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 (information technology) solutions to large enterprises including financial institutions and network service providers. More than 600 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.

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