Capstone Turbine Closes First Win as Part of New Direct Sales Initiative, Signs National Account Agreement and Receives Initial 20 Unit Order
VAN NUYS, CA / ACCESSWIRE / March 3, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it has achieved its first significant win under its new direct sales initiative. Capstone announced that it signed a new national account agreement with IP Innovative Power GmbH ("Innovative Power"), based in Berlin, Germany, and received an initial order for twenty (20) C65 microturbines. Deliveries are expected to begin in late March and conclude by October this year.
This is the first agreement to come from the new Capstone Direct Sales organization announced on January 3, 2020. The stand-alone organization led by Jim Crouse, who was recently promoted to Chief Revenue Officer, is responsible for growing Capstone's national account business, long-term rental fleet, as well as licensing and new product partnerships - with a focus on revenue growth opportunities.
"As we stated back in early January, this new strategic organizational change is aimed at driving improved year-over-year product revenue growth to complement our aftermarket service, parts and rental business, which as we recently announced was up 20% in Q3 FY20 over the year-ago Q3 FY19," stated Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "I am pleased with the pace in which we executed our first significant new national account relationship and look forward to many more in the weeks to come as we leverage the initial twenty-two opportunities from our new IndyCar sponsorship with Andretti Autosport," added Mr. Jamison.
Innovative Power plans to install Capstone C65 microturbines with customers where cooling is necessary to maximize the running hours with absorption chillers. Capstone was selected because of the ease of installation, low operating cost, and extremely low emissions. The initial order of twenty (20) C65 microturbines will be installed in Germany over the next several months at multiple properties.
The agreement with Innovative Power takes advantage of Capstone's global distribution network, which is serving customers in 73 countries. Each installation will be covered by Capstone's industry-leading Factory Protection Plan, which is designed to offer a risk-free solution for both planned and unplanned maintenance for the life of the factory-backed service contract.
"Innovative Power has identified dozens of sites throughout Europe that are excellent candidates for their solution," said Jim Crouse, Chief Revenue Officer of Capstone Turbine Corporation. "With the support of the Capstone Direct Sales team and our local distribution network, we expect increased new deployment of our products with Innovative Power," concluded Mr. Crouse.
Since 2002, the Combined Heat and Power Act (CHP Act) has been the main basis for the promotion of CHP in Germany. In January 2016, the German government doubled the funding for CHP, raising it to 1.5 billion euros and extended the funding scheme until 2020, providing customers the assurance they need to deploy CHP.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, providing scalable systems focusing on 30 kWs to 10 MWs that operate on a variety of gaseous or liquid fuels and are the ideal solution for today's distributed power generation needs. To date, Capstone has shipped over 9,000 units to 73 countries and in FY19, saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.
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.
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Released March 3, 2020