NTG Clarity Networks Inc.

NTG Clarity Networks Inc.
Your Network Services Partner
TSX Venture: NCI
June, 2014
1
One Page Investor Summary
20 year-old established company with established clientele
Repeat Canadian and Overseas clients (recurring revenues)
Revenues in 2013 of $10.5 million and Net Income of $1.86 million or $0.06 per share.
Positive working capital of $4.6 million ($0.13/share)
US $6.3 million in orders announced since March 2014. To be completed over next 6 - 12
months
Significant international growth potential
Strong leadership with vast network of contacts
Proprietary and innovative products
Single source provider; Leadership position of NTS product
2
NTG Corporate Overview
Telecom and IT infrastructure solutions provider and a
leader in the telecommunications OSS/BSS market
Established in 1992, servicing telecom, utilities, enterprise
and government.
Offices and operations in Canada (Toronto), USA, Egypt
(Cairo, Aswan), Saudi Arabia (Riyadh), Bahrain, Qatar, and
Kuwait.
150 IT, Network and engineering professionals and over
100 senior consultants and associates.
Track record in designing, developing, and supporting
advanced systems, networks, OSS/BSS and e-business
solutions.
3
Vision
To be the leading provider of quality network
products and services in the
Middle East
Africa
South America
North America
NTG Value Proposition
NTG partners with groups who Design, Build, Manage, and
Support Networks and Network Applications.
We are the experts in applying People, Methodology, Process,
and Technology to provide Quality and on time Network
Services; on your premises or ours. We help you, our customer,
to increase revenue, improve customer satisfaction, and focus on
your bottom line
“We are your Network Services Partner!”
Organization Principles
Our company prides itself on providing Operational Excellence
for our customers;
We consistently have the right skills for delivering the right
solution to our customers;
Our approach is to be responsive, cost competitive and highly
effective.
Resources are aligned by major customers and/or geographic
centre;
Core employees (i.e. Non-billable) are senior, experienced
individuals with proven track records in their field of expertise;
Field Employees (i.e. Billable) are sourced from a data base of
X individuals principally with Engineering, Computer Sciences
Value Added by NTG
Why do clients choose to outsource to NTG?
Prefer to focus on their core business
Require resources with unique skill sets
Engineers and IT professional in high-demand and expensive
Training costly and time-consuming
Encounter headcount freezes
Easier to obtain consulting budgets
than permanent headcount
Consultants create financial flexibility
Quality service at competitive price
Proprietary products at very competitive prices
NTG will deliver dedicated, skilled resources to
complete projects on time and on budget.
Some of Our Clients
8
Egypt
Aswan Water and
Wastewater Co.
NRC
DANIDA
CIDA
BDSSP Project
Saudi Arabia
Kuwait
Products and Expertise
IT Professional Services
Training Services
Software Development & Customization
OSS/BSS Implementation
User Training
Systems Integration
Security
Security
Software Offerings
BSS & OSS
Corporate Portals
ERP
Smart2Go E-Business System
11
NTG Telecom Services
12
Convergence and Divergence
PSTN
OSS/BSS is a key enabler
Mobile
WiFi/WiMax
Internet
nts
OSS/
BSS
Integrated end-to-end solution
Video
Service Management Middleware
Network
Elements
13
Customized
Individual
Services
NTS World Class Solution
Customer SelfCare
UNIFIED SERVICE ORDERING
KNOWLEDGE
MANAGEMENT
Browse Inventory
SERVICE
ASSURANCE
OSS Integration
Start
Field
Technicians
Network
Engineers
Sales Reps
CSRs
Ordering
NETWORK DESIGN AND INVENTORY
SLA
Credit Check
Fault /
Performance
Shipping
End
Reconciliation
DATA SERVICE/
PROVISIONING
Activation
Network
Inventory
NETWORK DISCOVERY
Network
Repository
Discovery
Engine
Network
14
NTS gives customers the
ability to manage their
business operations across
departments or enterprisewide, in a completely
integrated holistic
environment
Two Business Sectors
1. Professional Services
(Telecom & IP)
Gross margin: 35%
Revenue Distribution
17%
83%
2. Software Products & Integration (OSS/BSS)
Gross margin: 60%
Professional Service
Software
International Revenues 86%
15
Competitive Analysis
The competitive landscape ranges from internally grown IT legacy systems to recognized
large commercial and mid size players.
In addition to recognized competitors there are an estimated 400 smaller boutique
providers who typically specialize in individual components rather than an end-to-end OSS
solution.
There is a growing trend to move away from home grown legacy OSS systems that can no
longer service CSP business requirements to commercial solutions
developed with open architecture.
Large scale commercial OSS systems are expensive to acquire, and difficult to integrate and
maintain.
Small scale commercial OSS systems are typically lacking in function capability, limited in
scalability, and cannot deliver an end-to-end OSS solution.
There is a significant void in the market for a fully integrated solution, that is scalable,
provides a low total cost of ownership, and a tangible ROI
16
Competitive Landscape
Large Commercial:
Amdocs
Telcordia
Mid-size Commercial:
Metasolv (Oracle)
Syndesis
Cramer
Eng House
NetCracker
In-house IT developed systems
17
NTS Positioning
Full
OSS
Functions
AmDocs
Syndesis
Functionality
NTS
Telcordia
300+ Small OSS Vendors
ABC OSS
Agilent
Cramer
MetaSolv
Netcracker
ABC OSS ABC OSS
Digital
Fairway
Single
Module
ABC OSS
ABC OSS
ABC OSS
ABC OSS
Local
ISP
Customer Size
18
Global
Carrier
NTS Positioning in Growth/Size
Simple
Complex
Range of Telecom
Services
OSS
Cost
($)
Inefficiency
Pain
Typical
Large OSS
NTS
Growth
Pain
Simple
OSS
Spreadsheet
Spreadsheets and
small OSS can’t scale up
NTS Can Move
In Either Direction
19
Large OSS can not
scale down
A Strong Growth Story
20
A Stable Financial Position
Balance Sheet
For the Period Ended March 31, 2014
Current Assets
$ 7,113,630
Total Assets
10,006,012
Current Liabilities
2,962,225
Long Term Debt
nil
Shareholders’ Equity
7,573,145
21
Profitable Operations
Shares Outstanding (Mar 31, 2014)
Basic
Fully-diluted
35,784,669
39,075,669
Mgmt controls approx 24%
Trailing Financials
For the trailing 12 month period ended March 31, 2014
Quarter
Revenues
Net Income
Per Share
Q1 / 2014
$2,933,749
$202,502
$0.01
Q4 / 2013
$3,167,994
$131,178
$0.00
Q3 / 2013
$3,767,669
$784,669
$0.02
Q2 / 2013
$2,149,380
$829,403
$0.03
Total
$12,018,792
$1,947,752
$0.06
Current Share Price (June 20, 2014): $0.28
Price to Earnings Multiple: 5.5 times
22
Five Strategies for Growth
1.
Single-Source Provider
2.
Product Development
3.
Acquisitions & Mergers
4.
Geographic Expansion
5.
High-Calibre Professionals
Sales Strategy
Three sales offices will be established with
3 – 5 direct sales reps per office.
24
A Strong Growth Story
Recent Announcements
NTG Establishes $3.5 Million CDN Credit Facility
NTG Awarded $ $3.4 Million Letter of Intent and PO for NTG Resources
NTG Awarded $2.97 Million Letter of Intent and PO for Managed Services and Support
NTG Announces a New Independent Board Member – Nick Hamilton-Piercy
25
Strong Leadership
Board of Directors
•
ASHRAF ZAGHLOUL
President, Chief Executive Officer and Chairman of the Board
NTG Clarity Networks Inc.
•
KRISTINE LEWIS
has extensive experience in the management and operation in the IT and
telecom industry
•
The Honourable Sinclair Stevens
Ex Industry Minister in the Government of Canada.
•
DR. ZAFAR FAROOQUI
Has over 30 years of experience as a senior engineering analyst for major
North American organizations.
organizations.
•
ADEL ZAGHLOUL, Eng.
Chairman and CEO, NTG Egypt
Former CEO of Electro Cable
•
NICK HAMILTONHAMILTON-PIERCY
Retired Telecom professional
Former Chief Technology Officer (CTO), Rogers Communications
26
Contact Information
Ashraf Zaghloul
NTG Clarity Networks Inc.
Chief Executive Officer
& Chairman of the Board
Suite 202 – 2820 Fourteenth Ave.
Markham, ON Canada L3R 0S9
1-800-838-7894 or (905) 305-1325
www.ntgclarity.com
AZaghloul@ntgclarity.com
NCI (TSXV)
27