Capstone Turbine Corp. (NASDAQ:CPST) Rides High on Significant Dip in 2Q14 Loss


Dallas, Texas 11/11/2013 (Financialstrend) – The $380.9 million market capped electric turbines and equipment manufacturer Capstone Turbine Corp. (NASDAQ:CPST) announced results for its 2Q14 operations after close of trading on November 7. When trading resumed on November 8, the stocks of this clean energy small cap jumped up 11.6% during the trading day to end at $1.25 per share. The rally has taken the stock closer to its prior 52 week high price valuation of $1.52 per share. The reason for the acute demand for the stock post the earnings call has been ascribed to a significant 17% jump in revenue to an impressive $35.3 million in comparison to 2Q13 and a super impressive 88% increase in its grass margin compared to same period in FY13. 2Q14 gross margin came in at $4.9 million.

The cash flow in the 2Q14 stood at $8 million and was called out by its CEO and President Darren Jamison as a highlight of 2Q. He is also quoted to have said that, “During the second quarter, we delivered a healthy gross margin increase year-over-year while successfully focusing on cash conversion. Our shipments and collections are back on track and we are expecting a return to sequential margin growth in the second half of Fiscal 2014 as revenue accelerate in our typically strongest quarters and traction for our C1000 series continues to build. After generating cash from operations of $8 million for the second quarter, we hope to achieve a targeted cash balance of $30 million by the end of the fiscal year.”

In what is being considered as a clear indication of the increasing profitability of the firm, its net losses for the quarter came in at $3.9 million which was almost ½ of the $6.8 million net loss it had accumulated in 1Q14. Over the past 12 months, the firm has totalled up net loss of $21.6 million.