Capstone to Reduce Staff, Expenses

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Microturbine maker Capstone Turbine Corp. said Wednesday that it has eliminated an additional 22 professional positions as it continues to reduce expenses.

After reporting a wider third quarter loss in February, the Chatsworth specialty turbine maker laid off 19 employees in February and canceled 16 open positions. The new reductions bring the company’s head count to 212 people.

Capstone, whose microturbines are used in the construction of combined heat and power generation plants and hybrid electric vehicles, said the two reductions should save $3.7 million annually.

The company also said that preliminary results for its 2009 fourth quarter show a reduction in cash used to $4.9 million, compared with $21.6 million in the previous quarter. Capstone opened a $10 million line of credit with Wells Fargo Bank in February and said its cash balance at the end of March was about $19.5 million, with $3.7 million outstanding on the line of credit.

Capstone shares were up 3 cents, or 4 percent, to 78 cents in midday trading on the Nasdaq.

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