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NTG
Clarity Networks
Inc. Reports
Year End 2001
Results |
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CALGARY,
April 10,
2002 - NTG
Clarity Networks
Inc., a leader
in delivering
network, IT
and infrastructure
solutions
to telecommunications
service providers
and enterprise
IT departments,
today announced
fiscal year
2001 revenues
of $14 million,
an increase
of 65% from
the fiscal
year 2000.
(All amounts
in Canadian
dollars).
In late December
2000 and during
2001, NTG
Clarity completed
and closed
four acquisitions.
These acquisitions
provided NTG
Clarity with
new products,
people and
opportunities.
At the same
time, NTG
Clarity's
main customer
industry -
telecommunications
struggled
throughout
2001.
While the
above acquisitions
assisted in
the 65% increase
in revenue,
margins were
squeezed by
the difficult
business environment.
In addition,
the acquisitions
failed to
produce significant
returns in
this recessive
atmosphere.
As such the
Company reported
a consolidated
net loss for
the year ended
December 31,
2001 of $2.87
million, as
compared to
a net income
of $230,706
for the year
ended December
31, 2000.
The main reasons
for the loss
is attributed
to the reduction
in gross margins
due to the
introduction
of new lines
of business
and the costs
associated
with building
these businesses
that are important
to achieve
the growth
for NTG Clarity.
The Company
decided that
it was prudent
to write down
the value
of its research
and development
as well as
goodwill which
resulted in
a one time
charge of
$1,471,454.
Contributing
to the loss
are the costs
of going public
and the legal
integration
costs of the
businesses
acquired in
2001.
NTG Clarity
has invested
in the hiring
of a senior
sales team
and sales
support. While
the costs
related to
bringing on
these skills
is reflected
in 2001 results,
the benefits
are expected
to start showing
in 2002.
"We
are pleased
with our growing
customer base
and new customer
wins despite
the overall
slowdown in
the technology
industry,"
said Ashraf
Zaghloul,
Chair and
Chief Executive
Officer of
NTG Clarity
Networks Inc.
"Equally
important,
we've entered
fiscal 2002
with a concrete
business plan
for reducing
costs and
increasing
margins for
delivering
even stronger
results this
year." |
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Financial
Highlights for the
years ended December
31, 2001 and 2000 |
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| December
31, 2001 |
December
31, 2000
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Revenue |
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Cost
of sales |
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Gross
margin |
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Expenses |
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Research
and development
and goodwill
amortization |
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Income
(loss)
before
income
taxes |
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Net
income
(loss) |
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Cash,
end of
year |
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Bank
Overdraft |
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Shareholders'
equity |
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Total
Assets |
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| $14,094,145 |
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$8,520,206 |
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| 11,538,991 |
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5,778,148
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| 2,555,154 |
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2,742,058 |
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| 3,954,755 |
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2,436,352
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| 1,471,454 |
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0 |
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| (2,871,055) |
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305,706
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| (2,871,055)
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230,706 |
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| 3,646,567 |
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2,432,836 |
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| 2,417,612 |
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10,865
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| 3,778,116 |
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6,322,508 |
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| 6,839,874
7,060,644 |
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For
Further Information,
Contact:
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