Proactiveinvestors USA & Canada Capstone Turbine Corporation https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Capstone Turbine Corporation RSS feed en Tue, 23 Jul 2019 04:12:20 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Capstone Turbine distributor says its microturbines continued to run despite recent NYC blackout ]]> https://www.proactiveinvestors.com/companies/stocktube/14147/capstone-turbine-distributor-says-its-microturbines-continued-to-run-despite-recent-nyc-blackout-14147.html Fri, 19 Jul 2019 13:34:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/14147/capstone-turbine-distributor-says-its-microturbines-continued-to-run-despite-recent-nyc-blackout-14147.html <![CDATA[News - Capstone’s microturbines powered through recent New York City blackout ]]> https://www.proactiveinvestors.com/companies/news/224165/capstones-microturbines-powered-through-recent-new-york-city-blackout-224165.html Capstone Turbine Corporation (NASDAQ:CPST) said Thursday that its microturbines, which are used to power hundreds of buildings in New York City, powered through the recent blackout that plunged a broad swath of Manhattan into darkness.

The July 13 power failure, which was caused by a transformer fire and lasted for about five hours, affected more than 72,000 Consolidated Edison customers. The blackout darkened the huge electric billboards of Times Square and forced Broadway shows to cancel performances, and even disabled some subway lines.

“All indications that we have received from our customers and our local New York distribution partner is that all installed stand-alone Capstone microturbine systems continued to operate as designed during the recent blackout,” said CEO Darren Jamison.

READ: Here’s why New York City’s climate emergency resolution is a step in the right direction

The company said its Reliable Secure Power Systems (RSP), Capstone’s exclusive distributor for the New York metro and Connecticut regions, reported that the microturbines in operation at the time operated as expected.

Capstone said its technology can be configured to run grid-parallel 24/7 and also to run stand-alone seamlessly and automatically, even during power outages — as long as the microturbines continue to have accessibility to intake combustion air and a natural-gas supply.

“Capstone microturbines provided backup power for essential services and hot water to several hotels in the blacked-out area,’’ noted Cory Glick, president of RSP Systems. “Although electricity was out for more than five hours, pipeline natural gas continued to flow, and our turbines provided essential electricity and hot water and could have indefinitely, as long as the natural gas was flowing.”

The blackout opportunity

Jim Crouse, executive vice president of sales and marketing at Capstone, said the blackout — and the fear of future power failures — should help the company expand its footprint in the New York area.

“I fully anticipate that this major blackout will only add to customers’ interest in onsite distributed generation as a way to not only save on their annual energy bills but also to protect them against prolonged utility outages,” he said.

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

The company’s stock recently traded up 1.6% to $0.74 cents a share.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Thu, 18 Jul 2019 11:38:00 -0400 https://www.proactiveinvestors.com/companies/news/224165/capstones-microturbines-powered-through-recent-new-york-city-blackout-224165.html
<![CDATA[News - Capstone bags first of possible bigger order for microturbines from Kazakhstan oil producer ]]> https://www.proactiveinvestors.com/companies/news/223931/capstone-bags-first-of-possible-bigger-order-for-microturbines-from-kazakhstan-oil-producer-223931.html Capstone Turbine Corporation (NASDAQ:CPST) said Monday that its distribution partner, TOO Synergy Astana, sold the first of potentially five C1000s for multiple gas-to-energy projects to a local oil and gas producer in western Kazakhstan.

The Van Nuys, California-based maker of microturbines said the customer’s decision to expand from 1 megawatt to 5 megawatts hinges primarily on how the first C1000 microturbine to be installed this summer performs.

In addition to this C1000 order, TOO Synergy Astana secured an order last October for three C65 microturbines for the expansion of an existing Kazakhstan pipeline project. As a continuously growing project, the pipeline already depends on 60 Capstone microturbine systems, which includes two C800s for remote on-site power.

READ: Capstone Turbine scores long-term rental deal with oil and gas exploration company in Alaska

Kazakhstan holds an estimated 30 billion barrels of oil reserves, along with 1.1 trillion cubic meters of natural gas. It is among the top 15 countries based on the size of its oil reserves.

Most of Kazakhstan’s hydrocarbon reserves are located in the regions of Kashagan, Tengiz and Karachaganak. The Kashagan field, discovered in 2000, is one of the largest oilfield discoveries in recent decades.

To reach its potential as a global energy player, Kazakhstan is working to maintain a fine balance between the economic interests of its two powerful neighbors, Russia and China. Chinese energy demand continues to surge upwards and will reportedly consume Kazakhstan’s robust hydrocarbons output for the foreseeable future.

“We are beginning to see the positive results from all the hard work of our new Kazakhstan distribution partner as part of our multi-year reorganization effort for the CIS region for both the oil and gas market and the combined heat and power market,” said Capstone Turbine CEO Darren Jamison.

Jamison said Capstone had switched from one distribution partner covering multiple verticals, to multiple partners for the company’s “three major verticals” for the distribution of its product and services in the Commonwealth of Independent States (CIS) region which includes 10 post-Soviet republics in Eurasia formed after the dissolution of the Soviet Union.

Latent demand 

With sustained higher oil prices and improving economic conditions, the CIS region is again adopting clean microturbine technology to replace an aging and sometimes-unreliable grid. The company noted that there are new associated gas-to-energy opportunities in the oil and gas market in areas such as Azerbaijan and Kazakhstan as some of the world’s longest oil and gas pipelines continue to expand.

“We are seeing a recovery in the CIS region as the market for our solution is increasingly showing new opportunities,” said Jim Crouse, executive vice president of sales and marketing at Capstone Turbine.  

According to the management team at TOO Synergy Astana, the end-use Kazakhstan energy company said they selected Capstone’s clean-energy microturbine as it didn’t require lubricants and coolants, was easy to maintain, had ultra-low exhaust emissions, and ability to operate in a wide range of power output.

“The reliability of Capstone clean energy products, in some of the most remote and harsh environments in the world, makes Capstone the go-to solution in the CIS region,” said Crouse.

Capstone offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

 

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Mon, 15 Jul 2019 11:40:00 -0400 https://www.proactiveinvestors.com/companies/news/223931/capstone-bags-first-of-possible-bigger-order-for-microturbines-from-kazakhstan-oil-producer-223931.html
<![CDATA[News - Capstone Turbine reports improving gross product bookings ]]> https://www.proactiveinvestors.com/companies/news/223518/capstone-turbine-reports-improving-gross-product-bookings-223518.html Capstone Turbine Corporation (NASDAQ:CPST) announced Monday that new gross product bookings were $17.4 million during its fiscal first quarter.

For its fiscal 2020 quarter that ended June 30, the maker of microturbines said gross product books increased 9% year-over-year for 1.7:1 book-to-bill ratio.

“New product order momentum continued to improve throughout the first quarter as we exited with a strong 1.7:1 book-to-bill ratio compared with 1.4:1 and 1.3:1 in the prior two quarters,” said CEO Darren Jamison. “I believe these recent positive quarterly book-to-bill results reflect the initial success of our new growth initiative implemented recently and detailed in our last quarterly report.”

READ: Here’s why New York City’s climate emergency resolution is a step in the right direction

The fiscal first quarter results, which are preliminary, show total revenue decreased to $19.2 million, from $21.2 million in the same period last year.

Capstone’s product revenue decreased approximately $3.5 million to about $10.1 million, compared to $13.6 million in the year-ago quarter in part because the company allocated 1.6 megawatts of product production slots to growing its long-term rental fleet and to a biogas-to-energy demonstration project in Asia.

Revenue from accessories, parts and service increased $1.5 million, or 20%, year-over-year to $9.1 million from $7.6 million in year-ago quarter.

Expanding Capstone's aftermarket business, which includes the newly expanded long-term rental program, is an important element for the company achieving its near-term profitability goal. This is illustrated by the fact that 98% of Capstone's fiscal 2019 gross margin came from the aftermarket business, which was only 38% of Capstone's fiscal 2019 revenue.

Long-term rentals

During the quarter, Capstone signed two new long-term rental contracts totaling 2.6 MWs with 1.0 MW being deployed during the first quarter of fiscal 2020 and 1.6 MWs to be deployed in the upcoming quarter. This latest long-term rental deployment brings the total rental fleet up to 4.6 MWs and with an additional 1.6 MWs expected to be deployed in September, bringing the estimated long-term microturbine rental fleet up to 6.2 MWs versus a management stated goal of 10 MWs.

"The expansion of our long-term rental fleet from our initial start of 3.6 MWs last fall, to a total of 6.2 MWs in September, puts us well on our way to reaching our strategic goal of 10.0 MWs," said Jeff Foster, senior vice president of customer service and product development.

For Capstone, based Van Nuys, California, total cash and cash equivalents for the quarter were about $24.6 million, compared to $29.7 million as of March 31.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Mon, 08 Jul 2019 09:40:00 -0400 https://www.proactiveinvestors.com/companies/news/223518/capstone-turbine-reports-improving-gross-product-bookings-223518.html
<![CDATA[News - Here’s why New York City’s climate emergency resolution is a step in the right direction ]]> https://www.proactiveinvestors.com/companies/news/223226/heres-why-new-york-citys-climate-emergency-resolution-is-a-step-in-the-right-direction-223226.html New York City’s resolution declaring a climate emergency may be symbolic, but it sends a positive signal that the Big Apple is serious about transitioning to clean-energy systems, according to industry executives.  

“Climate emergency declarations typically don't contain policy measures on how to slow climate change,” Jay Patel, CEO of Brighter Sun Power Systems LLC, a renewable energy company, told Proactive Investors. “But make no mistake, New York City is building a strong track recod for tackling global warming.”

New York’s declaration comes two months after the City Council passed a landmark "Climate Mobilization Act,” a combination of measures that includes emissions cuts from large buildings and puts the city on pace to shut down 24 gas-fired power plants.

READ: Climate report augurs well for hydrogen trailblazers

The measure, coupled with a handful of other bills to bolster renewable energy in the city, are dubbed New York’s version of a Green New Deal.

The cornerstone of New York Governor Andrew Cuomo’s Green New Deal is to boost New York’s clean energy standard from 50% to 70% renewable electricity by 2030.

"New York is a mega city and it can be a technology trendsetter for renewable energy,” noted Patel.

With New York's population of more than 8.3 million, the city is now the largest in the US to declare a climate emergency, according to the Innovation for Cool Earth Forum.

A green revolution in the Big Apple

New York is making a big bet that by making its power cleaner, it can become a magnet for clean-energy jobs. Three years ago, New York announced it would spend $5.3 billion toward meeting its goal of having 50% of its electricity come from renewable sources by 2030.

Capstone Turbine Corporation (NASDAQ:CPST), which makes clean energy microturbines, is one of the many companies leading the charge in New York’s green energy revolution.

“I applaud the New York City Council for passing legislation to respond to global climate change,” said Capstone CEO Darren Jamison. “However, legislation is nice, but execution is what matters at the end of the day.”

Jamison said New York businesses are taking matters into their own hands by building new high-efficiency LEED certified green buildings.

“Many businesses and hospitals are installing energy efficient systems like solar PV, wind, microturbines, fuel cells, energy efficient lighting and building materials,” said Jamison. “The new 77-story One Vanderbilt office tower in New York City is the latest Capstone energy efficiency project to crack the New York skyline.”

Capstone’s microturbines range from a 30-kilowatt, consumer-level unit up to 200-megawatts — enough to power skyscrapers.

In New York City alone, the company’s microturbines are used in hundreds of buildings, including two units at Hudson Yards, the new One Vanderbilt tower next to Grand Central Terminal, as well as Kings County Hospital in Brooklyn, Marriott International Inc and big businesses such as Fresh Direct.

“Capstone Turbine is using its highly efficient, Made in USA, heavily patented, microturbine technology to help save end use customers an estimated $194 million and 314,000 tons of carbon last year alone with little support from federal or state governments,” Jamison pointed out.

Since Capstone is an inverter-based technology it works in concert with other inverter-based technologies like wind, solar and battery storage to form low emission sensitive microgrids.

Strategic incentives and penalties

In April, Governor Cuomo announced that $280 million of support is available for energy-storage projects to accelerate growth within the industry and drive down energy-storage deployment costs.

"This funding continues our efforts to support clean energy and energy-storage projects, growing the industry and creating good jobs," said Lieutenant Governor Kathy Hochul.

Still, the industry feels more federal and state support in the shape of financial energy subsidies, carbon taxes and consumer education on green energy, recycling and climate change would drive energy cost-savings and combat climate change.

“The US needs to take measured steps to effect meaningful change across a wide range of climate damaging industries that are high NOx (nitrogen oxide) and carbon dioxide emitting sources,” said Jamison. “These don’t need to be free programs, but a mixture of financial incentives and financial penalties to help business and consumers make the right green energy choices in their day-to-day lives.”

Jamison said a “moderate amount of strategic incentives and penalties” for green energy using existing commercial green off-the-shelf technologies can have a “huge impact” on the local climate crisis.

“The US needs to focus on reducing emissions from large buildings, transportation, agriculture, oil production and associated gas flaring,” said Jamison.

More than 650 municipalities in 15 countries have declared climate emergencies, including Sydney and London.

“Resolutions don’t have much power other than consensus building,” Councilman Ben Kallos, a Democrat from the Upper East Side, told HuffPost. “The more of these that pass, the harder it is for people like [President Donald] Trump to deny what’s happened.”

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 02 Jul 2019 10:38:00 -0400 https://www.proactiveinvestors.com/companies/news/223226/heres-why-new-york-citys-climate-emergency-resolution-is-a-step-in-the-right-direction-223226.html
<![CDATA[News - Capstone Turbine scores long-term rental deal with oil and gas exploration company in Alaska ]]> https://www.proactiveinvestors.com/companies/news/223151/capstone-turbine-scores-long-term-rental-deal-with-oil-and-gas-exploration-company-in-alaska-223151.html Capstone Turbine Corporation (NASDAQ:CPST) said Monday that it expanded its microturbine rental business by scoring a 1 megawatt long-term rental contract with an oil and gas exploration company focused on Alaska.

The deal was secured by the Van Nuys, California-based company’s longtime distribution partner, Horizon Power Systems.  

Horizontal is Capstone’s exclusive distributor for Colorado, Idaho, Montana, New Mexico, Oklahoma, Utah, Wyoming, Alberta, British Columbia, Northwest Territories, Saskatchewan and the Yukon.

READ: Capstone’s microturbine to power Couples Resorts in Jamaica to help it reduce its energy costs

The company said the long-term rental contract with the Alaska oil explorer is in addition to the current C1000 series microturbine rental fleet of 4.6 megawatts and the previously announced 1.6 megawatts expected to be deployed in September.

Expanding the aftermarket business

Expanding Capstone's aftermarket business, which includes the long-term rental program, is key to near-term profitability goals for the company. The company said in a statement that at least 98% of Capstone's fiscal 2019 gross margin came directly from the aftermarket business.

"The expansion of our long-term rental fleet from our initial start of 3.6 megawatts last fall, to a total of 6.2 megawatts, puts us well on our way to reaching our strategic goal of 10 megawatts," said CEO Darren Jamison. "Long-term rentals are a critical part of our 100% expense absorption plan and are expected to help us reach our near-term profitability goals."

Capstone offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

"Natural gas generators are gaining popularity in the rental market due to their lower emission profile compared to the high environmental impact of diesel rental generators,” said Jim Crouse, executive vice president of sales and marketing at Capstone. “Capstone microturbines are recognized as the low emission leader in the stationary power space."

Jeff Foster, senior vice president of customer service and product development at Capstone, said Horizon’s success in landing the long-term deal “further improves” Capstone’s high margin “recurring aftermarket revenues.”

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

 

 

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Mon, 01 Jul 2019 10:27:00 -0400 https://www.proactiveinvestors.com/companies/news/223151/capstone-turbine-scores-long-term-rental-deal-with-oil-and-gas-exploration-company-in-alaska-223151.html
<![CDATA[News - Capstone’s microturbine to power Couples Resorts in Jamaica to help it reduce its energy costs ]]> https://www.proactiveinvestors.com/companies/news/222695/capstones-microturbine-to-power-couples-resorts-in-jamaica-to-help-it-reduce-its-energy-costs-222695.html Capstone Turbine Corporation (NASDAQ:CPST), the maker of clean-energy microturbines, said Monday that Innovative Energy Corporation (IEC), its exclusive distributor in Jamaica, has won a follow-on order for a C800 Signature Series microturbine along with a 20-year Factory Protection Plan.

The C800 Signature Series will be installed in a combined cooling, heat and power (CCHP) configuration at the Couples Tower Isle luxury resort in Ocho Rios, Jamaica. The company said in a statement that the Capstone C800S will be installed and maintained by IEC.  

This will be the third Capstone microturbine installation at a Couples Resorts property in Jamaica as it eyes ways to reduce its carbon footprint.

READ: Capstone Turbine is leading the charge in a green energy revolution

In early 2018, IEC installed a Capstone C65 combined heat and power system at Couples Negril resort, in Jamaica. It now produces hot water for the resort’s laundry facility and 495,000-kilowatt hour electricity annually. This saves the Couples Negril resort over 350 tons of greenhouse gases annually, said the company, and “significant dollars in their energy bill” resulting in a less than two-year payback on their investment.

Similarly, in April 2018, IEC secured a follow-on project for another C65 iCHP system at the same Couples Negril resort which now produces hot water for the 234-room resort. This saves the resort over 400 tons of greenhouse gas emissions annually and slashes its energy bill.

Delivering energy savings

Inspired by the results, the resorts will deploy a Capstone C800S microturbine to power the Couples Tower Isle hotel in Ocho Rios. This is expected to reduce the resort’s greenhouse gas emissions by more than 1,000 tons annually making it one of the greenest hotels in Jamaica. In addition, the project will yield energy savings of 40% annually.

“When I met the forward-looking Couples Resorts engineering and management teams last August, they were impressed by the reliability and simplicity of the Capstone C65 product,” said Capstone Turbine CEO Darren Jamison. “More importantly, they appreciated the attentiveness and technical capabilities of the locally-owned and operated IEC team.”

The luxury resort was one among a dozen customers, the CEO visited in August last year with its new distributor IEC, led by energy entrepreneur Nigel Davy.

“With vast technical expertise and strong leadership, IEC is in the process of developing multiple projects for resorts, grocery stores, beverage manufacturers and the local airport,” said Jamison. “As power rates on the island are increasing to 28-36 cents per kWh, companies need to find a way to lower energy costs.”

The hospitality industry is one of the biggest electricity and water guzzlers and hotels require $4 billion in energy to operate 5 million guest rooms in the US, according to the US Green Building Council.

Powering eco-friendly hotel operations

With surging interest in eco-friendly and sustainable operations, hotels are starting to promote new conservation efforts that are also good for their bottom line.

“Hotels and luxury resorts are an excellent fit for CHP and CCHP because of their combined 24-hour electrical and thermal energy needs,” said Jim Crouse, executive vice president of sales and marketing at Capstone Turbine. “Capstone systems can provide a significant improvement in energy efficiency for operators.”

Crouse also noted that environment-friendly guests are no longer simply looking for clean rooms and free Wi-Fi.

“Hotels and luxury resorts must look to provide eco-friendly accommodations and differentiate themselves in ways they have not had to do in the past,” said Crouse.

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

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Mon, 24 Jun 2019 10:37:00 -0400 https://www.proactiveinvestors.com/companies/news/222695/capstones-microturbine-to-power-couples-resorts-in-jamaica-to-help-it-reduce-its-energy-costs-222695.html
<![CDATA[News - Capstone Turbine expands long-term microturbine rental business with one of the world’s largest oil and gas producers ]]> https://www.proactiveinvestors.com/companies/news/222421/capstone-turbine-expands-long-term-microturbine-rental-business-with-one-of-the-worlds-largest-oil-and-gas-producers-222421.html Capstone Turbine Corporation (NASDAQ:CPST) announced Wednesday that it continues to expand its long-term microturbine rental business with an additional 1.6 megawatts on top of the initial 3.6 MWs deployed last fall with one of the world’s largest oil and gas producers.

The additional long-term rentals were secured by Capstone’s distribution partner, Lone Star Power Solutions, its exclusive distributor for Texas, Arizona and the Gulf States.

Capstone, based Van Nuys, California, said expanding its aftermarket business, which includes the long-term rental program, is key to helping the Company achieve its near-term profitability goals.

In fact, the Company said 98% of its fiscal 2019 gross margin came from the aftermarket business, which was only 38% of Capstone’s fiscal 2019 revenue.

READ: Maxim says Capstone Turbine’s rental-business growth may shrink fiscal 4Q earnings loss

“Our aftermarket business should continue to grow this year with the expansion of our long-term rental fleet from our initial start of 3.6 MWs to a total of 5.2 MWs with our future target of 10 MWs,” said CEO Darren Jamison. “At 10 MWs, our annual revenue from our long-term rental fleet would be approaching approximately $7 million a year. Rentals are key as the recurring revenue stream they generate will improve our expense absorption and gross margin, and help us reach our near-term profitability goals.”

Capstone said the large oil and gas company, which was not named, agreed to expand its use of the microturbines because they are easy to deploy, increase power capacity and accommodate the customer’s growing energy needs of its Permian basin installations.

Capstone microturbines, which run on a variety of gaseous or liquid fuels, are reliable and can easily be expanded or relocated when a customer’s site loads change.

Jim Crouse, Capstone’s executive vice president of sales and marketing, said that natural-gas generators are gaining popularity in the rental market due to their lower emission profile compared to the high environmental impact of diesel generators.

One industry obervier applauded Capstone's announcement.

“We believe this 3.6 MW order from one of the world’s largest oil and gas producers is yet another positive step towards Capstone’s profitability goals by adding high margin, recurring revenue to the Company’s aftermarket business, including their long-term rental program established last year,” said Shawn Severson, founding partner of alphaDIRECT Advisors, a micro-cap research firm. “We believe the Company’s more flexible balance sheet will enable Capstone to pursue long-term rental business like the one announced today and facilitate gross margin expansion.”

Capstone's stock recently traded up 0.65% to $0.87 a share.

-- Updates with analyst comment --

Disclosure: alphaDIRECT Advisors is paid a fee by Capstone Turbine to provide Investor Intelligence Program and Consulting Services. To read the full disclosure, please click here.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Wed, 19 Jun 2019 08:44:00 -0400 https://www.proactiveinvestors.com/companies/news/222421/capstone-turbine-expands-long-term-microturbine-rental-business-with-one-of-the-worlds-largest-oil-and-gas-producers-222421.html
<![CDATA[Media files - Capstone Turbine strengthens its partnership with IndyCar Series drivers ]]> https://www.proactiveinvestors.com/companies/stocktube/13752/capstone-turbine-strengthens-its-partnership-with-indycar-series-drivers-13752.html Fri, 14 Jun 2019 16:47:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13752/capstone-turbine-strengthens-its-partnership-with-indycar-series-drivers-13752.html <![CDATA[News - Capstone executes 3.2 megawatts of long-term service contracts in the Marcellus, Utica shale regions ]]> https://www.proactiveinvestors.com/companies/news/222075/capstone-executes-32-megawatts-of-long-term-service-contracts-in-the-marcellus-utica-shale-regions-222075.html Capstone Turbine Corporation (NASDAQ:CPST), the maker of clean-energy microturbines, said Thursday that an oil and gas company entered into a fixed, long-term maintenance program in an indication of continued growth stemming from its aftermarket service business.

The company said that E-Finity Distributed Generation, its exclusive distributor for the mid-Atlantic, southeastern United States and the Caribbean, signed Factory Protection Plan (FPP) service contracts in the Marcellus and Utica shale regions in the Appalachian Basin covering 3.2 megawatts of Capstone microturbines.

During the quarter ended March 2019, the company closed multiple FPP service contracts covering 30.7 megawatts, a record for the company.

READ: Capstone wins first C200 Signature Series microturbine order from India’s oil rich state of Assam

“The majority of those 30-megawatt of contracts were in the oil and gas vertical,” said Capstone CEO Darren Jamison. “The transition of oil and gas customers to Capstone FPP service contracts is a strong indicator for the continued growth of our aftermarket service business.”

Booming aftermarket service business

Jamison said the aftermarket service business constituted roughly 38% of Capstone’s total fiscal 2019 revenue and accounted for 98% of gross margin.

Capstone recently launched an enhanced version of its FPP service contract, with coverage options for oil and gas end-use customers of Capstone’s microturbine energy systems.

“We are pleased to see another one of our key oil and gas customers acknowledge the strength of our service team by entering into a fixed, long-term maintenance program that ensures peak performance and high availability of their turbine fleet,” said Anthony Colletti, director of service for E-Finity Distributed Generation. “E-Finity’s guaranteed on-site response of four hours or less to unscheduled events, as well as our advanced remote monitoring system has given our customers confidence in the Capstone product.”

Factory Protection Plan contracts

The Capstone FPP allows customers to have “predictable and stable” maintenance costs, said the company. It protects them from cost rises linked to changes in the price of replacement spares, commodity price increases, import tariffs and interest rate changes.

“With a continued dynamic geopolitical and macroeconomic environment, the peace of mind that comes with Capstone’s industry-leading FPP continues to draw large oil and gas customers,” said Jeff Foster, senior vice president of customer service and product development at Capstone. “Our recently revamped FPP now provides our customers with many standard options, for up to 20 years, to develop their own unique service plan, therefore enabling them to get the highest return on their investment in a Capstone microturbine for many years.”

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

Capstone shares added 2.2% to $0.79 in morning trading on Nasdaq.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Thu, 13 Jun 2019 10:13:00 -0400 https://www.proactiveinvestors.com/companies/news/222075/capstone-executes-32-megawatts-of-long-term-service-contracts-in-the-marcellus-utica-shale-regions-222075.html
<![CDATA[News - Capstone Turbine boosts revenue, fueled by healthy aftermarket sales and global operations ]]> https://www.proactiveinvestors.com/companies/news/221918/capstone-turbine-boosts-revenue-fueled-by-healthy-aftermarket-sales-and-global-operations-221918.html Capstone Turbine Corporation (NASDAQ:CPST) saw a revenue boost from a healthy increase in its accessories, parts and service division, beating analyst expectations for the energy systems manufacturer’s fiscal fourth quarter results.

The multi-faceted energy company builds low-emission, clean-energy microturbine technology for consumer and commercial use globally, offering a product lineup that can produce anywhere from 30 kilowatts to 10 megawatts of power.

Total revenue for the quarter ended March 31, 2019 was $22 million, fueled by a 16% increase from 3Q thanks to its service and accessories sales, which added $9.2 million. Analysts had estimated an average of $21 million in revenue for 4Q.

READ: Maxim: Capstone Turbine’s rental-business growth may shrink fiscal 4Q earnings loss

Highlights from the quarter included new gross product orders of $18 million, a 17% year-over-year increase, and a healthy book-to-bill ratio of 1:4:1 after it shipped 11.8 megawatts of power across a diverse set of global distributors.

The increase in product revenue was primarily due to the fact that Capstone did not deploy any new units into the expanded long-term rental program. Accessories, parts and service revenue was driven by the successful completion of multiple distributor replacements and an increase in C200 parts sales.

Aftermarket revenue was the second largest in Capstone’s history and represents a key driver in the company’s strategy to obtain profitability. During 4Q, the turbine manufacturer signed multiple service contracts covering a total of nearly 31 MW, a company record.

Diverse revenue streams

The California-based company also released its annual financials that showed an increase in revenue to $83.4 million compared to $82.8 million in fiscal 2018, thanks to new revenue streams from its global operations.

The company credited its diversification into new market verticals and geographies as a main contributor to the year-over-year growth. Capstone secured new business from 63 distributors in 41 countries, with an 11% increase in its Russian operations despite ongoing geopolitical tensions. Two of its top-five performing distributors were international partners, it said in a statement.

Net loss for the period was $3.9 million compared to $1.9 million in the year-ago fourth quarter.

Shares of Capstone slipped 1.7% in aftermarket trading to sit at $0.83.

On Monday, research firm Maxim Group said it maintains a Buy rating on Capstone’s stock and a price target of $2.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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Tue, 11 Jun 2019 17:03:00 -0400 https://www.proactiveinvestors.com/companies/news/221918/capstone-turbine-boosts-revenue-fueled-by-healthy-aftermarket-sales-and-global-operations-221918.html
<![CDATA[Media files - Maxim analyst maintains a Buy on Capstone Turbine ahead of its 4Q earnings report ]]> https://www.proactiveinvestors.com/companies/stocktube/13697/maxim-analyst-maintains-a-buy-on-capstone-turbine-ahead-of-its-4q-earnings-report-13697.html Tue, 11 Jun 2019 13:29:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13697/maxim-analyst-maintains-a-buy-on-capstone-turbine-ahead-of-its-4q-earnings-report-13697.html <![CDATA[News - Maxim: Capstone Turbine’s rental-business growth may shrink fiscal 4Q earnings loss ]]> https://www.proactiveinvestors.com/companies/news/221815/maxim-capstone-turbines-rental-business-growth-may-shrink-fiscal-4q-earnings-loss-221815.html Maxim Group on Monday announced it expects Capstone Turbine Corporation (NASDAQ:CPST) to report a smaller fiscal fourth-quarter earnings loss than previously estimated based on growth in the microturbine maker’s rental business.

Analyst Tate Sullivan wrote he has narrowed his EBITDA (earnings before interest, tax, depreciation and amortization) loss forecast to $2.1 million from $2.7 million, citing a “potential for slightly higher margins in Capstone’s natural gas turbine rental program.”

Capstone is expected to report fiscal 4Q and fiscal full-year 2019 earnings on Tuesday after the closing bell.

READ: Capstone Turbine gets a Buy rating and $2 price target from Maxim Group

Sullivan noted that the company’s quarterly EBITDA improved quarter-over-quarter by an average of 23% in the two previous quarters. He now estimates a 9.5% EBITDA improvement quarter-over-quarter.

The company in the current quarter launched an "expanded factory rental program" and Sullivan expects Capstone’s rental revenue will have much higher margins than sales of natural-gas turbines. 

READ: Capstone Turbine names ex-commissioner on Federal Energy Regulatory Commission to its board

To meet Maxim’s EBITDA loss forecast of $2.1 million, Sullivan said he expects gross profit margin will increase slightly quarter-to-quarter to 12.8% from 12.4% based in part on higher margins from Capstone’s rental equipment.

The analyst also wrote that Maxium Group forecasts Capstone to increase EBITDA in 2021 to $1.6 million from an EBITDA loss of $1.9 million in 2020 “based on operating leverage, more demand for backup power systems and growth in Capstone’s rental business.”

Maintaining a Buy rating, $2 price target

Maxim Group still maintains a Buy rating on Capstone’s stock and a price target of $2.

The company's stock recently traded up 2.2% to $0.82 a share. 

Capstone, based Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels.

Maxim Group expects to receive or intends to seek compensation for investment banking services from Capstone in the next 3 months.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Mon, 10 Jun 2019 14:51:00 -0400 https://www.proactiveinvestors.com/companies/news/221815/maxim-capstone-turbines-rental-business-growth-may-shrink-fiscal-4q-earnings-loss-221815.html
<![CDATA[News - Capstone Turbine names ex-commissioner on Federal Energy Regulatory Commission to its board ]]> https://www.proactiveinvestors.com/companies/news/221801/capstone-turbine-names-ex-commissioner-on-federal-energy-regulatory-commission-to-its-board-221801.html Capstone Turbine Corporation (NASDAQ:CPST) announced Monday that Robert Powelson, a former commissioner on the Federal Energy Regulatory Commission, has joined the company’s board of directors.

Powelson currently serves as CEO of the National Association of Water Companies in Washington, DC, according to a statement from the microturbine manufacturer.

Prior to joining the association, Powelson served as one of five commissioners on FERC from 2017 to 2018 after being appointed by President Trump. The federal agency regulates the transmission and sale of electricity and natural gas as well as the transportation of oil via pipelines.

“Rob is an experienced energy executive and highly-regarded thought leader in the US energy industry with vast contacts and knowledge of the US shale industry, and we are honored to welcome him to the Capstone Board of Directors,” said CEO Darren Jamison. “Rob also has extensive experience in the public policy arena, which will be an extremely valuable asset for the company.”

READ: Capstone Turbine sponsors another Indy car to promote renewable energy

Previously, Powelson served on the Pennsylvania Public Utility Commission from 2008 to 2017 and was appointed chairman in 2011. He was also a member of the Marcellus Shale Advisory Commission, which helped Pennsylvania develop its shale industry. Powelson also served on the National Association of Regulatory Utility Commissioners' board of directors from 2011 to to 2017.

Powelson said he is well aware of Capstone’s technology, noting that “I have an extensive history with the Capstone microturbine product deployment across the Marcellus Shale region, and I see the long-term potential for low emission distributed generation technology.”

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels.

Capstone's stock recently traded up 1.8% to $0.82 a share. 

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Mon, 10 Jun 2019 09:26:00 -0400 https://www.proactiveinvestors.com/companies/news/221801/capstone-turbine-names-ex-commissioner-on-federal-energy-regulatory-commission-to-its-board-221801.html
<![CDATA[News - Capstone Turbine sponsors another Indy car to promote renewable energy ]]> https://www.proactiveinvestors.com/companies/news/221571/capstone-turbine-sponsors-another-indy-car-to-promote-renewable-energy-221571.html Capstone Turbine Corporation (NASDAQ:CPST) announced Wednesday it will sponsor another Indy race car as part of its ongoing campaign to highlight the promise of renewable energy.

Capstone is again partnering with biogas producer GESS International (Green Energy Sustainable Solutions Inc) of North Carolina to sponsor the Andretti Autosport No. 27 Indy race car at the Texas Motor Speedway and the “Tricky Triangle” of Pocono Raceway.

The green and white No. 27 GESS/Capstone Honda driven by Alexander Rossi will hit the Texas Motor Speedway in Forth Worth on Sunday evening under the lights on the 1.5-mile oval track. Pocono Raceway in Long Pond, Pennsyalvania will host the ABC Supply 500 on August 18.

READ: Capstone Turbine caps a wave of good news with Indy 500 sponsorship

Both companies last month co-sponsored the #88 Honda Indy car driven by 19-year-old rookie Colton Herta at the Indianapolis 500 to foster awareness of biogas and renewable natural gas as the fuel of the future to combat climate change.

“I’m confident that our sponsorship with the world-renowned Andretti Autosport will help us raise awareness of our clean energy technology,” said Capstone CEO Darren Jamison.

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

The company's stock recently traded up 0.36% to $0.85 a share.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Wed, 05 Jun 2019 09:45:00 -0400 https://www.proactiveinvestors.com/companies/news/221571/capstone-turbine-sponsors-another-indy-car-to-promote-renewable-energy-221571.html
<![CDATA[News - Capstone Turbine gets order for two microturbines to power dehydration plant in Iraq ]]> https://www.proactiveinvestors.com/companies/news/221405/capstone-turbine-gets-order-for-two-microturbines-to-power-dehydration-plant-in-iraq-221405.html Capstone Turbine Corp (NASDAQ:CPST), the maker of clean-energy microturbines, announced Monday it has secured an order for two microturbines for a facility that helps process natural gas in Iraq.

The company said the C600 Signature Series microturbines will provide 1.2 megawatts of energy to power a triethylene glycol dehydration facility -- which removes water from natural gas and natural-gas liquid -- in the Basra region of southern Iraq.

The order also includes Capstone’s new self-cleaning pulse filtration system, which will allow the microturbines to endure the remote and sandy conditions with minimal maintenance. The order was secured by Technical Solutions to Industry FZE, Capstone’s authorized distributor to Iraq and the United Arab Emirates, according to a statement.

READ: Capstone Turbine inks long-term service contract with energy company operating in Texas' Eagle Ford Shale Basin

Capstone’s two microturbines will run on raw gas and will power 100% of the new dehydration facility, which is part of a larger 25-year joint venture between local gas and leading oil producer’s efforts to capture, treat and monetize associated gas currently being flared from three southern Iraq oilfields.

Capstone said it has recently developed a new line of self-cleanable severe environment air filtration systems for its Signature Series line of microturbines to facilitate its expansion into the oil and gas business in the Middle East as part of its revenue-growth strategy.

The company announced plans to expand its business into the Middle East a couple of years ago and has previously delivered projects in Oman, Qatar, Saudi Arabia and the UAE. Capstone expects that higher oil prices and the move towards reduced gas flaring will continue to drive demand and should provide a positive backdrop for Capstone’s low emission microturbines.

Gas flaring wasteful and bad for the enviroment

“Flaring is the traditional way to dispose of unwanted gas produced during oil exploration activities, but the long standing practice creates an immense amount of carbon dioxide emissions and adds to climate change,” said CEO Darren Jamison.

The Iraq announcement follows on the heels of another overseas order for Capstone’s microturbines, which will generate on-site power for a remote oilfield operation in India.

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

Capstone's stock recently traded up 0.48% to $0.84 a share.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Mon, 03 Jun 2019 09:37:00 -0400 https://www.proactiveinvestors.com/companies/news/221405/capstone-turbine-gets-order-for-two-microturbines-to-power-dehydration-plant-in-iraq-221405.html
<![CDATA[News - Capstone wins first C200 Signature Series microturbine order from India’s oil rich state of Assam ]]> https://www.proactiveinvestors.com/companies/news/221229/capstone-wins-first-c200-signature-series-microturbine-order-from-indias-oil-rich-state-of-assam-221229.html Capstone Turbine Corp (NASDAQ:CPST), the maker of clean-energy microturbines, announced Thursday that its first C200 Signature Series microturbine was headed to India’s oil country in the northeastern state of Assam.

The order secured by Brio Energy Pvt Ltd, Capstone’s exclusive distributor in India, marks the first C200 Signature Series microturbine order from India’s booming oil and gas sector.

The unit is scheduled to be commissioned in July and will be installed in Assam, an oil-rich state in the northeastern region of India. The flare gas fueled C200S microturbine will generate on-site power for the remote oilfield operation while at the same time reducing the flaring of associated gas which negatively impacts the environment.

READ: Capstone Turbine is leading the charge in a green energy revolution

The company said the order underlines the opportunity represented by India’s high-octane economy, which is ranked the third-largest market by purchasing power parity.

India’s economy grew an average of around 7.3% a year in the almost five years under recently re-elected Indian Prime Minister Narendra Modi.

“India is a newly developing market for Capstone and has the potential to become a significant part of our double-digit revenue growth plan and would contribute to our revenue diversification initiative,” said Capstone CEO Darren Jamison. “This initiative yielded positive results in fiscal 2019, where we sold to 63 different distributors in 41 different countries.”

Jamison said Capstone was building its near-term profitability plan around four core business initiatives and key strategic pillars related to improving cash flows, double-digit revenue growth, improving diversification and increasing operating expense absorption.

Ability to provide onsite power  

The company said that due to the remote nature of some of the oil locations in places like Assam, operators not only have to sink capital into exploration, but generate their own power or deliver diesel fuel daily.

“Capstone turbines offer the operator the ability to use available wellhead gas as free fuel for low emission, high-reliability onsite power generation,” said the company.

India is currently a net importer of oil and gas as the country is the third-largest energy consumer globally. Through new policies and foreign investments focusing on increased oil exploration, India is looking to reduce its oil import requirement to 67%, from more than 82%.

Promising win for local distributor

“This is a promising win for our local distributor, and we anticipate capitalizing on this first installation with increased business going forward. Oil deposits were first discovered in the region pre-1900 but it was not until recent years that we saw a push by the government to grow production,” said Jim Crouse, executive vice president of sales and marketing at Capstone. “Realizing that there is increased need, the Government in India announced that it has plans to expand the existing gas pipeline network across the country by committing nearly $10 billion to the project.”

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Thu, 30 May 2019 09:14:00 -0400 https://www.proactiveinvestors.com/companies/news/221229/capstone-wins-first-c200-signature-series-microturbine-order-from-indias-oil-rich-state-of-assam-221229.html
<![CDATA[News - Capstone Turbine inks long-term service contract with energy company operating in Texas' Eagle Ford Shale Basin ]]> https://www.proactiveinvestors.com/companies/news/221057/capstone-turbine-inks-long-term-service-contract-with-energy-company-operating-in-texas--eagle-ford-shale-basin-221057.html Capstone Turbine Corp (NASDAQ:CPST), the maker of clean-energy microturbines, announced Tuesday it has secured a long-term service contract with a large international oil and gas end-user operating in the Eagle Ford Shale Basin in South Texas.

Lone Star Power Solutions, Capstone’s exclusive distributor for Texas, Arizona and the Gulf States, signed the 3-megawatt factory-protection plan which will provide the unnamed customer with five years of service coverage, according to a statement.

The customer originally commissioned the Capstone microturbines in 2013-2014 and uses them 24-7 for prime power in its midstream central-gathering facilities, the company said.

READ: Capstone Turbine caps a wave of good news with Indy 500 sponsorship

The new service contract adds to Lone Star’s 12 new factory protection plan contracts previously secured in the same shale region in March, Capstone said.

“These types of long-term service contracts underpin Capstone’s stated goal of achieving 100% absorption of all of Capstone’s operating expenses from the aftermarket service business gross margin by providing a predictable recurring revenue stream,” said Capstone CEO Darren Jamison.

Capstone, based Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries.

Capstone's stock recently rose to $0.87 a share, up 1.8%. 

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Tue, 28 May 2019 09:45:00 -0400 https://www.proactiveinvestors.com/companies/news/221057/capstone-turbine-inks-long-term-service-contract-with-energy-company-operating-in-texas--eagle-ford-shale-basin-221057.html
<![CDATA[Media files - Capstone Turbine revvs into the Indy 500 with grandson of late NY Yankees owner ]]> https://www.proactiveinvestors.com/companies/stocktube/13488/capstone-turbine-revvs-into-the-indy-500-with-grandson-of-late-ny-yankees-owner-13488.html Fri, 24 May 2019 17:53:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13488/capstone-turbine-revvs-into-the-indy-500-with-grandson-of-late-ny-yankees-owner-13488.html <![CDATA[News - Capstone Turbine caps a wave of good news with Indy 500 sponsorship ]]> https://www.proactiveinvestors.com/companies/news/220955/capstone-turbine-caps-a-wave-of-good-news-with-indy-500-sponsorship-220955.html The 103rd running of the Indianapolis 500 on Sunday is expected to attract some 300,000 spectators and a worldwide television and web audience of millions.    

For Capstone Turbine Corp (NASDAQ:CPST), the iconic race offers up a unique opportunity for the maker of low-emission, clean-energy microturbines to market itself as well as the benefits of renewable energy by sponsoring an Indy car with one of the sport's hottest drivers behind the wheel.

Capstone has partnered with biogas producer Green Energy Sustainable Solutions Inc of North Carolina at the event to foster awareness of biogas and renewable natural gas as the clean-energy fuels of the future as a way to help combat the effects of climate change.

READ: Capstone Turbine inks biggest microturbine order in more than four years with US-based renewable energy company

At the race, both companies along with Harding Steinbrenner Racing will sponsor the #88 Honda-powered Indy car driven by 19-year-old rookie phenom Colton Herta. But their marketing efforts won’t end at the checkered flag. They’ll continue to sponsor Herta at other races throughout the remainder of the 2019 IndyCar Series season that attracts a global audience of 160 million race fans.

As Capstone CEO Darren Jamison remarked after making the Indy 500 announcement, the broad message to racing fans and the wider audience will be: “If you like saving money, would like to save the planet, or don’t like being left in the dark for prolonged periods of time, you should consider Capstone’s innovative, clean and green microturbine products."

Capstone’s Indy 500 sponsorship seems like a fitting highlight to cap a streak of good news for the Van Nuys, California-based company during the month of May.

Recapping Capstone's eventful May

Earlier this month, Indy co-sponsor Green Energy gave Capstone its biggest order in four years.

Green Energy on May 14 agreed to a $13 million deal to buy from Capstone 12 Signature Series microturbines that will generate 9.6 megawatts of power for more than 20 biogas projects in six US locations. If those projects are successful, Capstone said Green Energy will purchase a total of $53 million of Capstone’s products.

Then two days later Capstone announced its Indy sponsorship with Green Energy.

READ: Capstone Turbine wins two US patents for multi-fuel applications

Adding to the forward momentum, Capstone on May 20 was awarded two US patents that will help the company develop the use of low-emission fuel blends as well a hydrogen to run its microturbines.

And two days later Capstone announced another contract win with an unnamed energy company in Wyoming, which is the largest producer of coal in the US but now seeks to shore up its share of natural gas and renewable power production.

All of this positive news hasn’t been lost on Wall Street

Maxim Group on Thursday initiated coverage of Capstone with a buy rating and a price target of $2. The company’s stock currently trades around $0.85 a share.

Analyst Tate Sullivan said in the note that the Wyoming order and the two patent wins compelled the equity-research firm to go bullish on Capstone.

The analyst also cited Capstone’s first-quarter revenue of $22 million, up 4% year-over-year, as a positive metric. And going forward Sullivan upped the forecast for 2020 revenue to $89.6 million from $89.1 million, based on the potential growth in data centers, hospitals and large office buildings.

Sullivan also noted he sees opportunities for Capstone to rent more of its microturbines.

“Potential customers to rent microturbines include oil and gas  customers that need electricity to produce oil and natural gas from remote well locations. Large buildings under construction may also need to rent microturbines for a source of electricity before permanently connecting to the electric grid,” he wrote. “In addition to an opportunity to rent microturbines, we believe many customers will continue to install backup sources of electricity to reduce reliance on local utilities or to try to cut utility bills.”

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Fri, 24 May 2019 12:52:00 -0400 https://www.proactiveinvestors.com/companies/news/220955/capstone-turbine-caps-a-wave-of-good-news-with-indy-500-sponsorship-220955.html
<![CDATA[News - Capstone Turbine gets a Buy rating and $2 price target from Maxim Group ]]> https://www.proactiveinvestors.com/companies/news/220888/capstone-turbine-gets-a-buy-rating-and-2-price-target-from-maxim-group-220888.html Maxim Group on Thursday initiated coverage of Capstone Turbine Corporation (NASDAQ:CPST) with a buy rating and a price target of $2.

Analyst Tate Sullivan said in a note that Maxim’s decision was based Capstone securing an order from a Wyoming energy company as well as winning two new patents related to using hydrogen and liquid fuels to generate electricity.

Captsone, a manufacturer of microturbine energy systems, on Wednesday secured its fourth order from the unnamed energy company. On Monday, Capstone announced the patent awards.

READ: Capstone Turbine wins two US patents for multi-fuel applications

Sullivan also cited Capstone’s first-quarter revenue of $22 million, up 4% year-over-year, as a positive metric.

“We now forecast 2020 revenue of $89.6 million, up from the previously printed estimate of $89.1 million, based on CPST's potential growth in multiple end markets, including data centers, hospitals and large office buildings,” Sullivan wrote. 

Capstone, based Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries and have saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.

Maxim Group expects to receive or intends to seek compensation for investment banking services from Capstone in the next 3 months.

Capstone shares were at $0.82 on Thursday.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Thu, 23 May 2019 16:37:00 -0400 https://www.proactiveinvestors.com/companies/news/220888/capstone-turbine-gets-a-buy-rating-and-2-price-target-from-maxim-group-220888.html
<![CDATA[News - Capstone Turbine wins opportunities in Wyoming as natural gas, renewable energy demand spikes ]]> https://www.proactiveinvestors.com/companies/news/220802/capstone-turbine-wins-opportunities-in-wyoming-as-natural-gas-renewable-energy-demand-spikes-220802.html Capstone Turbine Corporation (NASDAQ:CPST), a clean-tech manufacturer of microturbine energy systems, announced Wednesday that its regional distributor secured a fourth order from a Wyoming energy company.

The order comes as Wyoming, the largest producer of coal in the US, tries to shore up its share of natural gas and renewable power production.

The follow-on order was secured by Horizon Power Systems, Capstone’s distributor for America’s western mountain states and Western Canada.

DEEP DIVE: Capstone Turbine is leading the charge in a green energy revolution

The company said its C600 Signature series stand-alone microturbine was chosen to run electric power equipment at a remote, unmanned compressor station running on locally available high-pressure natural gas. The microturbine made the cut as the unit meets stringent Wyoming air quality regulations for emissions, low maintenance intervals, reliability and other parameters.

“Burning coal drove much of yesterday’s energy supply. However, we believe clean natural gas, biogas, and renewable natural gas are the answers for our future," said Capstone CEO Darren Jamison. "A natural gas-fueled power plant emits 60% less carbon dioxide than a coal-fired power plant. It is part of our mission to help reduce our customer’s carbon footprint.”

Clean technology

Capstone, based in Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels.

To date, Capstone has shipped more than 9,000 units to 73 countries and saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.

Wyoming currently ranks amongst the top five US states with the most natural gas reserves. Although the state spearheaded coal mining since 1986, a shift in consumer attitudes in favor of cleaner energy alternatives such as natural gas, biogas and renewable energy is driving a shift in the energy mix and power production.

The shift is also impacted by tighter regulations surrounding air pollution and is expected to benefit low-emission technologies.

“Compressor stations always face some natural gas leakage in compressor applications. Microturbines are an effective solution in helping operators such as this one become green by using available ‘slip-gas’ to produce power while reducing emissions,” said Jim Crouse, executive vice president of sales and marketing at Capstone. “Cost savings come from the fact that our microturbines can eliminate the need for utility power or the addition of costly diesel generation and reduce the environmental footprint of the site.”

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Wed, 22 May 2019 09:56:00 -0400 https://www.proactiveinvestors.com/companies/news/220802/capstone-turbine-wins-opportunities-in-wyoming-as-natural-gas-renewable-energy-demand-spikes-220802.html
<![CDATA[News - Capstone Turbine wins two US patents for multi-fuel applications ]]> https://www.proactiveinvestors.com/companies/news/220611/capstone-turbine-wins-two-us-patents-for-multi-fuel-applications-220611.html Capstone Turbine Corporation (NASDAQ:CPST) announced Monday that the US Patent and Trademark Office has awarded the maker of microturbine-energy systems two new patents.

The company said the patents support its initiatives targeting the expansion of multiple fuels for operations, including high-flame speed fuels such as hydrogen, while maintaining Capstone’s industry-leading low emissions.

The first patent is for a multiple-fuel, pre-mixed, low-emission injector for high-flame speed fuel combustion. This patent lays the foundation for continued development to achieve high reliability and performance with hydrogen-content fuels, Capstone said in a statement.

The second patent is for a multi-staged, lean pre-vaporizing, pre-mixing fuel injector providing ultra-low emissions that meet the Environmental Protection Agency’s Tier 4 requirements for power generation. Under this new program, exhaust emissions from these engines will be required to decrease by more than 90%, the company said.

READ: Capstone Turbine and Green Energy Sustainable Solutions to promote renewable energy at the Indianapolis 500

“Both patents use a similar design architecture but with differences for each application. One being for liquid fuels, and the other for hydrogen and hydrogen blend fuels,” said Don Ayers, Capstone’s director of product engineering. “They each seek to control fuel to air mixing to achieve higher performance and combustion efficiencies through flame stability, flashback prevention, and ultra-low emissions.”

The patents are part of the company’s organic technology-growth strategy to develop new fuel capabilities and to integrate these advancements into Capstone’s future C65 Signature Series product line, according to the statement.

“Microturbines operating on alternative fuels like hydrogen, biogas, butane, and renewable natural gas showcases how Capstone’s innovative and adaptable microturbine technology can continue to grow into new segments of the expanding green energy economy,” said CEO Darren Jamison.

Capstone, based Van Nuys, California, offers a product lineup of microturbines that can produce anywhere from 30 kilowatts to 10 megawatts of power, operating on a variety of gaseous or liquid fuels. To date, Capstone has shipped over 9,000 units to 73 countries and have saved customers an estimated $253 million in annual energy costs and 350,000 tons of carbon.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Mon, 20 May 2019 09:03:00 -0400 https://www.proactiveinvestors.com/companies/news/220611/capstone-turbine-wins-two-us-patents-for-multi-fuel-applications-220611.html
<![CDATA[News - Capstone Turbine and Green Energy Sustainable Solutions to promote renewable energy at the Indianapolis 500 ]]> https://www.proactiveinvestors.com/companies/news/220433/capstone-turbine-and-green-energy-sustainable-solutions-to-promote-renewable-energy-at-the-indianapolis-500-220433.html Capstone Turbine Corporation (NASDAQ:CPST) announced Thursday it will champion the promise of renewable energy at the 103rd Indianapolis 500 later this month.  

Capstone is partnering with biogas producer Green Energy Sustainable Solutions Inc of North Carolina to foster awareness of biogas and renewable natural gas as the fuel of the future. The iconic race will be held May 26.

The announcement of the joint-marketing agreement comes on the heels of another deal Capstone just inked on Tuesday with Green Energy, which will buy 12 Signature Series microturbines to generate at least 9.6 megawatts of power, complete with Capstone’s proprietary roof-mounted heat recovery modules as well as Capstone’s PowerSync control platform.

The deal is worth $13 million.

Read: Capstone Turbine inks biggest microturbine order in more than four years with US-based renewable energy company

Both companies will team-up with Harding Steinbrenner Racing in a multi-race sponsorship of the #88 Honda-powered Indy car. Capstone and Green Energy will sponsor the #88 Honda-powered Indy car at the Indy 500 and a variety of other races throughout the remainder of the 2019 IndyCar Series season.

IndyCar reaches an audience of approximately 160 million people around the globe, according to a statement.

Capstone said it and Green Energy are eager to grow their brands together in the IndyCar Series with 19-year-old rookie phenom Colton Herta as well as Harding Steinbrenner Racing in an effort to increase awareness of biogas and renewable natural gas as a critical part of the new green economy and to help combat the effects of climate change caused by global warming.

Green Energy deal biggest order in four years

For Capstone, based in Van Nuys, California, its turbine agreement with Green Energy is the company’s largest order in the growing renewable energy market -- in addition to being its biggest order in four years.

Green Energy’s initial biogas projects will be developed in six US locations in Idaho, Missouri and North Carolina. Green Energy plans to build out more than 20 projects over three years. And if those projects are successful, Capstone said Green Energy would purchase a total of $53 million of Capstone’s product.

Green Energy, based in Raleigh, makes bio-gas from pig manure, cow manure, and agricultural green waste. The bio-gas is compressed and cleaned before being injected into natural gas pipelines to create renewable natural gas.

“We are very excited at this partnership opportunity as we look to further the awareness of our shared core values to bring about continued positive benefits to the environmental well-being of our planet,” said Capstone CEO Darren Jamison. “If you like saving money, would like to save the planet, or don’t like being left in the dark for prolonged periods of time, you should consider Capstone’s innovative, clean and green microturbine products."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Thu, 16 May 2019 09:13:00 -0400 https://www.proactiveinvestors.com/companies/news/220433/capstone-turbine-and-green-energy-sustainable-solutions-to-promote-renewable-energy-at-the-indianapolis-500-220433.html
<![CDATA[News - Capstone Turbine is leading the charge in a green energy revolution ]]> https://www.proactiveinvestors.com/companies/news/220360/capstone-turbine-is-leading-the-charge-in-a-green-energy-revolution-220360.html Capstone Turbine Corp (NASDAQ:CPST) is a multi-faceted energy company that manufactures low-emission, clean-energy microturbine technology for consumer and commercial use globally.

Based in Van Nuys, California, Capstone holds more than 100 patents and produces a range of innovative microturbines that generate clean, green electricity for anything from heating and chilling water for hot showers and air conditioning to powering new generation green skyscrapers.

CEO Darren Jamison compares Capstone’s microturbines, which have only one moving part, to small jet engines that produce electricity and heat while still being green – powered by a range of alternative clean fuels including natural gas, biogas and propane.

The microturbines range from a 30-kilowatt, consumer-level unit up to 200-megawatts – enough to power skyscrapers.

In New York City alone, the company’s microturbines are used in hundreds of buildings, including two units at Hudson Yards, One Vanderbilt next to Grand Central Terminal, as well as Kings County Hospital in Brooklyn and big businesses such as Fresh Direct.

“We make electricity cheaper than they can buy from the grid,” explains Jamison.

With a legacy in the oil  and gas space, Capstone saw an opportunity to join the green energy revolution when oil prices plummeted to around $30 per barrel from about $125 in 2014, putting a dent in the business and prompting diversification.

The move to clean energy, Jamison says, responds to growing demand on a global scale as architects, engineers and real estate investment trusts (REITs) go green and embrace on-site power generation.

With 9,000 machines in 73 countries, including Latin America, the Caribbean, Middle East, Africa, Europe, Fiji, Mali and other underserved parts of the world, Jamison cheerfully compares Capstone to the United Nations in the scope of its international energy footprint.

Its 932 megawatts shipped have generated enough energy to power every home in Philadelphia. And with electricity costs rising globally, demand for the company’s microturbines is growing.

Inflection point

A new market for Capstone microturbines is blossoming among cannabis producers, who are renting spaces to build new grow houses but can’t get the energy they need from local utilities, which leads them to Capstone’s microturbines.

“Our product creates more energy while still being green,” Jamison says, and that appeals to a new generation of cannabis growers who like “the green aspect of our product.”

Demand is highest, he says, in Colorado, California and increasingly in Canada, where medical and recreational marijuana has already been legalized.

Outlook

As of December 31, 2018, the company had $16.7 million in cash and equivalents, $13.2 million in accounts receivable, with total inventories of $19.5 million. It recently announced a plan to preserve operating losses as future tax write-offs.

Product revenue in the second quarter has jumped 22% year over year, reaching the highest level in five quarters, and total revenue grew 12%.

In February, Capstone secured a $30 million three-year note from Goldman Sachs to replace a $15 million credit facility.

Capstone expects to see both product and aftermarket service revenue grow in coming quarters.

But the top line is the main goal, as the company has worked hard to get operational costs down.

“That’s our goal for the next year,” he says. “To really grow revenue, to grow our top line.”

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Wed, 15 May 2019 16:16:00 -0400 https://www.proactiveinvestors.com/companies/news/220360/capstone-turbine-is-leading-the-charge-in-a-green-energy-revolution-220360.html
<![CDATA[Media files - Capstone Turbine scores its largest order in more than four years ]]> https://www.proactiveinvestors.com/companies/stocktube/13351/capstone-turbine-scores-its-largest-order-in-more-than-four-years-13351.html Tue, 14 May 2019 16:30:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/13351/capstone-turbine-scores-its-largest-order-in-more-than-four-years-13351.html <![CDATA[News - Capstone Turbine inks biggest microturbine order in more than four years with US-based renewable energy company ]]> https://www.proactiveinvestors.com/companies/news/220237/capstone-turbine-inks-biggest-microturbine-order-in-more-than-four-years-with-us-based-renewable-energy-company-220237.html Capstone Turbine Corporation (NASDAQ:CPST), the maker of energy-producing microturbines, announced Tuesday it has secured its biggest order in more than four years.

Under an agreement with Green Energy Sustainable Solutions Inc, Capstone said the renewable energy company will use 12 Signature Series microturbines to generate 9.6 megawatts, complete with Capstone’s proprietary roof-mounted heat recovery modules as well as Capstone’s PowerSync control platform.

Payment terms will be secured by a letter of credit set up 30 days prior to each microturbine shipment, with shipments estimated to commence in early 2020 and conclude by that year’s end, according to a statement.

Capstone's stock increased 9.5% to $0.83 following the company's announcement.

Read: Capstone Turbine approves plan to preserve tax-write off losses

Capstone, based in Van Nuys, California, noted that its agreement with Green Energy is the company’s largest order in the growing renewable energy market -- in addition to being its biggest order in four years.

Green Energy, based in Raleigh, North Carolina, makes bio-gas from pig manure, cow manure, and agricultural green waste. The bio-gas is compressed and cleaned before being injected into natural gas pipelines to create renewable natural gas. Green Energy’s initial biogas projects will be developed in six US locations in Idaho, Missouri and North Carolina, Capstone said.

"Capstone’s strategy has been and will continue to be focused on strengthening our core markets while diversifying into additional market verticals like biogas and renewable natural gas,” said Capstone CEO Darren Jamison.

Green Energy’s projects will be covered by a comprehensive 10-year Capstone Factory Protection Plan (FPP), according to a statement. The Capstone FPP is a comprehensive maintenance program designed to give financial peace of mind to microturbine customers by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance for the life of the microturbine system.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Tue, 14 May 2019 09:33:00 -0400 https://www.proactiveinvestors.com/companies/news/220237/capstone-turbine-inks-biggest-microturbine-order-in-more-than-four-years-with-us-based-renewable-energy-company-220237.html
<![CDATA[News - Capstone Turbine approves plan to preserve tax-write off losses ]]> https://www.proactiveinvestors.com/companies/news/219728/capstone-turbine-approves-plan-to-preserve-tax-write-off-losses-219728.html Capstone Turbine Corporation (NASDAQ:CPST) on Monday announced a new plan to preserve operating losses that can used as tax write-offs in the future. 

The microturbine power company said it had as of March 31 a cumulative federal and state net operating loss carryforwards of about $657.8M and $146.6M, respectively. The losses can be utilized to offset future US federal and state taxable income.

Under US tax law, an unprofitable company can carry foward losses up to 20 years and then use those losses to reduce or eliminate income taxes when it eventually becomes profitable. 

To preserve the tax-write off assets, the Van Nuys, California-based company said it invoked a Net Operating Loss (NOL) Shareholder Rights Agreement to allows Capstone's stockholders “to realize the long-term value of their investment in Capstone.”

Dividend announced

Also, Capstone's board declared a non-taxable dividend of one preferred share purchase right for each outstanding share of its common stock, which will be paid to the stockholders of record at the close of business on May 16.

The rights will be exercisable if shareholder acquires 4.9% or more of Capstone common stock and if a holder that already owns 4.9% or more of Capstone common stock acquires additional shares (other than as a result of a dividend or a stock split).

Capstone's existing stockholders that beneficially own in excess of 4.9% of the common stock will be grandfathered in at their current ownership level. If the rights become exercisable, all holders of rights, other than the person or group triggering the rights, will be entitled to purchase Capstone common stock at a 50% discount.

Rights held by the person or group triggering the rights will be voided and not exercisable, the company said.

The rights are not taxable to Capstone stockholders. The rights will trade with Capstone's common stock and will expire on the first day after the company’s 2019 annual meeting unless the Capstone stockholders ratify the NOL Rights Plan prior to that date.

In that case, the term of the NOL Rights Plan will be extended to three years, the company said.

Capstone Turbine’s stock recently traded up 0.92% to $0.87 a share.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @patrickmgraham

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Mon, 06 May 2019 10:51:00 -0400 https://www.proactiveinvestors.com/companies/news/219728/capstone-turbine-approves-plan-to-preserve-tax-write-off-losses-219728.html
<![CDATA[Media files - Capstone Turbine Corporation expands into cannabis industry with its microturbines ]]> https://www.proactiveinvestors.com/companies/stocktube/12788/capstone-turbine-corporation-expands-into-cannabis-industry-with-its-microturbines-12788.html Fri, 29 Mar 2019 10:02:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/12788/capstone-turbine-corporation-expands-into-cannabis-industry-with-its-microturbines-12788.html <![CDATA[News - Capstone Turbine Corp - One to Watch as They Close in on Profitability ]]> https://www.proactiveinvestors.com/companies/news/78684/capstone-turbine-corp-one-to-watch-as-they-close-in-on-profitability-16401.html Creating exceptional products is a significant accomplishment, but in order for shareholders to be rewarded a company must be able to develop, manufacture and sell those products profitability.  Capstone Turbine Corporation (NASDAQ:CPST) (“Capstone”) is the world leader in low-emission microturbine systems based on number of microturbines sold.  Despite challenging economic conditions, Capstone was able to report record revenues and improving gross margins during the fiscal year ended March 31, 2011 although they have yet to achieve profitability.

Founded in 1988, Capstone develops, manufactures, sells and services microturbine technology solutions. Capstone is headquartered in the Los Angeles area with sales and/or service centers in New York, Mexico City, Nottingham, Shanghai and Singapore.  Capstone’s microturbines are similar to a miniature jet engine and the turbogenerator has just one moving part supported by Capstone’s patented air bearings.  The microturbines are ideal solutions for resource recovery where fuel is readily available and often an expense to dispose of, for secure power, as battery charging generators for hybrid electric vehicles, and in remote power applications where the costs of connecting to the grid may be high or impractical.  

The microturbines also provide economic benefits relative to power purchased from the electric utility grid in instances where the waste heat from the microturbine has value as in combined heat and power (CHP) and combined cooling, heat, and power (CCHP) applications.  Energy efficiencies for CCHP applications are near 90 percent. 

Capstone’s microturbines operate on a variety of gaseous or liquid fuels including, but not limited to; unprocessed wellhead gas providing a reliable power source to onshore and offshore oil and gas operations and waste gas from landfill, wastewater, and agricultural operations.  The microturbines are scalable from 30 kilowatts (kW) to five megawatts (MW) and are a clean, green, reliable source of electricity and thermal power. 

Microturbines compete with other distributed generation technologies such as solar and fuel cells, along with reciprocating engines from companies that have products and markets that are well developed and technologies that have been proven for some time.  In comparison to traditional reciprocating engines, Capstone’s microturbines have greater reliability, require less maintenance, and emit less greenhouse gas emissions.  

According to Capstone's earnings call presentation and transcript the addressable markets for Capstone’s products are estimated to be in excess of $14.6 billion annually, with potential targeted capture for Capstone of $1.5 billion over the next 7 to 10 years. Nearly $1 billion of the potential capture comes from oil & gas, combined heat & power, and renewable energy markets.  Low emissions and low maintenance are becoming more valued by the oil and gas industry as they search for oil and gas in more remote locations and emission regulations become more stringent.  General Electric (NYSE:GE) and Caterpillar (NYSE:CAT) currently dominate the addressable markets with their reciprocating engine technology shipping an estimated $3.5 billion to $4 billion into the space last year.  With $82 million in revenue for FY2011, Capstone is capturing only a fraction of the total market opportunity.  

During the fourth quarter FY2011, Capstone set records for product orders as well as product revenue. New product orders totaled $41 million for Q4 on the strength of the developing U.S. shale gas market and strong order flow from Russian oil and gas and combined heat and power markets. 

Record new product revenue of $19.2 million was generated in Q4, up from Q3's record $18.9 million. Total revenue was $35 million in the first half of FY2011 and jumped to $47 million, an increase of 34 percent for the second half of FY2011.  Unfortunately, product shipments were constrained during Q4 due to supply chain problems and part shortages as vendors struggled to meet the required production ramp up.  Products had to be diverted from aftermarket operations to meet new product demand impacting not only revenue, but also gross margins as aftermarket accessories, parts and services contribute higher gross margins than new product sales. The company appears capable of recovering from its supply chain difficulties as the business continues to grow. 

Despite record new product revenue and improving gross margins, supply chain constraints and other growing pains left the company reporting a loss of 12 cents /diluted share for Q4 FY2011, sending its stock tumbling as investors were expecting a much smaller loss for the quarter.  Capstone set company records for total revenue, gross margins, and backlog during FY2011 and year-over-year the loss per share improved from a 34 cents loss in FY2010 to a loss of 16 cents in FY2011.  For the company to become profitable they will have to continue these improvements through FY2012.  

Global oil & gas markets had a major impact on Capstone’s business in FY2011 with the Russian associated gas market and the U.S. shale plays dominating the current backlog. Recent orders in these markets have the potential to do so again in FY 2012 and beyond.  Capstone microturbines are installed at oil and gas exploration, production, compression, and transmission sites both onshore and offshore as highly reliable, low-emission, low-maintenance, and critical sources of power generation. 

Capstone is a high-risk/high-reward play.  If Capstone continues to grow revenue at or near the 30% growth rate they have achieved for four consecutive years, and delivers gross margin improvements by increasing selling prices and lowering direct material costs its shareholders will be rewarded.  At the market close on June 22, 2011 the stock was trading at $1.42 with a market cap of $349M.  For investors who have owned the stock for a considerable period of time, the road to profitability has likely been longer than desired, but sometimes it takes time to get the right people in place, to find your place in the market, and to get the flywheel spinning.  Capstone’s flywheel is spinning now.  

The author is long Capstone Turbine Corp.

 

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Mon, 18 Jul 2011 12:47:00 -0400 https://www.proactiveinvestors.com/companies/news/78684/capstone-turbine-corp-one-to-watch-as-they-close-in-on-profitability-16401.html