Duos Technologies sees 195% sequential revenue growth for 4Q as strategic initiatives pay off

Duos Technologies Group Inc (NASDAQ:DUOT) reported a 195% quarter-over-quarter increase in its 4Q 2020 revenue to $3.8 million, following what the company called “strong”  improvements across all its business segments driven by its ongoing strategic initiatives introduced during the third quarter. Duos Technologies ended the fourth quarter with cash and equivalents totaling $4 million. “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,” Duos Technologies Group CEO Chuck Ferry said in a statement. READ: Duos Technologies full steam ahead under new management with its intelligent technologies “Financially, our recently completed $4.5 million capital raise, led by two existing shareholders, has us well-positioned to support the requirements for larger follow-on orders that should come as we expand our relationships with current customers,” Ferry added. “These positive developments considered and with our current visibility into the next twelve months of orders and deployments on the horizon, we are projecting $18 million in revenue for the year, which, under our current investment rate, would have us at a breakeven level and also cash flow positive.” The company also recorded a 4Q net loss of $426,000. For fiscal 2020, Duos Technologies generated revenue of $8 million, as significant delays in expected new orders as a result of the pandemic impacted sales, although the company said it saw its order flow recover at the beginning of the fourth quarter.  As a result, the company realized a full-year net loss of $6.8 million. Looking ahead to fiscal 2021, Duos Technologies expects to book about $18 million in revenue, which it said is based on contracts in backlog and near-term pending orders that are already performing or scheduled to be executed by 4Q 2021.   Management also noted it expects its operations to achieve breakeven or better in 2021 with an improved cash liquidity position by year end. And despite pandemic-related uncertainties, the company said it believes that 2021 will yield a much stronger financial performance for revenue and profitability. Duos Technologies Group offers an array of intelligent technologies and services to support a diverse range of companies' operations and security.  Based in Jacksonville, Florida, Duos specializes in automated systems with a focus on the protection of critical infrastructure, notably the automation of complex mechanical inspections of rail assets. Contact Sean at sean@proactiveinvestors.com