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Crown Electrokinetics embarks on Oregon fiber projects

EditorAhmed Abdulazez Abdulkadir
Published 06/25/2024, 11:18 PM

LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a company specializing in smart glass technology and fiber optic network construction, has launched new infrastructure projects in Oregon. The company's Crown Fiber Optics division is undertaking work that includes fiber construction and the development of underground power systems.

The initiative, supported by several prime contracts, is projected to generate around $8 million in revenue for Crown in 2024, with the potential to increase to $15 million by 2025. The contracted work encompasses a range of services such as directional drilling, excavation, micro trenching, and splicing.

Corey Boaz, President of Construction for Crown Fiber Optics, expressed confidence in the company’s growth and the team's ability to meet the demands of the new projects. He highlighted the significance of these developments in paving the way for Crown's diversification and expansion along the west coast.

Crown Electrokinetics is divided into two main operations: Fiber Optics and Electrokinetics Film. While the Fiber Optics division focuses on building underground fiber optic networks and other utility infrastructure, the Electrokinetics Film division is known for its innovative smart window insert, which is based on patented electrokinetic film technology.

In other recent news, Crown Electrokinetics has reported significant developments in the expansion of their fiber optics project in Idaho, increasing the number of drills from two to seven. The company has also been selected as the preferred contractor for fiber optics installation in Boise area school districts. Additionally, Crown Electrokinetics announced plans for a 1-for-150 reverse stock split, pending shareholder approval. This plan aims to consolidate every 150 shares of the company's common stock into one share, affecting all stockholders uniformly.

The company also secured a conditional extension for its Nasdaq listing, providing additional time to meet all criteria for continued listing. 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 financial losses, the company noted progress in its film and fiber divisions, securing notable projects in Nevada, Idaho, and Mexico.

InvestingPro Insights

Amidst the strategic expansion of Crown Electrokinetics Corp. (NASDAQ:CRKN), the latest data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of $4.11 billion, Crown Electrokinetics is navigating through a period of significant sales growth, as analysts anticipate a revenue increase for the current year. This aligns with the company's projected revenue of $8 million from its new infrastructure projects in 2024.

The company's ambitious growth trajectory is further underscored by an extraordinary revenue growth rate of over 3595% for the last twelve months as of Q1 2024. However, it's important to note that, despite these impressive figures, Crown Electrokinetics operates with a negative gross profit margin of -206.4%, reflecting the costs associated with its aggressive expansion and development efforts.

InvestingPro Tips suggest that while the stock has experienced significant volatility, with a price total return of -99.55% over the last year, analysts remain optimistic about the company's future profitability. They predict Crown Electrokinetics will be profitable this year, which may offer a potential upside for investors willing to weather the current storm. Additionally, the company does not pay a dividend, indicating that it may be reinvesting earnings back into its growth initiatives.

For those interested in a deeper dive into Crown Electrokinetics' financials and market performance, InvestingPro offers additional insights. There are currently 17 more InvestingPro Tips available for CRKN at Investing.com/pro/CRKN. Use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to comprehensive analysis and metrics that can help inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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