Duos Technologies Group Inc. adding power subsidiary (Courtesy of the Jacksonville Daily Record) — Duos Technologies Group Inc. went into 2024 as a company focused mainly on advanced railroad technology but when it reported first-quarter earnings in May, it announced a new business line called Duos Edge AI.
As it announced second-quarter earnings Aug. 13, Jacksonville-based Duos announced a third business line called Duos Energy Corp.
Duos Edge AI provides artificial intelligence data centers in rural markets.
“With our entry into the data center space, we are now receiving requests to participate and, in some cases, lead opportunities to install power in support of data centers here in the United States,” CEO Chuck Ferry said in a conference call, according to a company transcript.
“Based on this growing demand, we have incorporated Duos Energy Corporation as a third subsidiary to our Duos Technologies family and already have a small pipeline of projects in support of data centers that could further accelerate our plan for more recurring revenue and profitability,” he said.
It is a logical move for Ferry who, before joining Duos, was CEO of Jacksonville-based fast-track power plant company APR Energy.
He left APR when it was acquired in 2020 by Atlas Corp. and Ferry said Duos, with a total staff of about 70, has about 15 former APR employees.
Duos’ railroad technology has been producing disappointing results in recent years. The company said second-quarter revenue fell 15% to $1.51 million and it recorded a net loss of $3.2 million.
All of the revenue came from the railroad division.
Ferry said as Duos expands into new businesses, it remains committed to the rail technology.
“There is strong evidence from across the rail industry that this technology will eventually be deployed in high numbers, benefiting everyone,” he said.
Duos said it has a backlog of $19.6 million in revenue and expects to recognize $6.9 million of that in the second half of this year.