LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), known for its smart glass technology, has announced a major expansion of its fiber optic network construction operations in Arizona and Oregon.
The company has secured contracts with Paramount Networks, which holds a Master Service Agreement (MSA) with 19 major telecommunication and cable operators in the United States.
The work will begin shortly in Arizona, focusing on horizontal directional drilling, aerial plant construction, and fiber placement and splicing. The project is expected to extend into Nevada. In Oregon, Crown will undertake turnkey fiber optic network construction.
These new contracts have prompted Crown to revise its third-quarter revenue guidance upward from the initial $7 million to $8 million, to a new estimate of $8 million to $9 million.
Corey Boaz, President of Construction for Crown Fiber Optics, commented on the significance of the agreement, stating it not only facilitates immediate work in Oregon and Arizona but also positions Crown to engage with these carriers nationwide.
He highlighted the high barrier to entry at the prime contractor level in the industry, implying that such agreements are crucial for Crown's continued ascent in the market.
Crown Electrokinetics operates two divisions: Fiber Optics and Electrokinetics Film. The latter is responsible for the company's patented smart window technology. The Fiber Optics division specializes in building underground fiber optic networks and other utility infrastructure projects.
This expansion is a strategic move for Crown as it strengthens its presence in the telecommunications infrastructure sector. The company's revised revenue forecast reflects the potential growth expected from these new contracts.
The information for this article is based on a press release statement from Crown Electrokinetics. It should be noted that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. Crown Electrokinetics has not committed to updating any forward-looking statements following the publication of this news.
In other recent news, Crown Electrokinetics has embarked on new infrastructure projects in Oregon and expanded its fiber optics project in Idaho. The Oregon projects, supported by several prime contracts, are projected to generate around $8 million in revenue for Crown in 2024, potentially increasing to $15 million by 2025. The company has also been selected as the preferred contractor for fiber optics installation in Boise area school districts.
In 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 has made progress in its fiber and film divisions, securing notable projects in Nevada, Idaho, and Mexico.
Crown Electrokinetics also announced plans for a 1-for-150 reverse stock split, pending shareholder approval. The company has secured a conditional extension for its Nasdaq listing, providing additional time to meet all criteria for continued listing. These are all recent developments at Crown Electrokinetics.
InvestingPro Insights
Crown Electrokinetics Corp. (NASDAQ:CRKN) has shown a significant revision in its revenue guidance, which is a promising sign for investors and industry analysts. With the expansion of its fiber optic network construction operations, the company is poised to capitalize on the growing demand for telecommunications infrastructure. Here are some key insights based on the latest data from InvestingPro:
The company's market capitalization stands at a modest $17.86 million, reflecting its status as a small-cap company with potential room for growth, particularly as it secures new contracts and expands operations. Despite the challenges faced in the past, analysts predict a turnaround with an expected increase in net income and sales growth in the current year. This optimism is reflected in the company's massive revenue growth, which surged by 3595.45% in the last twelve months as of Q1 2024.
However, it's important to note that the company operates with a negative gross profit margin of -206.4%, indicating that it spends more to produce its goods than it earns from sales. Additionally, the stock has experienced significant volatility, with price declines over various timeframes, including a 72.36% drop over the last month and a staggering 99.65% fall over the last year as of a recent date in 2024.
InvestingPro Tips highlight that while Crown Electrokinetics is quickly burning through cash and has short term obligations exceeding its liquid assets, analysts remain optimistic about the company's profitability in the current year. Furthermore, the stock's current oversold status according to the Relative Strength Index (RSI) suggests that it may be poised for a potential rebound.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available on the platform. To explore these insights and make more informed investment decisions, consider subscribing to InvestingPro using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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