Capstone Companies Inc (CAPC)

[RG]

NEWS October 6, 2015 – Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer of innovative LED lighting solutions including power failure lighting, today provided information on its expected results for the third quarter of 2015 which ended on September 30, 2015.
Stewart Wallach, Capstone’s CEO, commented, “Our new product strategy focusing on leading product categories and new product introductions has driven revenue growth and improved profitability in the third quarter. The new products debuted at this year’s National Hardware Show in May have been well received by our customers and are expected to strengthen consumer demand for our products.”
Following is a summary of the Company’s preliminary results for the 2015 quarter and its fourth quarter outlook.
? Revenue for the third quarter 2015 is expected to be approximately $7.7 million, up slightly from the prior-year period. This is up measurably from revenue of $1.0 million in the first half of 2015.
? Gross profit margin is expected to exceed 25% in the 2015 third quarter, well above the 14.4% reported in the 2014 third quarter, primarily reflecting the benefits of streamlining product offerings, changes in sales strategy and the success of new product introductions made at the 2015 National Hardware Show in May.
? Net income for the third quarter is forecasted at approximately $1.0 million, nearly offsetting a net loss of $1.1 million for the first half of 2015.
? Backlog at the end of the third quarter was over $7 million.
? Record second half 2015 revenue is expected to exceed 85% of 2014 full-year revenue of $13.6 million.
? Anticipated strong fourth quarter revenue growth driving expectation for a return to profitability in 2015.
Capstone will report its 2015 third quarter results in mid-November 2015 and information on the conference call and webcast will be provided in a separate news release to be issued in early November.