LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a technology firm specializing in smart glass and fiber optic network construction, announced today an expansion of its ongoing project in Nevada, which began in May. The company, which had already secured two segments of a large-scale fiber project, expects to generate an estimated $5.7 million in gross revenue from the initial work.
This additional segment, involving horizontal drilling and plowing, is a continuation of Crown's efforts to build a robust fiber optic backbone. Company President of Construction, Corey Boaz, expressed satisfaction with the extension, attributing it to Crown's dedication to quality and customer satisfaction. He noted that repeat business and growing trust among clients are contributing to the company's expanding pipeline of projects.
Crown Electrokinetics operates two divisions: Fiber Optics and Electrokinetics Film. The latter is known for its patented electrokinetic film technology used in smart window inserts. The Fiber Optics division focuses on the construction of underground fiber networks and other utility infrastructure.
The press release also included a standard "safe harbor" statement, cautioning that forward-looking statements involve risks and uncertainties, and actual results may differ from those projected. It also clarified that the press release itself does not constitute an offer of securities for sale.
The information in this article is based on a press release statement from Crown Electrokinetics.
In other recent news, Crown Electrokinetics has been making substantial strides in its operations. The company has secured new contracts with Paramount Networks, prompting an upward revision of its third-quarter revenue guidance from $7-$8 million to $8-$9 million. Significant projects in Nevada, Idaho, and Mexico are also contributing to the company's revenue growth.
Simultaneously, Crown Electrokinetics has embarked on infrastructure projects in Oregon, which are expected to generate around $8 million in revenue in 2024, potentially increasing to $15 million by 2025. The company has also expanded its fiber optics project in Idaho, increasing the number of drills from two to seven.
In terms of financial developments, Crown Electrokinetics reported a net loss of $4.6 million for the first quarter of 2024, with operational net losses amounting to $3.7 million. Despite these losses, the company's fiber and film divisions have been making progress.
Crown Electrokinetics has announced plans for a 1-for-150 reverse stock split, pending shareholder approval. The company has also secured a conditional extension for its Nasdaq listing, providing additional time to meet all criteria for continued listing. These recent developments underscore the company's efforts to strengthen its financial health and market position.
InvestingPro Insights
As Crown Electrokinetics Corp. (NASDAQ:CRKN) forges ahead with its fiber optic network construction in Nevada, investors and industry observers are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, CRKN's market capitalization stands at a modest $18.57 million, reflecting the size and scale of the company within the technology sector.
Despite a striking revenue growth rate of 3595.45% over the last twelve months as of Q1 2024, the company's financials reveal challenges, including a negative gross profit margin of -206.4%. This indicates that the costs of goods sold have exceeded the company's revenue, which can be a concern for profitability. Moreover, the company has faced significant price volatility, with a 1-month price total return of -55.59%, underscoring the high-risk nature of the investment.
InvestingPro Tips highlight that analysts are optimistic about CRKN's future, expecting net income and sales growth this year. Still, they also caution potential investors about the company's quick cash burn rate and its inability to cover short-term obligations with liquid assets. For those considering an investment in Crown Electrokinetics, these insights suggest a careful evaluation of risk tolerance and investment goals.
For a deeper dive into CRKN's financials and to uncover additional InvestingPro Tips, visit https://www.investing.com/pro/CRKN. There are 17 more tips available that could provide further clarity on whether CRKN aligns with your investment strategy. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering valuable insights to inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.