INVESTORS NEWS

FOR IMMEDIATE RELEASE 

Gatekeeper Achieves 70% Revenue and 87% Gross Profit Increase in Fourth Quarter 

Abbotsford, BC December 30th, 2015 - Gatekeeper Systems Inc. (‘Gatekeeper’ or the ‘Company’) (TSX.V:GSI) announces that it has filed its financial statements and management’s discussion and analysis for the fiscal year end August 31st, 2015, available for viewing on www.sedar.com.  All figures are expressed in Canadian dollars unless otherwise stated.

Fiscal Year 2015 Financial Highlights

        • Revenue in the fourth quarter increased by 70% and improved to $2,468,209 from $1,455,537 in third quarter
        • Revenues in fiscal 2015 increased 47% and improved to $5,943,773 from $4,040,124 in fiscal 2014
        • Gross profit in the fourth quarter increased by 87% and improved to $1,168,984 from $623,911 in third quarter
        • Gross margins in fiscal 2015 improved to 45%, compared to 38% in fiscal 2014, representing a 74% gross profit margin increase
        • At the end of the Company’s fiscal year, the Company had cash and cash equivalents of $1,165,555 and working capital of $2,463,826
        • Completed equity financing, raising net proceeds of $3,016,295.00 in fiscal 201
        • Net loss for the fiscal year 2015 was $920,796, compared to $1,665,364 during the fiscal year 2014

BUSINESS UPDATE

The 47% increase in revenue was the result of the Company executing on its business development strategies and momentum of its solid state mobile video system as well as introductory sales of its high definition video systems.  A key factor was the commitment, effort, and dedication from employees and business partners located throughout North America.  Our continued sales success can be directly attributed to the close relationships that the Company has built with end users, dealers and system integrators.

The school bus market continues to be the company’s main revenue generator with new sales coming from law enforcement, transit, general fleet vehicles and airborne defense.  The company landed 14 new test sites for its stop arm camera system with total combined buses owned by the 14 school districts of 919.  This is up from two demo systems the previous year.

The Company continued its contract with TIPS Interlocal Purchasing System which allows USA government buyers to procure Gatekeeper products without having to go through a lengthy competitive tendering process.

MARKET POSITION

During the year, the following notable events occurred:

        • Received approximately $535,000 in purchase orders for the Company’s new high definition mobile video systems
        • Received new order for Viperfish airborne digital video recorders for AC130 Gunships
        • Launched new body camera to law enforcement market
        • Signed new strategic reseller partner agreement with SunGard Public Sector Inc.  Public safety and justice agencies use SunGard Public Sector solutions to manage emergency dispatch operations, citizen and incident records, mobile computing in the field and operations of courts and jails. The agreement calls for Gatekeeper technology integration for SunGard customers.
        • Received new purchase orders for its solid state mobile video technology from multiple transit authorities totaling $160,000
        • Gatekeeper began the hiring process to increase sales and product development team to execute on 2015/16 plan
        • Finalized testing with its leading transportation fleet with its forward facing high definition video system
        • Entered into Non-Disclosure Agreement with leading Telematics company to integrate the Company’s high definition video system to offer unique product offering to one of Gatekeeper’s biggest customers

PRODUCT NEWS

During the past year, the Company made strides in product development, including the following:

        • Completed development of high definition products including five, six and twelve camera mobile video systems
        • Began development of body camera with built in WIFI and GPS
        • Initiated development of high definition airborne digital video system meeting military specification including electronic magnetic interference
        • Launched new high definition stop arm camera system for recording license plates in multiple lanes
        • Initiated design of high definition forward facing camera for in-car law enforcement market
        • Designed and launched four new high definition mobile video cameras

MOVING AHEAD

The Company continues to plan for expanding sales in multiple markets including the transition of analog cameras to high definition, stop arm camera market and body cameras. To date, Gatekeeper has been working towards the following initiatives:

        • Investigating a strategic expansion in the USA to support customers in current and new markets
        • Anticipation of generating recurring revenue from stop arm camera projects as part of our STUDENT PROTECTOR revenue sharing program
        • Executing on its technology integration with SunGard with potential access to hundreds of new law enforcement customers
        • Aggressive integration strategy with leading software companies to create unique product solutions using our core products to increase market share

Doug Dyment, President and CEO commented, “The Company enjoyed a successful year increasing top line growth while expanding its product lines and customer base in addition to exposure to capital markets in Canada, United States and Europe.  We believe the work that has been completed this year sets the Company up for future growth and profitability in the coming years. We appreciate the continued support of our customers, employees and shareholders.”

 

Summary of Financial Results and Information

Consolidated Statement of Operations

   
 

For the year ended

 

August 31, 2015

August 31, 2014

Revenue

$               5,943,773

$            4,040,124

Cost of Sales

$               3,250,899

$            2,493,737

Gross Profit

$               2,692,874

$            1,546,387

Gross Margin

45%

38%

Expenses

$               3,740,182

$            3,242,825

Operating Loss

$              (1,047,308)

$          (1,696,438)

Net Loss for the year

$                (920,796)

$          (1,665,364)

Loss Earnings per share –

   

Basic

$                      (0.02)

$                 (0.05)

Diluted

$                      (0.02)

$                 (0.05)

Total Assets

$               3,322,309

$            1,636,020

Total Liabilities

$                  759,839

$               450,120

Total Shareholders’ Equity

$               2,562,470

$            1,185,900

Financial Reports

Full details of the financial reports and operating results for the fiscal year 2015 are described in the Company’s condensed interim consolidated financial statements with accompanying notes and related Management’s Discussion and Analysis.  These documents and additional information on Gatekeeper are available on SEDAR at www.sedar.com

About Gatekeeper Systems Inc.

A TSX-V Company since 2013, Gatekeeper Systems Inc. has provided total mobile video security solutions to over 3,500 customers and has installations in every state and province in North America. Customers include school districts, public transit, law enforcement and military.  

For more information visit: www.gatekeeper-systems.com.

On behalf of the Board,

 

“Douglas Dyment”

President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis for the quarter ended November 30, 2013. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

2015-12-30 -NR -Gatekeeper Achieves 70% Revenue and 87% Gross Profit Increase in Fourth Quarter.pdf