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Gatekeeper Systems Inc
Symbol GSI
Shares Issued 87,597,145
Close 2019-01-29 C$ 0.09
Market Cap C$ 7,883,743
Recent Sedar Documents

Gatekeeper Systems loses $687,379 in fiscal Q1 2019

2019-01-29 09:45 ET - News Release

Mr. Douglas Dyment reports

GATEKEEPER REPORTS FIRST QUARTER FINANCIAL RESULTS

Gatekeeper Systems Inc. has released its financial results for the first fiscal quarter ended Nov. 30, 2018.

Q1 2019 highlights:

  • Company revenue for the three months ended Nov. 30, 2018, was $1,839,478, which compares with $1,429,899 during the same period in the previous year -- an increase of 29 per cent and the highest fiscal Q1 revenue in the company's history;
  • Gross profit during the quarter was $911,286, which compares with $772,014 in the same period in the previous year;
  • Net loss for the quarter was one cent per share, which compares with a net loss of nil per share for the same period in the previous year;
  • As at Nov. 30, 2018, the company had working capital of $5,813,146;
  • Initial order announced with Logan Bus Company for high-definition video systems on 40 New York area school buses;
  • Launched new 24-camera, high-definition rail recorder for transit industry;
  • Launched new high-density crash memory module for transit industry;
  • Launched the SP25, a new 10-megapixel dual-camera licence plate imaging system;
  • Announced $1.5-million contract with Southeastern Pennsylvania Transit Authority (SEPTA) to supply and install video system solutions on SEPTA trains;
  • Announced SEPTA contract for high-definition video systems on 335 diesel-electric hybrid transit buses;
  • Received notice to proceed from SEPTA for wireless infrastructure equipment on 320 trains;
  • Awarded Jackson County Mass Transit District contract for 35 high-definition systems;
  • Received commitment from Proterra Bus to perform acceptance testing on all electric buses purchased by SEPTA.

Management commentary

Doug Dyment, president and chief executive officer, commented: "We are pleased with our first quarter results, which are the strongest first quarter revenues in the company's history. Two thousand eighteen was a year of repositioning within our existing markets and expanding into new markets with our company's offerings. We strategically added transit authorities as a market opportunity and are beginning to witness the benefits of this strategic shift. We continue to be very optimistic about our future opportunities."

SEPTA

During the first quarter, the company announced two SEPTA contracts: a $1.5-million contract to supply and install video system solutions for trains and a contract through New Flyer to install high-definition video systems on 335 SEPTA diesel-electric hybrid transit buses.

The transit market is now a strategic opportunity for the company. SEPTA has become a cornerstone customer following the company's purchase of certain operating assets of Spector Logistics Inc. in April, 2018. The purchase included contracts with SEPTA and positioned the company for expansion in the U.S. transit market.

SEPTA is a regional public transportation authority that operates bus, rapid transit, commuter rail, light rail and electric trolley bus services for nearly four million people in Philadelphia, Pa. SEPTA is one of the largest transit authorities in the United States, providing over 300 million passenger rides annually on over 3,600 vehicles, which includes approximately 970 trains. SEPTA has rapidly embraced video evidence as protection against injury and damages claims; during its 2016 fiscal year, it reported a decrease in related liability costs of $33.8-million (U.S.).

High-definition rail recorder and crash memory

As part of the company's rail transit platform strategy, it released two new products aimed to increase the company's ability to scale revenue. The first product is a high-definition video rail recorder that meets specific rail requirements and is capable of recording up to 24 high-definition cameras. The second product is a high-density crash-hardened memory module for securing video and data in the event of train crashes. The use of video to provide safety and security for passengers as well as provide real-time information to assist operation managers is becoming more common in the design of train communications systems. Protecting these data in the event of train derailments can assist the National Transportation Safety Board (NTSB) during accident investigations.

SP25 licence plate imaging system

During the quarter, the company launched its SP25, a new 10-megapixel dual-camera licence plate imaging system, which builds on Gatekeeper's proven technology by adding a multilane-viewing licence plate capture capability, a high-speed licence plate tag reader and cellular network compatibility ready for remote, auto downloading of stop-arm violations. The National Association of State Directors of Pupil Transportation Services estimates that there are more than 15 million school bus stop-arm violations per year in the United States alone. The company is actively marketing this new product line in response to these statistics and increased incidents resulting in children's deaths.

         CONSOLIDATED STATEMENT OF OPERATIONS  
                    
                                For the three months ended   
                             Nov. 30, 2018   Nov. 30, 2017
                                                          
Revenue                        $ 1,839,478     $ 1,429,899
Cost of sales                      928,192         657,885
Gross profit                       911,286         772,014
Gross margin                           50%             54%
Expenses                         1,664,260       1,205,931
Operating (loss)                  (752,974)       (433,917)
Net (loss) for the period      $  (687,379)    $  (340,715)
(Loss) per share 
Basic                          $     (0.01)    $     (0.00)
Diluted                        $     (0.01)    $     (0.00)

Full details of the financial reports and operating results for the three months ended Nov. 30, 2018, are described in the company's condensed interim consolidated financial statements with accompanying notes and related management discussion and analysis, available on SEDAR.

About Gatekeeper Systems Inc.

Gatekeeper provides wireless high-resolution video security and safety solutions for in-transit applications, including school buses, municipal transit, first response and the military. The company offers wireless live-streaming video surveillance, video analytics, driver monitoring and incident management solutions to help protect school children, public transit users and employees on the move. The company has unique photo enforcement and auto-ticketing solutions to deter stop-arm violations and protect school children. Gatekeeper has installed over 100,000 video devices for more than 3,500 customers throughout North America.

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