Last week, I posted my first blog entry about NTG Clarity Networks (v.NCI) - a company that was trading at 0.06 with trailing 2012 yearly earnings of 0.026 / share, for a price to trailing earnings ratio of 2.3.
Today, NTG released their Q1 numbers for the current fiscal year, showing that their strong earnings in 2012 were anything but a fluke. NTG reported net income for the quarter of $202,064 or 0.01/share earnings on revenue of $1,486,872, a 40% increase over 2012 Q1's revenue of $1,060,471.
This little known company is clearly undervalued at these levels, trading at 2.3 X 2012 trailing earnings and only 1.5 times projected annualized 2013 earnings. Applying a very conservative p/e ratio of 5 equates to a more realistic valuation of 0.13 (based on trailing 2012 earnings) and 0.20 (based on projected annualized 2013 earnings). No matter which you use, NTG Clarity Networks (v.NCI) is greatly undervalued.
NTG Clarity Networks is a leader in delivering network, telecom, IT and infrastructure solutions to network service providers and medium and large enterprises. It has operations and offices worldwide with over 150 employees.
Some of NTG's clients include:
Alcatel, Allstream, Bell, Cogeco, Core180, Ericsson, Lucent, Motorola, Nokia Siemens, Rogers, Telus, Videotron, Vodafone, Ontario Minsitry of Health, Hospital for Sick Children, British Petroleum, Syncrude, Talisman Energy, BMO, CIBC, RBC, StatsCan...as well as a host of companies and government divisions in African / Middle Eastern countries.
NTG CLARITY NETWORKS INC. ANNOUNCES FIRST QUARTER 2013 RESULTS
NTG Clarity Networks Inc. has released its first quarter 2013 revenues of $1,486,872 as compared with $1,060,471 in the same period last year. This increase in revenue was mainly due to demand for the company's professional services and product licences.
The company reported a net income for the three months ended March 31, 2013, of $202,064, compared with a net loss of $59,430, for the comparable period last year. This is mainly due to the increased sales of product licences, which are market oriented and highly profitable.
As at March 31, 2013, NTG Clarity had positive working capital of $1,041,971 and long-term debt of only $62,240.
INCOME STATEMENT HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2013, AND 2012 March 31, 2013 March 31, 2012 Revenue $1,486,872 $1,060,471Cost of revenue 787,325 651,081Gross profit 699,547 409,390Expenses 527,623 430,173Foreign exchange loss (gain) (30,140) 38,647Net income for the period $202,064 $(59,430)Per share .01 (.00)