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Seasound

01/07/13 10:37 PM

#14424 RE: chklingon #14421

{Just because they have not announced any sales does not mean there have been none. In theory, they can work on the backlog without getting further behind.}

As answered in "Ask Management" announcements are only made for significant new orders that can have a "material" effect on Capstone's bottom line or something to that effect.

As to the backlog...it is just that, i.e. a backlog of orders that are filled on the customer's schedule, not Capstone's. Orders come and orders can go, there are no guarantees that all orders will result in production and delivery. DJ also mentioned that Capstone Turbines have a poor shelf life due the nature of the air bearing. There is no fundamental reason to produce a high cost product without an invoice. What if no customer requested delivery this quarter? Think about that possibility.

All of foregoing is one reason I believe that a steady stream of new orders and product shipping is vital to the Company's continued growth.