Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) (FSE: 1GK)
Q1 revenue up 29%; the highest Q1 revenue in the Company's history
Abbotsford, British Columbia--(Newsfile Corp. - January 29, 2019) - Gatekeeper Systems Inc. (TSXV: GSI) (OTC Pink: GKPRF) (FSE: 1GK) ('Gatekeeper' or the 'Company'), a leading provider of video surveillance systems developed to protect people while in transit, today reported its financial results for the first fiscal quarter ended November 30, 2018.
Q1 2019 Highlights
Company revenue for the three months ended November 30, 2018 was $1,839,478 which compares to $1,429,899 during the same period in the previous year: an increase of 29% and the highest fiscal Q1 revenue in the Company's history;Gross profit during the quarter was $911,286 which compares to $772,014 in the same period in the previous year;Net loss for the quarter was $0.01 per share which compares to a net loss of $0.00 per share for the same period in the previous year;As at November 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 City 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, license 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 CEO commented, "We are pleased with our first quarter results, which are the strongest first-quarter revenues in the Company's history. 2018 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 US 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 4 million people in Philadelphia, Pennsylvania. 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 their 2016 fiscal year they reported a decrease in related liability costs of US$33.8 million.
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 definitions 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 this data in the event of train derailments can assist The National Transportation Safety Board (NTSB) during accident investigations.
SP25 License Plate Imaging System
During the quarter the Company launched its SP25, a new 10-megapixel dual-camera license plate imaging system, which builds on Gatekeeper's proven technology by adding a multi-lane viewing license plate capture capability, a high-speed license 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. |
