heute eine abstufung und gestern dies
Capstone Turbine Announces Second-Quarter Results
THURSDAY, JULY 19, 2001 4:29 PM
- BusinessWire
CHATSWORTH, Calif., Jul 19, 2001 (BUSINESS WIRE) --
Capstone
Turbine Corporation (Nasdaq:CPST), a leading producer of low-emission
microturbine systems, today reported revenue of $13.6 million for the
second quarter ended June 30, 2001, compared with revenue of $6.1
million for the second quarter of 2000.
§ The increase in sales reflects increased penetration of the
Company's core markets as well as greater availability of the
Company's 60-kilowatt models.
§ For the second quarter of 2001, Capstone's net loss attributable
to common stockholders decreased to $10.3 million, or $0.13 per share
on 76,654,902 shares. This compares with a net loss of $429.1 million,
or $14.32 per share on 29,973,195 shares, in the second quarter of
2000. The net loss per share in the year ago period was impacted by
non-cash charges associated with booking the accretion of the
Company's preferred stock to fair market value.
§ Quarterly Highlights
§ During the second quarter of 2001, Capstone:
§ -- Completed the first Capstone 60 microturbine power system with
stand-alone functionality.
§ -- Signed development agreements with Cummins Incorporated and
MGE UPS Systems.
§ -- Announced that the Governing Board of California's South Coast
Air Quality Management District approved $1.74 million to
purchase 30- and 60-kilowatt microturbines and installation
services from Capstone California.
§ -- Began producing commercial quantities of recuperator cores at
its Van Nuys, Calif. plant.
§ -- Received notice from Underwriters Laboratories that the Model
330 Capstone MicroTurbine power system had met its stringent
UL1741 utility interactive requirements.
§ -- Introduced the foil bearing rotary flow compressor, the first
lubricant-free compressor capable of boosting very low
pressure natural gas to a higher pressure required by the
microturbine.
§ -- Commissioned Capstone MicroTurbines in the first hybrid
electric bus in China, which was unveiled in June.
§ The Company shipped 421 units in the second quarter of 2001,
compared with 211 in the second quarter of 2000 and 307 units in the
first quarter of 2001. Sixty-five of the units in the second quarter
of 2001 were 60-kilowatt models and the remaining 356 were 30-kilowatt
models.
§ "As we expected, the greater availability of the 60-kilowatt
models is helping drive our increased sales," said Dr. Ake Almgren,
President and CEO of Capstone Turbine Corporation. "In early June, we
completed our first stand-alone 60-kilowatt microturbine power system,
which provides true blackout protection.
§ "We have consistently seen that this mode is the most popular
configuration for our 30-kilowatt models, and we expect that sales of
the 60-kilowatt model will significantly increase now that it is also
available in this mode. We anticipate that multi-pack capability for
60-kilowatt units will be available in the third quarter, which will
allow customers with larger loads to combine 60-kilowatt units."
§ Increasing Market Penetration
§ The Company continues to see growth in all of its key markets,
which include resource recovery, micro-cogeneration, hybrid electric
vehicles (HEVs), and the power reliability market, which is primarily
its focus in the California market right now. Following are notable
developments in the area of sales:
§ Capstone California
§ Capstone California, the Company's wholly-owned sales and
marketing subsidiary, is making continued progress in the California
marketplace. After being established during the first quarter of 2001,
the subsidiary accounted for almost 30% of sales in the second
quarter, primarily for power reliability and micro-cogeneration
applications.
§ "Capstone California currently has about 100 proposals in the
hands of our potential customers, leading us to believe this growth
will continue in the third quarter," said Dr. Almgren. "Customer
demand in the California market is now predominantly driven by pure
economics -- customers reducing their own cost of electricity. In
particular, micro-cogeneration solutions have become very attractive."
§ Resource Recovery
§ In the resource recovery market, Capstone has begun shipping an
offshore version of the microturbine to be used on production
platforms.
§ "Biogas, another category of resource recovery, has also developed
very positively and several significant installations have been or are
about to be commissioned at landfills and water treatment plants,"
said Dr. Almgren.
§ Hybrid Electric Vehicles
§ During the quarter, the first hybrid electric bus in China was
unveiled in the city of Beijing, which is energized by two Capstone
30-kilowatt microturbines. In Italy, Ecopower Technology (EPT)
recently presented to the market their first HEV bus using Capstone
microturbine technology. In the United Kingdom, the Wrightbus(TM)
company, a leading supplier in the public transport vehicle market, is
developing a Capstone MicroTurbine-powered HEV bus, initially
targeting the British market, which the company expects to begin
shipping later this year.
§ Advanced Vehicle Systems (AVS), one of Capstone's first HEV
partners which currently produces a 20-foot HEV bus, has successfully
demonstrated its follow-on HEV vehicle. This vehicle, a 30-foot bus,
is expected to begin shipping in commercial quantities this year. AVS
has also reached an agreement to license their HEV bus to a company
located in Taiwan, where shipments are expected to begin next year.
§ "The HEV market holds great growth potential for Capstone and we
continue to make excellent strategic progress," said Dr. Almgren. "We
are particularly excited about providing Capstone MicroTurbines for
the first HEV bus in China. It goes without saying that China is a
potentially huge market for HEVs, and we are working diligently with
our partners there to ensure that we capitalize on all of our
long-term opportunities."
§ Distribution Agreements
§ "We also continue to enhance our channels to market in each of our
core markets," said Dr. Almgren. "Having MGE, one of the leading
suppliers of power reliability products, validate our microturbine
technology in this market is a significant step in our efforts to
further penetrate emerging markets.
§ "Our agreement with Cummins is also extremely important, as they
are not only a leading supplier of power generation equipment for the
North American market, but also the leading supplier in the Chinese,
Indian and Brazilian markets. We will look to leverage our
relationship with them to increase our presence in these key markets
as quickly as possible. We have already shipped 30- and 60-kilowatt
units to Cummins for development purposes and we expect these
shipments to grow throughout the remainder of the year."
§ International Sales
§ During the second quarter, Capstone continued to expand its
international presence with approximately 40% of sales being made to
customers outside of North America. In particular, Capstone is
beginning to ship a significant number of units into the oilfields of
Nigeria, which represents a large opportunity for the Company.
Capstone is now making material shipments to Japan, Western Europe,
South America and Africa. Two European distribution partners were
added during the quarter: Soffimat in France and General Systems
Design in Turkey.
§ "I am also pleased to announce that we have further strengthened
our international sales efforts with the addition of Hans Gners as
head of business development and sales in Europe and the Middle East,"
said Dr. Almgren. "Hans joins us after a 25-year career at ASEA Brown
Boveri (ABB) Limited where he held various senior management positions
in business development of advanced electrical transmission and
distribution systems with worldwide responsibility."
§ Product Development
§ The Company achieved two significant product development
milestones in the second quarter: shipping the first 60-kilowatt model
in stand-alone mode, which includes dual mode capability, and
introducing the world's first foil bearing rotary flow compressor
(RFC).
§ "The foil bearing RFC enables Capstone to offer a unique solution
that eliminates all oil-based lubrication from our 30-kilowatt
microturbines," said Dr. Almgren. "Incorporating Capstone's
lubricant-free bearing technology into this fuel gas compression
solution results in enhanced life and reduced need for maintenance,
and provides a significant advantage over competing alternatives."
§ Capstone's current product development focus is on bringing out
additional fuel capabilities for the 60-kilowatt model and cost
reducing both the 30- and 60-kilowatt products, which would have a
positive impact on the Company's gross margin.
§ The Company was also recently awarded $3 million by the Department
of Energy for research, development and testing of
microturbine-powered cooling, heating and power systems for buildings,
also referred to as BCHP. These systems will use the waste heat from
Capstone's 30- and 60-kilowatt microturbines coupled with absorption
chillers for air-conditioning and a desiccant for humidity control.
§ "This award confirms the expanded opportunities for cogeneration
using microturbines, as well as the increased interest in clean,
energy-efficient solutions for the United States," said Dr. Almgren.
§ Production Capabilities
§ During the second quarter, Capstone substantially enhanced its
production capabilities as it began producing commercial quantities of
recuperator cores, a key component of microturbines. The first
recuperator cores were produced in June, ahead of the Company's
initial September timeframe. With the world's first automated
recuperator core production process, the Company hopes to achieve a
goal of cutting labor time in half and realizing other cost savings
that will positively impact its gross margin.
§ "We are pleased with the performance of the initial recuperator
cores that we have produced and we believe that we will continue to
have an excellent record with this key component," said Dr. Almgren.
"With more than 1,000 Capstone MicroTurbines having been shipped, we
have never had a field failure with the recuperator cores."
§ Governmental Affairs
§ During the second quarter, Capstone continued its efforts to
generate better visibility and support for microturbine technology on
the state and federal government levels. Dr. Almgren personally met
with President George Bush twice, as well as Energy Secretary Spencer
Abraham and California Governor Gray Davis. In addition, U.S.
Representative Brad Sherman recently toured the Capstone facility.
§ "We consider these opportunities invaluable for educating public
officials about microturbine technology and its ability to be part of
the solution to current and future energy needs in California and the
rest of the country," said Dr. Almgren.
§ Financial Highlights
§ In the second quarter of 2001, gross margin improved to 4%,
compared with a negative 36% gross margin in the same period of 2000.
The improvement in gross margin is primarily attributable to factory
overhead costs being allocated over larger volumes of production and
initial shipments of higher margin 60-kilowatt units. The Company
expects the gross margin on the 60-kilowatt units to improve in the
third and fourth quarters of 2001 as it begins to use less expensive
parts from inventory following the utilization of pre-production parts
purchased in low quantities at higher costs.
§ Research and development expenses decreased to $2.9 million,
compared with $3.0 million in the second quarter of 2000. R&D expenses
in the second quarter of 2001 were primarily attributable to the
development of additional product releases for the Company's
60-kilowatt line of microturbines.
§ Selling, general and administrative (SG&A) expenses increased to
$10.9 million, compared with $5.7 million in the second quarter of
2000. This increase is primarily attributable to the continued
expansion of the Company's sales and marketing organization, including
the Capstone California subsidiary. SG&A was also impacted by $1.6
million in non-cash expenses associated with stock-based compensation
and marketing rights amortization.
§ During the quarter the Company incurred $800,000 of pre-production
costs associated with its recuperator core manufacturing facility
which began production in June. Capstone has now begun building
recuperator cores for production inventory.
§ The Company also invested nearly $1.0 million in legal expenses
during the quarter related in part to expanding its portfolio of
intellectual property. Capstone has increased the number of domestic
and international patents it holds to 53, with many more currently
being pursued.
§ The Company continues to be in an exceptionally strong financial
position. As of June 30, 2001, Capstone had approximately $200.4
million in cash and cash equivalents, and no long-term debt. The
Company used approximately $17 million in cash during the second
quarter of 2001, compared with approximately $19 million in the first
quarter of 2001. Included in these amounts are capital expenditures
totaling $6.5 million in the second quarter and $5.4 million in the
first. Capital expenditures included investments in the recuperator
core manufacturing facility and equipment totaling approximately $4.4
million in the second quarter and $4.0 million in the first.
§ Accounts receivable increased to $14.8 million at the end of the
second quarter of 2001, reflecting a high level of shipments with
30-day terms in the last month of the quarter. This continues a trend
that was also seen in the first quarter of 2001. The Company had no
bad debt write-offs during the second quarter and does not anticipate
any meaningful write-offs in the third quarter of 2001.
§ Outlook
§ Capstone announced that its sales target for the third quarter of
2001 is 600 units. Management believes it currently has visibility on
400 of those units, but cautions that the exact timing of receipt of
orders is always uncertain. Additionally, the Company's objective is
to exceed 2000 shipments for the full calendar year 2001, of which 500
units are targeted to be 60-kilowatt systems. For 2002, Capstone has
set a target of 4,000 units shipped including an increasing percentage
of 60-kilowatt systems.
§ "We believe that there is a lot of business available in our
target markets around the world," said Jeff Watts, Chief Financial
Officer. "In addition to further developing our existing customer
relationships, we are currently focusing on developing very large new
customers in our existing sales territories, which typically take a
longer time to develop than small customers. However, when they do
develop, they potentially represent very large business opportunities
for Capstone.
§ "Inherent in dealing with these large prospects is difficulty in
predicting the exact timing for closure of contracts and release of
orders. There is no anticipated constraint on our ability to supply
this demand given our past investment in assembly and test facilities.
§ "We also anticipate expanding our sales territories around the
world. We will begin to add sales channels in new territories in
Europe, Russia and the Middle East with the help of newly hired Hans
Gners. We will also begin to expand our presence throughout Asia and
South America while working with our partners like Cummins.
§ "Demand for our 60-kilowatt models appears to be strong and our
goal is for these models to comprise 50% of our shipments in 2002. We
also continue to focus on hitting our goal of having an increasing
percentage of our shipments be subassemblies and components, which
garner a higher gross margin. Subassemblies and components are
primarily shipped to our partners in the hybrid electric vehicle
market, our Japanese partners focusing on the micro-cogeneration
market, and other OEMs such as Cummins," said Watts.
§ Conference Call and Webcast
§ In conjunction with Capstone Turbine Corporation's second quarter
earnings announcement, members of the public are invited to listen to
the Company's live quarterly conference call on the Internet on
Thursday, July 19, 2001 at 5 p.m. Eastern/2 p.m. Pacific. To hear the
call, simply log on at the Company's Web site at www.microturbine.com
and go to the Investor Relations Web page.
§ About Capstone Turbine
§ Capstone Turbine Corporation (www.microturbine.com; Nasdaq: CPST)
-- winner of Financial Times Energy's (www.ftenergy.com) 2000 Global
Energy Award for Most Innovative Commercial Technology -- is a leading
producer of low-emission microturbine systems. In 1998, Capstone was
the first to offer commercial power products utilizing microturbine
technology, the result of more than ten years of focused research.
Worldwide, more than 1,000 commercial production Capstone MicroTurbine
systems serve, among others, the following applications:
§ -- Hybrid electric vehicles (HEVs): onboard generation
§ -- Resource recovery: converting oilfield, landfill and sewage
waste gases into electricity
§ -- Micro-cogeneration: combined heat/power/chilling solutions
§ -- The 9s market: power quality and reliability
§ Certain statements contained in this release may be deemed to be
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995, and Capstone Turbine Corporation
intends that such forward-looking statements be subject to the
safe-harbor created thereby. Such forward-looking statements relate
to: 1) Capstone's penetration of its target markets, including its
ability to be a part of the solution to California's power supply
issues; 2) the emergence of additional markets for microturbines; 3)
demand for microturbines and the ability of the Company to ship its
60-kilowatt systems; 4) the Company's development of additional
microturbine product releases; 5) the Company's development and
initiation of recuperator core manufacturing activities; 6) the impact
of production of recuperator cores and the amortization of factory
overhead on the Company's gross margin; and 7) component shortages
experienced by the Company and the Company's ability to overcome such
shortages. Capstone cautions that these statements are qualified by
important factors that could cause actual results to differ materially
from those reflected by the forward-looking statements herein. Such
factors include, but are not limited to: 1) market acceptance of
Capstone's technology and products; 2) the size, timing and shipment
of individual orders; 3) the ability of Capstone to successfully
execute its production and marketing plans; 4) the Company's ability
to develop additional microturbine product releases; 5) the Company's
ability to successfully develop its recuperator core manufacturing
processes and expand production capacity; 6) being able to secure
adequate supplies of acceptable quality components or experiencing
higher than anticipated costs; 7) exposure to product liability or
other tort claims; 8) the Company's ability to control its warranty
exposure; 9) the Company's ability to retain key management and
technical personnel; 10) barriers to entry in the marketplace or
regulations that may affect the Company's ability to sell its
products; 11) the Company's ability (2,170) 577 (3,548) 900
Operating Costs and Expenses:
Research and development 3,022 2,889 5,463 5,659
Selling, general and
administrative 5,677 10,893 10,061 20,805
Total operating
costs and expenses 8,699 13,782 15,524 26,464
Loss from Operations (10,869) (13,205) (19,072) (25,564)
Interest Income 1,899 3,082 2,622 6,126
Interest Expense (200) (153) (536) (320)
Other Income (Expense) (5) 13 1 27
Loss Before Income Taxes (9,175) (10,263) (16,985) (19,731)
Provision for Income Taxes 1 1
Net Loss (9,175) (10,263) (16,986) (19,732)
Preferred Stock Dividends,
Accretion, and Repurchase (419,930) (559,862)
Net Loss Attributable to
Common Shareholders $(429,105) $(10,263) $ (576,848) $(19,732)
Weighted Average Common
Shares Outstanding 29,973,195 76,654,902 17,011,083 76,351,836
Net Loss Per Share of
Common Stock --
Basic and Diluted $ (14.32) $ (0.13) $ (33.91) $ (0.26)
CONTACT: Capstone Turbine Corporation
Keith Field, 818/734-5465
or
Financial Relations Board/BSMG
Jill Fukuhara, 310/996-7464 (investors)
URL: www.businesswire.com
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Copyright (C) 2001 Business Wire. All rights reserved.
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shit wie kann ich meiner frau das wieder gut machen. ich glaub sie vertraut mir in zukunft micht mehr was aktien anbelangt. doch ich bleibe bei meiner meinung CPST ein wert auf long.
Capstone Turbine Announces Second-Quarter Results
THURSDAY, JULY 19, 2001 4:29 PM
- BusinessWire
CHATSWORTH, Calif., Jul 19, 2001 (BUSINESS WIRE) --
Capstone
Turbine Corporation (Nasdaq:CPST), a leading producer of low-emission
microturbine systems, today reported revenue of $13.6 million for the
second quarter ended June 30, 2001, compared with revenue of $6.1
million for the second quarter of 2000.
§ The increase in sales reflects increased penetration of the
Company's core markets as well as greater availability of the
Company's 60-kilowatt models.
§ For the second quarter of 2001, Capstone's net loss attributable
to common stockholders decreased to $10.3 million, or $0.13 per share
on 76,654,902 shares. This compares with a net loss of $429.1 million,
or $14.32 per share on 29,973,195 shares, in the second quarter of
2000. The net loss per share in the year ago period was impacted by
non-cash charges associated with booking the accretion of the
Company's preferred stock to fair market value.
§ Quarterly Highlights
§ During the second quarter of 2001, Capstone:
§ -- Completed the first Capstone 60 microturbine power system with
stand-alone functionality.
§ -- Signed development agreements with Cummins Incorporated and
MGE UPS Systems.
§ -- Announced that the Governing Board of California's South Coast
Air Quality Management District approved $1.74 million to
purchase 30- and 60-kilowatt microturbines and installation
services from Capstone California.
§ -- Began producing commercial quantities of recuperator cores at
its Van Nuys, Calif. plant.
§ -- Received notice from Underwriters Laboratories that the Model
330 Capstone MicroTurbine power system had met its stringent
UL1741 utility interactive requirements.
§ -- Introduced the foil bearing rotary flow compressor, the first
lubricant-free compressor capable of boosting very low
pressure natural gas to a higher pressure required by the
microturbine.
§ -- Commissioned Capstone MicroTurbines in the first hybrid
electric bus in China, which was unveiled in June.
§ The Company shipped 421 units in the second quarter of 2001,
compared with 211 in the second quarter of 2000 and 307 units in the
first quarter of 2001. Sixty-five of the units in the second quarter
of 2001 were 60-kilowatt models and the remaining 356 were 30-kilowatt
models.
§ "As we expected, the greater availability of the 60-kilowatt
models is helping drive our increased sales," said Dr. Ake Almgren,
President and CEO of Capstone Turbine Corporation. "In early June, we
completed our first stand-alone 60-kilowatt microturbine power system,
which provides true blackout protection.
§ "We have consistently seen that this mode is the most popular
configuration for our 30-kilowatt models, and we expect that sales of
the 60-kilowatt model will significantly increase now that it is also
available in this mode. We anticipate that multi-pack capability for
60-kilowatt units will be available in the third quarter, which will
allow customers with larger loads to combine 60-kilowatt units."
§ Increasing Market Penetration
§ The Company continues to see growth in all of its key markets,
which include resource recovery, micro-cogeneration, hybrid electric
vehicles (HEVs), and the power reliability market, which is primarily
its focus in the California market right now. Following are notable
developments in the area of sales:
§ Capstone California
§ Capstone California, the Company's wholly-owned sales and
marketing subsidiary, is making continued progress in the California
marketplace. After being established during the first quarter of 2001,
the subsidiary accounted for almost 30% of sales in the second
quarter, primarily for power reliability and micro-cogeneration
applications.
§ "Capstone California currently has about 100 proposals in the
hands of our potential customers, leading us to believe this growth
will continue in the third quarter," said Dr. Almgren. "Customer
demand in the California market is now predominantly driven by pure
economics -- customers reducing their own cost of electricity. In
particular, micro-cogeneration solutions have become very attractive."
§ Resource Recovery
§ In the resource recovery market, Capstone has begun shipping an
offshore version of the microturbine to be used on production
platforms.
§ "Biogas, another category of resource recovery, has also developed
very positively and several significant installations have been or are
about to be commissioned at landfills and water treatment plants,"
said Dr. Almgren.
§ Hybrid Electric Vehicles
§ During the quarter, the first hybrid electric bus in China was
unveiled in the city of Beijing, which is energized by two Capstone
30-kilowatt microturbines. In Italy, Ecopower Technology (EPT)
recently presented to the market their first HEV bus using Capstone
microturbine technology. In the United Kingdom, the Wrightbus(TM)
company, a leading supplier in the public transport vehicle market, is
developing a Capstone MicroTurbine-powered HEV bus, initially
targeting the British market, which the company expects to begin
shipping later this year.
§ Advanced Vehicle Systems (AVS), one of Capstone's first HEV
partners which currently produces a 20-foot HEV bus, has successfully
demonstrated its follow-on HEV vehicle. This vehicle, a 30-foot bus,
is expected to begin shipping in commercial quantities this year. AVS
has also reached an agreement to license their HEV bus to a company
located in Taiwan, where shipments are expected to begin next year.
§ "The HEV market holds great growth potential for Capstone and we
continue to make excellent strategic progress," said Dr. Almgren. "We
are particularly excited about providing Capstone MicroTurbines for
the first HEV bus in China. It goes without saying that China is a
potentially huge market for HEVs, and we are working diligently with
our partners there to ensure that we capitalize on all of our
long-term opportunities."
§ Distribution Agreements
§ "We also continue to enhance our channels to market in each of our
core markets," said Dr. Almgren. "Having MGE, one of the leading
suppliers of power reliability products, validate our microturbine
technology in this market is a significant step in our efforts to
further penetrate emerging markets.
§ "Our agreement with Cummins is also extremely important, as they
are not only a leading supplier of power generation equipment for the
North American market, but also the leading supplier in the Chinese,
Indian and Brazilian markets. We will look to leverage our
relationship with them to increase our presence in these key markets
as quickly as possible. We have already shipped 30- and 60-kilowatt
units to Cummins for development purposes and we expect these
shipments to grow throughout the remainder of the year."
§ International Sales
§ During the second quarter, Capstone continued to expand its
international presence with approximately 40% of sales being made to
customers outside of North America. In particular, Capstone is
beginning to ship a significant number of units into the oilfields of
Nigeria, which represents a large opportunity for the Company.
Capstone is now making material shipments to Japan, Western Europe,
South America and Africa. Two European distribution partners were
added during the quarter: Soffimat in France and General Systems
Design in Turkey.
§ "I am also pleased to announce that we have further strengthened
our international sales efforts with the addition of Hans Gners as
head of business development and sales in Europe and the Middle East,"
said Dr. Almgren. "Hans joins us after a 25-year career at ASEA Brown
Boveri (ABB) Limited where he held various senior management positions
in business development of advanced electrical transmission and
distribution systems with worldwide responsibility."
§ Product Development
§ The Company achieved two significant product development
milestones in the second quarter: shipping the first 60-kilowatt model
in stand-alone mode, which includes dual mode capability, and
introducing the world's first foil bearing rotary flow compressor
(RFC).
§ "The foil bearing RFC enables Capstone to offer a unique solution
that eliminates all oil-based lubrication from our 30-kilowatt
microturbines," said Dr. Almgren. "Incorporating Capstone's
lubricant-free bearing technology into this fuel gas compression
solution results in enhanced life and reduced need for maintenance,
and provides a significant advantage over competing alternatives."
§ Capstone's current product development focus is on bringing out
additional fuel capabilities for the 60-kilowatt model and cost
reducing both the 30- and 60-kilowatt products, which would have a
positive impact on the Company's gross margin.
§ The Company was also recently awarded $3 million by the Department
of Energy for research, development and testing of
microturbine-powered cooling, heating and power systems for buildings,
also referred to as BCHP. These systems will use the waste heat from
Capstone's 30- and 60-kilowatt microturbines coupled with absorption
chillers for air-conditioning and a desiccant for humidity control.
§ "This award confirms the expanded opportunities for cogeneration
using microturbines, as well as the increased interest in clean,
energy-efficient solutions for the United States," said Dr. Almgren.
§ Production Capabilities
§ During the second quarter, Capstone substantially enhanced its
production capabilities as it began producing commercial quantities of
recuperator cores, a key component of microturbines. The first
recuperator cores were produced in June, ahead of the Company's
initial September timeframe. With the world's first automated
recuperator core production process, the Company hopes to achieve a
goal of cutting labor time in half and realizing other cost savings
that will positively impact its gross margin.
§ "We are pleased with the performance of the initial recuperator
cores that we have produced and we believe that we will continue to
have an excellent record with this key component," said Dr. Almgren.
"With more than 1,000 Capstone MicroTurbines having been shipped, we
have never had a field failure with the recuperator cores."
§ Governmental Affairs
§ During the second quarter, Capstone continued its efforts to
generate better visibility and support for microturbine technology on
the state and federal government levels. Dr. Almgren personally met
with President George Bush twice, as well as Energy Secretary Spencer
Abraham and California Governor Gray Davis. In addition, U.S.
Representative Brad Sherman recently toured the Capstone facility.
§ "We consider these opportunities invaluable for educating public
officials about microturbine technology and its ability to be part of
the solution to current and future energy needs in California and the
rest of the country," said Dr. Almgren.
§ Financial Highlights
§ In the second quarter of 2001, gross margin improved to 4%,
compared with a negative 36% gross margin in the same period of 2000.
The improvement in gross margin is primarily attributable to factory
overhead costs being allocated over larger volumes of production and
initial shipments of higher margin 60-kilowatt units. The Company
expects the gross margin on the 60-kilowatt units to improve in the
third and fourth quarters of 2001 as it begins to use less expensive
parts from inventory following the utilization of pre-production parts
purchased in low quantities at higher costs.
§ Research and development expenses decreased to $2.9 million,
compared with $3.0 million in the second quarter of 2000. R&D expenses
in the second quarter of 2001 were primarily attributable to the
development of additional product releases for the Company's
60-kilowatt line of microturbines.
§ Selling, general and administrative (SG&A) expenses increased to
$10.9 million, compared with $5.7 million in the second quarter of
2000. This increase is primarily attributable to the continued
expansion of the Company's sales and marketing organization, including
the Capstone California subsidiary. SG&A was also impacted by $1.6
million in non-cash expenses associated with stock-based compensation
and marketing rights amortization.
§ During the quarter the Company incurred $800,000 of pre-production
costs associated with its recuperator core manufacturing facility
which began production in June. Capstone has now begun building
recuperator cores for production inventory.
§ The Company also invested nearly $1.0 million in legal expenses
during the quarter related in part to expanding its portfolio of
intellectual property. Capstone has increased the number of domestic
and international patents it holds to 53, with many more currently
being pursued.
§ The Company continues to be in an exceptionally strong financial
position. As of June 30, 2001, Capstone had approximately $200.4
million in cash and cash equivalents, and no long-term debt. The
Company used approximately $17 million in cash during the second
quarter of 2001, compared with approximately $19 million in the first
quarter of 2001. Included in these amounts are capital expenditures
totaling $6.5 million in the second quarter and $5.4 million in the
first. Capital expenditures included investments in the recuperator
core manufacturing facility and equipment totaling approximately $4.4
million in the second quarter and $4.0 million in the first.
§ Accounts receivable increased to $14.8 million at the end of the
second quarter of 2001, reflecting a high level of shipments with
30-day terms in the last month of the quarter. This continues a trend
that was also seen in the first quarter of 2001. The Company had no
bad debt write-offs during the second quarter and does not anticipate
any meaningful write-offs in the third quarter of 2001.
§ Outlook
§ Capstone announced that its sales target for the third quarter of
2001 is 600 units. Management believes it currently has visibility on
400 of those units, but cautions that the exact timing of receipt of
orders is always uncertain. Additionally, the Company's objective is
to exceed 2000 shipments for the full calendar year 2001, of which 500
units are targeted to be 60-kilowatt systems. For 2002, Capstone has
set a target of 4,000 units shipped including an increasing percentage
of 60-kilowatt systems.
§ "We believe that there is a lot of business available in our
target markets around the world," said Jeff Watts, Chief Financial
Officer. "In addition to further developing our existing customer
relationships, we are currently focusing on developing very large new
customers in our existing sales territories, which typically take a
longer time to develop than small customers. However, when they do
develop, they potentially represent very large business opportunities
for Capstone.
§ "Inherent in dealing with these large prospects is difficulty in
predicting the exact timing for closure of contracts and release of
orders. There is no anticipated constraint on our ability to supply
this demand given our past investment in assembly and test facilities.
§ "We also anticipate expanding our sales territories around the
world. We will begin to add sales channels in new territories in
Europe, Russia and the Middle East with the help of newly hired Hans
Gners. We will also begin to expand our presence throughout Asia and
South America while working with our partners like Cummins.
§ "Demand for our 60-kilowatt models appears to be strong and our
goal is for these models to comprise 50% of our shipments in 2002. We
also continue to focus on hitting our goal of having an increasing
percentage of our shipments be subassemblies and components, which
garner a higher gross margin. Subassemblies and components are
primarily shipped to our partners in the hybrid electric vehicle
market, our Japanese partners focusing on the micro-cogeneration
market, and other OEMs such as Cummins," said Watts.
§ Conference Call and Webcast
§ In conjunction with Capstone Turbine Corporation's second quarter
earnings announcement, members of the public are invited to listen to
the Company's live quarterly conference call on the Internet on
Thursday, July 19, 2001 at 5 p.m. Eastern/2 p.m. Pacific. To hear the
call, simply log on at the Company's Web site at www.microturbine.com
and go to the Investor Relations Web page.
§ About Capstone Turbine
§ Capstone Turbine Corporation (www.microturbine.com; Nasdaq: CPST)
-- winner of Financial Times Energy's (www.ftenergy.com) 2000 Global
Energy Award for Most Innovative Commercial Technology -- is a leading
producer of low-emission microturbine systems. In 1998, Capstone was
the first to offer commercial power products utilizing microturbine
technology, the result of more than ten years of focused research.
Worldwide, more than 1,000 commercial production Capstone MicroTurbine
systems serve, among others, the following applications:
§ -- Hybrid electric vehicles (HEVs): onboard generation
§ -- Resource recovery: converting oilfield, landfill and sewage
waste gases into electricity
§ -- Micro-cogeneration: combined heat/power/chilling solutions
§ -- The 9s market: power quality and reliability
§ Certain statements contained in this release may be deemed to be
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995, and Capstone Turbine Corporation
intends that such forward-looking statements be subject to the
safe-harbor created thereby. Such forward-looking statements relate
to: 1) Capstone's penetration of its target markets, including its
ability to be a part of the solution to California's power supply
issues; 2) the emergence of additional markets for microturbines; 3)
demand for microturbines and the ability of the Company to ship its
60-kilowatt systems; 4) the Company's development of additional
microturbine product releases; 5) the Company's development and
initiation of recuperator core manufacturing activities; 6) the impact
of production of recuperator cores and the amortization of factory
overhead on the Company's gross margin; and 7) component shortages
experienced by the Company and the Company's ability to overcome such
shortages. Capstone cautions that these statements are qualified by
important factors that could cause actual results to differ materially
from those reflected by the forward-looking statements herein. Such
factors include, but are not limited to: 1) market acceptance of
Capstone's technology and products; 2) the size, timing and shipment
of individual orders; 3) the ability of Capstone to successfully
execute its production and marketing plans; 4) the Company's ability
to develop additional microturbine product releases; 5) the Company's
ability to successfully develop its recuperator core manufacturing
processes and expand production capacity; 6) being able to secure
adequate supplies of acceptable quality components or experiencing
higher than anticipated costs; 7) exposure to product liability or
other tort claims; 8) the Company's ability to control its warranty
exposure; 9) the Company's ability to retain key management and
technical personnel; 10) barriers to entry in the marketplace or
regulations that may affect the Company's ability to sell its
products; 11) the Company's ability (2,170) 577 (3,548) 900
Operating Costs and Expenses:
Research and development 3,022 2,889 5,463 5,659
Selling, general and
administrative 5,677 10,893 10,061 20,805
Total operating
costs and expenses 8,699 13,782 15,524 26,464
Loss from Operations (10,869) (13,205) (19,072) (25,564)
Interest Income 1,899 3,082 2,622 6,126
Interest Expense (200) (153) (536) (320)
Other Income (Expense) (5) 13 1 27
Loss Before Income Taxes (9,175) (10,263) (16,985) (19,731)
Provision for Income Taxes 1 1
Net Loss (9,175) (10,263) (16,986) (19,732)
Preferred Stock Dividends,
Accretion, and Repurchase (419,930) (559,862)
Net Loss Attributable to
Common Shareholders $(429,105) $(10,263) $ (576,848) $(19,732)
Weighted Average Common
Shares Outstanding 29,973,195 76,654,902 17,011,083 76,351,836
Net Loss Per Share of
Common Stock --
Basic and Diluted $ (14.32) $ (0.13) $ (33.91) $ (0.26)
CONTACT: Capstone Turbine Corporation
Keith Field, 818/734-5465
or
Financial Relations Board/BSMG
Jill Fukuhara, 310/996-7464 (investors)
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shit wie kann ich meiner frau das wieder gut machen. ich glaub sie vertraut mir in zukunft micht mehr was aktien anbelangt. doch ich bleibe bei meiner meinung CPST ein wert auf long.
