Duos Technologies Group Reports Second Quarter and Six Month 2020 Results
Duos Technologies Group reported strong second-quarter results for 2020, with total revenue increasing by 47% to $1.98 million compared to last year. Gross profit surged by 324% to $739,000, reflecting improved contract completions. Despite an overall revenue decrease of 48% in the first six months due to COVID-related delays, the company secured multiple contracts totaling over $4.8 million. Operating expenses rose slightly by 4%, while net loss improved from $3.61 million to $1.47 million year-over-year. Cash reserves are strong at $5.37 million.
- Total revenue increased by 47% to $1.98 million year-over-year in Q2 2020.
- Gross profit rose 324% to $739,000, improving profitability metrics.
- Secured new contracts totaling over $4.8 million, indicating strong demand.
- Cash and cash equivalents reached $5.37 million compared to $56,000 at year-end 2019.
- Total revenue decreased by 48% to $2.97 million in the first half of 2020.
- Gross profit declined 63% to $842,000 in the first half due to lower revenues.
- Net loss increased to $3.61 million compared to $1.91 million in the prior year.
Incrementally Improved Quarterly Results Year-Over-Year
Expected Upside in the Second Half of 2020 in Challenging Market Environment
JACKSONVILLE, FL / ACCESSWIRE / August 13, 2020 / Duos Technologies Group, Inc. ("Duos" or the "Company") (NASDAQ:DUOT), a provider of intelligent security analytical technology solutions, reported financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 and Recent Operational Highlights
- Awarded a
$2.1 million contract by an existing class one railroad customer to integrate up to one hundred (100) artificial intelligent ("AI") use cases into its proprietary centraco® platform for future use by the railroad in its automation-focused efforts.
- Awarded
$945,000 follow-on contract for Monroe County Sheriff's office in Florida to provide the Company's Intelligent Correctional Automation System, icas™, which is expected to be implemented starting in late 2020 and completed in 2021.
- Awarded a
$1.8 million contract for a turn-key Rail Inspection Portal (rip®), which is expected to be completed by the end of the third quarter of this year.
- Recently executed master service agreement with major railroad customer covering service and support and upgrades to existing installations.
Second 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 increased
Gross profit increased
Operating expenses increased
Net loss totaled
Cash and cash equivalents at quarter-end totaled
Six Month 2020 Financial Results
Total revenue decreased
Gross profit decreased
Operating expenses increased
Net loss totaled
Management Commentary
"In the second quarter we generated incrementally improved year-over-year results in the face of ongoing, difficult market conditions, and we believe we have effectively adapted our organization to the new normal working environment," said Duos Chairman and CEO Gianni Arcaini. "Deal flow in recent months has begun to resume as evidenced by a few of the notable contracts we were awarded during the period. We are also encouraged by the strength of our pipeline, which continues to portend a backloaded second half as many of the contracts that were delayed by COVID are now being revisited. In the meantime, we've taken decisive measures to control our operational costs to support the long-term viability of our business. As conditions improve, we'll look to make additional adjustments to address our anticipated increased demand over the coming quarters.
"Looking to the future, the Board of Directors remains focused on finding a replacement for the CEO position with the right mix of technical acumen, sales experience and leadership abilities to guide our Company into its next phase of growth. As organizations the world over are looking increasingly to leverage technology to automate and streamline processes in a more distributed fashion, the opportunity for Duos continues to grow. While some timelines have been pushed out, we are confident that the broad applicability of our solutions will enable us to take advantage of this accelerated digital transformation over the long term."
Conference Call
The Company's management will host a conference call today, Thursday, August 13, 2020 at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results, followed by a question and answer period.
Date: Thursday, August 13, 2020
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
U.S. dial-in: (877) 407-3088
International dial-in: +1 (201) 389-0927
Confirmation: 13708192
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., provides advanced, analytical technology solutions with a strong portfolio of intellectual property. The Company's core competencies include intelligent technologies that combine machine learning, artificial intelligence and advanced video analytics that are delivered through its proprietary integrated enterprise command and control centraco® platform. The Company provides its broad range of technology solutions with an emphasis on mission critical security, inspection and operations within the rail transportation, retail, petrochemical, government, and banking sectors. Duos Technologies also offers professional and consulting services for large data centers. For more information, visit www.duostech.com.
Forward Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 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. 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.
Contacts:
Corporate
Tracie Hutchins
Duos Technologies Group, Inc. (Nasdaq: DUOT)
(904) 652-1601
tlh@duostech.com
Investor Relations
Matt Glover or Tom Colton
Gateway Investor Relations
(949) 574-3860
DUOT@GatewayIR.com
DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
REVENUES: | ||||||||||||||||
Technology systems | $ | 1,419,409 | $ | 984,991 | $ | 1,933,083 | $ | 4,903,429 | ||||||||
Technical support | 382,124 | 280,601 | 727,311 | 602,075 | ||||||||||||
Consulting services | 2,385 | 80,213 | 134,469 | 192,382 | ||||||||||||
AI technologies | 178,224 | - | 178,224 | - | ||||||||||||
Total Revenues | 1,982,142 | 1,345,805 | 2,973,087 | 5,697,886 | ||||||||||||
COST OF REVENUES: | ||||||||||||||||
Technology systems | 897,514 | 967,649 | 1,479,058 | 3,060,643 | ||||||||||||
Technical support | 234,754 | 156,341 | 469,030 | 261,665 | ||||||||||||
Consulting services | - | 47,415 | 72,260 | 70,334 | ||||||||||||
AI technologies | 110,499 | - | 110,499 | - | ||||||||||||
Total Cost of Revenues | 1,242,767 | 1,171,405 | 2,130,847 | 3,392,642 | ||||||||||||
GROSS PROFIT | 739,375 | 174,400 | 842,240 | 2,305,244 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | 149,566 | 487,738 | 555,958 | 871,160 | ||||||||||||
Engineering | 352,970 | 289,986 | 665,406 | 624,549 | ||||||||||||
Sales & marketing | 122,473 | 270,196 | 262,325 | 520,620 | ||||||||||||
Administration | 1,023,947 | 872,972 | 2,039,497 | 1,807,645 | ||||||||||||
AI technologies | 517,475 | 202,673 | 834,024 | 383,986 | ||||||||||||
Total Operating Expenses | 2,166,431 | 2,123,565 | 4,357,211 | 4,207,960 | ||||||||||||
LOSS FROM OPERATIONS | (1,427,056 | ) | (1,949,165 | ) | (3,514,971 | ) | (1,902,716 | ) | ||||||||
OTHER INCOME (EXPENSES): | ||||||||||||||||
Interest Expense | (58,243 | ) | (3,692 | ) | (127,175 | ) | (6,313 | ) | ||||||||
Other income, net | 19,410 | 3,066 | 29,208 | 3,407 | ||||||||||||
Total Other Income (Expense) | (38,833 | ) | (626 | ) | (97,967 | ) | (2,906 | ) | ||||||||
NET LOSS | (1,465,889 | ) | (1,949,791 | ) | (3,612,938 | ) | (1,905,622 | ) | ||||||||
Basic & Diluted Net Loss Per Share | $ | (0.42 | ) | $ | (1.09 | ) | $ | (1.16 | ) | $ | (1.14 | ) | ||||
Weighted Average Shares-Basic & Diluted | 3,526,382 | 1,788,659 | 3,106,660 | 1,665,439 | ||||||||||||
DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 5,374,786 | $ | 56,249 | ||||
Accounts receivable, net | 496,807 | 2,611,608 | ||||||
Contract assets | 845,810 | 1,375,920 | ||||||
Prepaid expenses and other current assets | 698,158 | 716,598 | ||||||
Total Current Assets | 7,415,561 | 4,760,375 | ||||||
Property and equipment, net | 346,979 | 260,181 | ||||||
Operating lease right of use asset | 316,726 | 430,146 | ||||||
OTHER ASSETS: | ||||||||
Software Development Costs, net | 10,000 | 20,000 | ||||||
Patents and trademarks, net | 66,649 | 61,598 | ||||||
Total Other Assets | 76,649 | 81,598 | ||||||
TOTAL ASSETS | $ | 8,155,915 | $ | 5,532,300 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
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FAQ
What were Duos Technologies' second quarter 2020 revenues?
Duos Technologies reported second quarter 2020 revenues of $1.98 million, a 47% increase year-over-year.
What is the net loss reported by Duos Technologies for Q2 2020?
Duos Technologies reported a net loss of $1.47 million for Q2 2020, improved from a $1.95 million loss in the same quarter the previous year.
How much cash did Duos Technologies have at the end of Q2 2020?
At the end of Q2 2020, Duos Technologies had $5.37 million in cash and cash equivalents.
What contracts did Duos Technologies secure recently?
Duos Technologies secured contracts worth over $4.8 million, including projects with railroad customers and the Monroe County Sheriff's Office.
What was the impact of COVID-19 on Duos Technologies' revenue?
COVID-19 caused a slowdown in business bookings, resulting in a 48% decrease in total revenue for the first half of 2020.
Duos Technologies Group, Inc.
NASDAQ:DUOTDUOT RankingsDUOT Latest NewsDUOT Stock Data
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Software - Application
Services-prepackaged Software
United States of America
JACKSONVILLE
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