Question:

My question is related to the C250 development. Can I assume that the 25% increase in power output will be achieved with minimal additional product cost over the C200? If that's the case, will that productivity be used for helping overcome the 30% up front price disadvantage in the marketplace or help with margin improvement? Finally, when is the product expected to be available commercially? Keep up the good work moving this technology forward! I'm a huge fan.

Answer from Capstone Management:

We expect the C250 to provide 25% more power for approximately 10% additional cost. Management does not plan to lower first cost until the Company achieves its targeted margin rate of 35%. If the 35% margin rate is achieved, then management will consider lowering the product’s initial pricing on a strategic basis. The C250 product is in laboratory testing and is scheduled for field trials later this year. Commercial launch is expected to be in approximately 18 months depending on the results of the field trials.

Question:

With your backlog decline Q/Q, it appears that you got no benefit from Superstorm Sandy. Why not? 

Answer from Capstone Management:

Capstone’s distribution partners did receive an influx of new inquiries as a result of Super Storm Sandy. However, the average project life cycle from inquiry to delivery is approximately 9-12 months. Therefore, Capstone did not expect to see Sandy-related orders in Q3. 

Question:

Will delisting from the NASDAQ be facing us in the face soon if our price share does not go back above a dollar? This can't be good for us long time shareholders can it? 

Answer from Capstone Management:

On December 21, 2012 Capstone received a notice from Nasdaq stating that, for the last 30 consecutive business days, the closing bid price for the Company's common stock had been below the minimum $1.00 per share requirement.

In accordance with Nasdaq listing rules, the Company has been provided 180 calendar days, or until June 19, 2013, to regain compliance with the minimum bid price requirement. In order to regain compliance, the bid price of the Company's common stock must close at $1.00 per share or more for a minimum of ten consecutive business days, at which time Nasdaq would provide written confirmation of the Company's compliance.

 

Management is focused on continuing to improve the financial performance of the Company and will monitor the listing situation over the next several months. If Capstone does not regain compliance prior to the June deadline, Management would seek a time extension from Nasdaq or take other remedial actions to maintain its Nasdaq listing.

Question:

ORIGIN was supposed to make a decision on a follow-on order before the end of 2012 was such an order received? Has it been postponed or just not anticipated any longer?

Answer from Capstone Management:

 

Capstone received a follow-on order from a large Australian coal seam gas company in early October. The order was announced through a press release dated October 10, 2012.

 

Capstone's distributor Aquatec-Maxcon Pty Ltd secured the new follow-on five-year supply contract. This second contract is for an additional supply of possibly hundreds of Capstone C30 microturbines over a five-year period. The initial order from the second contract is for 44 C30 microturbines, which are scheduled to be shipped to Aquatec-Maxcon for packaging by the end of March 2013.  

 

Question:

Are the any buses in regular service or in demonstration or trial fleets using Capstone turbines as range extenders or to power generators for electric drive systems. If so where and how many?

Answer from Capstone Management:

There are over 60 buses operating using Capstone microturbines as range extenders in electric buses worldwide. Buses are in operation in Italy, Russia, Japan, China, England and the United States. U.S. locations include Baltimore, Denver, Arlington, Pasadena and the Charlotte airport.