Dear Fellow Shareholders,
This letter is an update to investors regarding Crown's Nasdaq listing and operational updates for the Electrokinetic Film and Fiber Construction Divisions.
In line with Nasdaq's compliance requirements and timing, Crown effected a 1:150 reverse split yesterday to maintain our listing. While we would have preferred to delay the reverse split and deliver organic price appreciation, we are bound to a strict compliance deadline from Nasdaq. We remain focused on growing the company and building long-term shareholder value through the continued execution of our strategic goals.
Crown's Fiber Optics division's strong growth continues with production in the second quarter delivered in each of our Nevada, Idaho, Oregon, Arizona and Florida markets. We announced in a press release earlier this week that we are expanding our work in Idaho as the prime contractor building our customers fiber network. We have also been awarded additional work and expect the relationship to grow both within and beyond Idaho.
In Nevada, we are midway through our long-haul project and believe we will be securing work for this customer in New Mexico and California in the coming months.
As previously announced this week we are aggressively expanding in Oregon with four new customers and are now in discussions with a new partner to handle work in Portland, Phoenix, Arizona and Las Vegas as a prime vendor for two of the largest cable and telecommunications operators in the country. More details will be available on this project in the coming days.
We now expect our revenue for the second quarter will come in between $3.5 million and $4 million and expect third quarter revenues of between $7 million and $8 million stemming from the current backlog.
Within the Electrokinetic Film division, we continue to make progress and move towards our Alpha Gen 1 product delivery in the fall of this year. We will have some additional announcements in the coming days discussing additional executive management additions and product development milestones.
Sincerely,
Doug Croxall
Chairman and CEO