Capstone Turbine Announces First Quarter Fiscal Year 2014 Operating Results

Capstone Turbine Announces First Quarter Fiscal Year 2014 Operating Results

                        Quarterly Gross Margin of 14%

              Record Backlog of $155.8 Million at June 30, 2013

CHATSWORTH, Calif., Aug. 8, 2013 (GLOBE NEWSWIRE) -- Capstone Turbine
Corporation  (Nasdaq:CPST), the world's leading clean technology manufacturer
of microturbine energy systems, today announced its financial results for the
first quarter of fiscal year 2014 ended June 30, 2013.

First Quarter 2014 Highlights

  *Revenue of $24.4 million, product revenue of $20.2 million
  *Gross margin of $3.3 million, or 14%, compared to $2.2 million, or 8%, in
    first quarter Fiscal 2013
  *Third consecutive quarter of double-digit gross margin
  *Record product backlog of $155.8 million at June 30, 2013
  *New product orders of $27.1 million

Management Commentary

"While the first quarter was disappointing from a revenue perspective, this
was not a result of systemic business issues, but rather a timing issue with
regard to collections and shipments," said Darren Jamison, Capstone's
President and Chief Executive Officer. "The fundamentals of the business
remain robust, driving gross margin of 14% and a new company record for
backlog, and reflecting the inherent strengths of our operations based on the
improvements we've made across the organization over the past several years.
The management team remains confident and looks forward to a strong rebound in
Q2 and reaching our total year goal of continued revenue growth and EBITDA
breakeven for the first time in company history."

First Quarter 2014 Financial Summary

Revenue for the first quarter of Fiscal 2014 was $24.4 million, compared to
$35.4 million for the fourth quarter of Fiscal 2013, and $28.8 million for the
first quarter of Fiscal 2013.

Capstone's backlog as of June 30, 2013 was $155.8 million, an increase of 5%
from $148.9 million at March 31, 2013, and an increase of 12% from $139.5
million at June 30, 2012.

Gross margin for the first quarter of Fiscal 2014 was $3.3 million, or 14% of
revenue, compared to $5.0 million, or 14% of revenue, for the fourth quarter
of Fiscal 2013, and $2.2 million, or 8% of revenue, for the first quarter of
Fiscal 2013.

Research and development expenses were $2.3 million for the first quarter of
Fiscal 2014, compared to $2.2 million for the fourth quarter of Fiscal 2013
and $2.2 million for the first quarter of Fiscal 2013.

Selling, general and administrative expenses were $7.6 million for the first
quarter of Fiscal 2014, compared to $6.7 million for the fourth quarter of
Fiscal 2013 and $7.4 million for the first quarter of Fiscal 2013.

Capstone's net loss was $6.8 million, or $0.02 loss per share, for the first
quarter of Fiscal 2014,compared to a net loss of $4.1 million, or $0.01 loss
per share, for the fourth quarter of Fiscal 2013, and a net loss of $7.8
million, or $0.03 per share, for the first quarter of Fiscal 2013. Capstone's
loss from operations for the first quarter of Fiscal 2014 was $6.6 million,
compared to $3.9 million for the fourth quarter of Fiscal 2013 and $7.5
million for the first quarter of Fiscal 2013.

Liquidity and Capital Resources

At June 30, 2013, cash and cash equivalents totaled $21.6 million, compared to
$38.8 million at March 31, 2013 and $45.1 million at June 30, 2012.

During the first quarter of Fiscal 2014, Capstone used $15.9 million of cash
in operating activities and spent $0.3 million in capital expenditures.This
compares to cash used in operating activities of $7.0 million and $0.3 million
in capital expenditures during the first quarter of Fiscal 2013.

Operating cash flow was negatively impacted by an increase in cash used for
working capital during the first quarter of Fiscal 2014. Accounts receivable
increased primarily because of the timing of collections and higher sales
occurring at the end of the period. Inventories increased as a result of an
increase in finished goods and raw materials, while accounts payable increased
as the result of inventory purchases and timing of payments.

Conference Call and Webcast

The Company will host a conference call today, August 8, 2013, at 1:45 p.m.
Pacific Time (4:45 p.m. Eastern).Access to the live broadcast and a replay of
the webcast will be available for 30 days through the Investor Relations page
on the Company's website: www.capstoneturbine.com.

About Capstone Turbine Corporation

Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST) is the
world's leading producer of low-emission microturbine systems, and was the
first to market commercially viable microturbine energy products. Capstone
Turbine has shipped approximately 7,000 Capstone MicroTurbine(R) systems to
customers worldwide. These award-winning systems have logged millions of
documented runtime operating hours. Capstone Turbine is a member of the U.S.
Environmental Protection Agency's Combined Heat and Power Partnership, which
is committed to improving the efficiency of the nation's energy infrastructure
and reducing emissions of pollutants and greenhouse gases. A UL-Certified ISO
9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in the New York Metro
Area, Mexico City, Nottingham, Shanghai and Singapore.

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

The Capstone Turbine Corporation logo is available here.

Forward-Looking Statements

This press release contains "forward-looking statements," as that term is used
in the federal securities laws, about revenue growth and EBITDA improvement.
Forward-looking statements may be identified by words such as "expects,"
"objective," "intend," "targeted," "plan" and similar phrases. These
forward-looking statements are subject to numerous assumptions, risks and
uncertainties described in Capstone's Form 10-K, Form 10-Q and other recent
filings with the Securities and Exchange Commission that may cause Capstone's
actual results to be materially different from any future results expressed or
implied in such statements. Capstone cautions investors not to place undue
reliance on these forward-looking statements, which speak only as of the date
of this press 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 press
release or to reflect the occurrence of unanticipated events.

                         – Financial Tables Follow –

CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)

                                                          June30,  March31,
                                                          2013      2013
ASSETS                                                              
Current Assets:                                                     
Cash and cash equivalents                                  $21,598   $38,817
Accounts receivable, net of allowance for doubtful
accounts of $2,159 at June30, 2013 and $2,142 at          23,677    17,941
March31, 2013
Inventories                                                25,922    18,513
Prepaid expenses and other current assets                  2,152     2,588
Total current assets                                       73,349    77,859
Property, plant and equipment, net                         3,401     3,543
Non-current portion of inventories                         3,076     3,252
Intangible assets, net                                     2,191     2,313
Other assets                                               337       371
Total                                                      $82,354   $87,338
                                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY                                
                                                                   
Current Liabilities:                                                
Accounts payable and accrued expenses                      $25,802   $24,121
Accrued salaries and wages                                 2,176     1,721
Accrued warranty reserve                                   2,717     2,299
Deferred revenue                                           2,572     3,089
Revolving credit facility                                  12,755    13,476
Current portion of notes payable and capital lease         221       361
obligations
Warrant liability                                          10        10
Total current liabilities                                  46,253    45,077
Long-term portion of notespayable and capital lease       210       233
obligations
Other long-term liabilities                                131       142
Commitments and contingencies                                       
Stockholders' Equity:                                               
Preferred stock, $.001par value; 10,000,000shares                 
authorized; none issued
Common stock, $.001par value; 515,000,000shares
authorized; 305,982,536 shares issued
and304,883,615shares outstanding at June30, 2013;       306       306
305,661,276 shares issued and 304,622,573 shares
outstanding at March31, 2013
Additional paid-in capital                                 797,507   796,767
Accumulated deficit                                        (760,773) (753,975)
Treasury stock, at cost; 1,098,921 shares at June30, 2013 (1,280)   (1,212)
and 1,038,703 shares at March31, 2013
Total stockholders' equity                                 35,760    41,886
Total                                                      $82,354   $87,338

CAPSTONE TURBINE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

                                                           ThreeMonthsEnded
                                                           June30,
                                                           2013      2012
Revenue                                                     $24,373   $28,812
Cost of goods sold                                          21,050    26,643
Gross margin                                                3,323     2,169
Operating expenses:                                                  
Research and development                                    2,335     2,204
Selling, general and administrative                         7,568     7,448
Total operating expenses                                    9,903     9,652
Loss from operations                                        (6,580)   (7,483)
Other (expense) income                                      (14)      22
Interest expense                                            (186)     (191)
Change in fair value of warrant liability                   —         149
Loss before income taxes                                    (6,780)   (7,503)
Provision for income taxes                                  18        272
Net loss                                                    $(6,798)  $(7,775)
                                                                    
                                                                    
Net loss per common share—basic and diluted                 $(0.02)   $(0.03)
                                                                    
Weighted average sharesused to calculate net loss per      304,720   299,434
common share

CONTACT: Investor and Investment Media Inquiries:
         818-407-3628
         ir@capstoneturbine.com

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