Duos Technologies Group Inc (NASDAQ:DUOT) reported first quarter results on Friday, the intelligent security technology company’s first quarterly report since listing on the Nasdaq in February.
"We began the year with significant operational momentum and in one of the strongest positions in company history," CEO Gianni Arcaini said in a statement.
"Unfortunately, like many businesses, we were not immune to the effects of the ongoing global pandemic, which caused business disruptions for most of our key customers and consequently impacted our operations during the first quarter,” he added.
Despite the coronavirus hurdle, Duos has increased its cash on hand year-over-year to $6.6 million from $56,000 at the end of 2019. Earlier this year the company underwent a public offering worth $9.25 million.
Due to the impact of the virus and subsequent contract delays involving several customers, revenue came in at $991,000 for the quarter compared to $4.35 million in the same period a year ago. The company’s net loss was $2.15 million, down from a $44,000 net income a year earlier.
Going forward, the company is continuing to project sequential growth. In April, Duos was awarded a $1.8 million Rail Inspection Portal (RIP) contract, which it expects to complete by the end of the third quarter.
"Prior to the COVID-19 outbreak, our expectations had already factored in a modest start to the year with sequential growth going forward, and that projection remains intact,” Arcaini said. “The $1.8 million RIP award we received in April was a strong step forward in the right direction, and, hopefully, an indication of progress ahead.
“We expect to receive a number of additional awards in the near future, however, because of the uncertainty that remains, we cannot accurately quantify the full impact on our operations for the remainder of the year at this time. We have and will continue to push forward in a challenging environment, and we remain confident in the long-term growth opportunity in rail transportation and the other industries we serve."
Duos recently implemented its first full-scale RIP in record time for CSX Transportation Inc, seven Class 1 Railroad operators who own and operate a combined 140,000 miles of rail track.
Additionally, the company completed another RIP with an unnamed customer, which is scheduled for final acceptance at a site in Mexico once coronavirus travel restrictions are lifted.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel