NTG Clarity obtains new POs, renewals for $10.9-million

Executive Summary

• NTG Clarity Networks Inc. has secured new purchase orders and contract renewals totaling approximately $10.9 million from both existing and new customers.
• The revenue includes $1.4 million in new business from three new IT services customers and $9.5 million in renewals, expansions, and related orders.
• Significant portions of the new orders ($6.5 million) are billings against a previously announced $53 million three-year framework contract established in August 2024, with one segment showing a 33% increase in billing rate over original contracts.

Key Details

• Total Value: Approximately $10.9 million in new purchase orders and contract renewals.
• New Customer Acquisition: $1.4 million in new purchase orders for offshore and on-site software development services from three new IT services customers.
• Renewals and Expansions: $9.5 million total, broken down as follows:
  • $3.6 million in renewed contracts for offshore and on-site software development services, with several renewals including an increase in the number of contracted resources.
  • $2.7 million in new purchase orders for offshore and on-site software development services.
  • $2.9 million in purchase orders for NTGapps with existing IT services clients.
  • $300,000 in other purchase orders for NTGapps with existing telecom and food and beverage clients.
• Framework Contract Context:
  • The $2.7 million and $2.9 million components represent billings against the previously announced $53 million three-year framework contract from August 2024.
  • The framework contract sets the minimum proposed spend, with purchase orders issued for specific scopes of work as engagement progresses.
  • The NTGapps purchase orders with existing IT services clients are being billed at a rate 33% higher than originally contracted.
• Strategic Commentary: Management highlighted a "land-and-expand" growth strategy, noting that new customers are opening doors to long-term opportunities while existing customers are broadening commitments.

Notable Quotes

• "Our land-and-expand growth strategy is gaining momentum. We've signed three new customers who are starting with initial contracts that open the door to more substantial long-term opportunities as we demonstrate value," said Adam Zaghloul, vice-president of strategy and planning at NTG Clarity. "At the same time, existing customers are not only renewing but broadening their commitments, reflecting the tangible value we deliver and the trust we've built. Our embedded account reps are playing a key role by clearly articulating the value proposition of NTGapps and converting trials into lasting subscriptions."