Duos Technologies Group Inc (OTCQX:DUOT), a provider of intelligent security analytical technology solutions, on Wednesday said it expects strong fourth-quarter revenue with full-year guidance of between $13.5 million and $14 million.
The Jacksonville, Florida company also reported its reported financial results for the third quarter that ended September 30.
Duos said 3Q revenue decreased 57% to $2.2 million, compared to $5.1 million in the same quarterly period last year due to several shifts in timing of projects dictated by customer construction delays. While these delays impacted the project's revenue portion for the quarter, the company said they are not expected to have a material impact for the full year 2019.
The company said its net loss was $1.1 million, which was primarily attributable to a decrease in project revenues and an increase in staffing.
"In the third quarter we made continued progress in our product development roadmap and generated sequentially improved financial results as well," said CEO Gianni Arcaini in a statement. "While we experienced some delays in contract awards and implementations due to customer scheduling, we generated a solid book of new business in the quarter, highlighted by two multi-million-dollar projects, as well as, our first deal for TrueVue360, our wholly owned subsidiary for developing artificial intelligence technology.”
Arcaini also said the company is “working to build steadier revenue streams in adjacent areas, which should begin to translate into a meaningful financial contribution to the company beginning in the new year.”
Duos also provided 3Q and operational highlights:
- Awarded $1.8 million contract with a Class 1 freight railroad for the implementation of a turn-key Rail Inspection Portal, installation of which is expected to be completed prior to the end of 2019.
- Awarded an expanded, five-year, $1 million, recurring revenue-based contract with another Class 1 freight railroad to provide an initial library of AI-based algorithms, which will analyze images from the company's rail inspection portal for maintenance inspection of the customer's railcars.
- Awarded $2.3 million contract with an additional Class 1 freight railroad for the turn-key delivery of the company's latest version of its Rail Inspection Portal.
- Received a purchase order from Chicago Metra to install an automated pantograph inspection system spanning four tracks that will capture high-resolution digital video imagery of critical pantographs.
- Company's new AI and deep learning-focused subsidiary TrueVue360 has fully staffed and onboarded its development team and has met its goal of completing the development of a state-of-the-art AI platform. The company has already recognized initial revenue from this business in the second half of 2019 and expects significant growth in 2020.
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