Capstone Further Cuts Expenses by Reducing External Audit and Investor Relations Expenses
December 07 2016 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that as part of its
three-pronged profitability plan, it has substantially reduced its
external audit and investor relations expenses by changing audit
firms and insourcing the investor relations function.
A key part of Capstone’s three-pronged
profitability plan is reducing the company’s breakeven revenue
levels from approximately $160 million in annual revenue at 25%
gross margin to approximately $100 million in annual revenue by
reducing total business expenses by 35% from the first quarter of
fiscal 2016 levels.
The company’s recently reported operating expenses
for the second quarter fiscal 2017 decreased by approximately 33%
to $6.4 million from $9.6 million in the year-ago quarter resulting
in a net loss for the second quarter of $5.9 million, compared with
a net loss of $7.9 million in last year’s second quarter, despite
lower year-over-year revenue.
Darren Jamison, President and Chief Executive
Officer of Capstone, said, “By changing our audit firm and
insourcing our investor relations function, we estimate that we
will reduce our external audit and investor relation expenses by
approximately $600,000 in fiscal 2018 compared to fiscal 2016. This
is the latest step for us as we continue to look at reducing costs
in order to achieve our goal of reducing total business expenses by
35%.”
Other aspects of our path to profitability include
developing new products and services to drive renewed revenue
growth opportunities and the launch last December of the Capstone
Energy Finance joint venture to capture lost orders due to the lack
of customer capital dollars or project financing.
“As we continue to execute on all phases of our
three-pronged profitability plan, I believe we will accomplish our
35% cost reduction target first, followed by our revenue target,
and lastly our 25% gross margin target, as this margin is dependent
on increased product volumes and continued reduction in the direct
material cost of our recently launched Signature Series CHP
product,” added Mr. Jamison.
About Capstone Turbine Corporation
Capstone Turbine Corporation
(www.capstoneturbine.com) (Nasdaq:CPST) is the world's leading
producer of low-emission microturbine systems and was the first to
market commercially viable microturbine energy
products. Capstone has shipped approximately 9,000 Capstone
Microturbine systems to customers worldwide. These award-winning
systems have logged millions of documented runtime operating
hours. Capstone is a member of the U.S. Environmental
Protection Agency's Combined Heat and Power Partnership, which
is committed to improving the efficiency of the nation's energy
infrastructure and reducing emissions of pollutants and greenhouse
gases. A UL-Certified ISO 9001:2015 and ISO 14001:2015 certified
company, Capstone is headquartered in the Los Angeles area
with sales and/or service centers in the United States, Latin
America, Europe, Middle East and China.
This press release contains "forward-looking
statements," as that term is used in the federal securities laws,
about the achievement of our three-pronged profitability plan,
including meeting revenue, gross margin, and cost reduction
targets. Forward-looking statements may be identified by words such
as "expects," "objective," "intend," "targeted," "plan" and similar
phrases. These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone's
filings with the Securities and Exchange Commission that may cause
Capstone's actual results to be materially different from any
future results expressed or implied in such statements. 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.
"Capstone" and "Capstone Microturbine" are
registered trademarks of Capstone Turbine Corporation. All
other trademarks mentioned are the property of their respective
owners.
Capstone Turbine Corporation
Investor and investment inquiries:
818-407-3628
ir@capstoneturbine.com
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