Capstone Resumes Product Shipments to Russian Distributor BPC Engineering
CHATSWORTH, Calif., March 02, 2016 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it is resuming product shipments to BPC Engineering, the company’s largest Russian distributor. The order, consisting of seven C65 microturbines, is the first to be shipped to BPC Engineering since March 2015.
“The seven C65s are for a project that has been delayed since the beginning of last year,” said Alexander Skorokhodov, BPC Engineering’s Chief Executive Officer. “The project is a combined heat and power (CHP) application for a swimming pool in Saint Petersburg. I believe this project moving forward signifies an improvement in the Russian market conditions and I estimate we will deliver another 4 to 7MW of new Capstone product next year, plus a constant flow of spare parts to service our existing large fleet of microturbines,” added Mr. Skorokhodov.
BPC Engineering has historically been one of Capstone’s largest and most successful distribution partners, with over 1,400 microturbines in operation in Russia, Belarus, Kazakhstan and Ukraine. The company is a leading supplier of energy efficient solutions and state-of-the-art equipment for distributed power generation. The new project originated approximately two years ago and had been removed from Capstone’s backlog due to the uncertainties surrounding the project timing in light of the Russian economy.
“We are hopeful that this reflects the beginning of an economic improvement in Russia and a return to a more robust relationship with BPC,” said Jim Crouse, Executive Vice President of Sales and Marketing at Capstone Turbine. “Despite geopolitical constraints, BPC continues to sell and support Capstone products,” added Mr. Crouse.
“We value BPC Engineering as a significant and long standing distribution partner. Capstone has closely monitored the ongoing Russian economic situation while remaining in constant contact with BPC’s management in anticipation of a recovery in their business climate. As part of the strategic discussions between the two companies on the conditions moving forward, BPC Engineering has agreed to pay cash before shipment for all future product releases from backlog, and to pay an additional 15 percent of the value for each shipment, to lower their past-due accounts receivable balance,” said Darren Jamison, Capstone's President and Chief Executive Officer.
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 Turbine has shipped approximately 8,700 Capstone Microturbine systems to customers worldwide. These award-winning systems have logged millions of documented runtime operating hours. Capstone Turbine 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 9001:2008 and ISO 14001:2004 certified company, Capstone is headquartered in the Los Angeles area with sales and/or service centers in the New York Metro Area, United Kingdom, Mexico City, Shanghai and Singapore.
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This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the advantages of our CHP applications, the recovery of the Russian economy, the market growth in Russia, cash payments for orders from BPC, and estimates on sales of products and parts. 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.
CONTACT: Capstone Turbine Corporation Investor and investment media inquiries: 818-407-3628 firstname.lastname@example.org INVESTORS: Dian Griesel Int’l Cheryl Schneider/Tom Caden 212-825-3210
Released March 2, 2016