CN and Duos Technologies Sign Five Year Strategic Agreement 

Rhea-AI Summary

Duos Technologies Group, Inc. (Nasdaq: DUOT) has signed a new five-year agreement with CN (NYSE: CNI) to offer Machine Vision/AI Wayside Detection Safety Data through a subscription service. This agreement builds on CN's five-year use of Duos' technology for railcar inspections. Duos, the inventor of the Railcar Inspection Portal, will now offer shippers and car owners on the CN network access to this safety data, which can be used for predictive maintenance, trend analytics, and fleet health monitoring.

The company recently piloted a similar program with Amtrak, sending real-time machine vision images to mechanical inspectors. This new offering aims to improve railcar maintenance, enhancing network safety and productivity. Chuck Ferry, CEO of Duos, expressed the company's commitment to further improving the solution, with a focus on wheels and brakes.

Positive

• Five-year strategic agreement signed with CN, a major railway company
• Expansion of service offering to include data subscriptions for railcar owners and shippers
• Potential for increased revenue through new subscription model
• Successful pilot program with Amtrak demonstrates market viability
• Company holds ten active U.S. Patents for their technology

Negative

• None.

Insights

Financial Analyst

This strategic agreement between Duos Technologies and CN represents a significant development for DUOT. The five-year deal allows Duos to offer its Machine Vision/AI Wayside Detection Safety Data as a subscription service, potentially opening up a new revenue stream. This move towards a subscription model could provide more stable and recurring revenue for Duos, which is particularly important for a small-cap company with a market cap of $27.3 million.

The expansion of Duos' service offering to include shippers and car owners on CN's network broadens their potential customer base. This could lead to increased adoption of their technology and, consequently, higher revenues. The agreement also validates Duos' technology, as it builds upon an existing relationship with CN and follows a successful pilot program with Amtrak.

However, investors should note that the financial impact is not immediately quantifiable, as the success will depend on the uptake of the subscription service. The long-term nature of the agreement provides some stability, but the company's small size means it may still face challenges in scaling operations and competing with larger players in the rail technology space.

Tech Expert

Duos Technologies' Railcar Inspection Portal represents a significant technological advancement in the rail industry. The system's use of Machine Vision and AI for wayside detection is cutting-edge, offering real-time inspection capabilities that can enhance safety and efficiency in rail operations. The company's portfolio of ten active U.S. patents in this area demonstrates a strong intellectual property position, which could be a valuable asset for future growth and potential partnerships.

The transition to offering this technology as a subscription service is a smart move, aligning with industry trends towards "as-a-service" models. This could make the technology more accessible to a wider range of customers and provide Duos with a more predictable revenue stream. The focus on predictive maintenance and trend analytics also positions Duos at the forefront of the industry's shift towards data-driven decision-making.

The company's commitment to further improving the solution, particularly in areas like wheels and brakes, indicates ongoing R&D efforts. This continuous innovation will be important for maintaining a competitive edge in the rapidly evolving field of rail technology.

Duos to offer MV/AI Wayside Detection Data Subscriptions to Railcar Owners and Shippers

JACKSONVILLE, Fla., Oct. 08, 2024 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (Nasdaq: DUOT) is pleased to announce a new five-year agreement signed with CN (NYSE: CNI) that will enable Duos to offer Machine Vision/AI Wayside Detection Safety Data through a subscription service. For more than five years, CN has used Machine Vision/AI Wayside Detection technology along its network in Canada and the United States. CN has been using this solution to complement current manual inspections, helping maintain its fleet with more efficiency, leading to a safer and more reliable railway.

Duos is the inventor of the Railcar Inspection Portal and holder of ten active U.S. Patents of this cutting-edge solution making continual technical advances since 2010 with 13 portals deployed in Canada, Mexico, and the United States supporting four Class 1s and Amtrak.

Late last year, Duos and Amtrak began a pilot program to test the subscription concept for images. Amtrak’s long-distance passenger trains are scanned, and the machine vision images are sent in real time to Amtrak mechanical inspectors who have used the data with excellent results during the testing period.

Beginning this month, Duos will offer shippers and car owners that transit the CN network the opportunity to subscribe to this cutting-edge machine vision safety data. This safety information can be used in various ways to include predictive maintenance, trend analytics, and overall fleet health and maintenance.   The intent is to have better maintained railcars that make the network safer and more productive for everyone.

“Duos Technologies is honored to continue our long-standing support to CN,” said Chuck Ferry, CEO for Duos. “Duos has invested significant time and resources to prove out the Railcar Inspection Portal and we are pleased to be able to offer it to the many car owners and shippers that will benefit from it. Going forward we intend to further improve the solution and add additional cutting-edge capabilities with special emphasis on wheels and brakes.”

"We are thrilled to strengthen our partnership with Duos Technologies through this new five-year agreement," said Patrick Whitehead, Executive Vice-President and Chief Network Operating Officer at CN. “By leveraging Duos' technology, we are enhancing our inspection processes, ensuring better maintenance and health of our overall fleet through key data points and predictive analytics.”

To stay up to date on Duos most recent developments or to learn more about the Duos story and its revolutionary technology platforms, be sure to follow here or sign up for email alerts here. For more information please contact DUOT@duostech.com or visit Duos website and social media channels: Website, LinkedIn, X.

About Duos Technologies Group, Inc.

Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, through its wholly owned subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc., and Duos Energy Corporation designs, develops, deploys, and operates intelligent technology solutions for Machine Vision and Artificial Intelligence (“AI”) applications including real-time analysis of fast-moving vehicles, Edge Data Centers and power consulting. For more information, visit www.duostech.com and www.duosedge.ai.

Forward- Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. All forward-looking statements attributable to Duos Technologies Group, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

This press release was published by a CLEAR® Verified individual.

FAQ

What is the new agreement between Duos Technologies (DUOT) and CN?

Duos Technologies (DUOT) and CN have signed a five-year agreement allowing Duos to offer Machine Vision/AI Wayside Detection Safety Data through a subscription service to shippers and car owners on CN's network.

How will the new Duos Technologies (DUOT) subscription service benefit railcar owners?

The subscription service will provide railcar owners with safety data for predictive maintenance, trend analytics, and overall fleet health monitoring, leading to better-maintained railcars and a safer, more productive network.

What technology does Duos Technologies (DUOT) use for railcar inspections?

Duos Technologies (DUOT) uses Machine Vision/AI Wayside Detection technology through their Railcar Inspection Portal, for which they hold ten active U.S. Patents.

Has Duos Technologies (DUOT) tested this subscription model before?

Yes, Duos Technologies (DUOT) began a pilot program with Amtrak last year to test the subscription concept for images, with mechanical inspectors using the real-time data with excellent results.