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CPST (NASDAQ) 1.00 | up0.02 | Oct 31 2014 | 15:26 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.

Click here to submit a question right now!

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.



September 30, 2014

Question:

Is their a list of Capstone distributors, and their respective marketing territories, available to the public?


Answer from Capstone Management:

We seek out distributors that have business experience and capabilities to support our growth plans in our targeted markets. We have a total of 89 distributors and Original Equipment Manufacturers (“OEMs”). In North America, we currently have 29 distributors and OEMs. Internationally, we currently have 60 distributors and OEMs.

We continue to refine the distribution channels to address our specific targeted markets. A list of our Capstone distributors and associated territory can be found under the Quick Links portion of our Capstone website. However, OEMs are not listed on our website for competitive purposes.

September 24, 2014

Question:

Do the New Russian Sanctions directly affect Capstone? The share price has sold off to extreme low levels and I believe it’s due to New Russian sanctions on Oil & Gas equipment ban.


Answer from Capstone Management:

Currently, the Department of Treasury prohibits any US person or entity from conducting business in Russia with a company listed on the Sectoral Sanctions Identification List (SSIL) in relation to the provisioning, exportation, or re-exportation of goods or services in support of the exploration or production for deep-water, Arctic offshore, or shale projects that have the potential to produce oil in the Russian Federation or in a maritime area claimed by the Russian Federation. Additionally, the Department of Commerce requires a US person or entity whose activities may fall into this category to obtain an export license.

After thoroughly investigating this matter, we have determined that the above provisions do not apply to Capstone in its current dealings with its Russian distributors. Specifically, the activities of Capstone’s Russian distributors fall outside the scope of the identified sectoral sanctions. Therefore, Capstone is not in violation of the sanctions and further does not need to obtain an export license. Nonetheless, in the abundance of caution, Capstone is continuing its ongoing due diligence in this matter and will be working closely with its Russian distributors to ensure continued compliance.

September 18, 2014

Question:

What are expectations for turbines in the Bakken shale region? 


Answer from Capstone Management:

Capstone recently appointed Vergent Power Solutions as its distributor in North Dakota, among other states.  We are excited to be partnered with Vergent as they tackle the Bakken Shale Play, where recent flare gas initiatives should provide excellent opportunity for Capstone’s product.

The Bakken has emerged in recent years as one of the most important sources of oil in the United States. Most new Bakken drilling and production has been in North Dakota, although the play also extends into Montana, Saskatchewan, and Manitoba.

As of 2013, the Bakken accounted for more than ten percent of all US oil production. In November 2013, the US Energy Information Administration projected that Bakken production in North Dakota and Montana would exceed one million barrels per day in December 2013.  As a result of the Bakken, North Dakota has become the second largest oil-producing state in the US as of 2013, behind only Texas in the volume of oil produced. 

Over time we fully expect that Capstone turbine technology will enjoy similar success in the Bakken Shale as we have achieved in the Marcellus, Permian and Eagle Ford shale plays.

August 21, 2014

Question:

I understand I can submit questions to Ask Management which may or may not be answered online. Who is supposed to be responsible for responding to shareholders or others that submit inquiries to the IR site? If the questions cannot be answered by that person, why aren't they referred to Management to be answered?


Answer from Capstone Management:

Capstone eliminated the internal investor relations position several years ago in order to reduce operating costs. Capstone’s Form 10-K’s and 10-Q’s provide a wealth of information that address many of the questions from shareholders.

Part of the website upgrade included an “Ask Management” section where the CEO reviews questions submitted and responds to selected questions that can be publicly addressed and are not redundant to other information available to shareholders. The CEO has responded to approximately 500 questions since the inception of the program and approximately 300 are currently available for viewing online. 

August 19, 2014

Question:

You mentioned $1.3-1.4 billion of identified opportunities. Would you please break that down a bit for me?


Answer from Capstone Management:

Capstone’s $1.5 billion in identified opportunities are approximately 75% America’s and 25% Asia and Europe as of June 30, 2014.