Capstone Turbine Corporation Posts Highest Revenue and Gross Margin in Company History
CHATSWORTH, Calif., Nov. 9, 2011 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) reported operating results for its second quarter ended September 30, 2011 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2011.
Financial Summary
Revenue for the second quarter of Fiscal 2012 was a record $27.5 million, increased 46% from the second quarter of Fiscal 2011 and a sequential increase of $3.2 million. Capstone shipped 172 units, or 23.6 megawatts, in the second quarter of Fiscal 2012, compared to 174 units, or 15.8 megawatts, in the same period last year. Megawatts shipped and revenue during the second quarter of Fiscal 2012 increased as a result of higher sales volume of our C65 microturbine and further market adoption of our C1000 Series product line. Average revenue per unit increased for the second quarter of Fiscal 2012 to approximately $130,000 compared to approximately $90,000 for the second quarter of Fiscal 2011.
Capstone's backlog as of the end of the second quarter of Fiscal 2012 was $113.7 million, increased 36% from the same period last year.
The gross margin for the second quarter of Fiscal 2012 was $1.7 million, or 6% of revenue, compared to $0.1 million, or 1% of revenue, during the second quarter of Fiscal 2011 and a gross margin of $0.5 million, or 2% of revenue in the previous quarter. The improvement in gross margin of $1.6 million was the result of a $3.6 million benefit from a change in product mix, which reflects the sale of higher priced microturbine products, increased microturbine service work and parts, as well as FPP contract enrollments during the second quarter of Fiscal 2012. All microturbine products had better margins than in the same period last year as a result of higher average selling prices and overall lower direct material costs. The $3.6 million benefit related to product mix was offset by increases in production and service center labor and overhead, royalty and warranty expense related to early C200 product.
Research and development expenses were $2.2 million for the second quarter of Fiscal 2012, increased $0.2 million from the second quarter of Fiscal 2011. The overall increase in R&D expenses resulted from increased salaries and supplies expense, offset by a decrease in consulting expense.
Selling, general and administrative expenses were $6.6 million for each of the second quarter of Fiscal 2012 and the second quarter of Fiscal 2011.
Capstone's net income was $1.3 million, or $0.00 per share, for the second quarter of Fiscal 2012, compared to net loss of $1.9 million, or $0.01 loss per share, reported for the second quarter of Fiscal 2011.
The improvement in net loss was primarily the result of the adoption of Accounting Standards Codification 815 "Derivatives and Hedging" which affects the Company's accounting for warrants with certain anti-dilution provisions. The Company recorded a non-cash benefit of $8.6 million to change in fair value of warrant liability during the second quarter of Fiscal 2012. Capstone's net loss for the second quarter of Fiscal 2012 before considering the non-cash benefit to the change in warrant liability would have been $7.3 million (calculated by deducting the $8.6 million change in warrant liability benefit from the $1.3 million reported net income), or $0.03 loss per share (calculated by deducting a $0.03 loss per share attributable to the change in warrant liability benefit from the $0.00 income per share reported). Capstone's loss from operations for the second quarter of Fiscal 2012 was $7.2 million, or 15%, lower than the $8.5 million loss from operations for the second quarter of Fiscal 2011.
Cash and cash equivalents for the second quarter of Fiscal 2012 were $20.3 million, a decrease of $1.8 million from June 30, 2011. Of the cash used, $2.9 million was related to changes in working capital accounts. During the second quarter of Fiscal 2012, we increased our revolving line of credit with Wells Fargo Bank to $15.0 million and extended the maturity date through September 30, 2014.
Conference Call
The Company will host a conference call today, Wednesday, November 9, 2011 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.capstoneturbine.com.
About Capstone Turbine
Capstone Turbine Corporation (www.capstoneturbine.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 6,000 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 9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York Metro Area, Mexico City, Nottingham, Shanghai and Singapore.
"Capstone" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
The Capstone Turbine Corporation logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=6212
| CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except share amounts) | ||
| (Unaudited) | ||
| September 30, 2011 | March 31, 2011 | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 20,335 | $ 33,456 |
| Accounts receivable, net of allowance for doubtful accounts of $411 at September 30, 2011 and $212 at March 31, 2011 | 23,212 | 19,329 |
| Inventories | 23,460 | 19,267 |
| Prepaid expenses and other current assets | 1,877 | 2,369 |
| Total current assets | 68,884 | 74,421 |
| Property, plant and equipment, net | 5,307 | 5,939 |
| Non-current portion of inventories | 1,271 | 1,454 |
| Intangible assets, net | 3,175 | 3,574 |
| Restricted cash | — | 1,250 |
| Other assets | 454 | 381 |
| Total | $ 79,091 | $ 87,019 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable and accrued expenses | $ 19,750 | $ 20,292 |
| Accrued salaries and wages | 1,592 | 1,555 |
| Accrued warranty reserve | 1,499 | 1,081 |
| Deferred revenue | 2,205 | 1,153 |
| Revolving credit facility | 12,335 | 7,080 |
| Current portion of notes payable and capital lease obligations | 33 | 214 |
| Warrant liability | 5,854 | 20,772 |
| Total current liabilities | 43,268 | 52,147 |
| Long-term portion of notes payable and capital lease obligations | 67 | 83 |
| Other long-term liabilities | 298 | 309 |
| 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; 260,608,146 shares issued and 259,633,056 shares outstanding at September 30, 2011; 259,544,911 shares issued and 258,595,291 shares outstanding at March 31, 2011 | 261 | 260 |
| Additional paid-in capital | 750,618 | 747,962 |
| Accumulated deficit | (714,280) | (712,648) |
| Treasury stock, at cost; 975,090 shares at September 30, 2011 and 949,620 shares at March 31, 2011 | (1,141) | (1,094) |
| Total stockholders' equity | 35,458 | 34,480 |
| Total | $ 79,091 | $ 87,019 |
| CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
| Three Months Ended September 30, |
Six Months Ended September 30, |
|||
| 2011 | 2010 | 2011 | 2010 | |
| Revenue | $ 27,473 | $ 18,922 | $ 51,755 | $ 34,974 |
| Cost of goods sold | 25,804 | 18,803 | 49,579 | 35,367 |
| Gross margin (loss) | 1,669 | 119 | 2,176 | (393) |
| Operating expenses: | ||||
| Research and development | 2,245 | 2,040 | 4,407 | 3,562 |
| Selling, general and administrative | 6,584 | 6,611 | 13,224 | 13,047 |
| Total operating expenses | 8,829 | 8,651 | 17,631 | 16,609 |
| Loss from operations | (7,160) | (8,532) | (15,455) | (17,002) |
| Other income | 2 | — | 6 | 4 |
| Interest income | 1 | 2 | 1 | 2 |
| Interest expense | (173) | (196) | (404) | (506) |
| Change in fair value of warrant liability | 8,594 | 6,937 | 14,220 | 16,181 |
| Income (loss) before income taxes | 1,264 | (1,789) | (1,632) | (1,321) |
| Provision for income taxes | — | 136 | — | 212 |
| Net income (loss) | $ 1,264 | $ (1,925) | $ (1,632) | $ (1,533) |
| Net income (loss) per common share | ||||
| Basic | $ 0.00 | $ (0.01) | $ (0.01) | $ (0.01) |
| Diluted | $ 0.00 | $ (0.01) | $ (0.01) | $ (0.01) |
| Weighted average shares used to calculate net income (loss) per common share | ||||
| Basic | 259,412 | 245,510 | 259,364 | 243,890 |
| Diluted | 261,418 | 245,510 | 259,364 | 243,890 |
Capstone Turbine Corp. Investor and investment media inquiries: 818-407-3628
Released November 9, 2011
