Duos Technologies Group Inc (OTCQB:DUOT) saw its revenue nearly quadruple in the fourth quarter, thanks to the winning of key new contracts for its rail inspection technology.
In the three months until the close of December, the Jacksonville, Florida-based company’s revenue climbed to $2.56 million from $641,000 in the year-ago quarter.
The revenue increase stemmed partly from a pair of multi-million dollar contracts with Canadian National for the purchase of three of Duos’s flagship rail inspection portals, which are set to be installed at two locations in the US and one in Canada.
Duos CEO Gianni Arcaini said new contracts have allowed the company to boost its balance sheet.
"Financially, in 2018 we grew our topline by more than 200%, which allowed us to significantly improve the health of our balance sheet,” Arcaini said in a statement.”Our growth was driven mainly by the increased adoption of our rail inspection portal technology, which we successfully deployed for several blue-chip organizations during the year.”
In other advances, Duos also took on a $1 million contract from an undisclosed regional bank to install its praesidium and centraco systems, which provide security.
Based in Jacksonville, Florida, Duos is a tech company that offers an array of services to support companies' operations and security. It specializes in rail train inspections that rely on Duos’ proprietary rip technology and use an automated process which can be conducted while a train is in motion. Duos’s technology takes detailed, real-time, full-picture images of rail cars traveling at great speeds.
Separately Duos Technologies also announced the launch of a new artificial intelligence subsidiary truevue360, or tv360 for short.
The new AI-based platform supports Duos’s underlying software platforms for its rail inspection portal system, vehicle undercarriage examiner and advanced logistics information system.
In other news, Duos was also recently awarded a US patent for its Linear Speed Measurement technology, which enables the "stitching" of images that are a single pixel wide into an accurate high-definition image of a train with up to 100 or more cars.
Financials in Focus
In 2018, the company’s full-year revenue rose 210% to $12 million from $3.9 million in 2017.
Its net loss for the quarter, meanwhile, shrunk to $836,000 from a loss of $1.41 million in the year-ago quarter.
Looking ahead to 2019, Duos expects total revenue to fall between $14 million and $15 million, which represents a 16-25% jump over 2018. This guidance is based on contracts in backlog as well as expected contract wins in 2019.
Contact Ellen Kelleher at [email protected]