3SOF

Press Release Source: Capstone Turbine Corporation


Federal Energy Bill Provides Significant Economic Benefits to Users of Microturbines
Monday August 8, 9:03 am ET 
Is Expected to Boost Capstone Microturbine Sales, CEO Says


CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 8, 2005--The national energy bill passed by the U.S. Congress July 29 provides significant economic benefits for businesses that invest in clean distributed generation technologies -- including microturbines -- according to John R. Tucker, Chief Executive Officer of Capstone Turbine Corporation® (www.microturbine.com; Nasdaq:CPST - News), the world's leading manufacturer of microturbine energy systems.


"The bill contains a 10% tax incentive for businesses to buy and conserve energy with microturbine generators," Tucker said. "It also offers users of advanced microturbine energy systems direct payments from the U.S. Department of Energy for every kilowatt-hour they generate. This policy, and others in the energy bill, will create significant additional economic advantages for customers who invest in microturbines, beyond the every day savings and energy reliability inherent in microturbine technology."

Today at Sandia Laboratories in New Mexico, President Bush is expected to sign the bill into law in a room near the offices of the research center's Distributed Energy Technology Laboratory (DETL) where a Capstone C30 microturbine has been operating since 2002.

The company estimates that the return on investment of a typical Southern California installation of its microturbines would be as little as two years, net of applicable state and the new federal incentives. Payback would be about three years without the federal incentives. For microturbine installations in New York, the company estimates that the return on investment of a typical installation would be reduced from 3 years to 28 months, an improvement of 8 months.

"We are very pleased that the federal energy bill specifically recognizes microturbines as an important part of the nation's proposed policy to create cleaner, more fuel efficient energy," Tucker said. "Of all the alternate energy systems addressed by this bill, Capstone MicroTurbines, with nearly 10,000,000 total fleet runtime operating hours, are the lowest cost, most commercially viable technology available to the growing DG market. We expect the many provisions of the new energy policy to have a very positive impact on Capstone MicroTurbine® sales."

"The new energy bill also recognizes that on-site generation with microturbines is highly energy efficient, utilizing up to 80% of the total energy in natural gas, propane, and other fuels, with the added benefit of being able to utilize fuels that otherwise would simply go to waste and increase air pollution, such as landfill biogas and oilfield flare gases," Tucker said. "The environmental advantage is important because our C60 microturbines produce each kilowatt of energy with far fewer pollutants than competing technologies, including utility power plants, when comparing US EPA test reports."

Other aspects of the bill deemed favorable to the sale of microturbines include a 1.5 cent per kilowatt-hour renewable energy production credit for biogas fueled installations, a requirement that electric utilities offer grid interconnection based on a nationwide standard, as well as other incentive programs to accelerate distributed generation and combined heat and power (CHP).

all I can say is WOW  and applaud

10Q is out - looks horrendous

CHATSWORTH, Calif., Aug 10, 2005 (BUSINESS WIRE) -- Capstone Turbine Corporation(R) (CPST, Trade) (www.microturbine.com) reported results for the first quarter of fiscal year 2006 on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2005.

Backlog increased to 15.5 megawatts at quarter-end, up 94% from the prior year comparable quarter, and sequentially up 44% from the fourth quarter.

Financial Summary

Capstone's financial results for the first quarter of fiscal 2006 included revenue of $3.8 million, down $1.6 million from $5.4 million reported for the fourth quarter of fiscal 2005. The majority of the decrease was due to staging of approximately $1.5 million of finished product for rapid response to the New York market. Additionally, approximately $0.6 million in revenue was delayed pending payments from certain international customers.

Backlog at the end of the first quarter of fiscal 2006 was 15.5 megawatts, consisting of backlog at the beginning of the quarter of 10.8 megawatts, orders during the quarter of 8.1 megawatts and shipments of 3.4 megawatts.

The reported gross loss was $3.4 million for the first quarter of fiscal 2006, an increase of $1.6 million from the $1.8 million loss reported in the fourth quarter of fiscal 2005. The primary reason for the change between periods resulted from a benefit of $1.6 million recorded in the prior quarter, and $0.6 million expense in the current quarter, or a net $2.2 million change in gross profit.

Operating Costs and Expenses were $7.9 million for the quarter, down $0.7 million from the prior quarter, primarily due to $0.9 million of benefits reported from the Department of Energy (DOE) cost sharing programs in the current quarter.

Capstone's net loss was $10.9 million, an increase of $0.9 million from the $10 million loss reported in the fourth quarter of fiscal 2005. The first quarter of fiscal 2006 reported net loss was $0.13 per share as compared with $0.12 the previous quarter.

Cash usage in the first quarter was $11.6 million, a decrease of $0.6 million from the prior quarter's cash usage of $12.1 million. The lower cash usage was attributable to less cash used in investing activities and lower operating cash usage.

Cash and cash equivalents at the end of the quarter were $52 million.

Business Summary

John Tucker, Capstone's President and CEO said, "Over the past two months we have continued to demonstrate tangible progress towards our mission of becoming the world leader in distributed power generation." Listed below is a brief summary of our recent operating accomplishments:

Filed Materials Equipment Acceptance (MEA) application with the New York City Department of Buildings MEA Division which will significantly simplify the permitting and installation approval of Capstone-branded microturbines in the five boroughs of New York City. (Aug. 2, 2005)

KeySpan Energy Delivery developed with Capstone a marketing promotional mailer for the sale, installation and factory direct service of Capstone MicroTurbine(R) on-site power generation products. KeySpan Energy Delivery is a subsidiary of KeySpan Corporation (KSE, Trade), which is the fifth largest distributor of natural gas in the United States and the largest in the Northeast, operating regulated gas utilities in New York, Massachusetts and New Hampshire that serve 2.6 million customers. (July 25, 2005)

Successfully completed certification testing on a new 30-kilowatt product specifically designed for hazardous oil and gas applications with Underwriters Laboratories, Inc. (UL). This certification states that the 30-kilowatt product meets the stringent NEC Class I, Division 2, Groups C and D classification where explosive gases may be present under abnormal conditions. (July 14, 2005)

Received large follow-up Russian order amounting to a total of 1.7 megawatts for both C30 and C60 kilowatt microturbine products. (July 6, 2005)

Signed National Sales representative Agreement with WESCO Distribution, Inc., the primary operating entity for Pittsburg-based WESCO International, Inc. (WCC, Trade). WESCO Distribution, Inc. a leading distributor of electrical construction products and electrical and industrial maintenance, repair and operating supplies and is the nation's largest provider of integrated supply services. (July 6, 2005)

In addition to these accomplishments, we were pleased to see the National Energy Bill signed by President Bush. This Bill provides incentives for companies to utilize microturbines for their power generation requirements including a 10% credit for the purchase of stationary microturbine power plants. Additionally, the Energy Tax Incentives Act of 2005 provides $2.7 billion of incentives for energy efficiency and conservation, both features of our microturbines.

Conference Call

The Company will host a conference call today, Wednesday, August 10, at 1:45 p.m. Pacific Standard Time. Access to the live broadcast and a replay of the webcast will be available for 90-days through the Company's website: www.microturbine.com.

About Capstone Turbine

Capstone Turbine Corporation (www.microturbine.com) (CPST, Trade) is the world's leading producer of low-emission microturbine systems. In 1998, Capstone was the first to offer commercial energy products utilizing microturbine technology, the result of more than ten years of focused research. Capstone Turbine has shipped more than 3,000 Capstone MicroTurbine systems to customers worldwide. These award-winning systems have logged more than 9.4 million runtime hours of documented operation. An ISO 9001:2000 certified company, Capstone Turbine is headquartered in the Los Angeles area with sales and/or service centers in New York, Milan and Tokyo.

"Capstone Turbine Corporation" and "Capstone MicroTurbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

This press release contains "forward-looking statements," as that term is used in the federal securities laws, about Capstone's business, with regard to, among other items, expectations of reaching cash flow positive or positive gross margin, reducing cash usage, increasing sales, penetrating target markets, the success of customers' applications, and expected results from Capstone's sales offices. Forward-looking statements may be identified by words such as "believe," "expects," "objective," "intend," "targeted," "plan," "on track" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Many of these risks and uncertainties are described in our periodic filings with the Securities and Exchange Commission. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.


CAPSTONE TURBINE CORPORATION 
                      CONSOLIDATED BALANCE SHEETS 
                              (Unaudited) 
                                                June 30,     March 31, 
                                                  2005         2005 
Current Assets: 
Cash and cash equivalents                    $52,008,000  $63,593,000 
Accounts receivable, net of allowance for 
doubtful accounts and sales returns of 
$569,000 at  June 30, 2005 and $536,000 at 
March 31, 2005                                3,629,000    3,150,000 
Inventory                                     13,025,000   11,273,000 
Prepaid expenses and other current assets      1,305,000      912,000 
Assets held for sale                              80,000       80,000 
                                            ------------  ------------ 
    Total current assets                      70,047,000   79,008,000 
                                            ------------  ------------ 
Equipment and Leasehold Improvements: 
Machinery, equipment, and furniture           18,928,000   18,760,000 
Leasehold improvements                         8,583,000    8,563,000 
Molds and tooling                              3,123,000    3,096,000 
                                            ------------  ------------ 
                                              30,634,000   30,419,000 
Less accumulated depreciation and 
amortization                                 20,935,000   19,890,000 
                                            ------------  ------------ 
Total equipment and leasehold improvements, 
net                                           9,699,000   10,529,000 
Non-Current Portion of Inventory               3,337,000    3,990,000 
Intangible Asset, net                          1,360,000    1,427,000 
Other Assets                                     236,000      236,000 
                                            ------------  ------------ 
        Total                                $84,679,000  $95,190,000 
                                            ------------  ------------ 
Liabilities and Shareholders' Equity 
Current Liabilities: 
Accounts payable                              $2,908,000   $3,324,000 
Accrued salaries and wages                     1,642,000    1,442,000 
Other accrued liabilities                      2,656,000    2,472,000 
Accrued warranty reserve                       8,658,000    8,667,000 
Deferred revenue                               1,871,000    1,522,000 
Current portion of notes payable obligations      19,000       19,000 
                                            ------------  ------------ 
Total current liabilities                     17,754,000   17,446,000 
                                            ------------  ------------ 
Long-Term Portion of Notes Payable 
Obligations                                      60,000       64,000 
Other Long-Term Liabilities                      875,000    1,002,000 
Commitments and Contingencies 
Shareholders' Equity: 
Preferred stock, $.001 par value; 10,000,000 
shares authorized; none issued 
Common stock, $.001 par value; 415,000,000 
shares authorized; 85,462,741 shares issued 
and 84,911,533 shares outstanding at June 
30, 2005;  85,379,446 shares issued and 
84,828,238 shares outstanding at March 31, 
2005                                             85,000       85,000 
Additional paid-in capital                   531,071,000  530,931,000 
Accumulated deficit                         (464,334,000)(453,469,000) 
Less: Deferred stock compensation               (319,000)    (356,000) 
Less treasury stock, at cost; 551,208 shares    (513,000)    (513,000) 
                                            ------------  ------------ 
Total shareholders' equity                    65,990,000   76,678,000 
                                            ------------  ------------ 
                                Total        $84,679,000  $95,190,000 
                                            ------------  ------------ 
                     CAPSTONE TURBINE CORPORATION 
                 CONSOLIDATED STATEMENTS OF OPERATIONS 
                              (Unaudited) 
                                            Three Months Ended June 30 
                                           --------------------------- 
                                                 2005          2004 
                                           ------------   ------------ 
Revenues                                     $3,807,000    $2,955,000 
Cost of Goods Sold                            7,224,000     5,431,000 
                                           ------------   ------------ 
Gross Loss                                   (3,417,000)   (2,476,000) 
Operating Costs and Expenses: 
  Research and development                    2,105,000     3,414,000 
  Selling, general and administrative         5,737,000     4,867,000 
                                           ------------   ------------ 
          Total operating costs and 
           expenses                           7,842,000     8,281,000 
                                           ------------   ------------ 
Loss from Operations                        (11,259,000)  (10,757,000) 
Interest Income                                 396,000       244,000 
Interest Expense                                 (2,000)      (20,000) 
Other Income                                      2,000         1,000 
                                           ------------   ------------ 
Loss Before Income Taxes                    (10,863,000)  (10,532,000) 
Provision for Income Taxes                        2,000         2,000 
                                           ------------   ------------ 
Net Loss                                   $(10,865,000) $(10,534,000) 
                                           ============   ============ 
Weighted Average Common Shares Outstanding   84,575,256    84,239,797 
                                           ============   ============ 
Net Loss Per Share of Common Stock -- Basic 
and Diluted                                     $(0.13)       $(0.13) 
                                           ============   ============ 

SOURCE: Capstone Turbine Corporation


Capstone Turbine Corporation 
Keith Field (media), 818-734-5465 
or 
John Tucker / Chuck McBride (investor), 818-734-5300 

Copyright Business Wire 2005 ********************************************************************** As of Saturday, 08-06-2005 23:59, the latest Comtex SmarTrend(SM) Alert, an automated pattern recognition system, indicated an UPTREND on 06-15-2005 for CPST @ $1.11. (C) 2005 Comtex News Network, Inc. All rights reserved.

CHATSWORTH, Calif., Aug 10, 2005 (BUSINESS WIRE) -- Capstone Turbine Corporation(R) (www.microturbine.com) (CPST, Trade), the world's leading manufacturer of microturbine energy systems, confirmed today that it has received an order for more than 1.5 megawatts of propane-fueled Capstone MicroTurbine(R) energy systems from its distributor in Mexico.

According to the Mexico City newspaper Reforma, the government of Mexico issued a contract to install distributed generation systems at three government office buildings in Mexico City. Capstone distributor Areche Ingenieros, S.A. de C.V. has been awarded the contract.

"Mexico represents a tremendous opportunity for our products due to grid reliability issues and the high cost of electricity. Our C60's new fuel flexibility and 10-second fast transfer capability from utility grid to backup power make it a perfect product fit for the Mexican marketplace. This new order further supports our decision to open a Mexico City sales and service facility, which I recently mentioned in our fiscal year end conference call," said Capstone CEO John R. Tucker.

"We are very impressed with Capstone as an innovator and as a manufacturer of proven reliable equipment," said Carlos Arechederra, General Manager of Areche Ingenieros, one of Mexico's largest distributors of air handling systems for buildings. "We are proud to be able to make Capstone products available to our many business and government clients."

Capstone recently qualified its C60 microturbine product to run on propane. The systems can easily switch between propane and natural gas via a simple software setting, without requiring any injector or other internal fuel system changes. Two of the three buildings will be transitioned from propane to natural gas at a later date, pending infrastructure work by the gas utility. The third building, in a historic Mexico City square, will remain propane-fueled.

One of the smaller buildings will use an array of five dual-mode Capstone C60s to generate 300 kilowatts for daily baseload and backup power. The two other buildings will use a combined cooling, heating and power (CCHP) configuration in which exhaust from their arrays will transfer heat into absorption chillers that convert waste heat energy for air conditioning, further reducing electric demand.

"This is a great start for our colleagues at Areche Ingenieros, one of Mexico's leading companies in the field of heating, ventilation and air conditioning. They have a solid history of work with government and commercial buildings," said Tony Hynes, Capstone's Vice-President of Sales & Service. "We expect these new sites will serve as showcase facilities demonstrating how other sites in Mexico can cleanly and reliably conserve energy and energy costs utilizing Capstone products."

 
End of day chart.
Close a penny off the high of day

Press Release Source: Capstone Turbine Corporation


Capstone MicroTurbines at Military Facility Surpass Operating Milestone
Monday August 15, 9:01 am ET 
Capstone to Exhibit ICHP Model at Federal Energy Show Today


CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 15, 2005--Capstone Turbine Corporation® (www.microturbine.com; Nasdaq:CPST - News), the world's leading manufacturer of microturbine energy systems, announced that two of its 60-kilowatt microturbines currently operating at a military facility in California recently surpassed a milestone of 25,000 hours of near continuous operation.
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"We have a few dozen Capstone MicroTurbines® at military facilities in the U.S. and abroad, but this two-unit array, commissioned three years ago this month, was one of the first," said Capstone Chief Executive Officer John R. Tucker. "Although we don't have permission from the US Military to disclose the facility by name or location, what I can tell you is that the Department of Defense is at the forefront of a program for reliable, clean, efficient on-site energy production with reduced emissions. We're very proud at Capstone to have been selected for this project three years ago, and to be part of the Department of Defense's vision and leadership which is setting the example for other such military installations."

The two C60 Capstone MicroTurbines create up to 120 kilowatts (kW) of power 24/7, to reduce demand on the local utility grid. The Capstone system's near-zero-emission exhaust is ported to a custom, third-party heat exchanger to heat a water loop at the facility, offsetting boiler use.

"As good as that solution was at the time and still continues to be, our current C60-ICHP with an integrated heat exchanger, is an even better solution," said Allen McNair, Capstone's Vice-President of Sales for the Americas.

The company will be displaying its current C60-ICHP system at this week's Energy 2005, a federal and military energy efficiency trade show opening today in Long Beach, California.

"Our 80% efficient C60-ICHP model produces 60 kW of three-phase power and 120 kW of thermal energy," said McNair. "According to DOE statistics, conventional boilers and utility power generators burn approximately 50% more fuel to create those same energy outputs."

Move to the upside today,volume back up.
Support @ $3.00.......Resistance @ $3.39
Candlestick formation today = Bullish Engulfing, we will see if get conformation.
MACD is bullish...Stochastic pointing north coming out of oversold area.

This pup is looking good.
Broke through Resistance @ $3.39
+10.51%.......Last price quote $3.47

Good call setravis,

this just popped up on my radar - bought high at 3.55, but I don't think too high, I have a feeling this breakout could follow bcon, now there's one I wish I got in on last week.!!

What's your price target on CPST?

Keep up the good work

[Edit] just went back and read the rest of this thread - holy moly!!!  You done well with this un, me boy!!  Much respect to your spotting skills 

[applaud] Setravis

CPST flag breakout today. Bought some @ $3.64 and I wound up buying the rest at $3.81 after CNBC mentioned it. 

Quote from: ScottishTrader on August 24, 2005, 10:41:03 AM
Good call setravis,

this just popped up on my radar - bought high at 3.55, but I don't think too high, I have a feeling this breakout could follow bcon, now there's one I wish I got in on last week.!!

What's your price target on CPST?

Keep up the good work

[Edit] just went back and read the rest of this thread - holy moly!!!  You done well with this un, me boy!!  Much respect to your spotting skills

Some possible targets...$4......$5.....$6 You have to look back with a 4 year chart to see the last time that this stock was @ those price levels.
Analyst 1 year target...$5.00
I don't have a set target,I will continue to hold until the chart tells me to sell.

Thanks for the kind words and applaud,Scottish Trader and PerfectSage.

Awesome....

CPST P&F Pattern: Double Top Breakout on 24-Aug-2005

Bullish Price Obj: $8.75

Anyone have a price target ? 

Thanks !

Doess anyone think that yesterdays dump of BCON will have an effect on other energy stocks like CPST and MCEL??  The general pullback yesterday afternoon got me concerned...