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• NTG has received $12.3M in new purchase orders and contract renewals from existing customers, reflecting continued demand for its offshore software development despite ongoing regional conflict.
• $8.5M in purchase orders were billed against previously announced frameworks, as major contractual commitments are converting to revenue.
• In March, NTG provided a detailed update on the Company’s AI strategy, outlining early customer adoption of its AI-powered products.
• We recently interviewed Adam Zaghloul, VP of Strategy and Planning. Click here to watch the interview.
This morning, NTG Clarity Networks (NCI:TSXV, NYWKF:OTCPK) announced $12.3M in new purchase orders and contract renewals across its existing customer base, demonstrating continued demand for its offshore software development services despite the ongoing regional conflict. The announcement includes active billings against NTG’s two major framework agreements, as well as a new NTGapps engagement secured within an existing finance customer relationship. In March, NTG also provided investors with an AI strategy update, which we provide some more colour on below. We are maintaining our BUY rating and our target price of $2.50/share on NTG Clarity Networks.
Contract Renewals and Expansions
Today’s announcement included $12M in renewals and expansions, which is comprised of three components. Firstly, $5.5M in purchase orders for offshore software development services, representing billings against the previously announced $22M three-year framework contract (December 2024). Secondly, $3.5M in renewed purchase orders and contracts for offshore and onsite software development services, in which several of these renewals include an increase in the number of contracted resources, and a direct example of NTG’s land and expand model gaining traction with its existing relationships. Lastly, $3.0M in purchase orders for offshore and onsite software development services, representing billings against the previously announced $53M three-year framework contract (August 2024).
Today’s announcement also includes $280K in new purchase orders for NTGapps from an existing finance customer, representing a new engagement within an already established customer relationship. While the deal is modest, relative to the above deals, this is consistent with NTG’s strategy of cross-selling its software products into its existing customer base. Together, $8.5M billed of the contracts were billed against previous agreements, while ~$3.8M were new contracts. Management specifically mentioned that the case for economic diversification in the Gulf has only been reinforced by the recent conflict.
NCI: $12.3M in Contracts; Awaiting Q4 Financial Results
What you need to know:• NTG has received $12.3M in new purchase orders and contract renewals from existing customers, reflecting continued demand for its offshore software development despite ongoing regional conflict.
• $8.5M in purchase orders were billed against previously announced frameworks, as major contractual commitments are converting to revenue.
• In March, NTG provided a detailed update on the Company’s AI strategy, outlining early customer adoption of its AI-powered products.
• We recently interviewed Adam Zaghloul, VP of Strategy and Planning. Click here to watch the interview.
This morning, NTG Clarity Networks (NCI:TSXV, NYWKF:OTCPK) announced $12.3M in new purchase orders and contract renewals across its existing customer base, demonstrating continued demand for its offshore software development services despite the ongoing regional conflict. The announcement includes active billings against NTG’s two major framework agreements, as well as a new NTGapps engagement secured within an existing finance customer relationship. In March, NTG also provided investors with an AI strategy update, which we provide some more colour on below. We are maintaining our BUY rating and our target price of $2.50/share on NTG Clarity Networks.
Contract Renewals and Expansions
Today’s announcement included $12M in renewals and expansions, which is comprised of three components. Firstly, $5.5M in purchase orders for offshore software development services, representing billings against the previously announced $22M three-year framework contract (December 2024). Secondly, $3.5M in renewed purchase orders and contracts for offshore and onsite software development services, in which several of these renewals include an increase in the number of contracted resources, and a direct example of NTG’s land and expand model gaining traction with its existing relationships. Lastly, $3.0M in purchase orders for offshore and onsite software development services, representing billings against the previously announced $53M three-year framework contract (August 2024).
Today’s announcement also includes $280K in new purchase orders for NTGapps from an existing finance customer, representing a new engagement within an already established customer relationship. While the deal is modest, relative to the above deals, this is consistent with NTG’s strategy of cross-selling its software products into its existing customer base. Together, $8.5M billed of the contracts were billed against previous agreements, while ~$3.8M were new contracts. Management specifically mentioned that the case for economic diversification in the Gulf has only been reinforced by the recent conflict.
Underlying
NTG Clarity Networks Inc.
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
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