Crown ElectroKinetics (NASDAQ: CRKN) stock plunged in pre-market trading Wednesday following the release of its first-quarter earnings report. However, amidst this turbulence, the company has won a contract to build a new long-distance fiber optic network infrastructure.
Crown ElectroKinetics (CRKN), a leader in electrokinetic energy management solutions, recently announced its first-quarter financial results, showcasing significant improvement year-over-year.
The company reported earnings per share of -13 cents, representing a notable improvement from $(4.88) in the same period last year. Revenue surged to $682,000, a remarkable increase from $22,000 year-over-year. However, the company reported a net loss of $4.6 million, with net losses from operations totaling $3.7 million.
New Project Announcement
In a separate announcement, Crown ElectroKinetics unveiled its latest achievement—a new long-haul dark fiber construction project spanning approximately 250 miles from Las Cruces, New Mexico to El Paso, Texas.
Corey Boaz, President of Construction for Crown Fiber Optics, expressed enthusiasm about the new project. Boaz stated,
“We are pleased to announce today’s new project with Sequoia Associates. This project represents an approximate $12 million gross revenue opportunity and marks our first project as a turnkey general contractor. This contract was generated through existing relationships, affirming the trust and confidence that large organizations have in the Crown team.”
The project, slated to commence in mid-June, involves an existing duct bank construction and rehabilitation between Las Cruces and El Paso. Crown will oversee the survey, construction, fiber placement, and splicing processes.
Doug Croxall, CEO and Chairman of Crown ElectroKinetics, expressed satisfaction with the company’s progress in securing lucrative opportunities expected to yield near-term revenue and positive cash flows. Croxall emphasized the significance of the new contract, particularly its time-and-materials-based structure, which helps mitigate risks and control margins. He stated,
“This contract, in combination with others, continues to reinforce our confidence in both our team and the scalability of our operations.”
Crown ElectroKinetics (NASDAQ: CRKN) Stock Price Action
As of 07:33 a.m. (Eastern Time) Wednesday, CRKN stock traded at $0.1111, marking an 11.61% decrease compared to the previous trading session.
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