Capstone Turbine Corporation (Capstone), a US-based manufacturer of micro turbine systems, has reported net revenue of $44 million for the fiscal year 2009, up 40%, compared with the net revenue of $31.3 million in the previous year. It also reported a net loss of $41.7 million, or $0.25 loss per share, for the fiscal year 2009, compared with the net loss of $36.1 million, or $0.25 loss per share, in the previous year.
Financial Summary:
Capstone’s backlog for the fiscal year ended March 31, 2009 was $61.5 million, an increase of 120% from the prior fiscal year and 8% from December 31, 2008.
Capstone shipped 494 units in Fiscal 2009, compared to 434 units in the prior fiscal year.
The reported gross loss for the fiscal year ended March 31, 2009 was $5.3 million, or 12% of revenue, compared to $3.8 million, or 12% of revenue for the prior fiscal year.
The year over year increase in the gross loss reflects increased manufacturing costs because of the product launch of the C200 and C1000 Series systems. These manufacturing costs were offset by higher margin product mix, primarily because of increased sales of C60 Series systems and reduced warranty expense.
Research and development costs were $8.1 million for the fiscal year ended March 31, 2009, a decrease of $0.8 million, or 9%, from the prior fiscal year. The net decrease was the result of an increase in benefits from cost-sharing programs, primarily from United Technologies Corporation, offset by increased spending for supplies, labor costs, consulting fees and facilities expense.
Selling, general and administrative costs were $28.6 million for the fiscal year ended March 31, 2009, an increase of $3.0 million, or 12%, from the prior fiscal year. The increase was primarily attributable to increased labor cost, travel expense, marketing costs and professional services, including accounting, legal and insurance expense, offset by a decrease for a change in estimate of legal accruals, supplies and consulting expense. The increase in labor and travel costs reflects the continued effort to develop worldwide distributors and the launch of the C200 and C1000 Series systems.
Cash and cash equivalents for the fiscal year ended March 31, 2009 were $19.5 million. Cash balances decreased $23.1 million during the fiscal year ended March 31, 2009. The Company completed a registered offering of its common stock during the second quarter, resulting in net proceeds of around $29.5 million.
Revenue for the fourth quarter ended March 31, 2009 was $11.8 million, an improvement of 28% from the prior year comparable quarter. Capstone shipped 117 units in the fourth quarter of Fiscal 2009, compared to 140 units for the prior year comparable quarter.
The reported gross loss for the fourth quarter was $2.9 million, or 25% of revenue, compared to $0.5 million, or 6% of revenue, for the fourth quarter of Fiscal 2008.
The quarter over quarter increase in the gross loss reflects increased manufacturing and overhead costs because of the product launch of the C200 and C1000 Series systems. These manufacturing costs were offset by reduced warranty expense.
Research and development costs were $2.1 million for the fourth quarter, an increase of $0.1 million, or 5%, from the prior year comparable quarter. The net increase was the result of increased labor costs and supplies in addition to less funding offset from United Technologies Corporation in Fiscal 2009. This increase was offset by a decrease in consulting services.
Selling, general and administrative costs were $6.9 million for the fourth quarter, a decrease of $0.4 million, or 6%, from the prior year comparable quarter. The decrease was primarily attributable to decreased consulting, administrative costs and facilities, offset by increased labor and travel costs.
Capstone’s net loss was $12.0 million for the fourth quarter, or $0.06 per share, an increase of $2.4 million from the $9.6 million loss, or $0.07 per share, reported for the prior year comparable quarter.
Cash used in operations was $6.6 million for the fourth quarter compared to $19.3 million for the prior quarter and $2.5 million for the same period last year.