28 October 2002 – Capstone Turbine Corporation a leading producer of low-emission microturbine systems, today announced preliminary financial results for the third quarter ended September 30, 2002. In the period, the company shipped 3.2 MW of its products. The company expects to report revenue of $3.9m and post a loss per share of between $0.14 and $0.16. The company’s cash utilization rate is approximately $11m for the quarter.
Capstone also announced that its Board of Directors has approved a stock repurchase program under which the company may purchase up to $10 million of Capstone common stock. The company could purchase shares from time to time through open market and privately negotiated transactions at prices deemed appropriate by management. The program has no termination date. Capstone has approximately 77.5 million shares of common stock outstanding and approximately $144 million of cash and cash equivalents.
Ake Almgren, the Company’s President and Chief Executive Officer, also announced his intention to retire.
Dr. Almgren stated, “Capstone is by far the leading microturbine company. Today we have achieved one of my principal goals for the Company, that of establishing a strategic partnership with a major participant in distributed generation, United Technologies. I have had the opportunity of leading the company from being a small private company, through the launch of the first commercial microturbine, the IPO process, and then positioning the public company for future growth. While the company has initiated an executive search for my successor, and the transition timeline is not yet established, I have agreed to support a smooth transition and continue the efforts of developing additional strategic alliances. As part of the transition process I have resigned as the Chairman of the Board. I am delighted to announce that Eliot Protsch, President of Interstate Power and Light Co. for Alliant Energy Corporation, has accepted the board’s nomination to that role.”
Separately, Capstone Turbine and United Technologies Corp. through its UTC Power division announced they have entered into a strategic alliance.
The strategic alliance between UTC and Capstone is a long-term agreement to integrate, sell and service microturbine-based combined heat and power (CHP) solutions for commercial buildings. UTC and Capstone intend to build on key product, technology and channel strengths of the companies, including those of UTC’s Carrier Corp. — the leading manufacturer of heating, ventilation and air conditioning (HVAC) systems.
The agreement covers North America and most of Europe. As part of the alliance agreement, UTC has committed to purchase a 4.9 percent stake in Capstone.
Capstone is the leading producer of low-emission microturbine systems. UTC Power is leading UTC’s efforts in distributed generation. UTC Fuel Cells, a leader in commercial fuel cells, is a part of UTC Power.
Jan van Dokkum, president of UTC Power, said, “UTC is committed to improving the energy efficiency of commercial buildings. We believe Capstone microturbines will be an important element of our distributed generation strategy. Together, we will build upon the valuable lessons of our U.S. Department of Energy (DoE) Advanced Microturbine System and Building, Cooling, Heating and Power programs. Our investment in Capstone underlines our commitment and recognizes Capstone’s leadership position in microturbines. We look forward to embarking on this long-term relationship.”
“We are pleased to announce the strategic alliance between UTC and Capstone,” said Dr. Ake Almgren, president and chief executive officer of Capstone. “As we have consistently said, building a substantial business in distributed generation will require distinctive technology, proven products and world class channels. This alliance combines some of the best of these capabilities. We believe Capstone microturbines, integrated to work directly with UTC’s CHP equipment, will provide significant benefits to our customers. Earlier this year, Capstone announced its focus on CHP, and this alliance with UTC provides a key step forward in enhancing opportunities for commercial CHP solutions.”