Achieved Record Quarterly Revenue of $8.0 Million
Reiterates Fourth Quarter and Full Year 2024 Revenue Guidance of $9 Million and $22 Million, Respectively
Conference Call and Webcast Scheduled for Today, November 14th at 11:00 a.m. ET
LOS ANGELES, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company”), a leading provider of innovative technology infrastructure solutions that benefit communities and the environment, today reported its financial results for the third quarter ended September 30, 2024.
"We're pleased with our strong third quarter performance, achieving record quarterly revenue of $8.0 million. Crown's results this quarter reflect the solid foundation and growing operational momentum across our three highly scalable businesses,” said Doug Croxall, CEO and Chairman, Crown. "With diverse and related business divisions, we are focused on developing and providing cutting-edge solutions for multiple large and growing addressable markets. The second half of 2024 continues to bring increased demand for our solutions, as evidenced by recent project wins for lead pipe identification and remediation, slant wells installations, and fiber optic network construction, as well as a strong pipeline for upcoming projects. Crown is well positioned to achieve our growth objectives for the remainder of 2024, and importantly remaining on track to achieve profitability in full year 2025.”
"In 2024, we strategically sought and established a leadership team comprised of industry experts, each bringing a track record of proven success in business, paired with a desire to disrupt the status quo with innovation. We are excited to witness our team execute our vision and plan to provide innovative solutions that benefit communities and the environment, deliver positive societal change, and shape a better future,” concluded. Mr. Croxall.
Recent Business Highlights
Smart Windows
- Announced three-phase product rollout strategy of its first-generation Smart Window Inserts expected to commence in the first quarter of 2025.
- Secured three major customer agreements for design and construction of fiber optics networks in Oregon and Nevada.
Slant Wells
- Commenced installation of two proprietary design slant wells at Vista Serena's Twin Dolphin in Cabo San Lucas, Mexico, unlocking a new source of water in an area challenged with clean water access.
- Engaged with new customers for survey work in the Los Cabos area to prepare for future slant well installations.
- Secured initial lead pipe detection projects for Element 82 in the states of Florida and New York.
- Signed over $15 million in Element 82 lead pipe inspection projects in Washington, D.C. and Maryland.
- Awarded two initial lead pipe remediation contracts for PE Pipelines, totaling $33 million.
Revenue was $8.0 million for the third quarter 2024, increased from zero in the same period of 2023. Increased revenue is primarily attributable to new contracts from Crown's Fiber Optics and Water Solutions businesses, including the new Element 82 lead detection business.
Gross profit was $1.4 million for the third quarter 2024, compared to gross profit of zero in the same period of 2023.
Operating expenses were approximately $7.2 million for the third quarter 2024, up from $3.4 million in same period of 2023.
Net loss was $5.9 million for the third quarter 2024, compared with net loss of $2.9 million in the same period of 2023.
Financial Results for the Nine Months Ended September 30, 2024
Revenue was $13.4 million for the nine-months ended September 30, 2024, increased from $0.1 million in the same period of 2023. Increased revenue is primarily attributable to new Fiber Optics and Water Solutions contracts, including the new Element 82 business.
Gross profit was $0.9 million for the nine-months ended September 30, 2024, compared to gross profit of zero in the same period of 2023.
Operating expenses were approximately $15.4 million for the nine-months ended September 30, 2024, up from $12.4 million in same period of 2023.
Net loss was $15.5 million for the nine-months ended September 30, 2024, compared with net loss of $19.7 million in the same period of 2023.
Balance Sheet and Liquidity
As of September 30, 2024, Stockholders' Equity was $9.9 million, and cash was approximately $3.1 million.
Outlook
Crown reiterates its fourth quarter and full year 2024 revenue guidance of $9.0 million and $22.0 million, respectively. The Company introduces its full year 2025 outlook, anticipating revenue between $30 million and $35 million, while remaining on track to achieve profitability in 2025.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today, Thursday, November 14th at 11:00 a.m. Eastern Time featuring remarks by Crown's management team.
Conference Call Information
Date: Thursday, November 14, 2024
Time: 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time
Live Call: +1-877-451-6152 or +1-201-389-0879 or Call me™
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1689461&tp_key=0bee79c89d
For interested individuals unable to join the conference call, a replay will be available through November 28, 2024, at +1-844-512-2921 or +1-412-317-6671. Participants must use the following code to access the replay of the call: 13748946. An archived version of the webcast will also be available on Crown's Investor Relations site: https://ir.crownek.com/.
About Crown
Crown (Nasdaq: CRKN) is an innovative infrastructure solutions provider dedicated to benefiting communities and the environment. Comprised of three business divisions, Smart Windows, Fiber Optics, and Water Solutions, Crown is developing and delivering cutting edge solutions that are challenging the status quo and redefining industry standards. For more information, please visit www.crownek.com.
Forward Looking Statements
Certain statements in this news release may be "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Crown's future financial performance that involve certain contingencies and uncertainties, including those discussed in Crown's Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports Crown files with the U.S. Securities and Exchange Commission from time to time, in the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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