All in all a good report. I think DJ was upfront about the warranties continuing to be a drag and tied that in nicely with the development of the C250; He has alluded to the fact previously that rushing the C200 to the market was an expensive mistake. The increased backlog is good as are most of the Y/Y numbers. The Analysts who called in seemed a bit more engaged this CC than on the last.
I do have two slight concerns, but as the saying goes...it is what it is.
1. Had last quarter not had 2 million in inventory sitting on the dock the Q1 would have met the expectations. I am assuming that that same 2 million is what enabled us to press up just enough to hit the expectations for this quarter in revenue and earnings per share, especially considering the reported Q/Q product revenue was flat. Of course comments are welcome and expected although I do realize that more goes into the equation than what I just mentioned. Actually, the fact that 2 million rolled over into this quarter may have been a blessing.
2. This one for the Capt'n since he's toured the plant--on slide 10 of the presentation, "Q213 Gross Margin Analysis, Operating Overhead" the Comment was Freight and Utilities. The Freight is easy to understand. My question pertains to the Utilities aspect. Does Capstone practice what they preach, i.e. does the production facility use Capstone generated electricity?
