Capstone Green Energy Corporation - CGRN STOCK NEWS

Capstone Green Energy Corporation (NASDAQ: CGRN) has initiated a plan to reduce operating costs and adjust its business model to align with its growing Energy-as-a-Service (EaaS) sector. This includes temporary salary reductions for leadership, employee furloughs, and a shift to part-time for some staff. The goal is to achieve consistent positive adjusted EBITDA, fueled by higher-margin EaaS revenues. Capstone anticipates increased revenue from upcoming rental unit deployments, although there is a delay in revenue realization from these units.

Capstone Green Energy Corporation (NASDAQ: CGRN) has contracted to provide a 5-year rental of its C1000S microturbine system to a remote data center in Louisiana. This addition brings Capstone’s contracted rental fleet to 21.1 MW. The microturbine will utilize waste gas, offering operational savings and reduced emissions. This contract underscores Capstone's commitment to Energy as a Service (EaaS), which is crucial for profitability. The rental program generates higher margins compared to traditional sales, enhancing Capstone’s growth in the green energy sector.

Capstone Green Energy Corporation (NASDAQ: CGRN) has secured a contract through its Japanese distributor, Kanamoto, to provide seven C65 microturbine systems for a chemical company in Japan. These systems will replace units that have operated for 80,000 hours and will enhance energy efficiency by utilizing Combined Heat and Power (CHP) technology. The new systems are expected to be commissioned in July 2022. The company emphasizes the financial benefits and environmental advantages of these microturbines in optimizing operational costs.

Capstone Green Energy reported total revenue of $20.6 million for Q3 FY2022, a 20% sequential increase. Despite a revenue drop from the previous year, the company’s long-term microturbine rental fleet grew to 17.7 MW, up from 13.1 MW. However, gross margin fell to 11%, down 600 basis points compared to last year, primarily due to lower overhead expenses previously impacted by COVID-19 measures. The net loss was $5.1 million, improving from $7.6 million in Q3 FY2021, while total cash decreased to $31.3 million.

Capstone Green Energy Corporation (NASDAQ: CGRN) will release its third quarter fiscal 2022 financial results on February 10, 2022, after market close. The results will cover the period ending December 31, 2021. A live webcast to discuss these results will be held at 1:45 p.m. PT that day, featuring a Q&A session for analysts. Interested parties can join via the company's investor relations webpage. The company has shipped over 10,000 units globally and estimates substantial energy cost savings for its customers.

Capstone Green Energy Corporation (NASDAQ: CGRN) announced a 10-year Parts and Labor Factory Protection Plan (FPP) service contract via its exclusive Romanian distributor, Servelect. This contract covers two Signature Series C600S natural gas systems, generating 1.2 MW of power for Cemacon, Romania’s largest ceramic block producer. The installation promotes reduced emissions and operational efficiency, supporting Cemacon's eco-friendly production. Capstone's FPP service aims to enhance profitability through higher margins from service agreements compared to product sales.

Capstone Green Energy Corporation (CGRN) has announced a new long-term rental contract for 4 megawatts (MW) in the cryptocurrency mining sector, aiming to expand its Energy as a Service (EaaS) offerings. This agreement supports Capstone's goal to grow its rental fleet to 21.1 MW by March 31, 2022. The project utilizes waste gas from onsite oil and gas production, providing operational savings and emissions reduction. CEO Darren Jamison emphasized that this model enhances profitability due to higher contribution margins compared to traditional sales.

Capstone Green Energy Corporation (NASDAQ:CGRN) announced a significant contract with Cal Microturbine to supply a 3.4 MW microturbine system for a renewable energy facility in southern California. The solution will utilize three C1000S and one C400S Signature Series microturbines, operating on 100% renewable fuel. This order reflects the growing trend towards renewable projects, with renewables increasing from 7% to 13% of Capstone's business from fiscal 2019 to 2021. CEO Darren Jamison emphasized the microturbines' low emissions, cost-effectiveness, and regulatory advantages for California businesses.

Capstone Green Energy Corporation (NASDAQ:CGRN) announced a significant expansion of its Energy as a Service (EaaS) business with a 20-year Parts & Labor Factory Protection Plan contract in Jamaica. This contract, signed with Innovative Energy Company Limited, concerns an 800 kW Capstone energy system at a premier hotel. The system, which greatly enhances energy efficiency, is projected to cover 95% of the hotel’s annual electrical needs and significantly reduce greenhouse gas emissions. Capstone aims to achieve near-term profitability through service contracts and rentals, which offer higher margins compared to traditional sales.