Business
Gatekeeper Reports 11% Growth and US Expansion Fuels Third Quarter Results
(via TheNewswire) Abbotsford, BC / TheNewswire / July 30, 2018 - Gatekeeper Systems In...
About this update from Gatekeeper Systems, Inc.
[{"type":"text","content":"Gatekeeper Reports 11% Growth and US Expansion Fuels Third Quarter Results(via TheNewswire)\n \n \nAbbotsford, BC / TheNewswire / July 30, 2018 - Gatekeeper Systems Inc. ('Gatekeeper' or the 'Company') (TSX.V: GSI; OTC: GKPRF; FSE: 1GK), a leading provider of video surveillance systems developed to protect children riding on school buses and people using North America's transit systems, today reported its financial results for the third quarter ending May 31, 2018. \n\n \n \nQ3 2018 Financial Highlights\n\n\n \nRevenue for the three months ending May 31, 2018 was $2,527,308 compared to $2,274,528 during the same period in the previous year, representing an 11% increase, and included $311,883 of recurring revenue from the Company's US subsidiary, Gatekeeper Systems USA Inc. (\"Gatekeeper USA\"), which operated in two months of the quarter;\n\n\n \nGross profit during the quarter was $1,360,930 compared to $1,183,068 during the same period in the previous year and, as a percentage of revenue, was 54% for Q3-F2018 as compared to 52% for Q3-F2017;\n\n\n \nIncreased expense levels during the quarter reflected consolidated general and administrative expenses from the new Gatekeeper USA, and one-time expenditures related to setting up the US location and expanding the company's sales team;\n\n\n \nNet loss for the quarter was $126,209 as compared to a net income of $139,508 for the same period in the previous year and included $108,235 (Q3 F2017 $22,851) of non-cash, share based payment expense;\n\n\n \nGatekeeper USA contributed $71,264 of profit for the two months that it operated in Q3;\n\n\n \nAs at May 31, 2018, the Company had cash and cash equivalents of $4,625,143 and working capital of $6,714,687.\n\n \n \nBUSINESS UPDATE\nDuring the third quarter of fiscal 2018, the Company advanced the following initiatives:\n\n \n \nIts American subsidiary company, Gatekeeper USA, was incorporated on March 1, 2018, to increase operational capabilities south of the border for the Company's digital video recording (DVR) technology systems, and to meet Buy America regulations. The new subsidiary will target sales and service opportunities within the public transit market, as well as building on its service and maintenance capabilities for the Company's school bus fleet customers.\n\n\n \nThe Company's subsidiary, Gatekeeper USA, purchased cert...