Mr. Harris Liontas reports

NOVRA ANNOUNCES FINANCIAL RESULTS FOR Q4 AND THE FULL YEAR 2023

Novra Technologies Inc. has released its financial results for the year ended Dec. 31, 2023. All amounts are in Canadian dollars unless otherwise noted.

Novra's financial performance improved significantly after a slow start to the year and returned to net income profitability for the full year. Although the company's annual revenue was down by $157,000, its net income was $136,000, a $610,000 improvement over the $474,000 loss in 2022 and its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $845,000.

This improvement is largely a result of strategically reducing operating expenses compared with last year, while maintaining the ability to deliver leading products and outstanding service. The company's cost-savings measures implemented in 2023 will carry forward into 2024 and beyond.

Novra's cash position at the end of the period was strong, with bank deposits of over $2.4-million and a bank credit facility of $1.2-million providing a pool of liquid funds, and its current deferred revenue of $948,000 is expected to be recognized in 2024.

See more financial highlights from 2023 in the attached table.

Novra's fourth quarter was particularly strong in 2023 with net income of $509,000, a 40-per-cent improvement compared with Q4 of 2022. Revenue was $2.9-million, $732 higher than in the same quarter in 2022. Operating expenses continued their downward trend compared with 2022. However, these were particularly high in Q4 2022 due, in large part, to certain one-time expenses associated with reducing continuing occupancy costs at that time.

Revenue for the year was $7.4-million, slightly down from $7.6-million in 2022. In 2023 there was a significant shift from product revenue to service revenue, with service revenue increasing by $1.4-million year over year. This was primarily the result of the particular product/service mix in the year. While the shift to service revenue is not expected to continue on the same trajectory in 2024, the company does not expect the proportion of its revenue that comes from services to continue to be higher than historic averages as it grows its service and SaaS (software-as-a-service) offerings.

The company continues to see pent-up demand -- infrastructure replacements will be needed in its markets 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 investments in their infrastructures. The company is confident that opportunities exist and the company is taking the right steps to be ready when customers decide to buy, but it cannot know when the pent-up demand will turn into orders. The company expects revenue to be soft in the first half of 2024 and it is therefore continuing to aggressively manage expenses and take steps to adjust expenditures to address revenue uncertainty. The company is also investing in innovation initiatives to help its customers succeed in their changing markets, and in building customer relationships to understand and address current customer needs, to position Novra for future growth.

"I am pleased with our 2023 financial results and although 2024 will be challenging we are excited with the business opportunities that we are currently working on, including our commitment to invest in our future by converting some of our key hardware products into software and services," said Rodney Allan, president. "This strategy will not only help our customers with their current financial pressures, but it will position Novra to smooth some of the variability in our revenue over time by transitioning to more recurring revenue. We will also be prioritizing investment and research into growing and adjacent areas of business."

For additional details on Novra's results and outlook for the year ended Dec. 31, 2023, please refer to the company's MD&A and the audited annual 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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