What the heck is going on with this stock falling like it is.
Second Quarter revenue of $13.1 million up 74% from prior quarter and 82% from the same period last year. Backlog increased to $50.4 million, up 18% from prior quarter and 385% from the same period last year.
CHATSWORTH, Calif.--(BUSINESS WIRE)--Nov. 10, 2008--Capstone Turbine Corporation (www.microturbine.com) (NASDAQ:CPST), today reported operating results for its second quarter ended September 30, 2008 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
Financial Summary
Capstone's backlog at the end of the second quarter was $50.4 million, an increase of approximately $7.7 million, or 18%, from the prior quarter and an increase of approximately $40.0 million, or 385%, from the same period last year.
"This quarter we increased production rates and achieved $13 million in revenue while having another strong bookings quarter with over $17 million in new orders," stated Darren Jamison, Capstone's President and Chief Executive Officer. "I am also proud of our achievements in the successful early launch of the C200 product line," added Jamison.
Capstone's revenue for the second quarter ended September 30, 2008 was $13.1 million, an increase of approximately 82% from the same period last year. Capstone shipped 172 units in the second quarter of Fiscal 2009, compared to 96 units for the same period last year.
The reported gross loss for the first quarter was $0.3 million, or 2% of revenue, compared to $0.8 million, or 10% of revenue, for the same period last year. The decrease in the gross loss and corresponding improvement in the gross loss percentage reflects increased sales of C30, C60 Series and C200 Series units along with higher absorption of overhead costs into ending inventory, offset by increased manufacturing and warranty expenses.
Research and development costs were $2.0 million for the second quarter, a decrease of $0.4 million, or 17%, from the same period last year. R&D expenses are reported net of benefits from cost-sharing programs. There were approximately $2.3 million of such benefits this quarter and $0.1 million of such benefits for the same period last year. The overall net decrease in R&D expenses resulted from additional funding from UTC Power Corporation for the cost-sharing program for the C200 commercialization, offset by increased spending for supplies, consulting, shared costs and labor expense.
Selling, general and administrative costs were $7.7 million for the second quarter, an increase of $1.8 million, or 31%, from the same period last year. The net increase in SG&A expenses was comprised of an increase in non-cash stock compensation and labor, travel, consulting and professional expense. The increase in labor and travel costs reflected the continued effort in developing worldwide distributors and launching the C200 and C1000 Series products.
Capstone's net loss was $9.9 million, or $0.06 per share, for the second quarter, an increase of $1.4 million from the $8.5 million loss, or $0.06 per share, reported for the same period last year.
Cash balances increased by $13.3 million during the second quarter of Fiscal 2009, due to our registered direct offering of common stock that closed on September 23, 2008 resulting in net proceeds of $29.5 million. As of September 30, 2008, cash and cash equivalents were $46.0 million.
Conference Call
The Company will host a conference call today, Monday, November 10, at 1:45 p.m. Pacific Time. Access to the live broadcast and a replay of the webcast will be available for 90 days through the Investor Relations page on the Company's website: www.microturbine.com.
About Capstone Turbine
Capstone Turbine Corporation (www.microturbine.com; NASDAQ:CPST) is the world's leading producer of low-emission microturbine systems, and was the first to market commercially viable microturbine energy products. Capstone Turbine has shipped over 4,000 Capstone MicroTurbine(R) systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine is a member of the U.S. Environmental Protection Agency's Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO 9001:2000 and ISO 14001:2004 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New Jersey, New York, Mexico City, Milan, Nottingham, Shanghai and Tokyo.
"Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
CAPSTONE TURBINE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
September 30, March 31,
2008 2008
------------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 45,988 $ 42,605
Accounts receivable, net of allowance for
doubtful accounts and sales returns of
$687 at September 30, 2008 and $629 at
March 31, 2008 10,856 6,768
Inventories 23,887 14,472
Prepaid expenses and other current assets 2,941 1,614
------------- ----------
Total current assets 83,672 65,459
------------- ----------
Property, plant and equipment, net 7,268 5,536
Non-current portion of inventories 2,388 2,221
Intangible asset, net 490 624
Other assets 219 206
------------- ----------
Total $ 94,037 $ 74,046
============= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 11,890 $ 7,964
Accrued salaries and wages 1,917 1,519
Accrued warranty reserve 4,321 4,591
Deferred revenue 1,012 780
Current portion of notes payable 19 13
Other current liabilities 3,540 5,658
------------- ----------
Total current liabilities 22,699 20,525
------------- ----------
Long-term portion of notes payable 31 5
Other long-term liabilities 387 463
Commitments and contingencies (Note 11) -- --
Stockholders' Equity:
Preferred stock, $.001 par value;
10,000,000 shares authorized; none issued -- --
Common stock, $.001 par value; 415,000,000
shares authorized; 174,323,989 shares
issued and 173,599,680 shares outstanding
at September 30, 2008; 148,238,852 shares
issued and 147,578,311 shares outstanding
at March 31, 2008 174 148
Additional paid-in capital 664,725 626,952
Accumulated deficit (593,111) (573,383)
Treasury stock, at cost; 724,309 shares at
September 30, 2008 and 660,541 shares at
March 31, 2008 (868) (664)
------------- ----------
Total stockholders' equity 70,920 53,053
------------- ----------
Total $ 94,037 $ 74,046
============= ==========
CAPSTONE TURBINE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenue $ 13,121 $ 7,219 $ 20,645 $ 12,834
Cost of goods sold 13,448 7,975 22,074 16,063
--------- --------- --------- ---------
Gross loss (327) (756) (1,429) (3,229)
Operating expenses:
Research and development 2,017 2,433 4,001 5,182
Selling, general and
administrative 7,720 5,910 14,651 11,803
--------- --------- --------- ---------
Total operating expenses 9,737 8,343 18,652 16,985
--------- --------- --------- ---------
Loss from operations (10,064) (9,099) (20,081) (20,214)
Interest income 153 646 355 1,356
--------- --------- --------- ---------
Loss before income taxes (9,911) (8,453) (19,726) (18,858)
Provision for income taxes -- -- 2 2
--------- --------- --------- ---------
Net loss $ (9,911) $ (8,453) $(19,728) $(18,860)
========= ========= ========= =========
Net loss per common share --
Basic and Diluted $ (0.06) $ (0.06) $ (0.13) $ (0.13)
========= ========= ========= =========
Weighted average shares used
to calculate Basic and
Diluted net loss per common
share 159,240 145,440 154,990 144,710
========= ========= ========= =========
CONTACT: Capstone Turbine Corporation
Investor and investment media inquiries:
Alice Barsoomian, 818-407-3628
