Capstone Turbine Corp Aims to Help Customers Reduce Costs and Emissions

Destiny A. Lopez  |

Green Technology continues to emerge as a fascinating and wildly innovative sector. If you look beyond the consumer market, such as reusable grocery bags, LED lights and solar panels, commercial and industrial markets have been bitten by the green bug as well. Businesses, much like consumers, are looking for various benefits, such as efficiency, performance, and cost reduction while being able to reduce their carbon footprint. Capstone Turbine Corp (CPST), a green technology company, aims to help clients achieve just that.

Based in Chatsworth, California, Capstone Turbine Corp offers a range of microturbine technology solutions used in stationary distributed power generation applications. Since its founding in 1988, the company’s 95 distributors, including sales and service centers based in the U.S and abroad in Latin America, Europe, Middle East, China and Singapore, serving clients within multiple markets has made Capstone a leading developer and manufacturer of green microturbine power generation systems. To date, the company has shipped over 7,000 microturbine systems around the world.

Currently, the company’s current portfolio of turbines, thanks to progressive engineering and 100 patents, can, as stated on the company’s official website, operate on gaseous or liquid fuels such as, among others, natural gas, diesel, and kerosene. Moreover, Capstone offers other complimentary products, including sub-assemblies, components, and accessories.

November turned out to be a milestone month for Capstone. The company announced a number of key operational developments, including:

  • Creating a potentially $100 million dollar product-financing program thanks to a partnership with the full service financial firm, Acresis.
  • Receiving an order for a C1000 Signature Series microturbine from a leading New York food retailer.

Moreover, the company's most recent announcement give some insight into its client retention. Revealed November 29, a repeat oil and gas customer placed a sixteen unit follow-on order for a C800, two C600s, and multiple C65 and C30 microturbines.

“Despite the prolonged slump in the energy industry, oil and gas producers continue to look for ways to reduce their operational costs and meet the increasingly stringent flaring requirements, which is a long term catalyst for our business,” said Darren Jamison, President and CEO of Capstone. “This order is a positive sign as this is the largest oil and gas order we have received in nearly a year and is further significant in light of the drop in our oil and gas business to 8% of product revenue in this year’s second quarter compared to 26% of product revenue for the second quarter a year ago.”

Thanks to a number of key partnerships and developments throughout 2016, as mentioned its its Q2 2017 finance report, Capstone Turbine Corp is positioned to remain a leader within its sector but, also keep its client base happy and returning.

“Our focus remains fixed on diversifying our customer base and geographic presence while increasing our business in the CHP/energy efficiency markets,” said Jamison. “To support our sales initiatives, we developed new strategic relationships to provide financing options for our distributors and end use customers.”

The investment community looks forward to future developments from the company.

To learn more about Capstone Turbine Corp, visit www.capstoneturbine.com.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CPST Capstone Turbine Corporation 0.74 0.01 0.86 241,281 Trade

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