Gatekeeper Systems On A Roll With Yet Another Sales Deal
After Gatekeeper Systems (CA:GSI – $0.34 & US:GKPRF – $0.25 & GER:1GK – €0.24) announced no less than three new contracts last week, the Company now signed an impressive deal with the 436th Airlift Wing at Dover Air Force Base.
After a tough selection procedure, the Company was chosen to supply 360-degree camera technology, which will be used on certain vehicles at the airbase. Thanks to the technology, drivers have real-time video imaging of complete vehicle surroundings at their disposal.
Gatekeeper’s 360° Surround Vision Camera System provides a real-time and surround view of the vehicle for blind spot detection. With 4 channels 1080p wide angle cameras and video processor, a high resolution panoramic real-time stitching scene is available on the display monitor. The display monitor is off when the vehicle is moving forward. As the vehicle is reversing or making side turns, the display monitor turns on and provides a split screen display of a 360° stitching image and a rear, left, or right view.
The 360-degree camera in action with the Left Turn Camera View (image on the left) and the Reverse Camera View.
Gatekeeper CEO Doug Dyment stated, “We are thrilled that the United States Air Force has awarded this contract for our 360-degree camera technology. Our long-standing business relationship with the Department of Defense is an indication of the quality that Gatekeeper delivers, and we look forward to increasing our future business in this sector.”
History Of Working For The Military
Whether the mission is close air support, air interdiction or force protection, operations are required to record data from sophisticated sensor, navigation and fire control system for post mission analysis. This is where Gatekeeper enters the picture.
The AC-130 gunship, for example, supports troops, provides convoy escort, and manages urban operations. Air interdiction missions are conducted against preplanned targets or targets of opportunity. Force protection missions include air base defense and facilities defense. Gatekeeper provided airborne digital recorders and post-mission analysis software for use on these AC-130 Gunships.
In addition, the Company’s high-definition airborne digital video recorders are also used on Sea King helicopters in Canada, and French Navy marine vessels to record long range sensors.
436th Airlift Wing
Dover Air Force Base is a United States Air Force base under the operational control of the Air Mobility Command, located 2 miles (3.2 km) southeast of the city of Dover, Delaware. The 436th Airlift Wing is the host wing and run the busiest and largest air freight terminal in the Department of Defense (DoD).
It was previously the only base to solely operate the massive C-5 Galaxy and now operates both that aircraft plus the C-17 Globemaster III.
The Lockheed C-5 Galaxy is a large military transport aircraft originally designed and built by Lockheed, and now maintained and upgraded by its successor, Lockheed Martin.
The 436th Airlift Wing consists of the operations, logistics, support, and medical groups; in addition to 12 divisions and two detachments. It has over 4,000 active-duty military and civilian employees. The wing routinely flies airlift missions throughout the world projecting global reach to more than 90 countries on six different continents including Asia, Africa, Australia, Europe, North and South America.
Conclusion
Gatekeeper’s stock reacted very positively to all the latest news, moving up 34% for the week. Moreover, the outlook for the Company remains outstanding. Third quarter results, for the period ended May 31, 2020, will be announced late July. We expect the numbers to be strong, based on the dealflow that we have seen the past few months.
Remember that the Company reported record second quarter revenue, gross profit, and net income for the three month period ended February 29, 2020. Revenue grew 32% from $2,698,819 in Q2 2019 to $3,574,643 in Q2 2020. Gross profit grew 41% from $1,142,129 in Q2 2019 to $1,614,468 in Q2 2020. And net income significantly improved from a net loss of $455,525 in Q2 2019 to a net profit of $90,551 in Q2 2020.
Gatekeeper has recorded positive net income in three of the last four quarters with a narrow loss in Q1. Its net income for those last four quarters combined is $856,000. Chances are very high that Gatekeeper will continue to show positive net income the following quarters. As a result, the upward movement of the stock price that we have seen during the past week could be just the beginning. Smallcaps Recommendation: BUY.
| Smallcaps.us Advice: Buy | Price Target: $0.69 | Latest Company Report (pdf) |
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