Bigger Loss For Capstone Turbine (CPST)

Although its 2nd Quarter revenue rose 18%, Capstone Turbine Corporation (NASDAQ: CPST) announced bigger losses. An accounting of $19.6 million charge – that relates to a change in the fair value of Capstone’s warrant liability - is the culprit. Premarket, the stock fell 6.72% to $1.11 a share.

Capstone makes low emission micro turbine systems. These are used in power generation applications. For the 2nd quarter, Capstone’s net loss was $31.9 million. The year before, the net loss was $9.9 million. As Capstone started offering higher priced models, its revenue soared to $15.5 million. Capstone also announced achieving a 56% increase in the revenue per unit to $91,000. The order book position for Capstone rose 18% to $59.3 million.