LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a company specializing in smart glass technology and fiber optic network construction, today announced an expansion of their work with a key customer in Idaho. The project, which includes horizontal directional drilling and fiber to the home services, will increase the number of drills from two to seven.
The expansion signifies Crown's enhanced role as the preferred contractor for this customer's fiber to the home projects. Additionally, Crown has been selected as the preferred contractor to assist with the installation of fiber optics in school districts within the Boise area. This growth in scope is expected to continue later in the year.
Corey Boaz, President of Construction for Crown Fiber Optics, expressed satisfaction with the company's progress, attributing the expansion to Crown's commitment to customer service. The full impact of this expansion on Crown's financial performance is yet to be seen.
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 building underground fiber optic networks and other utility infrastructure projects.
The information for this article is based on a press release statement from Crown Electrokinetics.
In other recent news, Crown Electrokinetics Corp. has announced plans for a 1-for-150 reverse stock split, pending shareholder approval. This decision aims to consolidate every 150 shares of the company's common stock into one share, affecting all stockholders uniformly. In addition, Crown Electrokinetics has secured a conditional extension for its Nasdaq listing, following a hearing with the Nasdaq Hearings Panel, providing the company with additional time to meet all criteria for continued listing.
In financial developments, the company 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, significant progress was noted in the company's film and fiber divisions, with the fiber division securing notable projects in Nevada, Idaho, and Mexico.
Furthermore, the company has seen changes in leadership with the appointment of Sheldon Davis as President of the ElectroKinetics film division, and Corey Boaz taking charge of the fiber division.
InvestingPro Insights
As Crown Electrokinetics Corp. (NASDAQ:CRKN) continues to expand its fiber optics services and enhance its smart glass technology, the financial landscape of the company provides a mixed picture for potential investors. According to InvestingPro data, Crown's market capitalization stands at a modest $29.43 million, reflecting the size and scale of the business in its sector.
InvestingPro Tips suggest that analysts are optimistic about Crown's future, anticipating net income and sales growth in the current year. This could be indicative of a turning point for the company as it scales up operations and secures more contracts like the one in Idaho. On the other hand, the company is quickly burning through cash, which raises concerns about its financial sustainability in the short term. Additionally, the stock has experienced significant volatility, with a price that has taken a considerable hit over the last week, month, and year.
Key metrics from InvestingPro reveal a substantial revenue growth rate of 3595.45% over the last twelve months as of Q1 2024, which may align with the company's expansion efforts and recent announcements. However, this growth comes alongside negative gross profit margins and operating income, with gross profit at -$1.68 million and operating income margin at an alarming -2243.3%.
Investors should note that while the company does not pay dividends, which might be a drawback for those seeking income investments, there is a potential upside if the company turns profitable as predicted by analysts. With 19 additional InvestingPro Tips available, those interested in a deeper analysis of Crown Electrokinetics Corp. can access them by visiting https://www.investing.com/pro/CRKN. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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