Duos Technologies Group Reports Fourth Quarter and Full Year 2020 Results
Duos Technologies Group reported Q4 and full-year 2020 financial results. Total Q4 revenue decreased 34% year-over-year to $3.78 million, but sequentially increased 195%. Full-year revenue fell 41% to $8.04 million due to COVID-related order delays. Gross profit for Q4 was down 48% to $1.65 million, and the net loss was $426,000. For 2021, the company projects revenue of $18 million, anticipating breakeven operations and positive cash flow, bolstered by recent capital raises. Operational improvements are aimed at enhancing customer relationships and product quality.
- Q4 2020 revenue of $3.78 million showed a sequential growth of 195%.
- Company projected 2021 revenue guidance of $18 million based on existing contracts.
- Operational improvements aim to enhance product quality and customer relationships.
- Completed $4.5 million capital raise to support future growth.
- Q4 2020 total revenue decreased by 34% year-over-year.
- Full-year 2020 revenue fell 41% to $8.04 million due to order delays.
- Gross profit decreased by 48% in Q4 2020, reflecting revenue declines.
- Net loss for 2020 increased to $6.75 million from $2.47 million.
Strong Sequential Improvements Across All Business Segments Driven by Successful Implementation and Execution of Ongoing Strategic Initiatives Introduced in Q3 2020
Company Provides Preliminary 2021 Revenue Guidance of
JACKSONVILLE, FL / ACCESSWIRE / March 25, 2021 / Duos Technologies Group, Inc. ("Duos" or the "Company") (NASDAQ:DUOT), a provider of intelligent security analytical technology solutions, reported financial results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 and Recent Operational Highlights
- In October, awarded a new contract from existing customer CN, which includes complete North American service, support, maintenance and spare components sourcing for the seven (7) Railcar Inspection Portals (rip®) currently in operation at CN. The total contract will be recognized as recurring revenue through 2022.
- Elected rail industry veteran Ed Harris to the Board of Directors, who will serve as the Chairman of the Company's Nominating and Governance Committees and will also take a position as a member of the Audit Committee.
- Featured in Dell Technologies' podcast Technology Powers X, entitled "The Leading Edge of Rail."
- Developed and will be filing a patent for a new Oblique Vehicle Undercarriage Examiner ("Oblique VUE"). Once operational, the Oblique VUE can monitor an additional 21 inspection points on the underside of a rail car. The Company's first installation is scheduled for late March/early April at an existing rip® location with additional deployments expected in the coming months.
Fourth Quarter 2020 Financial Results
It should be noted that the following Financial Results represent the consolidation of the Company with its subsidiaries Duos Technologies, Inc. and truevue360™.
Total revenue decreased
Gross profit decreased
Operating expenses decreased
Net loss totaled
Cash and cash equivalents at quarter-end totaled
Full Year 2020 Financial Results
It should be noted that the following Financial Results represent the consolidation of the Company with its subsidiaries Duos Technologies, Inc. and truevue360™.
Total revenue decreased
Gross profit decreased
a slowdown in project revenues due to the delay in new orders previously noted. As a percentage, the overall gross margin also decreased as a result of higher costs related to new products being deployed during the fourth quarter and certain fixed project costs having a greater effect on the lower revenues.
Operating expenses increased
Net loss totaled
Financial Outlook
For the fiscal year ending December 31, 2021, the Company expects total revenue to be approximately
Management Commentary
"After my first six months at Duos, I am encouraged by the great work our team has accomplished, and we are pushing forward to meet the objectives of our 2021 operating plan," said Company Chief Executive Officer Chuck Ferry. "In a short amount of time, our business has improved in terms of operational-technical delivery, customer satisfaction, and financial performance, all of which are core tenants of the plan we laid out following our strategic review late last year. However, these initial victories, while noteworthy, underlie the substantial work that must still be done in the coming months. Our continued improvement within our commercial, operational, financial, and personnel-related initiatives will allow us to produce new and better-quality products, close more deals on more favorable terms and form stronger customer and strategic partner relationships within our industry.
"Financially, our recently completed
Conference Call
The Company's management will host a conference call today, Thursday, March 25, 2021 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed by a question and answer period.
Date: Thursday, March 25, 2021
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: (877) 407-3088
International dial-in: (201) 389-0927
Confirmation: 13717246
Please call the conference telephone number 5-10 minutes prior to the start time of the conference call. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.
The conference call will be broadcasted live via telephone and available for online replay via the investor section of the Company's website here.
About Duos Technologies Group, Inc.
Duos Technologies Group, Inc. (NASDAQ:DUOT), based in Jacksonville, Florida, through its wholly owned subsidiary, Duos Technologies, Inc., designs, develops, deploys and operates intelligent technology solutions supporting rail, logistics, intermodal and Government customers that streamlines operations, improves safety and reduces costs. The Company provides cutting edge solutions that automate the mechanical and security inspection of fast moving trains, trucks and automobiles through a broad range of proprietary hardware, software, information technology and artificial intelligence. For more information, visit www.duostech.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause Duos Technologies Group, Inc.'s actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A in Duos' Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in Duos' filings with the SEC.
Corporate Contact:
Fei Kwong
Duos Technologies Group, Inc. (NASDAQ:DUOT)
904-652-1625
fk@duostech.com
Investor Relations Contact:
Matt Glover or Tom Colton
Gateway Investor Relations
949-574-3860
DUOT@gatewayIR.com
DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
REVENUES: | ||||||||
Technology systems | $ | 4,956,130 | $ | 11,963,438 | ||||
Technical support | 1,801,043 | 1,377,459 | ||||||
Consulting services | 273,604 | 300,418 | ||||||
AI technologies | 1,008,671 | - | ||||||
Total Revenues | 8,039,448 | 13,641,315 | ||||||
COST OF REVENUES: | ||||||||
Technology systems | 3,665,493 | 6,510,658 | ||||||
Technical support | 1,109,741 | 528,966 | ||||||
Consulting services | 117,004 | 120,253 | ||||||
AI technologies | 360,817 | - | ||||||
Total Cost of Revenues | 5,253,055 | 7,159,877 | ||||||
GROSS PROFIT | 2,786,393 | 6,481,438 | ||||||
OPERATING EXPENSES: | ||||||||
Sales & marketing | 717,809 | 950,962 | ||||||
Engineering | 1,358,925 | 1,254,235 | ||||||
Research and development | 1,022,188 | 1,479,334 | ||||||
Administration | 5,011,913 | 3,987,941 | ||||||
AI technologies | 1,309,986 | 1,215,488 | ||||||
Total Operating Expenses | 9,420,821 | 8,887,960 | ||||||
LOSS FROM OPERATIONS | (6,634,428 | ) | (2,406,522 | ) | ||||
OTHER INCOME (EXPENSES): | ||||||||
Interest Expense | (150,137 | ) | (69,322 | ) | ||||
Other income, net | 37,130 | 4,962 | ||||||
Total Other Income (Expense) | (113,007 | ) | (64,360 | ) | ||||
NET LOSS | $ | (6,747,435 | ) | $ | (2,470,882 | ) | ||
Basic & Diluted Net Loss Per Share | $ | (2.03 | ) | $ | (1.39 | ) | ||
Weighted Average Shares-Basic & Diluted | 3,320,193 | 1,781,704 | ||||||
DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 3,969,100 | $ | 56,249 | ||||
Accounts receivable, net | 1,244,876 | 2,611,608 | ||||||
Contract assets | 102,458 | 1,375,920 | ||||||
Prepaid expenses and other current assets | 486,626 | 716,598 | ||||||
Total Current Assets | 5,803,060 | 4,760,375 | ||||||
Property and equipment, net | 342,180 | 260,181 | ||||||
Operating lease right of use asset | 196,144 | 430,146 | ||||||
OTHER ASSETS: | ||||||||
Software Development Costs, net | - | 20,000 | ||||||
Patents and trademarks, net | 64,415 | 61,598 | ||||||
Total Other Assets | 64,415 | 81,598 | ||||||
TOTAL ASSETS | $ | 6,405,798 | $ | 5,532,300 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 599,317 | $ | 2,641,437 | ||||
Accounts payable - related parties | 7,700 | 12,791 | ||||||
Notes payable - financing agreements | 42,942 | 42,299 | ||||||
Notes payable - related parties, net of discounts | - | 905,373 | ||||||
FAQ
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