- International marketing strategy resulting in strong re-order activity
- Advancements in new product categories launched at National Hardware Show resulting in growing end-user demand
DEERFIELD BEACH, Fla., Oct. 20, 2015 (GLOBE NEWSWIRE) -- Capstone Companies, Inc. (OTC:CAPC) ("Capstone" or the "Company"), a designer of innovative LED lighting solutions, including power failure lighting, today provided an update on the recent success of its international marketing efforts and new product category introductions.
Stewart Wallach, Capstone's CEO, commented, "We are seeing significant re-order activity from the international markets where we placed a strategic focus over the last few years. Specifically, our customers and channel partners in Australia, Japan, Korea, Taiwan, and most recently the UK are reporting significant end-user demand for our latest product developments, driving nearly $1 million in additional international sales which mostly shipped during Q3."
He added, "Capstone has also made significant product advancements on the new product categories that we introduced during the National Hardware Show in May, which are being well received in the marketplace. In an effort to continue to build on this momentum, we are expanding on our consumer and retailer distribution and have new commitments from a major warehouse club retailer that are scheduled to hit shelves in February 2016.
"The immediate acceptance rates on our new products have exceeded our expectations, particularly in the warehouse club channels where the review process is expedient. These results are positive proof points of our strategy's effectiveness and we will continue to drive demand by carrying-out our strategy to develop new innovative product designs, while increasing the availability of our products across the globe through alliances and by deepening relationships with major multinational retailers."
As previously reported on October 6, 2015, Capstone expects to report strong results for its third quarter ended September 30, 2015. Third quarter gross margins expanded significantly over the prior-year period to over 25%, and net income is expected to approach approximately $1.0 million. Additionally, the Company entered the fourth quarter with a record backlog of over $7 million, driving expectations for strong fourth quarter year-over-year revenue growth and record revenue for the second half of 2015.
About Capstone Companies, Inc.
Capstone Companies, Inc. is a public holding company that engages, through its wholly-owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing, logistics, and distribution of consumer and institutional products, including the Hoover® HOME LED lighting product line, to accounts throughout North America and in international markets. See www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.
FORWARD-LOOKING STATEMENTS:
This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such statements consist of words like "anticipate," "expect," "project," "continue" and similar words. These statements are based on the Company's and its subsidiaries' current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Company's products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors. Prior success in operations does not necessarily mean success in future operations. The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue. The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a "penny-stock Company" and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Company's Annual and Quarterly Reports filed with the Securities and Exchange Commission. Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Contents of referenced URL's are not incorporated into this press release.