'admin' pid='26131' datel Wrote:Interesting 35% GAGR, I have to say, not to mention the product backlog and margin improvement, although cash is down from $50M to $38M in a year and there is something like a 10% in crease in the outstanding shares
Yes, yes, yes and yes. The principle challenge CPST has faced (in my mind anyway) has been the cost of materials and the precision machining operations necessary to build these units. A little deeper digging will show you Capstone internal costs for the past couple years have been flat even in the face of rising sales due to efficiency improvements at the factory. The margin improvements have been due to several factors, principally an extended effort to qualify additional suppliers that have the QC necessary to build these units.
I asked several years ago at an annual meeting what happens when the rotor goes out of balance. The CEO smiled and say it doesn't, if it did, at 80,000 rpm it would quickly turn itself into a high speed welding machine.