Capstone Turbine Corporation, manufacturers of low-emission microturbine systems, today announced that it has substantially lowered its expectations for sales of microturbine units during the third quarter and for the full year 2001. The company blames the impact of economic slowdown in the US for its failure to turn the predicted number of proposals into firm orders.
Dr. Ake Almgren, President and CEO of Capstone said, “We believe our microturbines do provide an attractive economic proposition for many of our potential customers in California and elsewhere, in light of the relatively high utility electricity rates that are being projected for the future. But during a period of economic slowdown, the capital investment required to achieve those benefits may have become a more significant factor for some customers.”
In its second quarter SEC filing, Capstone said that a large portion of its sales occurred during the latter part of that quarter, and that the trend appeared to be continuing into the third quarter. In today’s statement, it admits that, so far during the third quarter, there has not been a similar pickup in order flow. In addition, sales during the first half of the third quarter have lagged substantially behind those during the first half of the prior quarter.
Dr. Almgren said that the changing pattern meant that they were not a position to estimate what third quarter sales would turn out to be, but that over the long term, he remained optimistic about prospects for growth.
The company’s third quarter figures will be reported on or about October 25, 2001.