Capstone Turbine Corporation Posts Record Quarterly Revenue and Gross Margin; Generates Cash From Improved Working Capital
CHATSWORTH, Calif., Feb. 7, 2011 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), reported operating results for its third quarter ended December 31, 2010 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 7, 2011.
Financial Summary
Revenue for the third quarter of Fiscal 2011 was $24.2 million, an increase of 51% from the third quarter of Fiscal 2010. Capstone shipped 171 units in the third quarter of Fiscal 2011, compared to 122 units in the same period last year. Average revenue per unit during the third quarter of Fiscal 2011 was approximately $110,000 compared to $103,000 during the same period last year.
Capstone's backlog at the end of the third quarter was $84.7 million, up 8% from the same period last year.
Gross margin for the third quarter of Fiscal 2011 was $0.9 million, or 4% of revenue, compared to a gross loss of $0.2 million, or 1% of revenue, during the third quarter of Fiscal 2010. The $1.1 million improvement was the result of $1.9 million related to higher unit sales, improved product margins and increased parts and FPP sales reduced by an increase in inventory charges and warranty expense compared to the same period last year.
Research and development expenses were $1.4 million for the third quarter of Fiscal 2011, a decrease of $0.6 million, or 30%, from the third quarter of Fiscal 2010. R&D expenses are reported net of benefits from cost-sharing programs. There were approximately $0.3 million of such benefits this quarter compared to $0.1 million for the same period last year. The lower expenses resulted from decreased spending for consulting and salaries, and increased benefits from cost sharing programs.
Selling, general and administrative expenses were $6.0 million for the third quarter of Fiscal 2011, a decrease of $1.4 million, or 19%, from the third quarter of Fiscal 2010. The net decrease in SG&A expenses was comprised primarily of lower salary and consulting expense offset by higher facilities costs.
Capstone's net loss was $8.1 million, or $0.03 per share, for the third quarter of Fiscal 2011, compared to a net loss of $7.2 million, or $0.04 per share, reported for the third quarter of Fiscal 2010. The increase in net loss was 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 charge of $1.2 million to change in fair value of warrant liability during the third quarter of Fiscal 2011. Capstone's net loss for the third quarter of Fiscal 2011 before considering the non-cash warrant liability charge would have been $6.9 million (calculated by subtracting the $1.2 million warrant liability charge from the $8.1 million reported net loss), or $0.02 per share (calculated by subtracting a $0.01 loss per share attributable to the warrant liability charge from the $0.03 loss per share reported). The Company recorded a non-cash benefit of $2.3 million to change in fair value of warrant liability during the third quarter of Fiscal 2010. Capstone's net loss for the third quarter of Fiscal 2010 before considering the non-cash warrant liability charge would have been $9.5 million (calculated by adding the $2.3 million warrant liability benefit to the $7.2 million reported net loss), or $0.05 per share (calculated by adding a $0.01 loss per share attributable to the warrant liability benefit to the $0.04 loss per share reported). Capstone's loss from operations for the third quarter of Fiscal 2011 was $6.5 million, or 32% lower than the $9.6 million loss from operations for the third quarter of Fiscal 2010.
Cash and cash equivalents, including restricted cash, for the third quarter of Fiscal 2011 were $30.0 million, an increase of $4.7 million from the second quarter of Fiscal 2011.
Conference Call
The Company will host a conference call today, Monday, February 7, 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 5,000 Capstone MicroTurbine® 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 Turbine Corporation" 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 SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
December 31,
2010 March 31,
2010
ASSETS
Current Assets:
Cash and cash equivalents $ 27,470 $ 47,270
Accounts receivable, net of allowance for doubtful accounts of $281 at
December 31, 2010 and $121 at March 31, 2010 22,638 18,464
Inventories 15,245 19,645
Prepaid expenses and other current assets 3,037 1,335
Total current assets 68,390 86,714
Property, plant and equipment, net 6,641 8,247
Non-current portion of inventories 3,158 3,588
Intangible assets, net 3,893 4,643
Restricted cash 2,500 —
Other assets 178 254
Total $ 84,760 $ 103,446
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 17,303 $ 15,338
Accrued salaries and wages 1,940 1,741
Accrued warranty reserve 864 1,036
Deferred revenue 1,882 923
Revolving credit facility 8,283 7,571
Current portion of notes payable and capital lease obligations 504 161
Warrant liability 11,816 26,803
Other current liabilities — 3,026
Total current liabilities 42,592 56,599
Long-term portion of notes payable and capital lease obligations 34 141
Other long-term liabilities 294 274
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; 246,932,972
shares issued and 245,983,836 shares outstanding at December 31, 2010;
243,015,511 shares issued and 242,119,402 shares outstanding at March 31, 2010 247 243
Additional paid-in capital 726,496 721,408
Accumulated deficit (683,809) (674,178)
Treasury stock, at cost; 949,136 shares at December 31, 2010 and 896,109 shares
at March 31, 2010 (1,094) (1,041)
Total stockholders' equity 41,840 46,432
Total $ 84,760 $ 103,446
CAPSTONE TURBINE CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
December 31,Nine Months Ended
December 31,
2010 2009 2010 2009
Revenue $24,159 $15,986 $59,133 $45,233
Cost of goods sold 23,233 16,204 58,600 51,286
Gross margin (loss) 926 (218) 533 (6,053)
Operating expenses:
Research and development 1,424 1,965 4,986 4,997
Selling, general and administrative 5,959 7,433 19,006 20,496
Total operating expenses 7,383 9,398 23,992 25,493
Loss from operations (6,457) (9,616) (23,459) (31,546)
Other income — — 4 —
Interest income 1 — 3 8
Interest expense (219) (181) (725) (456)
Change in fair value of warrant liability (1,194) 2,257 14,987 (22,498)
Loss before income taxes (7,869) (7,540) (9,190) (54,492)
Provision for income taxes 229 (370) 441 (182)
Net loss $ (8,098) $ (7,170) $ (9,631) $ (54,310)
Net loss per common share — basic and diluted $ (0.03) $ (0.04) $ (0.04) $ (0.29)
Weighted average shares used to calculate basic and diluted net loss per
common share 245,780 196,405 244,517 190,453
CONTACT: Capstone Turbine Corp.
Investor and investment media inquiries:
ir@capstoneturbine.com
818-407-3628
Image: company logo
Source: Capstone Turbine CorporationReleased February 7, 2011
