Gatekeeper Systems Inc V.GSI

Contracts / Q3

[Ciao]

Given there were 4 new contracts announced during the first 5 months of the year, can we expect something in June?

It's getting close to that time of the year again, Q3 will be out in about 6 weeks. Q3 2023 came in at $6M rev. and $0.4M net.  Given the 19% net profit margin in H1 (Q2 2024 was hampered by $1M in increased expenses vs. 2023 Q2) we should see a marked improvement in net income margin in this quarter from Q2 2024 and Q3 2023.

[sjlpc123]

Not sure if the margin will be higher than q2 2024. (1) 1M incresed expenses seems to me will stay (they need to keep the rent and new staff to run that center) (2) q2 has a 5m contract, big contract tend to lead to higher margin...don't see any major contract for q3 Still, that data center will generate some new high margin revenues, but it's only starting probably shouldn't expect

[Ciao]

Note 18 of the q2 2024 financials highlighted the extra expenses, only a portion will be recurring. We have the $3M MDC contract that could fall in q3, as full or partial.

[sjlpc123]

Interesting that you mentioned it, I did check q2 financials note 18 again before posting. Now the main increase are office, rent, Salaries and benefits,Advertising and promotion...and I don't see a side note saying any of them is non-recurring,it's not obvious to me...seems to me all are going to stick with the new data center....can you enlighten me and tell me which one is non-recurring

[Ciao]

These are INCREASES from the previous quarter, would you expect all these increases to be permanent? I don't know if "office" will be recurring, but rent could be for sure, is office a one time set up for the data center office up $150K rent up $80K yes, salaries and benefits could be recurring salaries and benefits up $230K these are increases, I don't believe they will be

[sjlpc123]

You are making a good point. Thank you! And I just realized q2 2023 high compensation is abnormal, probably not recurring.... Yep, the voting machine in the short term, the weighting machine in the long term Gotta talk more often :-)