Capstone Turbine issued the following announcement on Nov. 24
Capstone Turbine Corporation the world's leading clean technology manufacturer of microturbine energy systems, announced today that IBT Connecting Energies GmbH (www.ibtgroup.at), Capstone's exclusive distributor for Italy, recently signed two Factory Protection Plan (FPP) renewals in the recovering Italian food production industry. Despite the ongoing COVID-19 pandemic, Capstone's global FPP renewal rate in Fiscal 2021 has remained consistent, at approximately 80%, when compared to previous years.
These most recent FPP renewals are for two food processing plants in the Venice region, with one producing artisan pasta and the other organic plant-based and fruit drinks. These two food production plants are key contributors to the region's recovering economy that exports throughout Europe and relies on Capstone's microturbines for heat recovered high-efficiency and low-emissions green energy.
"Capstone's innovative Factory Protection Plan helps customers who deploy our microturbines closely manage maintenance costs over the life of the contract, up to 20 years," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "In this current environment of uncertainty as the world fights the COVID-19 pandemic, our FPP helps essential industries to keep producing with no additional operating cost risk," added Mr. Foster.
"Our Energy as a Service (EaaS) business, with its recurring revenue and higher margins, has proven critical during the pandemic and allowed us to deliver a positive adjusted EBITDA in the June quarter and generate positive cash from operations in the September quarter for the first time in eleven quarters," stated Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation.
"Specifically, our FPP business has been especially resilient during the COVID-19 pandemic, generating consistent high-margin revenues for our stakeholders and peace of mind for our many essential industry customers. Today, Capstone's global FPP coverage rate of qualified fielded systems is approximately 57% and continues to grow despite the pandemic," concluded Mr. Jamison.
Capstone's innovative Factory Protection Plan, or FPP, is a comprehensive maintenance program designed to give Capstone customers financial peace of mind by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance of the life of the microturbine system. Additionally, the recently updated FPP protects microturbine customers from potentially dramatic future increases in life cycle costs associated with changes in replacement spare parts pricing, commodity price increases, import tariffs, and interest rate changes.
Original source can be found here.
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