Capstone Turbine Corporation (NASDAQ:CPST) announced that Kirk Petty has been promoted to senior vice president of operations after he made impressive progress in leading the company toward its cost reduction and zero-waste facility goals.
"Kirk is a long-term employee of Capstone and has moved up through the organizational ranks, having worked in and led our quality organization, providing leadership of our Six Sigma initiatives, a key member of our Signature Series product launch, and remarkably led our multiple manufacturing organizations transition into a single facility,” CEO Darren Jamison said in a statement. “Kirk has done an exceptional job leading all of Capstone's operations — including the manufacturing, purchasing, planning and logistics teams."
The Van Nuys, California company has a plan to achieve positive adjusted EBITDA by the June 2020 quarter. In order to get there, Capstone said it will need to lower its quarterly operating expenses from an average of $6.5 million to a range of $5.2 million to $5.7 million and reduce direct material costs (DMC) by approximately $3 million on an annual basis.
The cuts will be achieved through already negotiated cost savings on super alloys, stators, batteries, injectors and other miscellaneous materials. Hitting the annual $3 million savings target will have a favorable impact both to the Capstone's new product margins, the company said, as well as on its spare parts and Factory Protection Plan (FPP) long-term service contract margins.
Capstone is glad it has Petty to help make it happen.
"Kirk's relentless creativity, drive and dogged focus on reducing our direct material costs while simultaneously tightly managing working capital, and driving us towards a zero-waste facility while improving overall operational safety has been extremely impressive and is a key factor towards our continuing progress against our stated target goal of positive Adjusted EBITDA in the quarter ending June 2020," Jamison added.
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