Capstone Turbine Corporation (NASDAQ:CPST) saw a revenue boost from a healthy increase in its accessories, parts and service division, beating analyst expectations for the energy systems manufacturer’s fiscal fourth quarter results.
The multi-faceted energy company builds low-emission, clean-energy microturbine technology for consumer and commercial use globally, offering a product lineup that can produce anywhere from 30 kilowatts to 10 megawatts of power.
Total revenue for the quarter ended March 31, 2019 was $22 million, fueled by a 16% increase from 3Q thanks to its service and accessories sales, which added $9.2 million. Analysts had estimated an average of $21 million in revenue for 4Q.
Highlights from the quarter included new gross product orders of $18 million, a 17% year-over-year increase, and a healthy book-to-bill ratio of 1:4:1 after it shipped 11.8 megawatts of power across a diverse set of global distributors.
The increase in product revenue was primarily due to the fact that Capstone did not deploy any new units into the expanded long-term rental program. Accessories, parts and service revenue was driven by the successful completion of multiple distributor replacements and an increase in C200 parts sales.
Aftermarket revenue was the second largest in Capstone’s history and represents a key driver in the company’s strategy to obtain profitability. During 4Q, the turbine manufacturer signed multiple service contracts covering a total of nearly 31 MW, a company record.
Diverse revenue streams
The California-based company also released its annual financials that showed an increase in revenue to $83.4 million compared to $82.8 million in fiscal 2018, thanks to new revenue streams from its global operations.
The company credited its diversification into new market verticals and geographies as a main contributor to the year-over-year growth. Capstone secured new business from 63 distributors in 41 countries, with an 11% increase in its Russian operations despite ongoing geopolitical tensions. Two of its top-five performing distributors were international partners, it said in a statement.
Net loss for the period was $3.9 million compared to $1.9 million in the year-ago fourth quarter.
Shares of Capstone slipped 1.7% in aftermarket trading to sit at $0.83.
On Monday, research firm Maxim Group said it maintains a Buy rating on Capstone’s stock and a price target of $2.
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