Gatekeeper Systems Inc V.GSI

Margin decrease

[mikeonmicrocap]

Any reason for the decrease in margin?

[TraderJoe121]

I would assume the margin decrease is because we sold more hardware then software licenses. 

[checkup]

Gross profit in 2023 - 31.65%    Gross profit in 2022 - 63.69%  Quite a difference. Doug will likely have an explanation.

[Ciao]

Gross margins at 32% for Q1 is exactly what it was in Q2 2022 to which they did explain as follows back then but no explanation this time, "The Company attributes the decrease in gross margin to higher-than-expected supply chain costs and inventory price increases which occurred after customer contracts were established. The Company considers these impacts to be short term and the Company

[ranman]

There's this: Gross profit in the Company’s core product sales business was negatively impacted by the implementation of US tariffs on products manufactured in China and imported into the US. New operational strategies are being implemented to mitigate the impacts of the new tariffs. And this: Operating expenses increased due to an increase in general and administrative expenses and an

[Ciao]

"Gross profit in the Company’s core product sales business was negatively impacted by the implementation of US tariffs on products manufactured in China and imported into the US. New operational strategies are being implemented to mitigate the impacts of the new tariffs." They have been saying this for quite some time now.

[Torontojay]

Oh I remember this too well.