Company profile

Ticker
CPST
Exchange
CEO
Darren R. Jamison
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
SEC CIK
IRS number
954180883

CPST stock data

(
)

Calendar

8 Aug 19
19 Aug 19
31 Mar 20

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 19.24M 22.02M 18.03M 22.17M
Net income -5.59M -3.96M -3.45M -4.36M
Diluted EPS -0.08 -0.06 -0.05 -0.07
Net profit margin -29.06% -17.96% -19.13% -19.65%
Operating income -4.31M -2.96M -3.23M -4.16M
Net change in cash -5.12M 19.05M -1.62M -1.27M
Cash on hand 24.61M 29.73M 10.68M 12.3M
Cost of revenue 16.38M 18.67M 15.79M 20.14M
Annual (USD) Mar 19 Mar 18 Mar 17 Mar 16
Revenue 83.41M 82.84M 77.17M 85.21M
Net income -16.66M -10.03M -25.24M -25.19M
Diluted EPS -0.25 -0.2 -0.79 -1.39
Net profit margin -19.97% -12.10% -32.71% -29.56%
Operating income -15.11M -8.67M -24.25M -24.49M
Net change in cash 15.32M 217K 2.49M -20.52M
Cash on hand 29.73M 14.41M 14.19M 11.7M
Cost of revenue 73.96M 67.86M 75.38M 72.44M

Financial data from company earnings reports

Financial report summary

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Risks
  • Our operating history is characterized by net losses. We anticipate further losses and we may never become profitable.
  • Future issuances or sales of our common stock or exercises by holders of our outstanding warrants could lower our stock price and dilute the interests of existing stockholders.
  • We may be unable to fund our future operating requirements, which could force us to curtail our operations.
  • If we are unable to either substantially improve our operating results or obtain additional financing, we may be unable to continue to operate at current levels.
  • Impairment charges on our long‑lived assets, including intangible assets with finite lives would adversely affect our financial position and results of operations.
  • A sustainable market for microturbines may never develop or may take longer to develop than we anticipate which would adversely affect our results of operations.
  • We depend upon the development of new products and enhancements of existing products.
  • Our operating results are dependent, in large part, upon the successful commercialization of our products. Failure to produce our products as scheduled and budgeted would materially and adversely affect our business and financial condition.
  • Commodity market factors impact our costs and availability of materials.
  • Adverse economic conditions may have an impact on our business and financial condition, including some effects we may not be able to predict.
  • Product quality expectations may not be met, causing slower market acceptance or warranty cost exposure.
  • We operate in a highly competitive market among competitors who have significantly greater resources than we have and we may not be able to compete effectively.
  • Our products involve a lengthy sales cycle, and we may not anticipate sales levels appropriately, which could impair our results of operations.
  • If we do not effectively implement our sales, marketing and service plans, our sales will not grow and our results of operations will suffer.
  • Our business and financial performance depends in part on the oil and natural gas industry, and a decline in prices for oil and natural gas may have an adverse effect on our revenue, cash flows, profitability and growth.
  • Our sales and results of operations could be materially and adversely impacted by risks inherent in international markets.
  • Changes to trade regulation, quotas, duties or tariffs, and sanctions caused by the changing U.S. and geopolitical environments or otherwise, may increase our costs or limit the amount of raw materials and products that we can import, or may otherwise adversely impact our business.
  • Our business may be impacted by international instability, war, terrorism, and geopolitical events.
  • We may not be able to retain or develop relationships with OEMs or distributors in our targeted markets, in which case our sales would not increase as expected.
  • If any of our distributor relationships is not successful, we may terminate or choose not to renew the related distributor agreement, which may result in interference with the wind down of the relationship or the transition of end-user service agreements, and could potentially negatively impact our distribution channel or result in litigation costs or other expenses.
  • We have substantial accounts receivable, and increased bad debt expense or delays in collecting accounts receivable could have a material adverse effect on our cash flows and results of operations.
  • We may experience a delay in payment or may not collect on the Accounts Receivable Assignment Agreement or Promissory Note with Turbine International, LLC.
  • Loss of a significant customer could have a material adverse effect on our results of operations.
  • We may not be able to develop sufficiently trained applications engineering, installation and service support to serve our targeted markets.
  • Changes in our product components may require us to replace parts held at distributors.
  • We operate in a highly regulated business environment, and changes in regulation could impose significant costs on us or make our products less economical, thereby affecting demand for our microturbines.
  • Utility companies or governmental entities could place barriers to our entry into the marketplace, and we may not be able to effectively sell our products.
  • We may not achieve production cost reductions necessary to competitively price our products, which would adversely affect our sales.
  • Potential intellectual property, labor, product liability, stockholder or other litigation may adversely impact our business.
  • Our business could be negatively impacted if we fail to adequately protect our intellectual property rights or if third parties claim that we are in violation of their intellectual property rights.
  • We may incur costs and liabilities as a result of product liability claims.
  • We have significant tax assets, usage of which may be subject to limitations in the future.
  • Activities necessary to integrate any future acquisitions may result in costs in excess of current expectations or be less successful than anticipated.
  • Operational restructuring may result in asset impairment or other unanticipated charges.
  • We may not be able to manage our growth effectively, expand our production capabilities or improve our operational, financial and management information systems, which would impair our results of operations.
  • Our success depends in significant part upon the continuing service of management and key employees.
  • Our operations are vulnerable to interruption by fire, earthquake and other events beyond our control.
  • We cannot be certain of the future effectiveness of our internal controls over financial reporting. If we are unable to maintain effective internal controls over our financial reporting, investors may lose confidence in our ability to provide reliable and timely financial reports and the value of our common stock may decline.
  • We are subject to a number of pending lawsuits.
  • If we fail to meet all applicable Nasdaq Capital Market requirements and Nasdaq determines to delist our common stock, the delisting could adversely affect the market liquidity of our common stock, impair the value of your investment and adversely affect our ability to raise needed funds.
  • The market price of our common stock has been, and may continue to be, highly volatile and you could lose all or part of your investment in our securities.
  • Our business could be negatively affected as a result of a proxy contest.
  • Provisions in our certificate of incorporation, bylaws and our NOL rights plan, as well as Delaware law, may discourage, delay or prevent a merger or acquisition at a premium price.
  • If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.
  • We do not intend to pay cash dividends. We have never paid dividends on our capital stock and we do not anticipate paying any dividends in the foreseeable future. Consequently, any gains from an investment in our securities will likely depend on whether the price of our common stock increases.
Management Discussion
  • Revenue  Revenue for the first quarter of Fiscal 2020 decreased $2.0 million, or 9%, to $19.2 million from $21.2 million for the first quarter of Fiscal 2019. The change in revenue for the first quarter of Fiscal 2020 compared to the first quarter of Fiscal 2019 included decreases in revenue of $2.7 million from the United States and Canadian markets and $0.9 million from the Europe and Russian markets. These overall decreases in revenue were offset by increases in revenue of $1.5 million from the Asia and Australian markets and $0.1 million from the Middle East and African markets. The decrease in revenue in the United States and Canadian markets during the first quarter of Fiscal 2020 compared to the same period last year was primarily because we deployed a 1.0 megawatt C1000 Signature Series system under our factory rental program and a 0.6 megawatt system as a customer demo unit. The decrease in revenue in the European and Russian markets was primarily because of a decrease in product shipments into the microgrid market vertical. Our revenue in the European and Russian markets continues to be negatively impacted by the ongoing geopolitical tensions in these regions and a strong U.S. dollar in certain markets making our products more expensive in such markets. The increase in revenue in the Asian and Australian markets was primarily because of an increase in system shipments into the natural resources market vertical during the first quarter of Fiscal 2020 compared to the same
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