Mr. Adam Zaghloul reports

NTG CLARITY SECURES $22M THREE-YEAR CONTRACT RENEWAL AND EXPANSION, STRENGTHENING GROWTH MOMENTUM

An existing financial services customer in the Middle East has renewed and expanded its contract with NTG Clarity Networks Inc. The expanded contract for offshore software development services is worth an estimated $22-million over three years at an estimated 37-per-cent gross margin.

The contract renewal represents an approximately 25-per-cent increase in contracted resource headcount and extends the partnership for a full three years, highlighting a continued shift toward a higher portion of revenue from longer-term, recurring-revenue contracts. New resources from this contract are expected to begin work on the first working day in January, 2025.

"This contract renewal and expansion underscores the trust our customers place in our ability to deliver cost-effective solutions as their technology needs continue to evolve," said Adam Zaghloul, vice-president of strategy and planning. "It reflects a broader trend among our clients toward committing to larger-scale, longer-term contracts. Strong renewals like this, combined with ongoing new business wins, are driving our sustained growth."

The contract will be serviced from the company's Egypt offshore centre, which has been recently expanded as previously announced. The recently secured office space still has much room to spare and will easily accommodate the new resources from this contract as well as growth for the foreseeable future.

NTG's backlog of unbilled purchase orders and contracts on hand as of Nov. 30, 2024, along with this contract renewal, is now over $100-million. This continues to strengthen NTG's position to meet its 2024 revenue target of $55-million with a 14-per-cent net income margin.

In addition to its annual contracts, which the company expects to continue to renew over the next several months, the backlog also includes multiple three-year contracts, providing greater visibility into continued growth in 2025 and beyond.

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 information technology solutions to large enterprises, including financial institutions and network service providers. More than 950 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.

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