Calamos S&P 500 Structured Alt Protection ETF - September

Third-quarter fiscal 2021 revenue was $20.7 million, up $3.3 million or 19% from $17.4 million in the year-ago quarter and up $5.8 million or 39% from $14.9 million in Q2. Gross margin was $3.5 million, or 17% of revenue, versus $2.6 million, or 15% of revenue, in the prior-year period. Adjusted EBITDA improved to negative $1.3 million from negative $1.9 million sequentially. New gross product bookings were $10.5 million, up 7% sequentially from $9.8 million and up 91% from $5.5 million in Q1. Management did not provide formal next-quarter or full-year financial guidance, but said it expects rental fleet deployment to accelerate next quarter and that the direct sales program is on track to deliver 15% of product sales this year. It also said 100% hydrogen development would require about $5 million to $7 million and could take about 18 months if accelerated, or 3 to 4 years if the market develops slowly.

Darren Jamison framed the quarter as evidence that the company’s prior cost-cutting and repositioning efforts are now translating into revenue growth, bookings, and better EBITDA. He was upbeat about end-market momentum in energy efficiency, rentals, and hydrogen, saying the company is seeing more customer interest and inbound calls tied to green energy and hydrogen blend capability. His tone was confident and strategic, stressing that Capstone wants to be a long-term partner, not just a product vendor.

Eric Hencken focused on the sequential improvement in the income statement and said operating expenses were essentially flat even as revenue rose from $14.9 million to $20.7 million. He highlighted gross margin of $3.5 million, or 17% of revenue, versus $2.6 million, or 15% a year ago, and said the improvement was driven mainly by higher volume plus better accessories, parts, and service margins. He also pointed to a stronger balance-sheet and working-capital backdrop in the Q&A, saying payables and terms are the best they have been in over four years and that cash is not an issue.

Analysts focused on the rental/EaaS rollout, hydrogen timing, direct sales traction, margin mix, remanufacturing, and supply chain. Management said rental deployment should accelerate next quarter, with a goal of reaching about 10 megawatts by March 31 and likely first rentals in Mexico, Latin America, and the U.K. next quarter. On hydrogen, management said most current opportunities are for 10% to 20% blends, while 100% hydrogen could be developed in about 18 months if needed; on remanufacturing, the U.K. hub should become fully operational in the next 30 to 60 days and double capacity.