Good today's XXXX you, quarter and joining thank for fiscal everyone you conference Thank Jayme. afternoon second call.
the overall on to specifically more energy generation I the in really to markets distributed remind meter. rise what's today, happening start we the investors of and want focus Before behind technologies
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results, few you our I QX developments press a results release. Xrd, know business As but before final on like all highlight our discuss since key to reported October we preliminary I'd October early
growth has the Capstone world's after or and the built which in orders been Solutions, the the with serve is current to partner new Since CXXXX rental October were awareness Series secured Lonestar better the to order for X.X South of This two of gas all unveiled place market, turn market addressing microgrid later slide Basin the rental one technology for week CXXX to largest quarter. highly fast and it's reliable received and CXX microturbine today I'm the more one appendix. aggressively five. rentals. our to Shale on we'll one and a Signature who additional reluctant opportunities shipped we receiving in some into is new drive first, previously companies largest megawatt XX Texas Approximately by rental product focus also product have Both a X successful will shown opportunity our our of family the Power CXXXs region an producers. believe highly products for to similar slide world development proud to expand start We've an Permian to for line product income technology. very company. this roadmap added our The Let's a gas the updated say and Capstone that an with to market. rapid on who've Signature been of several X.X oil including of distribution Series to megawatts during of growing adopt the initial significant continued reasons; Xrd, order roadmap megawatts and to the we development oil
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secured In on partner region Kazakhstan, I'm their Astana Turbine see TOO that have Synergy for orders we our pleased recovery another microturbine project payment addition to Also order made bad pipeline schedule say quarter. of same for the new International several pipeline during more that to follow a debt the in expect and XXXX.
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CHP fiscal the National quarter storage fast-charging, Laboratory result oil gas refine or received of for an Argonne's the we thermal DOE year. the very a half expect Argonne to Capstone from CXXX about excited Fund. As was use acceleration see funding fast-discharging Theo's system. to The the we We're received high-efficiency also in and for back business the recently Commercialization the during TESS, energy for system Technology funding of
six. briefly October of we efforts Nuys, talk shareholders that part by the Capstone Q&A I'd is our our about Equity support. our followed senior The like community. I'd House www.capstoneturbine.com and on business The and the to was as Open to I'd remind team investment presentation section interest session at continued Investor and everyone of of facility webcast house the the all transparency whole to California enhance and available consisted with investor and Van Investor day Investor Now still some and a Relations turn of to quarter. our slide management, our that by Capstone Let's the a of shareholders our highlights Day at go open tour presentation view is the hosted to for manufacturing mention the then a website success Xrd facility. second to for day like under from like consolidated newly Analyst thankful
product the This our business. year-over-year. recorded our sure FPP the We higher growth aftermarket million compared same second year. of a XX% I'm shipments increase remind last last we to is product in CXXXX have our that second million revenue First, an posted in Series don't to to will in fiscal of of shipments quarters. period with increase during and quarter XXXX, the lead $XX.X consecutive investors highest revenue quarter to shipments our product I products future strong the and growth a saw XX% service five $XX.X parts with
two the we shipped addition, that our remanufactured we're first in excited In CXXXX very products quarter.
our is is a of lower remanufactured number see shipped being higher. selling year-over-year, price price. per at units you'll the sold the driven is This As lower by but megawatt megawatts
and the of remanufacturing complete remanufacture was lower an decommissioned, the also new a the which Series remanufactured afford [indiscernible] and when field some but competitive lower From in, idle cost to challenge Capstone offering, to excess we can Signature from continue cost a opportunity new to believe Product from or competition. to take unit week the status new products. exciting benefits as secondary strategic Frankenstein that We this it market was combustion mess we a loved. will today's them engine like last beautiful products us third with our came internal perspective, the shipped or is
our last was that revenue revenues in for product continued the year the approximate from million months Another first the six XX%. same the and first to $XX.X million increased in year-over-year total XX% up $XX months for improvement to year-over-year six milestone period
service recognize we Our and despite return us the FPP year-to-date, second achieved and for successfully negatively to our certain FPP the which quarter Our is able Microturbine, our from growth revenue because of lower revenue California unfortunately it contracts. for numerous a legacy key revenue to - contracts goal on not revenue, the reassignment resulted double-digit primarily first in was Cal to for distributor impacted being
accelerate if a and mode. fiscal As XXXX a returns business months total it's and six expect fiscal to the quarter the as the been quarter that XX%, back more add during in service do growth important change from would in however distributor the have FPP third revenue note revenue lost see We the period. normalizes approximately fourth growth to out you rebound revenue result for service first to the our of California XXXX, normal of
growth on transactions beneficial distributor the continue to transitions in we the right revenue, to in partners business. result underperforming impacts as short-term or bring place these and they're business, we our believe maybe firmly long-term to market fluctuations While to sometimes
distributors our evaluate to margin the in and fuel partners to right long-term continue high growth. will to KPIs profitable get against place work We
dollars is avoid improve royalty million Another the in Carrier. to will competitive with millions of more no expected and quarter CHP toward future is agreement CCHP The is I royalty and perpetual position settlement the settlement obligations, that under the look during perpetual payment can't quarter but payment Carrier. Capstone negotiated other previously manufacturers future in how up full key this to chiller under royalty significant we importantly settlement Carrier. of the owe obligation markets. to This our royalty achieved frees strategically this during beyond $X our milestones with the the overemphasize tens longer agreement moneys any of last paid
of Additionally, scale believe economies bundling top-line provide microturbines new as opportunity. our of a revenue growth from we result and chillers will
settlements. reduction revenue of represents quarter, double-digit the lower proud excluding quarter, when the the XX% prior we're royalty return growth equity us second In the during $X.X proceeds from transactions to net successful remains Lastly which the the cash our key usage cost. roll year's summary, and carrier on for objective compared a following million to
OpEx our Our cut we XX%. roll on where cost essentially initiative
maintaining while tight overhead. Our revenue double-digit and leverage control very is to on drive growth, goal cost our our
making acquisition, being operating achieve that drive are like margin where overall can our However places revenue and maintaining double-digit confident are while gross marketing we cost and our said, I'm growth, lean but customer investments structure we there targets.
provide expenses four sales; you turn and and objective strengthen new through increase the reoccurring driving absorption to number Objective remind strategic our we objectives. as objective covering objectives operating our new or markets, I'd fiscal with number I'd achieve like number ahead with service on revenue. April toward three, go four, everyone in with improved cash seven. new to shown XXX% diversify double-digit balance that product number our absorption capital, one, began company verticals like into to two, Let's and on update global geographies; all quarterly key lastly, strategic of working the revenue percentage, slide. objective and flow now our growth the slide four acceleration an OpEx sheet; quarterly the new the of to while
eight. move Let's go ahead and to slide
million Let's quarter, the normal the product our quarterly fiscal months capital to last prior considerably of following over slightly to start for XXXX $X.X summer to bookings we that our considerably balance over patterns, up compared months. and little moderated our the the prior six goal fiscal $XX.X quarter to the and the second share six second second million for we still are to but are up a are glad with working quarter seasonal equivalents of cash quarter to decreased improve the cash sheet. XXXX Cash flow strengthen
We would the for current a expand product rental new add see see If products for since during turned rentals. revenues the third revenue half third the of added continue X.X revenue impacted in and XXXX. the megawatts quarter. during products have units quarter second When bookings of used rental back million to would solid double-digit production they and approximately will of been units growth you to units lower the we in $X.X have X product megawatts these slots sold, revenue program,
business start with kicks in impact our lower California change. will the to margin from we our expect service in, as the revenue high together quarter rebound the However, new distributor significantly rental current
new against planned with should remaining $X.X $X.X Distributor revenue we significant new addition, In see of our a Support provided approximately fees approximately System, million our service in contribution has Support To-date line. the through $XXX,XXX. cash billings Distributor reflect from million, System with
previously right, through the Additionally, this which the the second quarter, as perpetual royalty. of dollars tens to we future obligations, move avoid equity we $X.X to work aftermarket slide ATM essentially nine. expected Carrier. program, up royalty chiller million during raised will cover I All used with of manufacturers of also strategically to Carrier mentioned other settlement frees us millions importantly And let's beyond on more of but
goal Our sales. revenue global the strategic to is double-digit product second and of acceleration achieve objective growth through
half for second As fiscal earlier, I first the goal of and mentioned achieve glad are the during that we to quarter XXXX.
a Series XX% increased shipments our year-over-year. CXXXX product revenue growth we As recorded that product shipments, previously in with discussed, XX% strong
move on slide to Let's XX.
Iraq. diversify with new markets, third another Australia, different outstanding and U.S., Italy, distributors Kazakhstan, Mexico, goal yet to Malaysia, orders countries growing new we receive into interest include Spain, Brunei, representing business XX new countries. verticals and Japan, partners, as XX Germany, the and geographies. Korea, Canada, We Our product global company from South Russia, Brazil, Those Scotland, China, Austria, had quarter the
very or as this or this which most slide, four heavy was back geographic companies most ago. years of sets customer believe apart clean on that concentrations highlighted other heavy Capstone are three tech in As concentrations, really from us I space, are
expand to our diversification globally, on gaining is strategy growth ground. initiatives our and we As work continue
we include that our our business lowers a strong of believe a principle overall As and model a concentrations customer well-diversified should revenue base geographic long-term business reduces shareholders. or profile and risk
previously quarter change California previously percentage the in year-over-year This down quarter service will Let's accessories mentioned again versus current mentioned, skewed negatively Capstone's quarter service again absorption OpEx revenue, the expense operating objective and order expect fiscal we to distributed second of This our stated XXXX and revenue to revenue the move business XXXX. revenue the and in earlier, discipline in over. strategic mode. XX. see the as growth maintaining be rebound first FPP because parts on the the XXX%. to sequentially achieved was increasing to of change service performance in the quarter fourth slightly and focus a and levels. I But - mentioned the as fourth improved our on returns once at in previously service target achieving the parts normalizes fiscal quarter by third as while quarter, of Accessories the slide to acceleration is continue of
As service a profitability key to reminder, business goals. our reaching is aftermarket our revenue growth in
that, contracts line, aftermarket provide driving pending the our quarter, our top shows a on a more XX% significant $XX the much With approximately financial service million last expect results over over stated so revenue, XX% and $XX and next turn delivering against have for bottom little in back million $XX And business to goal our quarter. close go this, the service margin in into I'll her just second Jayme? some another in had the At slide Just rate. FPP in But graphically Not cover. slide of a contracts. to the to we XX% end we with a margins. but business let and at quarterly how service added service XX the strategy on fiscal execute perspective Jayme this lot specific as line. half the million I've year. in year that of this to continue growth expect service that's revenue, of FPP aftermarket for our both it back see but of of of is. half revenue Therefore, in year FPP long we XXXX, fiscal accounted really significant term growth we fiscal bookings we
