INVESTORS NEWS

FOR IMMEDIATE RELEASE 

Gatekeeper Reports Second Quarter Results

Abbotsford, BC - April 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 people in transit , today reported financial results for the second quarter ended February 28, 2018.

 
Q2 2018 Financial Highlights
  • Revenue for the three months ended February 28, 2018 was $1,237,320 as compared to $1,314,495 during the same period in the previous year; 
  • Gross profit during the quarter was $635,693 as compared to $674,745 during the same period in the previous year;
  • Net loss for the quarter was $499,124 as compared to a net loss of $308,143 for same period in the previous year;
  • As at February 28, 2018, the Company had cash and cash equivalents of $5,778,741 and working capital of $7,103,814.

BUSINESS UPDATE

During the second quarter of fiscal 2018, the Company advanced the following initiatives:

  • Negotiated the purchase of assets of Spector Logistics Inc., a US-based video installation and support company that provided contract services to Southeastern Pennsylvania Transportation Authority, the 5th largest transit system in the US.
  • Launched the G4 716 Network Video Recorder (NVR) for the public transit market. G4 716 NVR is a full-featured IP recorder that records up to sixteen 1080p cameras at 30 frames per second.
  • Initiated a national sales campaign for a new Y35 high definition recorder for the school bus market. The Y35 records five cameras and has the ability to push back video upon alarm conditions, such as a vehicle hard deceleration, which allows transportation managers to study poor driving habits and investigate accidents. A driver alarm can also be activated which sends emergency situation video to a command center using Gatekeeper’s enterprise software.
  • Released a new version of “Health Check” software, which automatically reports when a Gatekeeper device is not working, or has been vandalized, allowing transportation managers to be proactive in system maintenance, to reduce missing video evidence.
  • Continued to advance the 23 installed stop-arm camera systems under evaluation, which involve 1,829 buses owned by various school districts. The Company has five stop-arm camera system installations currently in operation.

Doug Dyment, President and CEO commented, “We are pleased with our advances during the second fiscal quarter of 2018. We are very optimistic about the significant potential in the transit market, and look forward to leveraging our recent acquisition of assets from Spector Logistics Inc. within this industry vertical.

Summary of Financial Results and Information

 

Three months ended                                    Six months ended

February 28, 2018

February 28, 2017

February 28, 2018 

 February 28, 2017

Revenue

$          1,237,320

$       1,314,495

$        2,667,219

$        2,679,036

Gross Profit $             635,693  $          674,745  $        1,403,612  $        1,247,692 

Gross Margin

51%

51%

53%

47%

Expenses

$          1,120,036

$         920,420

$        2,325,967

$        1,814,190

Net Income (Loss) for the period

$           (499,124)

$       (309,143)

$        (839,839)

$        (585,343)

Basic Loss per share 

$               (0.01)

$              0.00

$             (0.01)

$             (0.01)

Total Assets

$         7,721,264

$      3,833,828

$        7,721,264

$       3,833,828

Total Liabilities

$            375,299

$         580,716

$          375,299

$          580,716

Total Shareholders’ Equity

$         7,345,965

$       3,253,112

$       7,345,965

$       3,253,112

Financial Reports

Full details of the financial reports and operating results for the three months ended February 28, 2018 are described in the Company’s condensed interim consolidated financial statements with accompanying notes and related Management’s Discussion and Analysis, available on SEDAR at www.sedar.com.

About Gatekeeper Systems Inc.

Gatekeeper Systems Inc. provides wireless high-resolution video security and safety solutions for in-transit applications, including school buses, municipal transit, law enforcement and 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 while on the move. The Company has unique photo enforcement and auto-ticketing solutions which 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.

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 period ended February 28, 2018. 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.

2018-04-30 -NR - Gatekeeper Reports Second Quarter Results