Capstone Receives $1.1 Million from New Distributor Support System to Accelerate Future Product Revenue and Improve Global Br...
November 05 2018 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST), the world's leading clean technology manufacturer of
microturbine energy systems, provided the initial results today of
its new Capstone Distributor Support System, or DSS program, that
was initiated as of January 1, 2018 and outlined publically this
past April.
The goal of the new DSS program is to provide improved worldwide
distributor training, sales efficiency, website development,
company branding and funding for increased strategic marketing and
customer acquisition activities. Specifically, the DSS program
consolidates funding for additional support that is needed for
ongoing distributor business development activities, customer lead
generation, brand awareness, and marketing services for each
geography and market vertical served. Under the new DSS program,
Capstone’s distributors no longer pay for regularly scheduled
training courses for authorized service providers (ASPs), product
applications or product sales. The DSS program also covers all
required software licenses that are needed to be an efficient and
successful Capstone distributor. In addition, the DSS program
includes the development and hosting of new distributor websites,
which are being linked to Capstone’s corporate website to provide a
seamless customer experience worldwide.
The new DSS program is fully sponsored by Capstone’s global
distribution network through funding derived from a formula based
on a distribution partner’s prior calendar year of Capstone
specific revenue. In calendar year 2018, Capstone received $1.1
million, or approximately 80%, of the expected $1.3 million of
funding and has distributor commitments and payment plans in place
to collect the remaining $300 thousand of funding due by the end of
the calendar year. As a result of the DSS program, Capstone has
increased its global marketing and customer acquisition efforts
without negatively affecting its lean operating expense
profile.
The new DSS program provides several unique and proprietary
products and services to Capstone’s global distribution network to
help drive future revenue growth and further Capstone’s global
brand recognition. This new DSS program not only contributes
directly to the growth of the service revenue line item but it also
impacts growth in product revenue as a result of the increased
global marketing and customer acquisition activities. Capstone’s
product revenue for the second quarter of fiscal 2019 was up
approximately 22% year over year and total revenue for the first
six months of the fiscal year is up double-digits
year-over-year.
In October 2018, Capstone exhibited, sponsored or presented at
the following events:
- HOMER International Microgrid Conference in San Diego,
California;
- Distributed Energy Conference in Golden, Colorado;
- Millennium Alliance Healthcare Summit in Denver, Colorado;
- Vale Sub Saharan African Power Summit in Cape Town, South
Africa; and
- World Energy Engineering Conference (WEEC) in Charlotte, North
Carolina
In November, Capstone will be displaying its microturbine
products at the upcoming Abu Dhabi International Petroleum
Exhibition and Conference (ADIPEC) in Dubai, United Arab Emirates.
ADIPEC is one of the largest energy exhibitions in the world and is
set to welcome an estimated 110,000 attendees from November 12th to
15th.
“Based on the early returns, the new DSS program has been very
successful and is expected to be a key enabler of our future
double-digit revenue growth plans as it has dramatically increased
Capstone’s annual spend on customer acquisition efforts, marketing
and branding without increasing our annual operating expenses,”
said Darren Jamison, President and Chief Executive Officer of
Capstone.
“The beauty of this new program is that it allows us to speed up
the maturation process within the Capstone distribution channel
while continuing to expand the program’s funding each year as our
annual revenue increases. It helps identify which of our
distribution partners are aligned with the goals of the Capstone
family and to improve our ability to execute future growth plans.
We have seen fantastic support from some of our most loyal and
forward-looking distribution partners, such as E-Finity, Horizon
Power, RSP Systems, Cal Microturbine and Supernova,” 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 over 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 DQS-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
Asia.
For more information about the company, please visit
www.capstoneturbine.com. Follow Capstone Turbine on Twitter,
LinkedIn and YouTube.
Forward-Looking Statements
This press release contains “forward-looking statements,” as
that term is used in the federal securities laws. Forward-looking
statements may be identified by words such as “expects,”
“believes,” “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 |
|
ir@capstoneturbine.com |
|
|
|
Integra Investor
Relations |
|
Shawn M. Severson |
|
415-226-7747 |
|
cpst@integra-ir.com |
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