Gatekeeper Systems Steams Ahead To Record Financials in 2020

Gatekeeper Systems (CA:GSI – $0.21 & US:GKPRF – $0.15 & GER:1GK – €0.13) offers wireless live-streaming video surveillance, video analytics, driver monitoring, and incident management solutions to help protect school children, public transit users, and employees on the move.

In just a few quarters, Gatekeeper has transformed itself from a digital video systems company to a fast growing Artificial Intelligence (AI) & Video Analytics provider.

Gatekeeper reported its fiscal Q2 results for the three month period ending February 29, 2020 late April. Revenue grew by 32% from $2,698,819 to $3,574,643 and net income dramatically improved from a net loss of $455,525 to a net profit of $90,551. The Company recorded its 8th consecutive quarter of year-over-year revenue growth. In fact, Gatekeeper’s revenue, gross profit, and net income all reached second quarter record highs.

This may really set the tone for continued growth and a record financial performance in fiscal 2020. During the past five years, the first six months of Gatekeeper’s fiscal year has on average accounted for 33% of full year revenues, which puts the Company on pace to achieve $21 million in revenue in FY2020.

Earlier this month, Doug Dyment, the CEO of Gatekeeper Systems acquired no less than 2,916,667 common shares of Gatekeeper in a private transaction for an aggregate purchase price of $522,000 or approximately $0.179 per share. This is an impressive move by the Company’s CEO to show his confidence in Gatekeeper’s future. It also sends a message that the CEO does not foresee any need to do a financing at this price level, which is not a surprise to us given that the Company has now turned profitable. There are many other places that CEOs can invest in this current market environment, so it is particularly impressive that Gatekeeper’s CEO views his own company as a compelling investment opportunity.

Mr. Dyment now owns or controls 9,830,792 shares, representing 11.07% of the issued and outstanding shares of Gatekeeper on a non-diluted basis.

We reiterate our buy recommendation for Gatekeeper Systems with a price target of $0.69, which is 228% above today’s stock price.

Download the second quarter 2020 Gatekeeper Systems Company Report.

Smallcaps.us Advice: BuyPrice Target: $0.69Latest Company Report (pdf)
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