Capstone Turbine Corporation Announces Third Quarter Fiscal 2008 Operating Results
Overall performance best since going public in 2000; Backlog of $13.1M increased 62%; Revenue of $9.2M increased 61%; and cash burn decreased $10.2M to $3.6M compared to same period last year
CHATSWORTH, Calif.--
Capstone Turbine Corporation(R) (www.microturbine.com;) (NASDAQ:CPST), reported operating results for its third quarter ended December 31, 2007 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 11, 2008.
Financial Summary
Capstone's backlog at the end of the third quarter was $13.1 million of which $11.2 million is short term (within twelve months). Total backlog increased approximately $2.7 million, or 26% from the second quarter ended September 30, 2007 and approximately $5.0 million, or 62% from the end of the same period last year.
Revenue for the third quarter ended December 31, 2007 was $9.2 million, an increase of approximately 61% from the $5.7 million reported for the same period last year and $2.0 million or 28% from the prior quarter. The increase is attributable to continued growth in the Americas, European and Asian markets.
The reported gross loss for the third quarter was $40,000, or less than 1% of revenue, compared to $500,000, or 8% of revenue for the same period last year. The improvement in gross loss from the prior year was because of increased total volume and lower warranty costs offset by lower absorption of overhead into inventory.
Research and development costs were $1.8 million for the third quarter, a decrease of $0.2 million, or 13% from the same period last year. R&D expenses are reported net of benefits from cost-sharing programs such as the United Technologies Corporation ("UTC") funding. During the quarter $0.9 million of such funding was applied against R&D expense. There was approximately $0.5 million of such benefits from another source for the same period last year. Overall net expenses were lower primarily because of the UTC payments that were recognized against R&D expense.
Selling, general and administrative costs were $6.5 million for the third quarter, an increase of $0.1 million, or 2% from the same period last year. The increase is primarily due to increased efforts in developing worldwide distributors and the launch of the C200 and C1000 Series.
Capstone's net loss was $7.7 million, or $0.05 per share, for the third quarter, a decrease of $0.8 million from the $8.5 million loss, or $0.08 per share, reported for the same period last year.
Cash balances decreased by $3.6 million during the third quarter of fiscal 2008. As of December 31, 2007, cash and cash equivalents were $42.7 million. Cash used in operations was $3.3 million for the quarter compared to $5.4 million for the prior quarter and $13.1 million for the same period last year. Capstone benefited from achieving two milestones which generated $4.5 million of UTC funding during the quarter.
Conference Call
The Company will host a conference call today, Monday, November 11, 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 thousands of Capstone MicroTurbine(TM) systems to customers worldwide. 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 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in 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)
December
31, March 31,
2007 2007
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 42,669 $ 60,322
Accounts receivable, net of allowance for
doubtful accounts and sales returns of $819 at
December 31, 2007 and $789 at March 31, 2007 6,790 3,514
Inventories 15,881 21,283
Prepaid expenses and other current assets 1,588 1,614
--------- ---------
Total current assets 66,928 86,733
--------- ---------
Property, plant and equipment, net 5,413 6,256
Non-current portion of inventories 2,708 3,005
Intangible asset, net and other long-term assets 844 1,009
--------- ---------
Total $ 75,893 $ 97,003
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 4,021 $ 5,686
Accrued salaries and wages 1,217 1,434
Accrued warranty reserve 5,315 6,554
Deferred revenue 811 937
Current portion of notes payable 13 19
Other current liabilities 4,920 --
--------- ---------
Total current liabilities 16,297 14,630
--------- ---------
Long-term portion of notes payable 9 27
Other long-term liabilities 489 561
Commitments and contingencies -- --
Stockholders' Equity:
Preferred stock, $.001 par value; 10,000,000
shares authorized; none issued -- --
Common stock, $.001 par value; 415,000,000
shares authorized; 146,225,288 shares issued
and 145,586,731 shares outstanding at December
31, 2007; 144,512,997 shares issued and
143,961,789 shares outstanding at March 31,
2007 146 145
Additional paid-in capital 623,400 619,423
Accumulated deficit (563,818) (537,270)
Treasury stock, at cost; 638,557 shares at
December 31, 2007 and 551,208 shares at March
31, 2007 (630) (513)
--------- ---------
Total stockholders' equity 59,098 81,785
--------- ---------
Total $ 75,893 $ 97,003
========= =========
CAPSTONE TURBINE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ ------------------
2007 2006 2007 2006
-------- -------- -------- --------
Revenue $ 9,217 $ 5,715 $ 22,051 $ 15,227
Cost of goods sold 9,257 6,191 25,320 19,275
-------- -------- -------- --------
Gross loss (40) (476) (3,269) (4,048)
Operating expenses:
Research and development 1,761 2,021 6,943 7,419
Selling, general and
administrative 6,462 6,366 18,263 18,342
-------- -------- -------- --------
Total operating expenses 8,223 8,387 25,206 25,761
-------- -------- -------- --------
Loss from operations (8,263) (8,863) (28,475) (29,809)
Interest income 575 410 1,931 1,608
Interest expense -- -- -- (2)
Other income -- -- -- 1
-------- -------- -------- --------
Loss before income taxes (7,688) (8,453) (26,544) (28,202)
Provision for income taxes -- -- 2 2
-------- -------- -------- --------
Net loss $ (7,688) $ (8,453) $(26,546) $(28,204)
======== ======== ======== ========
Net loss per share of common
stock -- Basic and Diluted $ (0.05) $ (0.08) $ (0.18) $ (0.27)
======== ======== ======== ========
Weighted average shares used
to calculate Basic and
Diluted net loss per share 145,512 103,968 144,978 103,731
======== ======== ======== ========
Source: Capstone Turbine Corporation
Released February 11, 2008
