Capstone Distributors Add Record 30.7 MWs of Factory Protection Plan Contracts During the Fourth Quarter of Fiscal Year 2019
VAN NUYS, Calif., April 10, 2019 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq: CPST), the world’s leading clean technology manufacturer of microturbine energy systems, announced today its global distributor network signed multiple industry-leading Factory Protection Plan (FPP) service contracts covering a combined total of 30.7 megawatts (MW) during the fourth quarter of fiscal 2019. This brings the total Capstone fleet covered under FPP to a record 241.7 MWs.
Capstone’s FPP is a comprehensive maintenance program designed to give financial peace of mind to microturbine end-use customers by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance for the life of the microturbine system. The FPP enables the customer to have predictable and stable maintenance costs and protects the customers from future cost increases associated with changes in replacement spare parts pricing, commodity price increases, import tariffs, and interest rate changes.
“Capstone continues to see a high adoption rate of our FPP on new system sales as customers are informed of the value early in the sales cycle and are able to better calculate their ROI and budget accordingly,” said James Crouse, Capstone’s Executive Vice President of Sales and Marketing.
“With these new FPP contracts, our existing FPP backlog ends the year at the highest level in the company’s history, eclipsing our last record at the end of fiscal 2017,” said Jeff Foster, Capstone’s Senior Vice President of Customer Service and Product Development. “After our previous FPP backlog record in fiscal 2017, we followed it with our record year for FPP revenue and gross margin during fiscal 2018,” added Mr. Foster.
“Our aftermarket business continues to be one of our key drivers towards sustained profitability over our strategic planning period,” said Darren Jamison, Capstone’s President and Chief Executive Officer. “During our two previous adjusted EBITDA profitable quarters in fiscal 2018 (Q3 and Q4), our aftermarket business provided record gross margins, so continued growth of our industry-leading FPP is a good sign we are tracking to our strategic plan,” concluded Mr. Jamison.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq: CPST) is the world’s leading producer of low-emission microturbine systems and was the first to market commercially viable microturbine energy products. Capstone has shipped over 9,000 Capstone Microturbine systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone is a member of the U.S. Environmental Protection Agency’s Combined Heat and Power Partnership, which is committed to improving the efficiency of the nation's energy infrastructure and reducing emissions of pollutants and greenhouse gases. A DQS-Certified ISO 9001:2015 and ISO 14001:2015 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the United States, Latin America, Europe, Middle East and Asia.
This press release contains “forward-looking statements,” as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as “expects,” “believes,” “objective,” “intend,” “targeted,” “plan” and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone’s filings with the Securities and Exchange Commission that may cause Capstone’s actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
“Capstone” and “Capstone Microturbine” are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
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Released April 10, 2019