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WSR>
Good day, this
is Tan Panaker,
Senior Analyst
Wall Street
Reporter Magazine.
Today we have
with us Mr.
Essam Zaghloul.
Mr. Essam Zaghloul
is the Chairman,
President and
Chief Executive
Officer of Clarity
Telecom Networking
Incorporated
and also the
President and
COO or the Chief
Operating Officer
of NTG Clarity
Corporation,
NTG International
Incorporated.
Clarity Telecom
Networking Incorporated
is traded in
the CDNX, ticker
symbol CTW.
Essam welcome
to our show
today.
EZ>
Thank you
very much
Tan, I am
pleased to
be here.
WSR>
Thank you
so much for
joining us
today. Essam
lets start,
I understand
your company
is headquartered
in Calgary,
Alberta. Lets
start with
this note,
that you have
been generating
significant
interest in
the markets
recently.
Lets start
with the overview
of your company.
EZ>
NTG Clarity
was established
in 1992 in
Markham, Ontario
to deliver
focused network
and infrastructure
solutions
to telecommunication
service providers.
We now have
a team of
approximately
200 employees
in offices
in Toronto,
Montreal,
Calgary, Vancouver
and Cairo,
Egypt.
We are an
established,
profitable
company with
an excellent
reputation
in the telecom
field as a
company that
does it right
the first
time.
Clarity Telecom
is a CPC (Capital
Pool Company)
in Alberta
listed on
the CDNX.
Its major
transaction
or the Reverse
Take Over
is NTG International.
WSR>
OK, now you
have, Essam,
strategically
focused your
company on
the telecommunications
sector. Why
is this sector
so particularly
attractive?
EZ>
The telco
sector is
attractive
to us Tan
for several
reasons. The
Telco market
has experienced
phenomenal
growth since
deregulation
in 1997. In
Canada the
current telco
market is
$23B (IDC).
In Canada
there are
19 CLECs and
22 more have
been proposed.
In the USA
spending on
telecom services
has increased
from $116B
in 1999 to
$237B in 2003.
This is about
10 times the
Canadian market
- and there
are hundreds
of US CLECs!
Finally,
with this
phenomenal
growth there
is an acute
shortage of
services and
products that
are tailored
for the telecom
market. So
there is a
particular
shortage of
qualified
telecom professionals
with experience
in building
competitive
telecom networks
- and that's
where we fit
in.
WSR>
Now, Essam
NTG Clarity's
list of clients
is quite impressive.
You've obviously
already established
a strong presence
in your field.
What sets
your company's
offering apart
from the competition
today?
EZ>
Our clients
as you know
Tan are tier
one Telecom
companies
including
AT&T,
Bell Intrigna,
Group Telecom,
C1, Rogers,
and others.
Our business
model is unique
where our
services provide
revenue to
finance our
product development
and acquisitions.
One of the
things that
clearly separates
us from our
competitors
is our understanding
of the challenges
faced by CLECs
and ILECs
today.
Established,
uh, we also
have established
strategic
relationships
with our clients.
We provide
a full-service
approach to
our clients
- from planning
through to
implementation.
We have proprietary
and innovative
products.
An experienced
visionary
leadership
and the ability
to attract
and retain
qualified
technical
staff through
a challenging
career and
ownership
in the company.
Also through
our family
name and connections
we have the
ability to
raise financing.
WSR>
Now Essam,
you definitely
have aggressive
and exciting
expansion
plans for
the company.
Can you give
our audience
an overview
of the key
milestones
you have planned
for the next
year or so.
EZ>
Our key milestones
Tan are: to
acquire 3
companies
by year end
2000, these
are in final
negotiations
and legal
contracts.
We are planning
to be listed
on the TSE
by end of
Q1 2001. We
plan to open
3 regional
US offices
by the end
of 2001. We
plan a major
acquisition
by mid 2001,
and possible
NASDAQ listing
by Q2 2002
and our first
international
office by
Q1 2002.
While these
may appear
to be aggressive,
we are very
confident
that they
are all achievable
and we have
done so in
our previous
companies
Wi-LAN and
Cell-Loc.
WSR> Now
can you give
us an idea
of the kind
of growth
NTG Clarity
has been experiencing
recently.
EZ>
NTG Clarity
has had phenomenal
financial
and employee
growth over
the last few
years. In
1997 we had
revenues of
$0.5 MM and
in 1999 we
had revenues
of $3 MM -
a growth rate
of 600%. To
date we have
revenues of
$5.5MM and
if we continue
at the same
pace we should
realize revenues
of $8 to $9
MM by year
end 2000.
Our forecasted
growth rate
is a conservative
75% per year.
We anticipate
revenues around
$15MM in 2001
without acquisitions.
Demand for
our services
is so high
that we have
tripled the
size of our
workforce
this year.
We started
the year with
65 people
and today
we are now
approaching
200.
We expect
these trends
will continue
- NTG Clarity
is in an excellent
position to
remain as
a leader in
the telecom
services and
products space.
WSR>
Now Essam,
you are currently
developing
a series of
software applications
for the telecom
industry.
What differentiates
these applications
from others
on the market
and when do
you expect
to complete
development?
EZ>
Let me just
start with
that we have
several applications
nearing completion
Tan: The first
one is the
Order Tracking
system. Another
one is Configuration,
Asset Management
& Provisioning.
The third
is a POP Build
System. And
the fourth
product is
an Integrated
Telecom System.
We estimate
completion
of these products
by 2001.
What differentiates
us really
and sets us
as a leader
is that our
programmers
are telco
engineers
and they also
work with
programmers
so they are
very experienced
and truly
understand
the nature
of CLEC businesses.
We can develop
a superior
product that
meets our
client's needs
better than
others on
the market.
The revenue
opportunities
for these
types of applications
are enormous
- The global
market for
Operational
Support Systems
will be $38
B by 2002
(Insight Group).
WSR>
Now you are
in the process
of acquisitions
and alliances
I think it
appears to
be an important
aspect of
NTG Clarity's
growth strategy.
What has been,
and will be,
the strategy
in terms of,
you know,
jumpstarting
NTG Clarity's
global market
penetration?
EZ>
Yes, acquisitions
will play
an important
role in our
expansion
plans, particularly
as we enter
the US arena.
We have recently
acquired a
cable and
fibre installation
company, a
private company
by the name
of Net-Comm
Communications.
Net-Comm complements
our ability
to offer full-service
solutions,
particular
in the area
of co-locate
and POP site
builds.
We are in
the process
of finalizing
details with
3 smaller
companies
which are
in the areas
of training,
wireless and
product development.
We also look
for companies
with an established
clientele
base and a
strong management
team - this
will help
us expand
our global
presence much
faster. And
with the current
rate of change
in the telecom
industry,
we need to
be able to
enter global
markets quickly!
WSR>
Now Essam,
there has
been enormous
market excitement
surrounding
NTG Clarity
and Clarity
on the CDNX
recently.
Can you give
us, in other
words our
audience,
some insight
on what has
happened and
why investors
are so interested
in your company.
EZ>
Clarity Telecom
shares started
trading on
October 11,
as a Capital
Pool Company
in Alberta.
With the news
that NTG International
would be the
proposed Qualifying
Transaction,
i.e. the reverse
takeover,
the share
price skyrocketed.
We opened
at 30 cents
and closed
at $2.70 the
first day
of trading.
We've consistently
traded above
that point
since then.
Well what
do investors
see in us?
Number one,
a growing
market. Number
two, strong
financial
resources
to fuel our
expansion
- we have
no debt. Leadership
team that
has been involved
in leading
other successful
public companies
(Wi-LAN &
Cell-LOC that
both trade
on the TSE)
We have a
strong revenue
momentum -
1000% from
97 to Oct
2000. An experienced
team focused
on solving
our client's
technology
and implementation
issues. And
the ability
of our investor's
to participate
in a ground
floor opportunity.
WSR> Established
and reputable
management
team and advisory
board? could
you enlighten
the audience
on their background
and your background
also and what
kind of expertise
do you bring
to Clarity
today?
EZ>
Absolutely,
our senior
managers have
over 350 years
of telecom
experience,
many with
experience
leading emerging
competitive
telecom companies.
Our Board
of Directors
is first class,
coming from
executives
in AT&T,
an ex-executive
of Rogers,
the CEO of
Wi-LAN and
an ex-oil
company executive,
so it is a
well rounded
board that
brings a lot
to the table.
My personal
experience,
I am an oil
executive,
and I had
over 30 years
experience
in the markets,
I have been
an executive
in bringing
and managing
giant projects.
And we've
put a strategic
Advisory Board
together.
That strategic
Advisory Board
includes key
people from
the telco
industry and
includes executives
that have
worked for
Nortel and
some of the
vendors.
WSR> Essam,
can you give
our audience
the web address
and the investor
relations
telephone
number for
further information
and research
about Clarity
Telecom Networking.
EZ>
Absolutely,
We have actually
two websites,
one is www.ntgi.net
and the other
one is www.claritytelecom.ab.ca.
The telephone
number is
(403) 261-0968,
fax (403)
261-0970,
email ezaghloul@ntgi.net
WSR> Essam,
it's been
a pleasure
chatting with
you today
and learning
about NTG
International
and Clarity
Telecom. Thank
you so much
for such an
enlightened
conversation.
EZ>
It is my pleasure
and thank
you so much
for inviting
me Tan.
WSR>
Thanks so
much. This
is Mr. Essam
Zaghloul,
Chairman,
President
and Chief
Executive
Officer of
Clarity Telecom
Networking
Incorporated
and also the
President
and Chief
Operating
Officer of
NTG International
Incorporated.
Clarity Telecom
Networking
Incorporated
is traded
in the CDNX,
ticker symbol
CTW headquartered
in Calgary,
Alberta.
This is Tan
Panaker bringing
you the news
on Clarity
Telecom and
NTG International
Inc., thank
you so much
and you have
a nice day.
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