AZ: Thank you Michael, it's nice to be here.

MW: The company recently reported surging revenues of $8.5 million dollars, more than double the comparative year over year results. Perhaps you can begin with an overview and then we'll get into some of the areas that you were able to accelerate your development in.

AZ: Yes! NTG Clarity was founded in 1992 as a network and technology consulting firm. In 1997, we reorganized to focus on the telecom field and we found that a niche to reorganization in North America and around the world. There is high demand for these services and since then we been growing about 75 - 100% every year. The high demand is what enabled us to achieve this big growth last year and were confident that we will be able to carry on this growth for the coming years too.

MW: What kinds of services do you provide to the telecom service providers?

AZ: One of the primary advantages of NTG Clarity is that we provide a complete range of services to the telecom market. We assist in developing marketing products, as in new product introductions, we work in engineering design, planning and construction. We complete assessments of client's current networks to capitalize on their current capacity and release unused capacity. We also work in provisioning. And we acquired an in-building cabling company that does vertical cabling and fibre installs. We also provide products for all operations and support systems. So we feel that we have a full solution, and that's why our customers like working with us.

MW: As you look at this particular sector, the telco sector has of course been hit particularly hard. Yet you continue to see robust revenue growth. How is this possible?

AZ: A couple of reasons, we're not a hardware manufacturer. We don't manufacture parts, which is a sector that has really been affected hard. We provide services to our customers, who in turn, provide service to the public at large. The economy is still doing well, and companies still require telecommunication services. So, from that aspect, first of all, we have seen very little impact from the economy. The other factor is, in spite of some of the weaker players in Canada that we have seen go under, the large players are still competing. To compete, they are trying to build networks across the country and to build these networks they use NTG Clarity services. So actually in the last few months, we have seen an increase because the large organizations realize they have to build bigger networks and so we've been fortunate in that way.

MW: Provisioning is of course been a key issue for many companies. How do you address that?

AZ: Well, we've got a good number of engineers that are provisioning engineers who understand the industry and could step in to help our customers quickly achieve service level goals. So in this sense, we feel comfortable that we have the resources to help our customers achieve their goals.

MW: The company saw an significant increase among your client base. As you look at some of your clients who might they be, and what niches have you sought to carve out for yourself?

AZ: Well, our clients are all the large telecommunication companies in Canada; so AT&T Canada, Bell Intrigna, TELUS, Group Telecom and Rogers Communications. So we're fortunate that we've been able to work with all these large companies. A niche, of course, is that we have a wide range of services that there is a high demand for and a lack of good resources like ours that can deliver quality work on time and at a good price.

MW: What about the geographic footprint for the company? You have offices in Toronto, Calgary, Vancouver, Montreal as well, as of course, in Egypt. What's is the opportunity for further geographic penetration?

AZ: Actually, right now, that's a good question. We have just started to open an office in the US and we have chosen Chicago as a starting point for operations across the US. We are also are looking at opportunities internationally, such as in Pakistan. We figure our next growth opportunity to achieve our ambitious growth targets is internationally and across North America. That's why we've taken these steps in the US, in Egypt, and in Pakistan. This will allow us to capitalize on the deregulation of telecom industries that will be happening in 2002. And at NTG Clarity we feel we are one of the best alternatives for these telecom companies across the world because we have the expertise, we have the skills and we can help them do it and deliver it right, at the right cost.

MW: As you look at the NTG Clarity telecom system it has number of modules. How is this used as a solution for your clients?

AZ: At this time, what we try is, whatever our customer needs, we have a module to fill the gap. Usually the customer has some of the large systems that they have implemented that will work in a certain domain, like, they have a strong billing system, but then a weak configuration and asset management system. That's where our modules would compliment their existing systems and work closely to give them the best results. So we find that each one of these modules as in configuration management, asset management, IT management, warehousing, or project tracking, could be deployed quickly with the current systems to give them the best results. Usually the current systems they have, the large systems, serve one or two of their requirements, but don't serve the rest very well. Our systems were developed by strong engineers who have field expertise and know what our clients really require. That's why our customers choose our modules to complement their systems.

MW: Now as you look at your customer base you mentioned many large customers. How are your able to provide an end-to-end solution for them?

AZ: In most cases we might not be providing the end-to-end solution, they might take three or four of the services from us because they are a large customer. But at least this way what we can do is provide services for whatever their need is. Our clients know that if they need the work done today, they can come to NTG Clarity to find the right resources.

MW: Given the current softening in the economy, what impact does this have in your sales cycle?

AZ: As I mentioned, the impact we're seeing is minimal and that's due to the large organizations realizing that to survive and to get a larger market share, they need to spend to build a network. So they require, actually, more of our help and that's why we are seeing minimal impact at this time.

MW: As you look at your client base, it's quite a broad array, everybody from CLECs and ILECs to ISPs and ASPs. How are you able to help them capitalize on this convergence?

AZ: First of all, we understand the Canadian and North American market very well. So we understand the technology, the market and the structure of networks. So, coming to us we can help them consolidate quickly or help them build more efficient networks.

MW: What about strategic partners and what roles are they playing today?

AZ: Well, with our quick growth obviously we have been concentrating on our current growth. Now we are at the stage where we are looking to form strategic partnerships with the large organizations as we feel now that we have something to offer them. We have the expertise and we have the manpower. So we are working on a few of them at this time and are hoping that they bear fruit in the near future.

MW: As you continue to see this rapid growth what have you done on the infrastructure side to support it?

AZ: When you say infrastructure is that the NTG Clarity internal structure?

MW: Right!

AZ: Yes! Basically what we've done is hired more senior management who have industry experience, the ability to build the teams and the discipline and the knowledge to be able to support this quick change. We feel we have a strong senior management team supported by a strong technical team to meet the customer's demand. We also have a team of what you might say contractors or consultants available to us on short notice to meet any requirement our customers might require.

MW: What about key performance milestones now, what should investors look for in the coming quarters, and you alluded to US expansion plans. How long will it take to make inroads and what is realistic in the next couple of quarters there?

AZ: Well we feel the coming quarters will be strong. We'll achieve our goals. We have very ambitious goals that we have published, so far we're on track for the first quarter and we feel that we will be on track on our second quarter. So from this point of view things are moving as we would like. However, with the downturn in the economy how much growth will be achieved in the US is to be seen. We're very positive, but again, we will achieve what we've published.

MW: As you look at the trade-off between growth and of course profitability, how do you manage that and do you have the strength in the balance sheet to support it?

AZ: That's a good question, it is one of the things we deal with every day. We want to grow but also we always want to make sure we are profitable. The balance of course is making sure that the projects we bid on are profitable. We only hire full-time staff that we need. If we need occasional staff for extra work we hire contractors and consultants. So our eyes are always on the profit.

MW: I've been speaking today with Ashraf Zaghloul; Ashraf is the Chief Executive Officer and Chairman of NTG Clarity Networks Inc, a company trading on the Ventures Exchange under the symbol NCI and one whose results support its leadership position in developing networking, IT and infrastructure solutions for its telecommunications service providers. Thanks for joining CEO Cast today, Ashraf.

AZ: Thank you Michael.

MW: This has been Michael Wachs for CEO Cast where Wall Street listens.