Creative Realities, Inc. (CREX), a company providing digital marketing technology solutions to the retail sector, is trading at $1.83 in aftermarket trading sessions after surging 25.34%. The surge is attributable to the merger agreement of CREX. On Friday, CREX declined 2.01% during regular trading hours and closed the day at $1.46.
Why CREX Soaring?
On 12th November, CREX and Reflect Systems, Inc., digital signage platforms and solutions, announced that the companies have executed a definitive merger agreement. Under the agreement, the combined company was to operate under the Creative Realities, Inc. name and continue to be listed on NASDAQ as CREX. Unlike other mergers, the CRI intends to fully integrate both of the companies.
Q2 2021 Financial Highlights
On 16th August, CREX announced the financial results for the second quarter of the fiscal year 2021. The quarter ended on 30th June 2021. The company generated revenue of $3.3 million during the quarter, a decrease of 10% when compared with the same period of 2020. The gross profit increased 3% during the quarter as compared to the same quarter of 2020. The sales and marketing expense decreased 54% during the quarter as compared to the same period of 2020. The general and administrative expenses decreased 15% during the three months when compared with the same period of 2020. The company generated a net income of $1 million during the quarter against the net loss of $2.5 million for the same period of 2020.
Rick Mills, Chief Executive Officer of CREX, while commenting on the results said that the company is extremely proud of its talented staff who made it a tremendous quarter as far as financial performance and efficacy is concerned. He hoped that the subsiding effects of a pandemic on the business sector around the globe would further bring a massive improvement within the operating metrics and financial stature of the company in quarters to come.
Future Outlook for CREX
During the last six months, CREX stock has increased by more than 20%. That shows the positive sentiments remained associated with the stock throughout the period. Analysts are advising potential investors to keep a close eye on the fluctuations of CREX stock to make an informed decision about their investments.