LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ: CRKN), a technology company specializing in smart glass and infrastructure solutions, has announced its PE Pipelines division has been awarded two contracts for lead pipe remediation, totaling $33 million. The projects, set to commence in January 2025, mark the company's initial foray into lead pipe remediation.
David Kinsella, President of PE Pipelines, highlighted the significance of these contracts as a step toward addressing the widespread issue of lead in the United States' drinking water systems. The U.S. Environmental Protection Agency estimates that up to 9.2 million lead pipes are still in use, potentially affecting millions of American households.
Crown Electrokinetics' CEO, Doug Croxall, expressed confidence in the company's ability to execute the contracts successfully, attributing this capability to the expertise and innovation of the team at PE Pipelines. He indicated that these contracts could represent just the beginning of the company's involvement in a market with considerable growth potential.
Crown Electrokinetics is composed of four divisions: Fiber Optics, Electrokinetics Film, Element 82, and PE Pipelines. While the Fiber Optics division focuses on building underground networks, the Electrokinetics Film division develops smart glass technology. Element 82 specializes in water pipeline inspection, particularly lead detection and assessment, and PE Pipelines concentrates on pipe repair, replacement, and lead pipe remediation.
The company's move into lead pipe remediation aligns with its broader mission to transform infrastructure and enhance public health by ensuring access to safe drinking water. This announcement is based on a press release statement from Crown Electrokinetics Corp. and reflects the company's current business activities and contract acquisitions.
In other recent news, Crown Electrokinetics Corp. has been busy with a series of developments. The company has upgraded its third-quarter revenue guidance from $7 million-$8 million to $8 million-$9 million, following the acquisition of new contracts. These contracts are part of Crown Electrokinetics' expansion in fiber optic network construction operations in Arizona and Oregon. Additionally, the company has secured an extra segment of a large-scale fiber project in Nevada, expected to generate an estimated $5.7 million in gross revenue.
Crown Electrokinetics has also made changes to its accounting firm. The company's audit committee approved the dismissal of Marcum LLP and engaged BPM LLP as the new auditor. Despite this change, there were no disagreements between Crown Electrokinetics and Marcum on any accounting practices or financial disclosures.
In terms of compliance, Crown Electrokinetics has regained Nasdaq compliance, an important step towards ensuring continued trading and investor confidence. The company also corrected an inadvertent omission in its annual financial report, which did not affect any financial results or other disclosures. These are some of the recent developments at Crown Electrokinetics Corp.
InvestingPro Insights
As Crown Electrokinetics Corp. (NASDAQ: CRKN) ventures into the lead pipe remediation market with its recent $33 million contracts, it's crucial for investors to consider the company's financial health and market performance. Here are some key insights based on the latest data from InvestingPro:
InvestingPro Data indicates that Crown Electrokinetics holds a market cap of $5.57M, which reflects investors' current valuation of the company. Despite an impressive revenue growth, reported at 9093.22% for the last twelve months as of Q2 2024, the company's gross profit margin stands at -22.62%, suggesting challenges in maintaining profitability on its revenue. This is further evidenced by the company's negative operating income margin of -336.65% for the same period.
InvestingPro Tips reveal that while analysts expect net income and sales growth in the current year, Crown Electrokinetics is quickly burning through cash and has suffered from weak gross profit margins. The company's stock has also taken a significant hit, with a price total return of -98.65% over the last year. These factors are essential for investors to consider, especially when evaluating the company's potential to capitalize on the lead pipe remediation market.
For those looking for more comprehensive analysis and additional InvestingPro Tips, there are 15 more tips available for Crown Electrokinetics on the InvestingPro platform, which can offer further guidance on the company's prospects and performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.