Despite a larger quarterly loss, Capstone Turbine Corp. shares rose nearly 11 percent Tuesday as the company reported positive cash flow from operations for the first time in its history. Shares also benefited from an analyst’s upgrade.

The Chatsworth maker of micro-turbines reported late Monday a fiscal third quarter net loss of $8.1 million (-3 cents share), compared with a loss of $7.2 million (-4 cents) a year earlier. The company had fewer shares in the year-earlier quarter.

The company blamed most of the larger loss on a change in the company’s accounting standards requiring it to record charges on certain warrants. Without the charges, the net loss would have been $6.9 million (-2 cents).

Revenue rose 51 percent to $24.2 million. The company shipped 171 micro-turbines during the quarter, 40 percent more than a year earlier. Its order backlog at the end of the quarter was up 8 percent to $84.7 million.

“More than ever before, we can all clearly see the path forward from here to profitability and sustainability for our clean and green microturbine technology,” said Chief Executive Darren Jamison in a conference call.

The company, founded in 1988, manufactures micro turbines for use in hybrid electric vehicles, building generators and other applications.

On Tuesday, Ardour Capital Partners raised its recommendation on Capstone shares from “accumulate” to “buy,” with a 12-month price target of $1.80, noting the company had reported positive cash flow of $4 million, a company’s first.

“We have increased confidence that (Capstone) is on track to maintain positive gross margins and reach profitability in the near-term,” wrote analyst Walter Nasdeo in a note to clients. “We forecast year-over-year revenues to continue on a record pace, supported by the development of new markets and an improving distribution network.”

Shares closed up 15 cents, or 10.9 percent, to $1.53 on the Nasdaq.