Capstone Turbine Corporation (NASDAQ:CPST) revealed Friday that the clean technology company’s order book for low-emission microturbine energy systems filled up rapidly in the fiscal first quarter of 2020 and it shipped 9.5 megawatts of equipment.
In a statement, the Van Nuys, California-based company said it booked new gross product orders of $17.4 million for a book-to-bill ratio of 1.7:1 in the fiscal first quarter, compared with $16.3 million in the same period in the previous year for a book-to-bill ratio of 1.2:1. This represents a 7% increase of $1.1 million year-over-year.
Capstone’s largest new product order during the quarter was for 9.6 megawatts sold directly to Green Energy Sustainable Solutions Inc which is developing biogas projects in six US locations within Idaho, Missouri, and North Carolina.
During the quarter the company said it shipped 52% of its products to the energy efficiency market, 43% to natural resources, and 5% to the renewable energy segment.
Total revenue for the quarter decreased by $2 million to $19.2 million, compared with $21.2 million in revenue in the same period in the previous fiscal year.
Capstone explained that the decrease in revenue was a result of lower product shipments due to the company’s allocation of 1 megawatt of product production slots to the company’s new long-term rental fleet and 0.6 megawatts for a biogas to energy demonstration project in Asia.
On the bright side, accessories, parts and service revenue on a year-over-year basis grew by 1.5 million, or 20% compared to $7.6 million for the first quarter of fiscal 2019.
In a statement the company said: “The increase is primarily due to revenue from the new factory long-term rental program and the growing aftermarket service business.”
Gross margin grew significantly for the first quarter compared to the same period last year despite $2 million in lower total revenue. Gross margin increased by $1.1 million from $1.8 million in the year ago quarter, to $2.9 million, representing a 61% increase. Gross margin as a percentage of revenue expanded to 15% from 9% in the year ago quarter.
Adjusted EBITDA loss narrowed to $3.4 million, or $0.05 per share for the fiscal first quarter, compared to a loss of $3.9 million, or $0.06 per share in the same period in the previous fiscal year.
The company said its operating expenses grew primarily due to increased sales-related expenses, which includes a new racing sponsorship and tradeshows. In addition, operating expenses were up primarily due to labor costs.
Capstone offers a product line-up of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.
Contact Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive