Duos Technologies Group Inc (NASDAQ:DUOT) ended its third quarter with US$4.1 million in cash, thanks in part to the signing of two significant new rail contracts, the company reported Thursday.
The contracts include an initial $1.3 million deal with an existing Class 1 railroad customer to institute automated mechanical inspections on an existing Railcar Inspection Portal, as well as a new contract with ongoing client CN for North American-wide service and support.
Jacksonville, Florida-based Duos also welcomes new CEO Chuck Ferry to the team and promoted Scott Carns to the chief commercial officer of the firm’s Duos Technologies subsidiary.
READ: Duos Technologies says operating subsidiary wins new inspection contract from existing customer CN
In a statement, Ferry told shareholders that the group is starting to see a return to normal business conditions ahead of a “new growth era” at Duos.
"In my short time since coming on board, we've hit the ground running,” Ferry said in a statement.
The CEO outlined a number of objectives for the company, derived from a strategic review of operations, including securing higher-margin sales, streamlining operations and focusing on sustained profitability.
During the three months ended September 30, 2020, the firm saw its total revenue fall to $1.3 million from $2.2 million a year prior and posted a net loss of $2.7 million compared to $1.1 million in 3Q 2019. Duos told shareholders that the revenue contraction was due to a decline in technology systems revenue as a result of a delay in receiving an order for a large project, which will be substantially completed in 4Q.
Ferry added that the team was encouraged by the two major contracts this quarter, but recognized that more work needed to be done in order to achieve long-term success.
“We have an excellent pipeline of opportunities with our existing rail and logistics customers that we expect will drive much improved financial results for 2021,” Ferry said.
Duos said it expects to deliver revenue of between $7.5 million and $8 million in 2020.
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