Major Bounce Underway for Capstone Companies Inc (OTCMKTS:CAPC) Stock


Capstone Companies Inc (OTCMKTS:CAPC) shares dipped 1.67% to $0.649 and were unchanged in after-hours trading on Monday. Share prices have been trading in a 52-week range of $0.21 to $0.95. The company has a market cap of $31.72 million at 48.13 million shares outstanding.

In a press release, Capstone Companies Inc announced that its first quarter revenue of $6.8 million more than tripled from the same period last year and exceeded guidance of $5.5 million.

“Our brand strategy is working and has created differentiation for retailers in competing channels enabling the Company to expand penetration in the channel for long term growth,” said Capstone Companies Inc CEO Stewart Wallach. “The continued strong interest in our LED lighting products produced another record backlog level at  the end of the first quarter.  The order activity and backlog level drives our expectation that the second quarter of 2017 will exceed the same prior-year period and be the strongest second quarter in company’s history.”

In the same period, Capstone Companies Inc reported that gross profit more than doubled to $1.6 million over the prior-year period, putting the 12-month revenue at $35 million, an increase of 15% compared to 2016 year-end. During this time, the company shipped five new products that accounted for 64% of revenue.

Total operating expenses were $1.2 million, up from $655K in 2016 due to increased royalty payments. It also repurchased and retired $150K of company stock and paid down $137K of old director loans during the quarter.

Capstone Companies Inc is a holding company that designs and manufactures a line of specialty power failure lighting solutions and other specialty consumer products for the North American and Global retail markets through its operating subsidiary. Its product line consists of consumer lighting products, including power failure multi-function handheld lights, power failure multi-function nightlights and wall-plates, decorative nightlights, wireless motion sensor lights, remote control battery powered accent lights and remote control outlets.

Its products are sold under Capstone Industries, Inc. (CAPI) brand name, Capstone Lighting, and also under a licensed brand. The company oversees the manufacturing of its products through its three operating subsidiaries: CAPI, Capstone International H.K Ltd. and Capstone Lighting Technologies, Inc. The company is focused on establishing relationships with international, national and regional retailers.