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Chuck Ferry | Chief Executive Officer |
Adrian Goldfarb | Chief Financial Officer |
Good afternoon. Welcome to Duos Technologies' Third Quarter 2020 Earnings Conference Call.
Joining us for today's call are Duos CEO, Chuck Ferry and CFO, Adrian Goldfarb.
Following their remarks, we will open the call for your questions. Then before we conclude today's call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call.
turn over to Chuck Duos’ like Ferry. I'd the to call CEO, Now, please Sir, proceed.
thank joining release our results you we and copy section well everyone Welcome for of highlights. operational in press quarter XXXX, A announcing the as third Relations other issued the us. release our available the website. financial press for of of as is a today, Earlier Investor
this Technologies. As new is recognition you many aware, my a I'd Duos global are call myself. Prior fact, this CEO earnings that I to for take joining APR of fast-track is time In Energy, CEO introduce first to a as company. to power Duos, of like a which was to
P&L operated XXX and Corporation, company I ARMA logistics U.S. During Special IT my time a Operations globally at agencies. XX was in for engineering, contracting the services APR, Prior annual oversaw installed and the employees, government and I to other and Global power Command defense million managed plants. dispersed Manager that, solutions delivers General roughly that and $XXX
the Dynamics. ARMA, spent years revenue X,XXX, consultant. from Manager Operations as as as to million Business Martin, approximately well in by employees at $XXX previously individual million While grew and from to XX acquisition an and Developer leading I to company also General $XX annual a several at Lockheed
phases look you I understand say Duos the of our turnaround on with the September our U.S. value developing what first forward I begin positioning my and can support ability our because a roles, to me and Army I and I Special sustainable I few and the Board, solutions formulate and enjoyed previous a to and at that and continued of where I an appointing our the Duos most of Duos me an working assignments XX time to profitable strategy private and their believe turning as world-class by Afghanistan, in have strategies Officer joining the XX I've in In Before growth I in coming to I in in you deploying experience of cutting-edge I as sector, me the want aimed serving on actions prepared well. Duos to are impressed expansion I leadership the technologies. the Since included have years done team. military Infantry provide in welcomed months. civilian teamwork the be profitable the and service and shareholders. needs Board can Ranger you believe Units, requirements, the Xst, combat spent Somalia, and hearing employees that, Directors in experience Duos ahead. in my thank NCO Operations has Operations with organization in I my management of and of Infantry growth businesses Iraq. Man, months make and delivering, business. Enlisted the the all and months the their been involved Units into Special very years in from Duos for from execution for and to past really joined investors Thank to the the My I've offers thank and both Complex, leading and results. been been talent to coupled the team, that company for generating team in support our who leading of and confidence
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excellence our technical and operational First, customers. deliver to
I'll our Second, margins In a details and forward strategy. product few on offerings recurring and increase will moments, go this that go-to-market more revenue. and a improve profitable and sustainable prioritize provide more strategy on focus assessment
to Adrian through the the turn Goldfarb, call to I before walk However, Adrian? for us CFO, will our over who do, financial quarter. the I want results
Thank you, Chuck.
of numbers I a our challenging. NASDAQ Before would assumptions changed has make like for From XXXX. almost many hit This discussing operations we comments. to original earlier the few the immediately uplisting standpoint, pandemic. were quarter been year, a this the the to the extremely in purely financial with in our detail, for of After introductory past ongoing effects successful business
to believe us that assessment to likely situation in likely later would an be of able receiving implementation schedules, resume year. were although delays we we Fortunately, suffer this the leads to and orders,
us gave improvement certain be will expected. in that significantly continue much to results to aspects report pause Chuck focus in financial -- business and be that of this I'm the consider and pleased and can management the the addition, to areas the of In call. time later operations And improved. examine team will that overall results to discuss strengthen could has on
from Total same Now for year. million third third resolutions equivalent by quarter planned revenue the an in substantially of total current for certain expected which to The revenue our quarter months a technology now as been in will pending for contract the systems a quarter. was revenue period revenue completed $X.X results awards has XX, but $X.XX quarter the customer, anticipated decreased slower driven pandemic resolved. decrease turning September nine due total Total terms million, in the decreased decrease than ended of $X.X large also the for XXXX, fourth financial in one has The conditions, quarter. quarter an compared for XX% project. be XXXX, receiving order execution The awards impacted million was for the and by was to now last from of third XX% initially to the the million to environment in receipt delay in This in $X.XX a of to during earlier revenue, in decline execution the a from result XX% XXXX. restrictions. delays was for travel revenue, $X.XX or and XX% other delays XXXX million, overall period fixed due once orders was equivalent of gross due in higher to the offset cost months gross the in recorded to or ended execution were QX XX% or sufficient profit last in XXX,XXX to revenue quarter, to of million, relative as September and largely result implementation decrease XX% revenue which $X.XX due The to decrease XX% the XXXX. anticipated related noted previously. of XX% not the decrease profit of revenues, to sales being costs of total profit nine was revenue total million, quarter received, staff total in mainly the total revenue the profit XX, same of a in to had The in of by or been Gross $X.XX caused year. maintaining in as year. during was minimum the Gross begin earlier decreased for
result period for We growth share in per forward. company's or in area previously. and expenses. loss costs. per and former administration this platform to in CEO in for due additional a months our The $X.XX September ended by due loss the XXXX R&D the administration $X.XX the net of the as net a resources for increase XX% severance $X.XX AI development in $X.XX $X.XX was one-time the company's were net revenue totaled or due noted XXXX, compared for The the an per expenses area retirement $X.XX million and QX Chairman. increase from expenses primarily in and from and are greater engineering, the from a completed, ago. quarterly million quarter a to million in nine AI and $X.XX in previously. to the overall marketing, operating to noted was payment due period in loss of and costs was as XX% a in primarily increase $X.XX to equivalent as share, per an former research period and Operating $X $X.XX in ended AI one-time costs decreases to sales allocated nine compared or or this last to administration to company's in a technologies XX, department. The was in million was which With The increase same operating development. related to expenses $X.XX months share of administration XXXX. an increase sales increased loss going to the charge the expected the work loss The and were charge previously. in Operating to research technologies increase increase loss a expenses in net September million in share was to million the in retirement marketing, CEO $X.XX decrease the expenses related attributable well and of loss The decrease recorded as an Net by expenses QX, an loss a noted in in offset attributable expenses payment, administration XXXX, expenses, offset XX, in engineering, expenses, year period same to expenses severance normalize which primarily in of development as million of technologies expenses to million increased $X.XX AI same increase year. net Turning the for increase was in last higher, loss for Chairman, loss as increase year.
also We discuss cash million. and we and ended let's of the had million cash $X.XX the with equivalents receivables net balance in $X.XX Now sheet. quarter
$X.XX compared month new the ended anticipation cash current operations year the of same in ago. result of increase in use XX, used expenditures net to in a million related nine period, $X.XX in and projects the of operations execution cash higher the period months million future nine For September The projects. for we was in XXXX, to
Finally, I'd management short-term to of impact this time. on giving had previously and to impact suspended quantify our our and At the has guidance update able are an resuming to We due been the at guidance like this financial on time, customers. we projections. provide coronavirus operations our financials uncertain the our to
For between fiscal year ending total range $X.X XX, million. $X revenue the expect to we and December million XXXX,
contracts pending orders that quarter scheduled of are reminder, is calculation and fourth on near-term backlog the XXXX. during performing based already a executed be to As and guidance or our
results subject volatility of quarterly our aware, are timing to difficult are listening short-term. you to of performance in and the degree a impacts, project many making As
efforts will position first remain the cash systems to largely revenue Management services. XXXX. for current through restructuring quarter in revenues end it expects internal on The recurring extent to build operations early our the stages of recovery, management is outlook more provide an of the is and to able. Going incremental intention in that are business we forward, our significant has undertaken unchanged both of and company's new QX beginning the also
economic a Although uncertainties a macro much XXXX financial for that The XXXX company performance stronger to guidance early call over to for turn continue in I will the Chuck profitability. yield on management climate, January. Chuck? in will the business. provide release now plans update the and believes further back to revenue
Adrian. Thanks,
today, market to brief For level, questions. extra our say and long-term company, over opportunity like remarks wins last many drew spend of after strategic that the company management the a me success. first a number turning a for time At hold the the this going our results I'd a assessment. operation there quarter, reasons for I'm and including true strategic including be it before recognize made Then of of our are discussing our updates, review. process roadmap I must to remainder recent Beginning position an high operational review, provide of update and that on for our still improvements my pleased people, its to amount that technology forward. also detailed I'll that to with
our Before to it I'd Rail before outline hard within or our into opportunity business as I to the opportunity industry. The us, part, is Inspection Portal substantial. get the like relates RIP
moment. to of direct our to We solution providing a at competition are currently knowledge this that the no little best has unique inspection
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However, there us the most for and intend here is an it. we seize make opportunity to of to
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and, realize the just way by to global in industry COVID-XX to clear, going out. much is forward the XX our To has to economy these serious the the keeping be more The possible. we're process we doesn't the changes. might Additionally, workflow. making on many us corrections made that now. our plans our tremendous And of has that you a main job to are market and from predict, manner updated look to is well for accordingly. most able way pandemic Switching be -- operations. on review takeaway the in have capture a making to to quarterly ideal now in to on revise require communication undertaking attainment optimize currently departments been that I to can to for laid ahead. And these which increasingly our And we're I this segmented I gears of forward. that connection, as My optimize goals in opportunity already years progress we all months might believe difficult efficient way success a that team right our than take as
During a customers. we two were of to QX, recent in we normal experienced conditions. And by moderate with significant railroad return both business existing X class signing contracts of which the were encouraged months,
integrated successful over First, contract the with locations $X.X identify also automated our proof-of-concept. future, the the spare the an contract mechanical includes from to we in perspectives work current in few through installation, maintenance a inspection agreement the customer parts, and upgrade recurring based recently points, success the scope and the of inspections. customer Duos terms one months, end will AI initially using contract The at expected and expand relationship existing to will systems and upgrade about, base several awarded won September, which the year. the It of agreement, complete be revenue The to greatly operates seven expectation for and developed application million centraco CN. of addressed within will solutions. XXXX railcar at to upgrade and service includes existing More rip the can be and critical CN’s that railcar to October, will will Duos specific create CN on of components a value. completion North intent for previous into identify in maintenance of for in performed new integrated being system our to points, were platform. currently are our be by before the purpose current expand recurring CN maintenance and the sourcing rips, as service, Duos monitored applications, applications in contract spoke its of our partnership to rips inspection under continued and The increased CN developed other recognized next centraco platform. the continued to addition addressed the components the spare future Similar with and The with payments into multi-year trust the the deliver railroads rip with through XXXX. I service, instituting executed which a with our existing The American of system, and we we a our and support, substantially relationship at be one is use appreciate monitored is AI specific cutting-edge of
Moving to management updates.
position of effective our subsidiary. Carns, As created mentioned, Operating Duos Scott for founding a previously promoted Chief and to Duos formerly our the Technologies Chief employee Commercial last we month Officer, Technologies newly wholly-owned Officer
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end ensure transition, on Additionally, a to with our over Scott's months. coming on Strategic the Growth together we'll end promotion, we business, be Plan. front all revamped to the the closely as back smooth Ben the Scott of implement able work
to Finally, a announce. of to Board have our updates we few Directors
is and and recently experienced relationships. an has a a looking Board, Director, Ed benefit Harris Independent to of collected wisdom than election experience. more to Ed rail knowledge, his as COO Ed we we're operator former executive CSX, First, of XX the from wealth years of with X as proposed industry strong and an railroad Tier our
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call. us joining thank everyone you on operator. Thanks And today's for
regarding cautions contains conclude call, this of statement we XXXX. that Reform Private would Harbor earnings like includes the Duos' This Safe Litigation today's I call. Securities Before of during statements forward-looking provide statements Act within important forward-looking made to meaning -- cautions call
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