Capstone Turbine Corporation Posts Record Quarterly Revenue And Gross Margin; Generates Cash From Improved Working Capital

CHATSWORTH, Calif., Feb. 7, 2011 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation ( www.capstoneturbine.com ) (Nasdaq:CPST), reported operating results for its third quarter ended December 31, 2010 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 7, 2011.

Financial Summary

Revenue for the third quarter of Fiscal 2011 was $24.2 million, an increase of 51% from the third quarter of Fiscal 2010. Capstone shipped 171 units in the third quarter of Fiscal 2011, compared to 122 units in the same period last year. Average revenue per unit during the third quarter of Fiscal 2011 was approximately $110,000 compared to $103,000 during the same period last year.

Capstone's backlog at the end of the third quarter was $84.7 million, up 8% from the same period last year.

Gross margin for the third quarter of Fiscal 2011 was $0.9 million, or 4% of revenue, compared to a gross loss of $0.2 million, or 1% of revenue, during the third quarter of Fiscal 2010. The $1.1 million improvement was the result of $1.9 million related to higher unit sales, improved product margins and increased parts and FPP sales reduced by an increase in inventory charges and warranty expense compared to the same period last year.

Research and development expenses were $1.4 million for the third quarter of Fiscal 2011, a decrease of $0.6 million, or 30%, from the third quarter of Fiscal 2010. R&D expenses are reported net of benefits from cost-sharing programs. There were approximately $0.3 million of such benefits this quarter compared to $0.1 million for the same period last year. The lower expenses resulted from decreased spending for consulting and salaries, and increased benefits from cost sharing programs.

Selling, general and administrative expenses were $6.0 million for the third quarter of Fiscal 2011, a decrease of $1.4 million, or 19%, from the third quarter of Fiscal 2010. The net decrease in SG&A expenses was comprised primarily of lower salary and consulting expense offset by higher facilities costs.