Capstone Turbine Corp. reported a smaller net loss in its fiscal third quarter as the company sold a greater number of its higher-margin, low-emission microturbine systems.

Late Tuesday, the Chatsworth manufacturer reported a net loss of $7.2 million (-4 cents per share) for the quarter ended Dec. 31, compared with a loss of $10 million (-6 cents) a year earlier. Revenue jumped 39 percent to $16 million.

Without a $2.3 million benefit related to a fair-value change of a warrant liability, Capstone’s loss would have been $9.5 million (-5 cents).

Analysts surveyed by Thomson Reuters expected the company to report an adjusted per-share net loss of 5 cents on revenue of $17.3 million.

On Wednesday, Northland Securities upgraded shares from “market perform” to “outperform.”

Shares rose 7 cents, or 6 percent, to $1.21 in midday trading on the Nasdaq.