Capstone Turbine Corp. will receive $5 million in a settlement with a former parts supplier that took a dispute to arbitration.

The proceeds will go toward the Van Nuys microturbine manufacturer providing additional resources to improve reliability and performance of its C200 and C1000 products, the company said.

Chief Executive Darren Jamison said in a statement that the settlement is a positive result for Capstone, and he was proud of the team effort to reach a resolution in the highly technical case.

“Having this case settled not only lets us increase our focus on our core business but also provides the required financial resources necessary to put the issue fully behind us,” Jamison said.

Capstone did not identify the supplier as the settlement agreement kept the name confidential.

Shares of Capstone (CPST) closed down 57 cents, or more than 6 percent, to $8.85 on the Nasdaq, on a day when that market closed down almost 2.5 percent.