EXHIBIT 99.1
Capstone Turbine Corporation Announces First Quarter
Fiscal 2008 Operating Results
First Quarter Revenue of $5.6 Million; Backlog Increases 6% and
Inventory Decreases 7% from Prior Quarter
CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 8, 2007--Capstone
Turbine Corporation(R) (www.microturbine.com) (NASDAQ:CPST), reported
operating results for its first quarter ended June 30, 2007 in its
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on August 8, 2007.
Financial Summary
Capstone's revenue for the first quarter ended June 30, 2007 was
$5.6 million, a decrease of approximately 14% from the same period
last year. The decline is attributable to lower than expected sales
primarily in the North American and Asian markets.
Backlog at the end of the first quarter was $5.3 million, an
increase of approximately $0.3 million, or 6% from the prior quarter
but decreased approximately $0.1 million, or 2% from the end of the
prior year comparable quarter.
The reported gross loss for the first quarter was $2.5 million, or
44% of revenue, compared to $1.2 million, or 19% of revenue from the
same period last year. The increase in gross loss was due to lower
sales of higher margin C-60 series units and lower absorption of
overhead costs into inventory offset by decreased costs for
manufacturing, warranty and inventory charges. During the quarter
inventory decreased $1.6 million or 7% from the prior quarter.
Research and development costs were $2.7 million for the first
quarter, a decrease of $0.1 million, or 2% from the same period last
year. R&D expenses are reported net of benefits from cost-sharing
programs. There were no such benefits this quarter and $0.5 million
for the same period last year. Overall net expenses were lower
primarily due to lower labor and consulting spending, decreased
development hardware, and reduced facilities expenses.
Selling, general and administrative costs were $5.9 million for
both the first quarter of fiscal 2008 and the same period last year.
Reduced non-cash stock compensation was offset by increased labor
related costs, professional services, travel, marketing, supplies and
facility maintenance costs.
Capstone's net loss was $10.4 million, or $0.07 per share, for the
first quarter, an increase of $1.1 million from the $9.3 million loss,
or $0.09 per share, reported for the same period last year.
Cash balances decreased by $10.1 million during the first quarter
of fiscal 2008. As of June 30, 2007, cash and cash equivalents were
$50.3 million.
Conference Call
The Company will host a conference call today, Wednesday, August
8, 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)
June 30, March 31,
2007 2007
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 50,257 $ 60,322
Accounts receivable, net of allowance for
doubtful accounts and sales returns of $789 at
June 30, 2007 and $789 at March 31, 2007 4,432 3,514
Inventories 19,439 21,283
Prepaid expenses and other current assets 1,722 1,614
--------- ---------
Total current assets 75,850 86,733
--------- ---------
Property, plant and equipment, net 5,904 6,256
Non-current portion of inventories 3,234 3,005
Intangible asset, net and other long-term assets 957 1,009
--------- ---------
Total $ 85,945 $ 97,003
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 4,835 $ 5,686
Accrued salaries and wages 1,064 1,434
Accrued warranty reserve 6,402 6,554
Deferred revenue 1,007 937
Current portion of notes payable 13 19
--------- ---------
Total current liabilities 13,321 14,630
--------- ---------
Long-term portion of notes payable 15 27
Other long-term liabilities 538 561
Stockholders' Equity:
Preferred stock, $.001 par value; 10,000,000
shares authorized; none issued -- --
Common stock, $.001 par value; 415,000,000
shares authorized; 144,551,787 shares issued
and 144,000,431 shares outstanding at June 30,
2007; 144,512,997 shares issued and
143,961,789 shares outstanding at March 31,
2007 145 145
Additional paid-in capital 620,116 619,423
Accumulated deficit (547,677) (537,270)
Deferred stock compensation -- --
Treasury stock, at cost; 551,356 shares (513) (513)
--------- ---------
Total stockholders' equity 72,071 81,785
--------- ---------
Total $ 85,945 $ 97,003
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CAPSTONE TURBINE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months
Ended
June 30,
-----------------
2007 2006
-------- --------
Revenue $ 5,615 $ 6,566
Cost of goods sold 8,088 7,802
-------- --------
Gross loss (2,473) (1,236)
Operating expenses:
Research and development 2,749 2,806
Selling, general and administrative 5,893 5,915
-------- --------
Total operating expenses 8,642 8,721
-------- --------
Loss from operations (11,115) (9,957)
Interest income 710 627
-------- --------
Loss before income taxes (10,405) (9,330)
Provision for income taxes 2 2
-------- --------
Net loss $(10,407)$ (9,332)
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Net loss per share of common stock -- Basic and
Diluted $ (0.07)$ (0.09)
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Weighted average shares used to calculate Basic and
Diluted net loss per share 144,000 103,323
======== ========
CONTACT: Capstone Turbine Corporation
Investor and investment media inquiries:
Alice Barsoomian, 818-407-3628