Capstone Receives 9MW Factory Protection Plan Contract -- FPP Contract Backlog at Record of Over $55 Million
CHATSWORTH, Calif., Aug. 18, 2014 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, today announced that it has signed a Factory Protection Plan (FPP) contract for nine C1000s increasing the total contract backlog for Capstone FPPs to a record of over $55 million. This $55 million in service backlog is in addition to the record $175 million product backlog as of June 30, 2014.
Horizon Power Systems, a leading energy supplier in the Oil and Gas market boasting a fleet of over 600 Capstone microturbines in operation, secured the FPP service contract to cover a major oil and gas producer's nine Capstone C1000 power packages at multiple locations.
Capstone microturbine is already the top choice in the low emission distributed generation oil and gas market due to its ability to deliver clean, reliable, and cost-effective power solutions. The Capstone FPP is unmatched in the industry and is designed to secure the reliability of the Capstone system by offering a risk-transfer solution aimed at limiting the monetary risk of any unplanned maintenance over the life of the contract.
"Most oil and gas producers work in remote locations where an electric utility grid is not an option or unreliable. The Capstone microturbine becomes the sole source of critical low emission power that our customers have come to rely on," said Sam Henry, President of Horizon Power Systems.
The nine C1000 systems currently operate in remote central gas gathering plants belonging to one of the largest natural gas operators in the Rocky Mountain and Mid-Continent regions, and the sites are now further protected under the inclusive Capstone FPP contract for a full nine years.
"The Capstone system is unique in its capability to drastically reduce flared gas and instead capture this gas and cycle it back into the production process, allowing our customers the ability to conduct business in a safe and environmentally responsible manner. The addition of the FPP will provide our customer with the peace of mind that they are covered by the Capstone factory for an additional nine years," adds Henry.
Darren Jamison, Capstone President and Chief Executive Officer, said, "We have seen steady adoption of our Factory Protection Plan offering, and I am pleased to have exceeded $55 million in backlog in such a short period of time."
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 7,000 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 factory protection plan offering. 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.
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Released August 18, 2014