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Capstone Turbine Corporation Reports Another Disappointing Loss

Capstone Turbine Corporation (NASDAQ: CPST  ) reported fourth-quarter and fiscal-2014 results after the market closed, and they did little to impress the market. Fourth-quarter revenue was up just 3% from a year ago, to $36.4 million, and lost $3.4 million, or $0.01 per share, 50% more than a year ago.

With 310 million shares outstanding, it wasn't hard to hit Wall Street's estimate on the mark, but revenue fell below the $38.9 million estimate. 

What's concerning is that there appears to be no end to losses and, as a result, management must continually raise new money and dilute shareholders. For the full year, Capstone lost $16.0 million, down from $22.6 million a year ago, but it had to sell 18.8 million shares last month just to keep operations going for the rest of the year.

Capstone has been a stock with a lot of potential for years now, but never seems to live up to that potential. Until the company swings to a profit, I'll stay away and not get caught in a trap that continues to disappoint investors year after year.

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Read/Post Comments (4) | Recommend This Article (6)

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  • Report this Comment On June 12, 2014, at 6:29 PM, mark1326 wrote:

    Are you hoping your little negative article helps out your short position tomorrow ? Profit margins were up ......Cost cutting was improved ..... Back log of orders is getting bigger ...... The company is growing ....... I would expect a lot more contracts this year ..... I hope you do anther article when CPST hits the $ 3s later this year .........

  • Report this Comment On June 12, 2014, at 9:42 PM, MrStopthemadness wrote:

    Wrong! As an investor of this company I am not disappointed this time. You are nothing more than shorting this stock and your article is biased. EPS is in line and it has a good backlog. See the real picture here:

    Record Revenue of $133.1 Million for Fiscal 2014 .Record Full Year Gross Margin of 16%. Record Backlog of $171.6 Million at End of Fiscal 2014

    Fiscal Year 2014 Highlights

    Record annual revenue of $133.1 million, up 4% from Fiscal 2013

    Record product revenue of $108.8 million, up 6% from Fiscal 2013

    Gross margin of $21.7 million, or 16% of revenue, compared to $14.4 million, or 11% of revenue, for Fiscal 2013

    Operating loss decreased 30% year-over-year

    New product orders of $131.5 million resulting in book-to-bill ratio of 1.2:1

    Cash balance of $27.9 million at March 31, 2014

    Fourth Quarter 2014 Highlights

    Fourth quarter revenue of $36.4 million, up 3% year-over-year

    Quarterly revenue has exceeded prior year 26 of last 27 quarters

    Record quarterly product revenue of $30.0 million, up 3% year-over-year

    Fourth quarter gross margin of $6.1 million, up 24% year-over-year

    Gross margin as a percentage of revenue of 17%, compared to 14% in the fourth quarter Fiscal 2013

    New product orders of $41.2 million resulting in book-to-bill ratio of 1.4:1

    Record product backlog of $171.6 million at March 31, 2014, up 15% year-over-year

    Record Factory Protection Plan backlog of $47.2 million at March 31, 2014, up 35% year-over-year

  • Report this Comment On June 13, 2014, at 12:54 PM, morserotor wrote:

    HUU RAW Mr Stopthemadness!!!!!!!

  • Report this Comment On June 15, 2014, at 6:56 AM, 1dms wrote:

    The recent sale of 18.8 million shares was not for operations. On the CC the CEO said it was to improve the balance sheet so that they could get some of the 10mw, 20mw, 40mw and possibly 80mw projects they are going for but they need a better looking balance sheet for customers to trust them. CPST also expects another 5-6% increase in GM this year and the next.

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Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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