Is there any possibility they intend to use the cash for acquisitions?
In my opinion the answer is no
if we put Q1 Q2 Q3 in a row we have
Net cash provided by operations: (12)(20)(26)
Net cash provided by financing: 0, 6, 15 (the latter are the result of the exercise of warrants yielding $9.5 million in cash that is not a continuous stream of cash)
Free Cash Flow: (13)(20)(27)
I noticed that the good and the bad in $cpst are very thigh related to the Wells Fargo credit facility, and now they are negotiating it again.
This is from the last 10-Q
"As of December 31, 2011, the Company determined that it was not in compliance with one of the financial covenants in the Agreements regarding net income. On February 8, 2012, the Company entered into an amendment to the Agreements which provided a waiver of the Company’s noncompliance with this financial covenant as of December 31, 2011 and set the financial covenants for the fourth quarter of Fiscal 2012.
If the Company had not obtained the waivers and amended the Agreements as described above, the Company would not be able to draw additional funds under the Credit Facility. In addition, the Company has pledged its accounts receivables, inventories, equipment, patents and other assets as collateral for the Agreements, which would be subject to seizure by Wells Fargo if the Company were in default under the Agreements and unable to repay the indebtedness. Wells Fargo also has the option to terminate the Agreements or accelerate the indebtedness during a period of noncompliance. The Credit Facility includes financial covenants through March 31, 2012, at which time the covenants for subsequent periods will be negotiated. It is possible that the Company will be unable to meet the financial covenants at March 31, 2012. If a covenant violation were to occur, the Company would attempt to negotiate a waiver of compliance from Wells Fargo"
