Gatekeeper Systems Inc V.GSI

Not a lot to get excited about / YET. There is potential .

[ramman1]

Lot of posters wild about the 64% margin. That's 64% based on  % ''of revenue'',re-read ,  not corporate wide. As revenue drops,gross margin rises. Company does have the  2 .4 mil /year with 2 years left on Septa maint contract , as well as decent re-occur revs from Philadelphia transit deal Feb 3/21 , and the 2 mil bus deal Jan 28/21 . As well ,all these small contracts carry significant re-occur revs ,for total contract  completions to customers. -------Decent overall report , after taking out the massive drop in revenue,all internal costs and operating costs very good within company, on back pages of report  --------  Dyment makes big deal out New Website , new videos, marketing campaigns, HOWEVER, no actual change to his way of  one man show signing contracts, and more power to his sales staff . Still only one man. GET A SALES PARTNER. ---------  Securing inventory ,and product parts is a very prudent move, however without the contracts, they sit on shelves ,''right beside the ITSS monitors. --------  Bottom line, last year we had a huge sales funnel, NOW, we have massive opportunities.-------  Lets see these sales start to arrive . They sould be quick,they should be numerous,''we will see''.  ---Funding is now here ''on mass'', we cant use a temporary shortage of bus drivers  by some operators as an excuse. --Get a sales partner, lets get going .

[thelostarc]

I agree Ramman1, Doug needs to grow the sales team, take a tech busienss development approach.

[Possibleidiot01]

You're losing me . Not corporate wide ; like are their two revenue numbers? Investopedia defines " Gross Profit Margin Gross profit margin shows the percentage of revenue that exceeds a company's costs of goods sold. It illustrates how well a company is generating revenue from the costs involved in producing their products and services. The higher the

[Dunworkin2]

My theory remains: Less hardware sales in this quarter and more recurring revenue. The recurring revenue has higher profit margins than the initial hardware sales. This means higher gross profit margins.

[davewho]

likewise I am no accountant but GSI did build inventory subtantially the last couple Q's in preparation for many expected contacts. They could now be selling from inventory which has already been paid and accounted for.  In other words the cost of goods could be near zero? I'm no expert. I like the recurring rev theory just not sure how pre built hardware inventory fits in from Q

[Steady77]

Dunworking2, you are 100% correct.  The much higher gross margin is due to more sales with high margin and less lower margin products.  That is where the company is headed.   As we move forward, more sales will be at a higher gross margin and less at a lower margin which means much more profitability for the company. Kelsey Chin (CFO) is a CPA, Colin Sutherland is also a CPA

[checkup]

I'm guessing GSI wrote off the ITSS inventory.