Exhibit 99.1
Capstone Turbine Corporation Announces First Quarter Fiscal 2009 Operating Results
Capstone backlog increases to $43 Million, up 53% from prior quarter and 706% from the same period last year
CHATSWORTH, Calif.--(BUSINESS WIRE)--Capstone Turbine Corporation (www.microturbine.com;) (NASDAQ:CPST), today reported operating results for its first quarter ended June 30, 2008 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
Financial Summary
Capstone’s backlog at the end of the first quarter was $42.7 million, an increase of approximately $14.8 million, or 53%, from the prior quarter and an increase of approximately $37.4 million, or 706%, from the end of the prior year comparable quarter.
“I am extremely pleased with the $20 million in new product orders received during the first quarter as it represents more than our entire product revenue in Fiscal 2007 and 92% of our product revenue in Fiscal 2008,” stated Darren Jamison, Capstone’s President and Chief Executive Officer. “Additionally, the current backlog at the end of the first quarter exceeds Fiscal 2008 total revenue by 32%,” added Jamison.
Capstone’s revenue for the first quarter ended June 30, 2008 was $7.5 million, an increase of approximately 34% from the same period last year. Capstone shipped 89 units in the first quarter of Fiscal 2009, compared to 77 units in the same period last year.
The reported gross loss for the first quarter was $1.1 million, or 15% of revenue, compared to $2.5 million, or 44% of revenue, from the same period last year. The decrease in the gross loss and corresponding improvement in the gross loss percentage reflects increased sales of both C30 and C60 Series units along with reduced warranty expense and higher absorption of overhead costs into ending inventory, offset by increased manufacturing expenses.
Research and development costs were $2.0 million for the first quarter, a decrease of $0.7 million, or 26%, from the same period last year. R&D expenses are reported net of benefits from cost-sharing programs. There were approximately $2.0 million of such benefits this quarter and no such benefits for the same period last year. The overall net decrease in R&D expenses resulted from additional funding from UTC Power Corporation for the cost-sharing program for our C200 commercialization, offset by increased spending for supplies, consulting and facility expense.
Selling, general and administrative costs were $6.9 million for the first quarter, an increase of $1.0 million, or 17%, from the same period last year. The net increase in SG&A expenses was comprised of an increase in non-cash stock compensation and travel, labor, marketing and facility expense, offset by decreased professional services and consulting expenses. The increase in travel and marketing costs reflected the continued effort in developing worldwide distributors and launching the C200 and C1000 Series products.
Capstone's net loss was $9.8 million, or $0.07 per share, for the first quarter, a decrease of $0.6 million from the $10.4 million loss, or $0.07 per share, reported for the same period last year.
Cash balances decreased by $9.9 million during the first quarter of Fiscal 2009. As of June 30, 2008, cash and cash equivalents were $32.7 million.
Conference Call
The Company will host a conference call today, Monday, August 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 over 4,000 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 9001:2000 and ISO 14001:2004 certified company; Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New Jersey, New York, Mexico City, Milan, Bath, 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) |
| | | | | |
| | June 30, | | March 31, | |
| | 2008 | | 2008 | |
| ASSETS | | | | | |
| Current Assets: | | | | | |
| Cash and cash equivalents | | $ | 32,667 | | $ | 42,605 | |
| Accounts receivable, net of allowance for doubtful accounts and sales returns of $594 at June 30, 2008 and $629 at March 31, 2008 | | | 7,324 | | | 6,768 | |
| Inventories | | | 17,877 | | | 14,472 | |
| Prepaid expenses and other current assets | | | 2,244 | | | 1,614 | |
| Total current assets | | | 60,112 | | | 65,459 | |
| Property, plant and equipment, net | | | 5,812 | | | 5,536 | |
| Non-current portion of inventories | | | 2,639 | | | 2,221 | |
| Intangible asset, net | | | 557 | | | 624 | |
| Other assets | | | 214 | | | 206 | |
| Total | | $ | 69,334 | | $ | 74,046 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
| Current Liabilities: | | | | | |
| Accounts payable and accrued expenses | | $ | 9,076 | | $ | 7,964 | |
| Accrued salaries and wages | | | 1,304 | | | 1,519 | |
| Accrued warranty reserve | | | 4,266 | | | 4,591 | |
| Deferred revenue | | | 767 | | | 780 | |
| Current portion of notes payable | | | 13 | | | 13 | |
| Other current liabilities | | | 4,384 | | | 5,658 | |
| Total current liabilities | | | 19,810 | | | 20,525 | |
| Long-term portion of notes payable | | | 2 | | | 5 | |
| Other long-term liabilities | | | 425 | | | 463 | |
| 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; 151,746,322 shares issued and 151,026,519 shares outstanding at June 30, 2008; 148,238,852 shares issued and 147,578,311 shares outstanding at March 31, 2008 | | | 152 | | | 148 | |
| Additional paid-in capital | | | 633,002 | | | 626,952 | |
| Accumulated deficit | | | (583,200 | ) | | (573,383 | ) |
| Treasury stock, at cost; 719,803 shares at June 30, 2008 and 660,541 shares at March 31, 2008 | | | (857 | ) | | (664 | ) |
| Total stockholders’ equity | | | 49,097 | | | 53,053 | |
| Total | | $ | 69,334 | | $ | 74,046 | |
| CAPSTONE TURBINE CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share data) |
| (Unaudited) |
| | | |
| | Three Months Ended | |
| | June 30, | |
| | 2008 | | | 2007 | |
| Revenue | | $ | 7,524 | | | $ | 5,615 | |
| Cost of goods sold | | | 8,626 | | | | 8,088 | |
| Gross loss | | | (1,102 | ) | | | (2,473 | ) |
| Operating expenses: | | | | | | |
| Research and development | | | 1,984 | | | | 2,749 | |
| Selling, general and administrative | | | 6,931 | | | | 5,893 | |
| Total operating expenses | | | 8,915 | | | | 8,642 | |
| Loss from operations | | | (10,017 | ) | | | (11,115 | ) |
| Interest income | | | 202 | | | | 710 | |
| Loss before income taxes | | | (9,815 | ) | | | (10,405 | ) |
| Provision for income taxes | | | 2 | | | | 2 | |
| Net loss | | $ | (9,817 | ) | | $ | (10,407 | ) |
| Net loss per common share — Basic and Diluted | | $ | (0.07 | ) | | $ | (0.07 | ) |
| Weighted average shares used to calculate Basic and Diluted net loss per common share | | | 151,000 | | | | 144,000 | |
CONTACT:
Capstone Turbine Corporation
Investor and investment media inquiries:
Alice Barsoomian, 818-407-3628
