For its fiscal 2020 quarter that ended June 30, the maker of microturbines said gross product books increased 9% year-over-year for 1.7:1 book-to-bill ratio.
“New product order momentum continued to improve throughout the first quarter as we exited with a strong 1.7:1 book-to-bill ratio compared with 1.4:1 and 1.3:1 in the prior two quarters,” said CEO Darren Jamison. “I believe these recent positive quarterly book-to-bill results reflect the initial success of our new growth initiative implemented recently and detailed in our last quarterly report.”
The fiscal first quarter results, which are preliminary, show total revenue decreased to $19.2 million, from $21.2 million in the same period last year.
Capstone’s product revenue decreased approximately $3.5 million to about $10.1 million, compared to $13.6 million in the year-ago quarter in part because the company allocated 1.6 megawatts of product production slots to growing its long-term rental fleet and to a biogas-to-energy demonstration project in Asia.
Revenue from accessories, parts and service increased $1.5 million, or 20%, year-over-year to $9.1 million from $7.6 million in year-ago quarter.
Expanding Capstone's aftermarket business, which includes the newly expanded long-term rental program, is an important element for the company achieving its near-term profitability goal. This is illustrated by the fact that 98% of Capstone's fiscal 2019 gross margin came from the aftermarket business, which was only 38% of Capstone's fiscal 2019 revenue.
During the quarter, Capstone signed two new long-term rental contracts totaling 2.6 MWs with 1.0 MW being deployed during the first quarter of fiscal 2020 and 1.6 MWs to be deployed in the upcoming quarter. This latest long-term rental deployment brings the total rental fleet up to 4.6 MWs and with an additional 1.6 MWs expected to be deployed in September, bringing the estimated long-term microturbine rental fleet up to 6.2 MWs versus a management stated goal of 10 MWs.
"The expansion of our long-term rental fleet from our initial start of 3.6 MWs last fall, to a total of 6.2 MWs in September, puts us well on our way to reaching our strategic goal of 10.0 MWs," said Jeff Foster, senior vice president of customer service and product development.
For Capstone, based Van Nuys, California, total cash and cash equivalents for the quarter were about $24.6 million, compared to $29.7 million as of March 31.
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