Capstone Turbine Corporation® (NASDAQ:CPST), reported operating results for its first quarter ended June 30, 2007 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2007.
Capstone’s revenue for the first quarter ended June 30, 2007 was $5.6 million, a decrease of approximately 14% from the same period last year. The decline is attributable to lower than expected sales primarily in the North American and Asian markets.
Backlog at the end of the first quarter was $5.3 million, an increase of approximately $0.3 million, or 6% from the prior quarter but decreased approximately $0.1 million, or 2% from the end of the prior year comparable quarter.
The reported gross loss for the first quarter was $2.5 million, or 44% of revenue, compared to $1.2 million, or 19% of revenue from the same period last year. The increase in gross loss was due to lower sales of higher margin C-60 series units and lower absorption of overhead costs into inventory offset by decreased costs for manufacturing, warranty and inventory charges. During the quarter inventory decreased $1.6 million or 7% from the prior quarter.
Research and development costs were $2.7 million for the first quarter, a decrease of $0.1 million, or 2% from the same period last year. R&D expenses are reported net of benefits from cost-sharing programs. There were no such benefits this quarter and $0.5 million for the same period last year. Overall net expenses were lower primarily due to lower labor and consulting spending, decreased development hardware, and reduced facilities expenses.
Selling, general and administrative costs were $5.9 million for both the first quarter of fiscal 2008 and the same period last year. Reduced non-cash stock compensation was offset by increased labor related costs, professional services, travel, marketing, supplies and facility maintenance costs.
Capstone’s net loss was $10.4 million, or $0.07 per share, for the first quarter, an increase of $1.1 million from the $9.3 million loss, or $0.09 per share, reported for the same period last year.
Cash balances decreased by $10.1 million during the first quarter of fiscal 2008. As of June 30, 2007, cash and cash equivalents were $50.3 million.
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