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Capstone Turbine Corp. Message Board

  • lsqd1cav lsqd1cav Jun 5, 2013 9:24 AM Flag

    ramp up the 2nd shift

    cpst is in high gear and the world wants microturbines.

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    • Cpst wants more turbines to be wanted. Current target is 4,000 a year to make cpst convert to mass production and become a money maker.

    • You write, ......"cpst is in high gear....

      Using only 30% of production capacity while continuing to loss money each and every quarter begs to differ with that statement. However the recent barrage of PR's seem to indicate that production may be close to reaching a higher gear.

      That is a "good news, bad news" condition. Good news would be higher production generally can get cost of goods down. A problem they haven't been able to achieve yet. Revenues ramp every quarter but losses continue. I would think lower cost of goods with modest price increases added to higher production should = PROFIT. Then we are in HIGH GEAR!

      Bad news. 2nd shift will be initially very costly. Hires, additional material ups accounts payable, receivables jump = ????DSO sometimes that has not been so pretty good, increased shipping etc. Do they have deep enough pockets. If not where do they get the money. Dilution doesn't seem too desirable. A partner? Angel investor? Buy-out? A few years ago I think DJ said they really don't become a buy-out candidate until they get to about $300,000,000.00 in annual revenues. Apparently that's a few years off. So stair stepping their way through 1 shift and pushing that to its limits while building the necessary cash to add a second shift, seems most likely to me. So IMO a good question at the CC would be, "In terms the average investor can understand, at what annual $ run-rate would you be forced to add a second shift?" Of course in all likelihood DJ would not answer that question with sincerity.

      • 2 Replies to nvphyl37
      • Cpst in the meanwhile keeps hiring new talent to replace those who are not capable and give up. With 215 employees to do the fine job they do, why would anybody want to give up on working for cpst?

      • You're correct about costs involved with starting a second shift but there is cash on hand, as of last earnings, $45 mil
        As for staffing the line they would split the current crew, not put all virgins on one shift, and train unqualified with qualified overseers
        Not every order is due out the next day or even month. All orders have a projection date and even with the large backlog orders keep rolling in

        Sentiment: Buy

    • expect another HUGE POP when mgt announces a 2nd shift required to meet demandddddddddddddd

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