Capstone Turbine Reports Select Preliminary Q2 Fiscal 2019 Financial Results
October 03 2018 - 8:30AM
Product Revenue Increases 22% - Highest Product
Revenue in Five Quarters
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST), the world’s leading clean technology manufacturer of
microturbine energy systems, continues to provide increased
transparency by announcing select preliminary financial results for
its fiscal second quarter ended September 30, 2018.
Select Preliminary Financial Highlights
of Fiscal 2019 Second Quarter:
- Product revenue year-over-year increase of approximately
22%
- Product revenue was the highest in five quarters
- Total revenue for the quarter increased approximately 12%
year-over-year
- Cash usage during the quarter was 78% lower compared to same
period last year
- Book-to-bill ratio was 0.7:1 for the second quarter up from
year-ago second quarter, which was a 0.5:1
- Previously negotiated royalty settlement of $3 million was paid
in full to Carrier during the quarter
Darren Jamison, President and Chief Executive Officer,
commenting on the second quarter of fiscal 2019, said, “We
continued to make progress towards our fiscal 2019 strategic
objectives in the second quarter as we recorded our second
consecutive quarter of revenue growth in our product shipments and
posted continued improvement in total year-over-year revenue.
Shipments of our C1000 Series products were particularly strong
this quarter with a 30% increase year-over-year, while solid spare
parts sales continued to drive our aftermarket service business.
Bright spots in the quarter included a continued recovery in the
Russia and CIS markets as well as in the North American natural
resources market as crude oil prices continue to rebound,” added
Mr. Jamison.
Total revenue for the second quarter of fiscal 2019 increased
approximately 12% to $22.2 million from $19.8 million in the same
period last year. Capstone’s product revenue increased
approximately 22% during the second quarter of fiscal 2019 to
approximately $14.9 million compared to $12.2 million in the same
period last year.
Capstone booked new gross product orders of approximately $10.8
million during the second quarter of fiscal 2019, for a 0.7:1
book-to-bill ratio, compared with $16.3 million of new gross
product orders booked during the prior quarter, which was a 1.2:1
book-to-bill ratio and with $5.9 million of new gross product
orders booked during the year-ago second quarter, which was a 0.5:1
book-to-bill ratio.
Total cash, cash equivalents and restricted cash as of September
30, 2018, were approximately $18.3 million, compared to $19.6
million as of June 30, 2018, and $19.4 million as of March 31,
2018. During the second quarter of fiscal 2019, Capstone paid in
full the previously negotiated royalty settlement agreement of $3.0
million to Carrier, as such there is no further royalty obligation
to Carrier. Cash usage during the second quarter of fiscal 2019,
excluding net proceeds from equity transactions and the
aforementioned royalty settlement agreement payment, was $4.3
million lower compared to the second quarter of fiscal 2018,
representing a 78% reduction.
Capstone also announced that borrowings on the line of credit
facility were at approximately $12.5 million as of September 30,
2018, compared to $10.0 million at the end of the prior quarter and
that it received approximately $2.9 million from equity
transactions during the second quarter of fiscal 2019.
“We are proud to have achieved double-digit revenue growth
during the second quarter and first half of our fiscal year as we
continue to execute against our growth initiatives. I want to note
that product bookings moderated during the second quarter following
normal summer seasonal patterns, but were up appreciably over the
last year’s second quarter. We expect product bookings to return to
double-digit growth in our third fiscal quarter. Our cash
management and expense controls efforts benefited us in the
quarter, as we were able to satisfy our $3 million royalty
settlement agreement payment while still maintaining a solid
balance sheet. This settlement was a key milestone in Capstone’s
evolution and will positively impact gross margin and our strategic
CHP positioning going forward. By also removing the non-compete
language in the Carrier agreement, we are now able to enter into
strategic relationships with other global chiller manufacturers to
improve our competitiveness in the growing CHP and CCHP markets,”
concluded Mr. Jamison.
Conference Call and Webcast
Capstone will host a live webcast November 8, 2018, at 1:45 PM
Pacific Time (4:45 PM Eastern Time) to provide the results of the
second quarter fiscal 2019 ended September 30, 2018. Capstone will
discuss its financial results and will provide an update on its
business activities. At the end of the conference call, Capstone
will host a question-and-answer session to provide an opportunity
for financial analysts to ask questions. Investors and interested
individuals are invited to listen to the webcast by logging on to
Capstone’s investor relation’s webpage at www.capstoneturbine.com.
A replay of the webcast will be available on the website for 30
days.
About Capstone Turbine Corporation
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 has shipped over 9,000
Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone 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 DQS-Certified ISO 9001:2015 and ISO
14001:2015 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in
the United States, Latin America, Europe, Middle East and
Asia.
For more information about the company, please visit
www.capstoneturbine.com. Follow Capstone Turbine on Twitter,
LinkedIn and YouTube.
Safe Harbor Statement
This press release contains “forward-looking statements,” as
that term is used in the federal securities laws. Forward-looking
statements may be identified by words such as “expects,”
“believes,” “anticipates,” “objective,” “intend,” “targeted,”
“plan” and similar phrases. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties described
in Capstone’s filings with the Securities and Exchange Commission
that may cause Capstone’s actual results to be materially different
from any future results expressed or implied in such statements.
Capstone cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
CONTACT: |
Capstone Turbine
Corporation |
|
Investor and investment
media inquiries: |
|
818-407-3628 |
|
ir@capstoneturbine.com |
|
|
|
Integra Investor
Relations |
|
Shawn M. Severson |
|
415-226-7747 |
|
cpst@integra-ir.com |
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