Mr. Harris Liontas reports

NOVRA ANNOUNCES FINANCIAL RESULTS FOR Q3 AND THE FIRST NINE MONTHS OF 2023

Novra Technologies Inc. has released its financial results for the nine months ended Sept. 30, 2023. All amounts are in Canadian dollars unless otherwise noted.

Novra is pleased to announce a profitable Q3, along with improved gross margins and continued reductions in operating expenses for the nine-month period. The company's third quarter results were positive with a net income of $102,000 and $253,000 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1).

The company's financial performance improved significantly after a slow start to the year. Although its nine-month revenue was down by $888,000, the company's net income loss improved by 55 per cent or $464,000 over the same period of 2022. The positive Q3 results partially offset losses incurred in earlier quarters. Novra's substantial deferred revenue of more than $1.6-million as of Sept. 30, 2023, also provides some positive visibility into future revenue.

Pent-up demand is continuing to grow in the company's markets as networks maintain their existing infrastructure longer. Infrastructure replacements will be necessary due to technology obsolescence, aging equipment and new business requirements. However, this is countered by the economic uncertainty, higher interest rates and contracting availability of capital that are leading businesses to delay these investments. The company is therefore continuing to adjust expenditures to address these economic conditions.

Novra's cash position at the end of the period was strong, with bank deposits of over $1.2-million, $1.4-million in cashable guaranteed investment certificates (GICs) and a bank credit facility of $845,000 providing a large pool of liquid funds.

The attached table is a financial summary that shows results for the three and nine months ended Sept. 30, 2023.

At $4.5-million, revenue for the period was 16 per cent lower than last year. However, improved gross margin (55.2 per cent versus 46.5 per cent) and a 14-per-cent reduction in operating expenditures resulted in only a small reduction ($22,000) in gross profit. The shift in product/service mix in 2023 was instrumental in the improved gross margins and net income loss compared with the same period in 2022.

In recent months, the company has seen many customers taking small steps to refresh and/or expand their networks, although at a cautious pace influenced by their challenging market conditions. With this measured approach, many are looking at software and service solutions, to reduce or eliminate the need to invest in capital equipment, and the company is addressing this with expanding software and service offerings. The work the company has done and its substantial R&D (research and development) investment over the past several years are paying off as Novra books more and more service business.

As always, the company continues to invest in innovation initiatives addressing its customers' current and emerging needs and in building customer relationships -- the core of Novra's business.

"The entire Novra team is here to support our customers in meeting their business goals, by providing the powerful new products and services, responsive support, and technical expertise they need now and into the future. Our businesses have been in operation for more than 30 years, so we understand the importance of long-term relationships with our customers. That's why our products, services and overall business operations are all designed around earning the trust of our customers every day, over decades. As customers work through challenging times or embrace exciting new opportunities, we see our role as being an extension of their team, supporting them toward their next great achievements," said Patti Gair, executive vice-president, business operations.

For additional details on Novra's results and outlook for the nine months ended Sept. 30, 2023, please refer to the company's management's discussion and analysis (MD&A) and consolidated financial statements, which are available on SEDAR+.

About Novra Technologies Inc.

Novra is an international technology provider of products, systems and services for the distribution of multimedia broadband content. The Novra group of companies includes Novra Technologies Inc., International Datacasting Corp. and Wegener Corp. The companies in the group are known for a strong focus on applications, including: broadcast video and radio; digital cinema; digital signage; and highly reliable data communications.

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