Capstone Turbine (NASDAQ: CPST) announced first quarter revenue of $24.3 million, a sharp increase from the year ago period. Backlog increased meaningfully as well. It appears great at first blush, but how is their financial performance. During their last quarter, their sales were almost equivalent to their cost of sales; excluding the cost of sales, marketing and administrative expenses. CPST appears to be selling their product at just a tad more than their cost of manufacturing it! Investors must be hoping the company generate more 2% gross margin, but will they? Despite the sharp increase in sales, the company lost $8.3 million. All this for a $325 million market value ($1.25 per share)?