FOR IMMEDIATE RELEASE
Gatekeeper Systems Provides Corporate Update for Second Fiscal Quarter
- Achieved record backorder of $2.7 million CDN in 2nd Quarter
- Finalized launch plans of revenue sharing project in Jones County, GA
- Increased total number of cameras shipped by 126%
- Increased total number of mobile digital recorders shipped by 65%
- Stop-arm camera evaluation sites increased to 16
- Completed engineering of new high-definition airborne recorder
- Released high-definition in-car camera for law enforcement
Abbotsford, BC April 5th, 2016 – Gatekeeper Systems Inc. (“Gatekeeper” or the “Company”) (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to provide an update to shareholders regarding recent developments within the Company’s second fiscal quarter ended February 29, 2016 (“Q2”).
The Company’s base business continued to drive sales in Q2 with a record backorder climbing to approximately $2.7 million CDN. The backorder is primarily due to an increase in camera sales and mobile digital recorders of 126% and 65%, respectively, as compared to the same period in fiscal 2015.
Stop-arm camera evaluation sites increased from fourteen to sixteen over the last quarter, representing 1,083 buses owned by various school districts. Gatekeeper is in the process of working with school districts, law enforcement, and judicial systems in an effort to close evaluation sites, moving to shared revenue contracts.
The Company is in the final stages of executing on its first five-year revenue sharing contract (the “Contract”) in the stop-arm camera business with Jones County School District in Georgia. Equipment is scheduled to be installed April 16th and 17th, 2016 with a Press Day scheduled for April 27th, 2016. Pursuant to the Contract, Gatekeeper will receive 50% of the revenue from each citation issued with 25% shared with the school district and 25% shared with Jones County. Stop-arm violation fines in Georgia are $350 USD for first time offence, $750 USD for second time offence and $1,000 USD for third time offence. The Company anticipates receiving proceeds from ticket citations prior to the end of the current fiscal year.
There is an estimated 13 to 15 million stop-arm violations in the United States with legislations now passed in thirteen States that allow video enforcement technology to be used to issue citations.
During Q2, the Company continued product development activity, completing a number of new products including the release of its new airborne high-definition recorder to meet requirements for a new contract received from defense contractor Stirling Computers Corporation for use on United States Air Force AC-130 Gunships. The Company also released its MX12 miniature sized high-definition forward facing camera designed for law enforcement as well as other vehicles. The new MX12 measures only two inches in length which is ideal for mobile applications where space is a premium.
Doug Dyment, President and CEO commented, “Sales activity for Q2 was robust with backorders for our high-definition products, setting us up for growth in the third fiscal quarter. The Jones County School District stop-arm camera revenue sharing project is expected to go live May 2016. I’m thrilled with the response we are getting from our evaluation sites and look forward to working with these school districts through to revenue sharing contracts.”
About Gatekeeper Systems Inc.
Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications.
The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol “GSI”, on the OTC Markets under the symbol “GKPRF”, and on the Frankfurt Stock Exchange under the symbol “1GK”.
For more information visit: www.gatekeeper-systems.com.
On behalf of the Board,
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.
2016-04-05 -NR – Gatekeeper Systems Provides Corporate Update for Second Fiscal Quarter