This week Gatekeeper Systems (TSXV: GSI – $0.10 & OTC: GKPRF – $0.08 & Frankfurt: 1GK – €0.06) reported details on a new school bus camera system. Performance improvements have been incorporated throughout the design and the dual-camera configuration now provides even greater monitoring capability along with capturing critical evidence necessary for law enforcement and the protection of children when boarding and exiting school buses.
The brand new SP25 camera system, introduced this week at the National Association of Pupil Transportation (NAPT) conference, provides advanced capabilities beyond any other product currently available on the market. It is ideally suited to provide critical evidence when motorists ignore a deployed stop arm on a school bus. For example, the image field is now wider to allow scanning of wider roads with up to 4 or 5 lanes of traffic. Other cameras can typically only scan 1 to 3 lanes. The system is also able to function properly under harsh weather conditions, and even in low light or night-time operations.
The new 10-megapixel camera on the SP25 is the first such unit available for this application and delivers high quality resolution. The image is also projected to a greater range than its predecessor and may now provide clear images up to 50 meters from the mount. The cameras weigh just 1.1 lbs (500 grams), are quick and easy to install, and despite the improvement in technology, are less expensive.
The brand new 10-megapixel SP25 camera is ideally suited to provide critical evidence when motorists ignore a deployed stop arm on a school bus.
It is estimated that 15 million stop arm infractions occur each year in the United States. Enforcement agencies count on the deterrent of heavy fines between $250 and $500 to reduce this dangerous driving behavior. In order to prosecute these irresponsible drivers however, the access to clear, real time camera imaging is critical. Therefore, the rollout of a more powerful camera system is a necessity to keep school children safer at bus stops.
The need for this technology continues to be demonstrated time and again under tragic circumstances as children are killed or injured while boarding or disembarking school buses. One such case occurred just this week in Rochester, Illinois. It involved the death of three young children all from the same family, and one other child seriously injured, as they were struck while boarding a school bus by a vehicle that ignored the deployed safety barrier. A few days prior to that, yet another horrific fatality occurred under similar circumstances, with one other child injured, as both children were walking to board their school bus in Colquitt County, Georgia.
As drivers continue to ignore safety devices, the response to crackdown on offenders and enforce penalties is one option to change behavior and to protect children. With improvements to the video quality that provides stronger evidence to use in the identification and prosecution of drivers caught running stop arm barriers, Gatekeeper remains an established leader in this sector.
The material benefits of the SP25 system will lead to sales for upgrades among districts that have already chosen to adopt this technology, and promote growth in the market sector overall as other jurisdictions begin using the system.
Along with the product launch of the SP25 system this week, the Company has also introduced its upgraded WA11 on-bus camera system, featuring a 160-degree image field. These cameras are deployed to monitor the interior of school buses and document the behavior of passengers on board with video evidence. Again, this capability may provide a deterrence to restrain bullying and potential gang violence given that perpetrators know they are being monitored during the entire bus trip.
Also this new camera systems was demonstrated at the NAPT conference this week, where over 600 delegates attended, representing 97% of all US jurisdictions, in addition to three Canadian provinces and international participants.
The Company has been successful to expand on its marketing activity by attending targeted conferences such as NAPT to meet with representatives from sectors that have high growth potential. There has already been a lot of interest expressed by NAPT participants for the new camera systems.
With more than 100,000 video devices now installed across the spectrum of product lines, Gatekeeper is an established market leader. Moreover, the Company remains at the forefront thanks to continued technological developments that make its systems better and more effective.
Within the school bus market, Gatekeeper is already working with 3000 clients, ranging from smaller school bus operators through to large contractors that operate fleets of thousands of buses. With an estimated market of 550,000 yellow school buses just in the United States, the potential for further growth is enormous.
Similar technology is now being adopted for transit buses, including the use of on board imaging technology like the WA11 camera system. Over 100,000 transit buses are on the roads in North America, again representing the potential market to support rapid growth for the Gatekeeper product line.
Investors may also feel a measure of comfort knowing that Gatekeeper is working to protect children riding school buses and help make transit bus passengers safer. This stock offers potential investment rewards that are also in line with delivering benefits for a safer society.
As the successful marketing strategy and sales momentum continue to attract new clients and installations of Gatekeeper imaging systems, revenue growth will support a rising share price from the current value range. Recommendation: BUY.