FULL DISCLOSURE: The Deep Dive is long the equity of Gatekeeper Systems.
Gatekeeper Systems (TSXV: GSI) continues to expand its business, announcing this morning that it has signed a contract in a new school district in California.
The new contract will see Gatekeeper equip a fleet of school buses under the platform-as-a-service model. An estimate 120 school buses will be equipped with Gatekeeper’s mobile data collectors, along with internal video and external 360 surround video.
The arrangement is also expected to see a subscription to Gatekeeper’s hosted service offerings, comprising of video analytics, beginning July 1, adding a layer of recurring revenue to its operation. Doug Dyment, CEO of Gatekeeper, estimates that 1,000 of the 50,000 mobile data collectors it has installed have now entered into a contract under the subscription model, boosting the revenue profile of the company.
“Approximately 350 of California’s 977 school districts now rely on Gatekeeper’s video and data product suite to provide a safer transportation environment for children on their way to and from school. We highlight this contract as an example of how school districts are not only equipping their entire fleet with both internal and external video but are also embracing our wireless connectivity and video analytics offerings that we have purposefully designed,” commented Dyment.
Financial details of the contract were not provided.
The development follows Gatekeeper recently reporting its first quarter financial results, wherein it posted $2.3 million in net income on record revenue of $9.8 million.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Gatekeeper Systems. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
