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CPST (NASDAQ) 2.15 | up0.07 | Apr 17 2014 | 16:00 ET

Ask Management

Welcome to the "Ask Management" section of our site. "Ask Management" is your opportunity to submit a question to Capstone Turbine Corporation's management team.

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NOTICE: All information submitted through this form is subject to editorial review and may or may not be responded to in the Ask Management section of our website.

This section of our web site contains "forward-looking statements," as that term is used in the federal securities laws, regarding future events or financial performance of the Company within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "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. We refer you to the Company's Form 10-K, Form 10-Q and other recent filings with the Securities and Exchange Commission for a description of these risk factors. 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.



November 27, 2013

Question:

FlexEnergy reportedly just secured a $400 million dollar order from DGC in Russia. Did Capstone quote DGC and how does this order affect the Capstone business model since it is right in the sweet spot of our market segment? 


Answer from Capstone Management:

Capstone engaged in commercial negotiations with Avicon-UK, who represents DGC, and DGC directly for several months but was unable to come to terms on a long-term agreement that was acceptable to Capstone and beneficial to Capstone shareholders. We had significant concerns about dilution to our shareholders and transaction execution risk.

The Capstone business model remains unchanged, and we will continue to work with our approximately 95 qualified distributors who meet our standard conditions of sale and have the demonstrated ability to execute from both a technical and commercial standpoint.  

November 13, 2013

Question:

I read an interesting article in the WSJ, “GERMANY REINVENTS THE ENERGY CRISIS”. And I wondered how much business Capstone has in Germany?


Answer from Capstone Management:

Capstone’s revenue in Germany over the trailing four quarters was approximately $5 million USD. E-Quad Power Systems GmbH is our authorized Capstone distributor in Germany. Capstone has a dedicated project team that is developing product improvements across our product family to meet new stringent German utility regulations for low and medium voltage decentralized power generation installations. 

These product improvements will give German customers increased functionality by providing reactive power or an adjustable power factor back to the grid for improved economics and grid support. This new functionality positions our products well for future regulatory changes in not only Germany but other countries in Europe and eventually North America.    

November 11, 2013

Question:

One metric indicated each quarter is MW shipped in the quarter. I did not see it indicated, would you please let us know how many megawatts were shipped in the recent quarter?


Answer from Capstone Management:

Capstone shipped 30.1 MW in the quarter ended September 30, 2013 compared to 24.0 MW in the quarter ended September 30, 2012. Please refer to page 21 of our second quarter FY2014 Quarterly Report on Form 10-Q/A for additional details.

October 30, 2013

Question:

Why aren’t there more lease programs available for companies who can’t afford to purchase?


Answer from Capstone Management:

Today Capstone does not offer in-house factory leasing options but works with independent third party leasing companies on a case by case basis. More lease programs will become available as the secondary market for microturbines matures and residual values become more stable and predictable. Capstone has shipped over 7,000 microturbines to date, but very few of those machines are currently sold in the secondary market as most are still in operation.

October 4, 2013

Question:

I have read many articles about your company and I do not understand how the microturbines work in HEVs. Could you enlighten me?


Answer from Capstone Management:

The Capstone microturbine is used in series hybrid drivetrain applications. The hybrid electric vehicle will utilize a battery driven electric drivetrain and the microturbine to charge the batteries on the fly to extend the operating range of the vehicle.

Advantages of a microturbine are the ability to meet ultra low emission standards without exhaust after treatment, ability to operate on diesel or natural gas, little to no maintenance and increased life. Microturbines provide smooth, quiet operation and are a good match for electric truck and bus applications where daily range is an issue.