NTG Clarity receives POs for $11.8-million of work

Executive Summary

• NTG Clarity Networks Inc. has secured approximately $11.8 million in normal course purchase orders and contract renewals from both existing and new customers.
• The majority of the revenue ($11.4 million) stems from existing customers, including $6 million in POs tied to a previously announced $53 million three-year framework contract established in August 2024.
• The company highlights its "land-and-expand" model, noting that new customers are starting with focused scopes (e.g., $442,000 in digital transformation services) while existing clients are increasing contracted resources and spending.

Key Details

• Total Value: Approximately $11.8 million in normal course new purchase orders (POs) and contract renewals.
• Existing Customer Revenue ($11.4 million total):
  • $6.0 million: Purchase orders for offshore and onsite software development services. These represent billings against the previously announced $53 million three-year framework contract from August 2024. The framework sets minimum proposed spend, with POs issued for specific scopes as delivery ramps up.
  • $5.2 million: Renewed POs and contracts for offshore and onsite software development services. Several of these renewals include an increase in the number of contracted resources.
  • $191,000: Purchase orders for NTGapps with existing IT services and telecom clients.
• New Customer Revenue ($442,000 total):
  • $442,000: New purchase orders for offshore and on-site digital transformation services for a new IT services customer.
• Strategic Context: Management states that the renewals and expansions signal that the delivery model combined with NTGapps is solving real problems for clients, enabling a steady cadence of purchase orders as customers scale.

Notable Quotes

• "The approximately $11.8-million in normal course purchase orders and renewals shows our land-and-expand model continuing to work. New customers are starting with focused scopes -- like the $442,000 in digital transformation POs with a new IT services customer -- that opens the door to larger, long-term opportunities as we demonstrate value," said Adam Zaghloul, vice-president of strategy and planning.
• "At the same time, existing customers are broadening commitments across onsite and offshore delivery, a clear signal that our delivery model, combined with NTGapps, is solving real problems. Our multiyear framework agreements enable a steady cadence of purchase orders and renewals, as customers scale at or above previously anticipated levels."