Capstone Turbine Corp. saw its shares surge Tuesday the day after the micro-turbine man manufacturer announced it narrowed its net loss and had a strong backlog of orders.

Chatsworth-based Capstone reported after market close Monday a loss of $9.8 million, or -7 cents per share, on revenues of $7.5 million for the fiscal first quarter ended June 30. That compared to a net loss of $10.4 million (-7 cents) on revenues of $5.6 million a year ago.

Analysts surveyed by Thomson First Call were expecting, on average, a loss of 5 cents per share on revenue of $9.7 million.

Capstone received $20 million in new product orders for the first quarter, more than its entire product revenue in fiscal 2007, said Chief Executive Darren Jamison in a conference call with analysts.

“Capstone is benefiting from strong global market drivers of ever increasing energy prices, rolling grid capacity issues, power security and liability issues and of course global climate change,” Jamison said.

Wachovia Capital Markets analyst Samuel Brothwell, who rates Capstone shares overweight,” said in a note to clients that the strong order potential and rising demand for certain models countered the otherwise weak first quarter report.

Capstone shares closed up 31 cents to $2.73 on Tuesday in Nasdaq trading.