The threat of terrorism and the increase in violent crimes are driving the growth of the global security market especially surveillance technology. The video surveillance equipment market reached close to $30 billion in 2015 doubling in the past five years. One company Gatekeeper Systems (GSI.V or GKPRF) reached record revenue in the fourth quarter of 2015 of close to $2.5 million CAD. I believe this trend can continue into 2016 as they are making some great strides in the video surveillance markets especially with school buses, the US Air Force and Body Cameras.
The revenues come from three main areas. First off Gatekeeper sells High Definition video surveillance systems for school buses. The company has high gross margins in this area around 50% and they expect to sell an estimated 6000 units in 2016. Gatekeeper just released news today that they entered into a new contract with "one of the largest school districts in the United States"for its solid state school bus video systems for special needs buses. The contract is valued at $760k CDN.
Gatekeeper's other areas of revenue are from stop arm camera installations which is similar to red light cameras. Gatekeeper provides the system free of charge to the school district but receives compensation from citations.
This could be an area of great growth and profit as there are around 15 Million stop arm violations annually resulting in many kids being killed or handicapped from violators. Each ticket could cost anywhere from $250 to $500. Gatekeeper records evidence and processes the citation making it quite easy for the school district to implement.
The last area Gatekeeper is making strides is in law enforcement body cameras and in car video systems. The new demand for high performance body cameras with evidence and wireless capability is an area that Gatekeeper could capitalize on. I hope to hear some developments in this area. The company has no debt and its market cap around $7 million is deeply discounted when you look at revenue of around $6 million and the potential growth.
Listen to a recent interview with Gatekeeper Systems (GSI.V or GKPRF) CEO and Founder Doug Dyment by clicking here... Doug was VP Marketing and Director at Silent Witness (which sold to Honeywell for$72M).
Disclosure: Please be aware that I have a conflict of interest as I own shares and warrants in Gatekeeper Systems and would benefit if the price reach my targets. Gatekeeper Systems is also a website sponsor. Please do your own due diligence as this is a micro-cap stock which means high risk. Please see risk factors in company’s filings on sedar.com.
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For informational purposes only. This is not investment advice. May contain forward looking statements.
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