Q: Can you reference your last comment on Gatekeeper Systems and has anything changed while you comment on their last earnings report and outlook going forward. Thank you and Merry Christmas to everyone and your families.
5i Research Answer:
In our latest comment on GSI, we note it is small and risky, but it has cash, is growing quickly and is profitable.
In its latest earnings, GSI reported sales of $37.8M, an increase of 36% over the past year, and $4.2M in operating profits. Gross margins improved slightly, and its margins expanded as a result of increased operational efficiency. Management noted it installed 9,000 mobile data collectors for its customers on their buses, and it continues to innovate and launch new products. This was a decent quarter for the company, and while it is small, we like its positive free cash flows, and momentum over the past couple of years has been positive.