During the course of this conference call, management may make projections or other forward-looking statements regarding future events or financial performance of the company within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future financial performance in attaining profitability; the ability to continue to reduce cost and improve inventory turns and contribution margins, the ability to reduce cash usage, higher average selling prices, continued growth in current market condition; the availability of a line of credit, the success of the C200 and C1000 products; new products and technologies; compliance of certain government regulations and increased government awareness in spending of our products; growing market share and market adoption of our products; new applications for our products; growth in the oil and gas and hybrid electrical vehicle market; increased opportunities in Japan; revenue growth and increased sales volume; our success in key market segments; our ability to enter into new relationships for channel partners and distributors and other third parties; the energy efficiency reliability and low cost of ownership of our products; and the expansion of production capacity, manufacturing efficiency and improved relationships with suppliers.These forward-looking statements are subject to numerous assumptions, risks and uncertainties, including the following: Our expectations about expansion into key markets may not be realized; certain strategic business initiatives and relationships may not be sustained and may not lead to increased sales; we may not be able to continue to reduce our manufacturing costs; the growth in our backlog has significantly exceeded our internal forecast; in order to meet this increased demand, we may need to raise additional funds to meet our anticipated cash needs for working capital and capital expenditures; the current economy can make it difficult or impossible for us to raise necessary funds and for customers to buy our products; we may not be able to utilize our line of credit, for example, as a result of a failure to meet a financial covenant; We may not be able to expand production capacity to meet demand for our products; we may not be able to obtain sufficient materials at reasonable prices; if we fail to meet all applicable NASDAQ global market requirements, and NASDAQ determines to delist our common stock, the delisting could adversely effect the market liquidity of our common stock, impair the value of your investment and adversely affect our ability to raise needed funds; we have substantial accounts receivable and increased bad debt expense or delays in collecting accounts receivable could have a material adverse effect on our cash flows and results of operations; our release of new products may be delayed or new products may not perform as we expect; we may be unable to increase our sales and sustain or increase our profitability in the future; we may not be able to obtain or maintain customer, distributor and other relationships that are expected to result in an increase in volume in revenue; we may not be able to comply with all applicable government regulations; we may not be able to retain or develop distributors in our targeted markets, in which case, our sales would not increase as expected; we may not be able to successfully integrate the acquired Calnetix assets and achieve productive relationships with these distributors; and if we do not effectively implement our sales, marketing, service, product enhancement plans, our sales and will not grow and therefore we may not generate the net revenue we anticipate.
These are among many factors which may cause Capstone's actual results to be materially different from future results predicted or implied in such statements. We refer you to the company's Form 10-K, Form 10-Q and other recent filings with the Securities and Exchange Commission for a description of these and other risk factors. Because of the risks and uncertainties, Capstone cautions you not to place undue reliance on the statements, which speak only as of today. We undertake no obligation and specifically disclaim any obligation to release any revision to any forward-looking statements to reflect events or circumstances after the date of this conference call or to reflect the occurrence of unanticipated events. I will now turn over the call to Darren Jamison, our President and Chief Executive Officer.Read the rest of this transcript for free on seekingalpha.com