Capstone Turbine (CPST) Signs Contract for its First C1000 Long Term Factory Protection Plan
Capstone Turbine (Nasdaq: CPST) has signed a contract for its first C1000 long term Factory Protection Plan (FPP) for three C1000 systems recently shipped to Aquatec-Maxcon Pty Ltd, its distributor for the Australian market. The three unit order will soon be installed at a major coal seam gas producer in a reverse osmosis water system application.
This C1000 FPP contract is valued in excess of $2 million dollars over a 10 year period. This latest contract pushed the total FPP backlog over $11 million dollars as of May 31, 2009. Capstone launched the FPP program approximately two years ago to improve the reliability and service of its microturbine solutions. Typical FPP service contracts vary in length from a minimum of one year to a maximum of 11 years with most FPP contracts covering between five and nine years. Customer payments are generally received quarterly in advance over the term of the FPP.
Capstone Turbine Corporation engages in developing, manufacturing, marketing, and servicing microturbine technology solutions. [SM]
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