Capstone Turbine Corporation Announces First Quarter Fiscal 2011 Operating Results
First Quarter Revenue of $16.1 Million Up 18% From the Same Period Last Year; Average Revenue Per Unit and Direct Materials Costs Continue to Improve
CHATSWORTH, Calif., Aug. 9, 2010 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), reported operating results for its first quarter ended June 30, 2010 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2010.
Financial Summary
Revenue for the first quarter of Fiscal 2011 was $16.1 million, an increase of 18% from the first quarter of Fiscal 2010. Capstone shipped 98 units in the first quarter of Fiscal 2011, compared to 80 units in the same period last year. Average revenue per unit increased for the first quarter of Fiscal 2011 to approximately $130,000 compared to approximately $128,000 per unit for the first quarter of Fiscal 2010 and approximately $85,000 per unit for the fourth quarter of Fiscal 2010.
Capstone's backlog as of June 30, 2010 was $84.6 million, an increase of 43% from June 30, 2009.
The gross loss for the first quarter of Fiscal 2011 was $0.5 million, or 3% of revenue, compared to $2.8 million, or 21% of revenue, during the first quarter of Fiscal 2010. The improved gross loss was the result of $2.2 million related to higher sales of C200 and C1000 Series systems during the first quarter of Fiscal 2011. The C200 and C1000 series systems have a higher margin compared to the same period last year, when these products had low introductory pricing and higher than planned product cost. In addition, the $2.3 million improvement included reduced inventory charges, offset by higher warranty expense versus the same period last year.
Research and development expenses were $1.5 million for the first quarter of Fiscal 2011, an increase of $0.7 million from the first quarter of Fiscal 2010. R&D expenses are reported net of benefits from cost-sharing programs. There were approximately $0.2 million of such benefits this quarter and $1.3 million of such benefits for the same period last year. The overall increase in R&D expenses was the result of reduced benefits from cost-sharing programs of $1.1 million, offset by decreased spending for consulting fees and labor costs.
Selling, general and administrative expenses were $6.4 million for the first quarter of Fiscal 2011, an increase of $0.2 million, or 3%, from the first quarter of Fiscal 2010. The net increase in SG&A expenses was comprised primarily of higher travel, marketing and facilities expenses.
Capstone's net income was $0.4 million, or $0.00 per share, for the first quarter of Fiscal 2011, compared to a net loss of $15.3 million, or $0.08 per share, reported for the first quarter of Fiscal 2010. 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 $9.2 million to change in fair value of warrant liability during the first quarter of Fiscal 2011. Capstone's net loss for the first quarter of Fiscal 2011 before considering the non-cash warrant liability benefit would have been $8.8 million (calculated by adding back the $9.2 million warrant liability benefit from the $0.4 million reported net income), or $0.04 loss per share (calculated by adding a $0.04 loss per share attributable to the warrant liability benefit from $0.00 per share reported). The Company recorded a non-cash charge of $5.2 million to change in fair value of warrant liability during the first quarter of Fiscal 2010. Capstone's net loss for the first quarter of Fiscal 2010 before considering the non-cash warrant liability charge would have been $10.1 million (calculated by adding back the $5.2 million warrant liability charge from the $15.3 million reported net loss), or $0.05 loss per share (calculated by adding a $0.03 loss per share attributable to the warrant liability charge from $0.08 loss per share reported). Capstone's loss from operations for the first quarter of Fiscal 2011 was $8.5 million, or 13% lower than the $9.8 million loss from operations for the first quarter of Fiscal 2010.
Cash and cash equivalents, including restricted cash, for the first quarter of Fiscal 2011 were $31.8 million, a decrease of $15.5 million from March 31, 2010. Cash of $5.0 million was classified as restricted cash during the quarter as a condition of the amended Agreements with Wells Fargo for additional security for the Credit Facility.
Conference Call
The Company will host a conference call today, Monday, August 9, 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(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 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)
June 30, March 31,
2010 2010
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $26,814 $47,270
Accounts receivable, net of
allowance for doubtful
accounts of $121 at June
30, 2010 and March 31, 2010 24,490 18,464
Inventories 20,063 19,645
Prepaid expenses and other
current assets 1,411 1,335
--------- ---------
Total current assets 72,778 86,714
--------- ---------
Property, plant and equipment,
net 7,867 8,247
Non-current portion of
inventories 3,243 3,588
Intangible asset, net 4,355 4,643
Restricted cash 5,000 --
Other assets 232 254
--------- ---------
Total $93,475 $103,446
========= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued
expenses $14,659 $15,338
Accrued salaries and wages 1,966 1,741
Accrued warranty reserve 1,092 1,036
Deferred revenue 1,125 923
Revolving credit facility 5,953 7,571
Current portion of notes
payable and capital lease
obligations 136 161
Warrant liability 17,559 26,803
Other current liabilities 3,081 3,026
--------- ---------
Total current liabilities 45,571 56,599
--------- ---------
Long-term portion of notes
payable and capital lease
obligations 113 141
Other long-term liabilities 292 274
Commitments and contingencies
(Note 14) -- --
Stockholders' Equity:
Preferred stock, $.001 par
value; 10,000,000 shares
authorized; none issued -- --
Common stock, $.001 par
value; 415,000,000 shares
authorized; 243,244,432
shares issued and
242,348,323 shares
outstanding at June 30,
2010; 243,015,511 shares
issued and 242,119,402
shares outstanding at March
31, 2010 243 243
Additional paid-in capital 722,083 721,408
Accumulated deficit (673,786) (674,178)
Treasury stock, at cost;
896,109 shares at June 30,
2010 and March 31, 2010 (1,041) (1,041)
--------- ---------
Total stockholders' equity 47,499 46,432
--------- ---------
Total $93,475 $103,446
========= =========
CAPSTONE TURBINE CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
---------------------------------------------
June 30,
---------------------------------------------
2010 2009
------------------- ------------------------
Revenue $16,052 $13,725
Cost of goods sold 16,564 16,562
------------------- ------------------------
Gross loss (512) (2,837)
------------------- ------------------------
Operating expenses:
Research and
development 1,522 761
Selling, general and
administrative 6,436 6,223
------------------- ------------------------
Total operating
expenses 7,958 6,984
------------------- ------------------------
Loss from operations (8,470) (9,821)
Other income 4 --
Interest income -- 8
Interest expense (310) (132)
Change in fair value of
warrant liability 9,244 (5,197)
------------------- ------------------------
Income (loss) before
income taxes 468 (15,142)
Provision for income
taxes 76 117
------------------- ------------------------
Net income (loss) $392 $(15,259)
=================== ========================
Net income (loss) per
common share
Basic $(0.00) $(0.08)
======= =======
Diluted $(0.00) $(0.08)
======= =======
Weighted average shares
used to calculate net
income (loss) per common
share
Basic 242,300 183,790
=================== ========================
Diluted 242,930 183,790
=================== ========================
CONTACT: Capstone Turbine Corp.
Investor and investment media inquiries:
ir@capstoneturbine.com
818-407-3628
Released August 9, 2010
