Sevcon 10-Q 12 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jul. 02, 2016	Aug. 12, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	SEVCON, INC.
Entity Central Index Key	825,411
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,342,924
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 2, 2016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jul. 02, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 4,273	$ 8,048
Trade receivables, net of allowances for doubtful accounts of $200 at July 2, 2016 and $37 at September 30, 2015	10,995	8,995
Other receivables	1,230	467
Inventories	14,148	6,790
Deferred taxes	459	1,244
Prepaid expenses and other current assets	3,010	2,337
Total current assets	34,115	27,881
Property, plant and equipment, at cost:
Land and improvements	19	21
Buildings and improvements	613	693
Equipment	12,032	11,485
Property, plant and equipment, at cost	12,664	12,199
Less: accumulated depreciation	(9,713)	(9,574)
Net property, plant and equipment	2,951	2,625
Long-term deferred tax assets	3,683	3,232
Intangible assets, net	10,372	0
Goodwill	8,604	1,435
Other long-term assets	497	443
Total assets	60,222	35,616
Current liabilities:
Bank overdraft	109	0
Accounts payable	8,699	6,184
Accrued expenses	3,689	1,973
Accrued and deferred taxes on income	65	0
Dividends payable	0	200
Debt to related parties	971	0
Total current liabilities	13,533	8,357
Long-term bank debt, net	15,216	0
Liability for pension benefits	10,527	10,963
Long-term deferred tax liabilities	1,794	500
Long-term debt to related parties	1,507	0
Total liabilities	42,577	19,820
Commitments and Contingencies (Note 16)
Stockholders' equity:
Preferred stock, par value $.10 per share - authorized - 1,000,000 shares; Outstanding, 449,011 shares at July 2, 2016 and 452,124 at September 30, 2015	45	45
Common stock, par value $.10 per share - authorized 20,000,000; outstanding, 4,218,339 shares at July 2, 2016 and 3,694,872 at September 30, 2015	422	369
Premium paid in on common stock	11,711	6,637
Premium paid in on preferred stock	8,995	9,058
Retained earnings	7,480	10,607
Accumulated other comprehensive loss	(10,961)	(11,004)
Total Sevcon, Inc. and subsidiaries stockholders' equity	17,692	15,712
Non-controlling interest	(47)	84
Total stockholders' equity	17,645	15,796
Total liabilities and stockholders' equity	$ 60,222	$ 35,616

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jul. 02, 2016	Sep. 30, 2015
Current assets:
Trade receivables, allowances for doubtful accounts	$ 200	$ 37
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares outstanding (in shares)	449,011	452,124
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	4,218,339	3,694,872

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract]
Net sales	$ 13,913	$ 10,346	$ 36,209	$ 30,619
Cost of sales	(9,161)	(6,490)	(23,219)	(18,976)
Gross profit	4,752	3,856	12,990	11,643
Selling, general and administrative expenses	(4,463)	(2,551)	(10,568)	(7,630)
Research and development expenses	(1,212)	(1,044)	(3,419)	(2,796)
Acquisition costs	(8)	0	(1,425)	0
Operating (loss) income	(931)	261	(2,422)	1,217
Interest expense	(140)	(14)	(271)	(54)
Interest income	4	4	16	20
Foreign currency (loss) gain	(522)	(21)	(487)	258
Change in fair value of foreign exchange contracts	0	132	0	(68)
(Loss) income before income tax	(1,589)	362	(3,164)	1,373
Income tax benefit (provision)	60	(83)	139	(188)
Net (loss) income	(1,529)	279	(3,025)	1,185
Net loss attributable to non-controlling interests	84	2	131	31
Net (loss) income attributable to Sevcon, Inc. and subsidiaries	(1,445)	281	(2,894)	1,216
Preferred share dividends	(93)	(110)	(327)	(335)
Net (loss) income attributable to common stockholders	$ (1,538)	$ 171	$ (3,221)	$ 881
Net income per ordinary share - basic (in dollars per share)	$ (0.38)	$ 0.04	$ (0.84)	$ 0.25
Net income per ordinary share - diluted (in dollars per share)	$ (0.38)	$ 0.04	$ (0.84)	$ 0.25
Weighted average shares used in computation of earnings per share:
Basic (in shares)	4,070	3,486	3,828	3,459
Diluted (in shares)	4,070	3,577	3,828	4,913

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net (loss) income attributable to Sevcon, Inc. and subsidiaries	$ (1,445)	$ 281	$ (2,894)	$ 1,216
Other comprehensive income (loss)
Foreign currency translation adjustment	(71)	174	(160)	(262)
Defined benefit pension plans:
Pension benefit plans adjustments during the period	128	66	277	198
Tax expense	(39)	(16)	(74)	(47)
Comprehensive (loss) income	$ (1,427)	$ 505	$ (2,851)	$ 1,105

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015
Cash flow from operating activities:
Net (loss) income	$ (3,025)	$ 1,185
Adjustments to reconcile net (loss) income to net cash (used by) generated from operating activities:
Depreciation	557	470
Amortization of intangible assets	732	0
Amortization of fair value uplift to assets arising on acquisition of subsidiary	257	0
Increase in bad debt provision	55	0
Unrealized loss on change in value of foreign exchange contracts	0	68
Stock-based compensation	527	406
Pension contributions greater than pension expense	(114)	(308)
Deferred tax provision	(139)	188
Increase (decrease) in cash resulting from changes in operating assets and liabilities:
Trade receivables	912	(1,712)
Other receivables	(90)	(285)
Inventories	(4,141)	(517)
Prepaid expenses and other current assets	(1,930)	(321)
Accounts payable	(424)	836
Accrued expenses	(1,744)	159
Accrued and deferred taxes on income	926	(99)
Bank overdraft	109	0
Net cash (used by) generated from operating activities	(7,532)	70
Cash flow used by investing activities:
Acquisition of property, plant and equipment	(1,043)	(1,088)
Acquisition of subsidiary, net of cash acquired	(9,255)	0
Net cash used by investing activities	(10,298)	(1,088)
Cash flow used by financing activities:
Proceeds of long-term debt	15,448	500
Debt issuance costs	(232)	0
Repayments of long-term debt	(500)	(1,728)
Dividends paid	(434)	(263)
Purchase and retirement of common stock	(222)	(98)
Net cash generated from (used by) financing activities	14,060	(1,589)
Effect of exchange rate changes on cash	(5)	(83)
Net decrease in cash	(3,775)	(2,690)
Beginning balance - cash and cash equivalents	8,048	11,238
Ending balance - cash and cash equivalents	4,273	8,548
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	197	86
Cash paid for interest	245	54
Conversion of preferred stock to common stock	62	169
Investment in subsidiary, net of cash acquired:
Cash consideration	10,832	0
Cash acquired	(1,577)	0
Net cash investment in subsidiary	9,255	0
Issuance of common stock on acquisition of subsidiary	$ 4,760	$ 0

Basis of presentation

Basis of presentation	9 Months Ended
	Jul. 02, 2016
Basis of presentation [Abstract]
Basis of presentation	(1) Basis of presentation Sevcon, Inc. (or the “Company”) is a Delaware corporation organized on December 22, 1987 to carry on the electronic controls business previously performed by Tech/Ops, Inc. (Tech/Ops). Through wholly-owned subsidiaries located in the United States, England, France, South Korea and Japan and a 50% owned joint venture located in China, and through an international dealer network, the Company designs and sells, under the Sevcon name, motor controllers for zero emission electric and hybrid vehicles (EVs). The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to optimize the energy consumption of the vehicle's power source. Through a wholly-owned subsidiary in Italy acquired in January 2016, the Company also designs, manufactures and sells battery chargers for electric vehicles and power management and uninterrupted power source systems for industrial, medical and telecom applications, as well as electronic instrumentation for battery laboratories. Sevcon's customers are manufacturers of on and off-road vehicles, including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. Through another subsidiary located in the United Kingdom, Sevcon, Inc. manufactures special metalized film capacitors that are used as components in the power electronics, signaling and audio equipment markets. Accounting for wholly-owned subsidiaries The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries; Sevcon USA, Inc., Sevcon Ltd, Industrial Capacitors (Wrexham) Ltd., Sevcon Asia Limited, Sevcon Japan KK, Sevcon Security Corp., Sevcon S.r.l. and Bassi S.r.l., in accordance with the provisions required by the Consolidation Topic 810 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All material intercompany transactions have been eliminated. Accounting for joint-venture subsidiary For the Company's less than wholly owned joint venture subsidiary, Sevcon New Energy Technology (Hubei) Company Limited, the Company first analyzes whether this joint venture is a variable interest entity (a “VIE”) in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests in a VIE that change with changes in the fair value of the VIE’s net assets. The Company continuously re-assesses (i) whether the joint venture is a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If it is determined that the joint venture qualifies as a VIE and the Company is the primary beneficiary, it is consolidated. Based on the Company's analysis for this joint venture, the Company has determined that it is a VIE and that the Company is the primary beneficiary. While the Company owns 50% of the equity interest in the joint venture, the other 50% is owned by a local unrelated third party, and the joint venture agreement with that third party provides the Company with greater voting rights. Accordingly, the Company consolidates its joint venture under the VIE rules and reflects the third party’s 50% interest in the consolidated financial statements as a non-controlling interest. The Company records this non-controlling interest at its initial fair value, adjusting the basis prospectively for the third party’s share of the respective consolidated investments’ net income or loss or equity contributions and distributions. This non-controlling interest is not redeemable by the equity holders and is presented as part of permanent equity. Income and losses are allocated to the non-controlling interest holder based on its economic ownership percentage. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normally recurring accruals) necessary to present fairly the financial position of Sevcon, Inc. as of July 2, 2016 and the results of operations and cash flows for the three and nine month periods ended July 2, 2016. These unaudited interim financial statements should be read in conjunction with the 2015 annual consolidated financial statements and related notes included in the 2015 Sevcon, Inc. Annual Report filed on Form 10-K (the “2015 consolidated financial statements and related notes included in the 2015 Sevcon, Inc. Annual Report filed on Form 10-K (the “2015 10-K”). Unless otherwise indicated, each reference to a year means the Company’s fiscal year, which ends on September 30. The results of operations for the three and nine month periods ended July 2, 2016 are not necessarily indicative of the results to be expected for the full year.

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Jul. 02, 2016
Summary of significant accounting policies [Abstract]
Summary of significant accounting policies	(2) Summary of significant accounting policies There have been no changes since the end of 2015 to the significant accounting policies followed by Sevcon, Inc.

Acquisitions

Acquisitions	9 Months Ended
	Jul. 02, 2016
Acquisitions [Abstract]
Acquisitions	(3) Acquisitions Bassi Unipersonale S.r.l (“Bassi”) On January 26, 2016, the Company, and its wholly-owned indirect subsidiary, Sevcon S.r.l., (“Sevcon Italy”) entered into a Quota Sale and Purchase Agreement with Bassi Holding S.r.l., (“Bassi Holding”) an Italian limited liability company, and the quota owners of Bassi Holding, to acquire all the outstanding quotas of Bassi, a limited liability company located in Lugo, Italy. Bassi designs, manufactures and sells battery chargers for electric vehicles and power management and uninterrupted power source systems for industrial, medical and telecom applications, as well as electronic instrumentation for battery laboratories. The principal reasons for the acquisition were to enable the Company to expand its addressable share of the high-growth electrification market and enhance earnings by adding an immediately accretive business. In order to fund the cash element of the acquisition price, on January 27, 2016, the Company also entered into a Term Loan Agreement providing for a credit facility with Banca Monte dei Paschi di Siena S.p.A. The acquisition was closed on January 29, 2016. Purchase Price The total purchase price was approximately $19.1 million and included (1) cash consideration of €10.0 million ($10.8 million) and (2) 500,000 shares of the Company’s common stock ($4.8 million at the Company’s Closing Date stock price of $9.52) and (3) the fair value of assumed dividends payable to the former owner of Bassi, Bassi Holding of €3.23 million ($3.5 million). Sevcon Italy is required to distribute to the former owner of Bassi, Bassi Holding, outstanding dividends at fair value aggregating €3.23 million (approximately $3.5 million) in increments over a three-year period, post-closing. During the nine months ended July 2, 2016, the Company incurred $1.4 million in costs and expenses related to the Company’s acquisition of Bassi that are included in the consolidated statement of operations. The Company accounted for the transaction using the acquisition method and, accordingly, the consideration has been allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. Goodwill resulting from this acquisition is largely attributable to the experienced workforce of Bassi and synergies expected to arise after the integration of Bassi’s products and operations into those of the Company. Goodwill resulting from this acquisition is not deductible for tax purposes. Identifiable intangible assets acquired as part of the acquisition included definite-lived intangible assets for developed technologies, customer relationships, order backlog and trade names, which are being amortized using the straight-line method over their estimated useful lives, as well as goodwill. The fair value of the total consideration has been allocated based on the estimated fair values of assets acquired and liabilities assumed as follows (in thousands) (in thousands of dollars) January 29, 2016 Consideration Cash $ 10,832 Common stock (500,000 shares of Sevcon, Inc.) 4,760 Fair value of pre-acquisition dividends payable to Bassi Holding 3,503 Fair value of total consideration $ 19,095 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 1,577 Accounts receivable 3,318 Inventory 4,183 Property and equipment 923 Other assets 715 Accounts payable (3,513 ) Accrued and other current liabilities (2,020 ) Deferred tax liabilities (1,947 ) Other long-term liabilities $ (1,360 ) $ 1,876 Estimated fair value of identifiable intangible assets acquired: Developed technologies 325 Customer relationships 8,774 Trade name 758 Order backlog 325 10,182 Fair value of total consideration, excluding goodwill 12,058 Goodwill 7,037 Fair value of total consideration $ 19,095 The above fair value allocation is considered preliminary and is subject to revision during the measurement period. Management is in the process of completing its evaluation of acquired intangible assets. Additionally, the Company is continuing to validate the fair values of working capital including inventory and property and equipment. The preliminary fair value of the assets acquired includes accounts receivable of $3,318,000. The gross amount due under contracts is $3,428,000 of which $110,000 is expected to be uncollectible. Valuation of Intangible Assets Acquired The following table sets forth the components of intangible assets acquired in connection with the Bassi acquisition (dollars in thousands): Amount Assigned Amortization Period (in years) Definite-lived intangible assets: Developed technologies $ 325 7.0 Customer relationships 8,774 10.0 Trade name 758 10.0 Order backlog 325 1.0 Total intangible assets acquired $ 10,182 Actual Results of Bassi Acquisition Bassi’s net revenues and operating income following the acquisition included in the Company’s operating results for the nine months ended July 2, 2016 were $9.0 million and nil, respectively. Pro Forma Summary The unaudited consolidated pro forma results for the nine month periods ended July 2, 2016 and July 4, 2015 are set out in the table below. The pro forma consolidated results combine the results of operations of the Company and Bassi as though Bassi had been acquired on October 1, 2014 and include amortization charges for the acquired intangibles and interest expense related to the Company’s borrowings to finance the acquisition. The 2016 pro forma results were adjusted to exclude $1,425,000 of acquisition costs to date related to Bassi and $257,000 of non-recurring expense relating to the fair value adjustments to acquisition date inventory and property and equipment. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on October 1, 2014. (in thousands of dollars) Nine months ended July 2, 2016 Nine months ended July 4, 2015 Revenue $ 41,857 $ 42,228 Net income (loss) $ (1,397 ) $ 368

Stock-based compensation plans

Stock-based compensation plans	9 Months Ended
	Jul. 02, 2016
Stock-based compensation plans [Abstract]
Stock-based compensation plans	(4) Stock-based compensation plans Under the Company’s 1996 Equity Incentive Plan (the “Plan”) there were 336,990 shares reserved and available for grant at July 2, 2016. There were 139,578 shares reserved and available for grant at September 30, 2015. The Plan, which is shareholder-approved, permits the grant of Restricted Stock, Restricted Stock Units, Options and Stock Appreciation Rights (“SARs”). SARs may be awarded either separately, or in relation to options granted, and for the grant of bonus shares. The Company believes that such awards better align the interests of the employees with those of its shareholders. Options granted are exercisable at a price not less than fair market value on the date of grant. Recipients of grants of options must execute a standard form of non-competition agreement. Share options The Company estimated the fair values of its stock options using the Black-Scholes-Merton option-pricing model, which was developed for use in estimating the fair values of stock options. Option valuation models, including the Black-Scholes-Merton option-pricing model, require the input of assumptions, including stock price volatility. Changes in the input assumptions can materially affect the fair value estimates and ultimately how much the Company recognizes as stock-based compensation expense. The fair values of the Company’s stock options were estimated at the grant dates. The weighted average input assumptions used and resulting fair values of stock options were as follows for fiscal 2016: Expected life (in years) 4.0 Risk-free interest rate 1.55 % Volatility 61.43 % Dividend yield 0.00 % Weighted-average fair value per share $ 4.81 Expected Life The expected term represents the period of time that options are expected to be outstanding. As the Company does not have sufficient historical evidence for determining the expected term of the stock option awards granted, the expected life assumption has been determined using the simplified method, which is an average of the contractual term of the option and its ordinary vesting period. Risk-free Interest Rate The Company bases the risk-free interest rate assumption on zero-coupon U.S. treasury instruments appropriate for the expected term of the stock option grants. Expected Volatility The expected stock price volatility for the Company’s common stock is estimated based on the historic volatility of the Company’s common stock for a period equivalent to the expected term of the stock option grants. Expected Dividend Yield The Company bases the expected dividend yield assumption on the fact that there is no present intention to pay cash dividends. Therefore an expected dividend yield of zero has been used. Performance based awards Stock options: In December 2015, the Compensation Committee awarded performance-based equity compensation to nine executives and managers, including the principal executive officer and principal financial officer, consisting of 38,460 shares in the form of stock options. The performance options have an exercise price of $9.94 per share, representing the average of the highest intraday bid and ask quotes for the Company’s common stock on the date of grant, December 16, 2015, and the preceding four trading days. The performance options will vest subject to the Company meeting an earnings per share target applicable to fiscal year 2018 set by the Compensation Committee so long as the employee is then employed by the Company. The estimated fair value of the stock on the date of the grant was $185,000 based on the fair market value of stock on the date of issue. The unvested compensation is being charged to income over three years. The charge to income for this employee stock option grant will be approximately $14,000 on a quarterly basis. A summary of option activity under the employee share option plan as of July 2, 2016, and changes during the nine months then ended is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of September 30, 2015 - $ - - $ - Granted 38,460 $ 9.94 5.00 $ 11,153 Exercised - - - - Forfeited or Expired - - - - Outstanding at July 2, 2016 38,460 $ 9.94 4.46 $ nil Exercisable - - - - Vested and expected to vest 34,737 $ 9.94 4.46 $ nil Restricted stock: In December 2015, the Company granted 11,540 shares of restricted stock to four employees which will vest subject to the Company meeting the same earnings per share target applicable to fiscal year 2018, so long as the employee is then employed by the Company. The estimated fair value of the stock on the date of the grant was $116,000 based on the fair market value of stock on the date of issue. The unvested compensation is being charged to income over three years. The charge to income for this employee stock option grant was $8,000 and $18,000 for the three and nine months ended July 2, 2016 and will be approximately $8,000 on a quarterly basis. Management has assessed the performance criteria relating to these grants and concluded that they are likely to be met. Accordingly the relevant portion of the charge has been taken to income in the three and nine months ended July 2, 2016. Time-based awards Restricted stock: In February 2016, the Company granted 29,700 shares of restricted stock to nine non-employee directors, which will vest on the day before the 2017 annual general meeting providing that the grantee remains a director of the Company, or as otherwise determined by the Compensation Committee. The aggregate fair value of the stock measured on the date of the grant was $292,000 based on the closing sale price of the stock on the date of grant. Subsequent to this, 3,300 of these granted shares of restricted stock were cancelled and returned to the Plan following the resignation of a director. Compensation expense is being charged to income on a straight line basis over the twelve month period during which the forfeiture conditions lapse. The charge to income for these restricted stock grants in the nine months to July 2, 2016 was $65,000 and the subsequent charge will be approximately $65,000 on a quarterly basis. In February 2015, the Company granted 30,600 shares of restricted stock to nine non-employee directors, which vested on the day before the 2016 annual meeting. The aggregate fair value of the stock measured on the date of grant was $225,000, based on the closing sale price of the stock on the date of grant. Compensation expense was charged to income on a straight line basis over the twelve month requisite service period during which the forfeiture conditions lapsed. The charge to income for these restricted stock grants in 2015 was $131,000 and the charge in the nine months to July 2, 2016 was $94,000. For the purposes of calculating average issued shares for basic earnings per share these shares are only considered to be outstanding when the forfeiture conditions lapse and the shares vest. A summary of restricted stock and stock option activity, including both performance based awards and time-based awards, for the nine months ended July 2, 2016 is as follows: Number of shares of Restricted Stock Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2014 168,600 $ 5.27 Granted 92,600 $ 7.49 Vested (64,600 ) $ 6.32 Non-vested balance as of September 30, 2015 196,600 $ 5.97 Granted 41,240 $ 9.89 Cancelled (3,300 ) $ 9.82 Vested (91,600 ) $ 6.72 Non-vested balance as of July 2, 2016 142,940 $ 6.53 Number of shares of Stock Options Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2015 - $ - Granted 38,460 $ 4.81 Vested - $ - Non-vested balance as of July 2, 2016 38,460 $ 4.81 Stock-based compensation expense was $169,000 and $527,000 for the three and nine month periods ended July 2, 2016 and $147,000 and $406,000 for the three and nine months ended July 4, 2015 respectively. At July 2, 2016, there was $679,000 of unrecognized compensation expense related to restricted stock and stock options granted under the Plan. The Company expects to recognize that cost over a weighted average period of 1.9 years.

Cash dividends

Cash dividends	9 Months Ended
	Jul. 02, 2016
Cash dividends [Abstract]
Cash dividends	(5) Cash dividends Common stock dividends The Company is not paying a dividend at the present time and the Board of Directors will consider whether to pay a common stock dividend in the future. Preferred Stock dividends At July 2, 2016 there were 449,011 shares of Series A Convertible Preferred Stock issued and outstanding. The preferred stock, which has a stated value of $24 per share, pays a 4% cumulative annual dividend semi-annually on October 15 and April 15 each year. A semi-annual dividend of $216,816 was paid on April 15, 2016. The next semi-annual dividend will be paid on October 15, 2016.

Calculation of earnings per sha

Calculation of earnings per share and weighted average shares outstanding	9 Months Ended
	Jul. 02, 2016
Calculation of earnings per share and weighted average shares outstanding [Abstract]
Calculation of earnings per share and weighted average shares outstanding	(6) Calculation of earnings per share and weighted average shares outstanding Basic earnings per share is computed by dividing the net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities, including convertible preferred stock, using the treasury stock method, unless the effect is anti-dilutive. Basic and diluted net income per common share for the three and nine month periods ended July 2, 2016 and July 4, 2015 were calculated as follows: (in thousands of dollars except per share data) Three months ended Nine months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Numerator: Net income (loss) attributable to common stockholders for computing net income (loss) per ordinary share – basic $ (1,538 ) $ 171 $ (3,221 ) $ 881 Dividend eliminated upon assumed conversion of convertible preferred stock - - - 335 Net income (loss) attributable to common stockholders for computing net income (loss) per ordinary share – diluted $ (1,538 ) $ 171 $ (3,221 ) $ 1,216 Denominator: Weighted average shares used in calculating net income (loss) per ordinary share – basic 4,070 3,486 3,828 3,459 Adjustment for assumed conversion of convertible preferred stock - - - 1,374 Adjustment for shares issuable upon vesting of restricted stock - 91 - 80 Weighted average shares used in calculating net income (loss) per ordinary share – diluted 4,070 3,577 3,828 4,913 Net income (loss) per ordinary share – basic $ (0.38 ) $ 0.04 $ (0.84 ) $ 0.25 Net income (loss) per ordinary share – diluted $ (0.38 ) $ 0.04 $ (0.84 ) $ 0.25 No. of shares of convertible preferred stock that are anti-dilutive excluded from calculation of common stock equivalents 1,347 1,357 1,353 -

Segment information

Segment information	9 Months Ended
	Jul. 02, 2016
Segment information [Abstract]
Segment information	(7) Segment information The Company has three reportable segments: electronic controls, capacitors and battery chargers. The electronic controls segment produces microprocessor based control systems for zero emission and hybrid electric vehicles. The capacitor segment produces special-metalized film capacitors for sale to electronic equipment manufacturers. The battery chargers segment designs and manufactures battery chargers for electric vehicles. Each segment has its own management team and sales force and the capacitor and battery charger segments have their own manufacturing facilities. The significant accounting policies of the segments are the same as those described above and in Note 1 to the Notes to Consolidated Financial Statements in the 2015 10-K. Inter-segment revenues are accounted for at current market prices. The Company evaluates the performance of each segment principally based on operating income. The Company does not allocate income taxes, interest income and expense or foreign currency translation gains and losses to segments. Information concerning operations of these businesses is as follows: (in thousands of dollars) Three months ended July 2, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 8,462 405 5,046 - 13,913 Inter segment revenues - - - - - Operating income (loss) (511 ) (5 ) (257 ) (158 ) (931 ) Identifiable assets, excluding goodwill 38,149 901 8,715 3,853 51,618 Goodwill 1,435 - 7,169 - 8,604 Three months ended July 4, 2015 Controls Capacitors Chargers Corporate Total Sales to external customers 9,820 526 - - 10,346 Inter-segment revenues - - - - - Operating income 342 5 - (86 ) 261 Identifiable assets, excluding goodwill 24,033 1,248 - 7,150 32,431 Goodwill 1,435 - - - 1,435 Nine months ended July 2, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 25,968 1,215 9,026 - 36,209 Inter-segment revenues - - - - - Operating income (loss) (449 ) (61 ) 9 (1,921 ) (2,422 ) Identifiable assets, excluding goodwill 38,149 901 8,715 3,853 51,618 Goodwill 1,435 - 7,169 - 8,604 Nine months ended July 4, 2015 Controls Capacitors Chargers Corporate Total Sales to external customers 29,000 1,619 - - 30,619 Inter-segment revenues - 3 - - 3 Operating income 1,064 121 - 32 1,217 Identifiable assets, excluding goodwill 24,033 1,248 - 7,150 32,431 Goodwill 1,435 - - - 1,435 In the electronic controls segment, revenues derive from the following products and services: (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Electronic controls for zero emission and hybrid electric vehicles $ 5,638 $ 7,445 $ 17,876 $ 19,746 Accessory and aftermarket products and services 2,824 2,375 8,092 9,254 Total controls segment revenues $ 8,462 $ 9,820 $ 25,968 $ 29,000

Research and development

Research and development	9 Months Ended
	Jul. 02, 2016
Research and development [Abstract]
Research and development	(8) Research and development The cost of research and development programs is charged against income as incurred and was as follows: In recent years the Company has received several awards of research and development grants by public bodies established by the U.K. government to stimulate technology-enabled innovation. In 2011, the Company was awarded a research and development grant by the Technology Strategy Board to lead a collaborative project with Cummins Generator Technologies and Newcastle University in the U.K. to develop an innovative electric drive system for electric vehicles using advanced switched reluctance motor technology. The Company recorded grant income from this Technology Strategy Board project of $Nil in the nine month period ended July 2, 2016, associated with research and development expense of $7,000 in the period. The Company recorded grant income of $56,000 in the nine month period ended July 4, 2015, associated with research and development expense of $245,000 in the same period. In 2015 the Company was awarded a grant of approximately $625,000 by the U.K. Regional Growth Fund, a U.K. government body. The grant is to develop an innovative range of low voltage motor controls which are designed to serve the emerging needs for on-road, automotive electrification. The grant includes a commitment to create or safeguard a total of twenty jobs at the Company’s U.K. facility over the period of the project. The Company recorded grant income from this project of $115,000 in the nine month period ended July 2, 2016 associated with research and development expense of $392,000 in the period. The Company recorded grant income of $27,000 in the nine month period ended July 4, 2015, associated with research and development expense of $149,000 in the same period. The grant income in the first nine months of 2016 and 2015 was recorded as a reduction of research and development expense. In the three and nine month periods ended July 2, 2016, the Company recorded refundable tax credits of $315,000 related to certain research and development incentives in the U.K. These amounts have been recorded in operating income, as they are refunded without regard to actual tax liability.

Income Taxes

Income Taxes	9 Months Ended
	Jul. 02, 2016
Income Taxes [Abstract]
Income Taxes	(9) Income Taxes The Company’s effective tax rate of 4% is significantly lower than the U.S. statutory rate of 34%, primarily due to the fact that certain current year operating losses in the U.K. have been foregone in exchange for a cash refund. As mentioned in Note 8, this benefit is recorded in operating income, as such amounts are refundable without regard to actual tax liability.

Employee benefit plans

Employee benefit plans	9 Months Ended
	Jul. 02, 2016
Employee benefit plans [Abstract]
Employee benefit plans	(10) Employee benefit plans Sevcon, Inc. has defined contribution plans covering the majority of its U.S. and U.K. employees in the controls business. There is also a small defined contribution plan covering senior managers in the capacitor business. The Company’s French subsidiary, Sevcon S.A.S., has a liability to pay its employees a service and salary based award when they reach retirement age and leave the Company’s employment. This liability, which is unfunded, is recognized in accrued expenses and was $161,000 and $152,000 at July 2, 2016 and July 4, 2015, respectively. The obligation to pay this award is a French legal requirement and is only payable if the employee is employed by the Company when they retire; if they leave the Company prior to that time the award is no longer payable. The Company’s Italian subsidiary, Bassi S.r.l., has a liability to pay its employees a severance indemnity, ‘Trattamento di fine Rapporto’ (“TFR”) when they leave the Company’s employment. TFR, which is mandatory for Italian companies, is deferred compensation and is based on the employees’ years of service and the compensation earned by the employee during the service period. TFR is considered a “Defined Benefit Plan” and the related liability is recognized in the consolidated balance sheet within “Liability for pension benefits”. This liability, which is unfunded, was $1,245,000 at July 2, 2016. The Company has frozen the U.K. and U.S. defined benefit plans for which no future benefits are being earned by employees. The Company uses a September 30 measurement date for its defined benefit pension plans. (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Interest cost $ 304 $ 308 $ 885 $ 928 Service cost 49 - 82 - Expected return on plan assets (281 ) (311 ) (846 ) (937 ) Amortization of net loss 128 66 278 198 Net periodic benefit cost 200 63 399 189 Net cost of defined contribution plans $ 105 $ 87 $ 388 $ 359 Net cost of all employee benefit plans $ 305 $ 150 $ 787 $ 548 The following table sets forth the movement in the liability for pension benefits in the nine month periods ended July 2, 2016 and July 4, 2015, respectively: (in thousands of dollars) Nine Months ended July 2, 2016 July 4, 2015 Liability for pension benefits at beginning of period 10,963 9,529 Liability assumed on acquisition of subsidiary 1,167 - Interest cost 885 928 Service cost 82 - Expected return on plan assets (846 ) (937 ) Plan withdrawals (36 ) - Plan contributions (477 ) (497 ) Effect of exchange rate changes (1,211 ) (349 ) Balance at end of period 10,527 8,674 Amounts recognized in the balance sheet consist of: (in thousands of dollars) July 2, 2016 July 4, 2015 Non-current liabilities $ 10,527 $ 8,674 Amounts recognized in accumulated other comprehensive loss consist of: (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Actuarial loss, net of $39 and $74 tax benefit for the three and nine month periods, respectively, (2015: net of $16 and $47 tax benefit for the three and nine month periods, respectively) $ 89 $ 50 $ 203 $ 151 Sevcon, Inc. contributed $150,000 to its frozen U.S. defined benefit plan in the nine months ended July 2, 2016; it presently anticipates contributing a further $50,000 to fund its U.S. plan in the remainder of fiscal 2016. In addition, employer contributions to the frozen U.K. defined benefit plan were $327,000 in the first nine months and are estimated to total $426,000 in 2016. The table below presents information about the Company’s pension plan assets measured and recorded at fair value as of July 2, 2016 and indicates the fair value hierarchy of the inputs utilized by the Company to determine the fair values. (in thousands of dollars) July 2, 2016 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) - 12,011 - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 4,869 - U.S. Mutual Funds and Fixed Income Funds 1,176 - - U.S. Equity Funds 1,970 - - Other Types of Investments Cash 1,159 - - Total 4,305 16,880 - (in thousands of dollars) September 30, 2015 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) - 13,044 - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 3,845 - U.S. Mutual Funds and Fixed Income Funds 2,557 - - U.S. Equity Funds 350 - - Other Types of Investments Cash 331 - - Total 3,238 16,889 - * Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. ** Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration. *** The Company currently does not have any Level 3 pension plan financial assets. The following estimated benefit payments have been, or are expected, to be paid: (in thousands of dollars) 2016 $ 426 2017 514 2018 532 2019 540 2020 550 2021 – 2025 $ 2,958

Inventories

Inventories	9 Months Ended
	Jul. 02, 2016
Inventories [Abstract]
Inventories	(11) Inventories Inventories, net of reserve, were comprised of: (in thousands of dollars) July 2, 2016 September 30, 2015 Raw materials $ 6,540 $ 2,453 Work-in-process 200 90 Finished goods 7,408 4,247 $ 14,148 $ 6,790

Fair value of financial instrum

Fair value of financial instruments	9 Months Ended
	Jul. 02, 2016
Fair value of financial instruments [Abstract]
Fair value of financial instruments	(12) Fair value of financial instruments The Company's financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable and accounts payable. The carrying amount of these financial instruments as of July 2, 2016 approximates fair value due to the short-term nature of these instruments. The fair value of the Company’s long-term bank debt at July 2, 2016 approximated $15,448,000 (the gross carrying value on the consolidated balance sheet at July 2, 2016) based on recent financial market pricing. The current portion of long-term debt represented a Level 2 liability in accordance with the fair value hierarchy described in Note 10.

Accrued expenses

Accrued expenses	9 Months Ended
	Jul. 02, 2016
Accrued expenses [Abstract]
Accrued expenses	(13) Accrued expenses Set out below is an analysis of other accrued expenses at July 2, 2016 and September 30, 2015, which shows separately any items in excess of 5% of total current liabilities: (in thousands of dollars) July 2, 2016 September 30, 2015 Accrued compensation and related costs $ 1,607 $ 827 Other accrued expenses 2,082 1,146 $ 3,689 $ 1,973

Warranty reserves

Warranty reserves	9 Months Ended
	Jul. 02, 2016
Warranty reserves [Abstract]
Warranty reserves	(14) Warranty reserves The movement in warranty reserves was as follows: (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Warranty reserves at beginning of period $ 249 $ 144 $ 278 $ 153 Liability assumed on acquisition of subsidiary - 34 - Decrease in beginning balance for warranty obligations settled during the period - - (72 ) - Foreign currency translation adjustment (6 ) 3 (2 ) (9 ) Net increase in warranty reserves for products sold during the period - - 5 3 Warranty reserves at end of period $ 243 $ 147 $ 243 $ 147

Debt

Debt	9 Months Ended
	Jul. 02, 2016
Debt [Abstract]
Debt	(15) Debt The Company’s U.K. controls and capacitor subsidiaries each have multi-currency overdraft facilities which together total $1,200,000 and which are secured against real estate owned by those companies. In July 2016, the Company’s U.K. bank renewed these facilities for a twelve month period, although they can be withdrawn on demand by the bank. The facilities were unused at July 2, 2016 and at September 30, 2015. The Company entered into a €14,000,000 ($15,448,000 at July 2, 2016) credit facility with Banca Monte dei Paschi di Siena S.p.A. (“MPS Bank”) on January 27, 2016. The loan and security agreement will expire on January 27, 2021 when all outstanding principal and unpaid interest will be due and payable in full. The facility may be paid before maturity in whole or in part at the option of the Company, on or after the six-month anniversary of the funding date, without penalty or premium. Interest on the loan is payable quarterly at a margin of 3% over EuroLIBOR, with a minimum EuroLIBOR rate of 0.0%. Under the facility, the Company must maintain, on an annual basis, a net debt to EBITDA ratio of no more than 3.5:1 for fiscal years 2016 and 2017 and a net debt to EBITDA ratio of no more than 3.0:1 thereafter. Upon entering into the credit facility, the Company drew down €14,000,000 ($15,448,000), which was the total amount outstanding at July 2, 2016. This amount is shown in the accompanying consolidated balance sheet under long-term debt. The carrying value of the debt approximated to fair value based on current interest rates. Annual principal payments on long term bank debt, net of debt issuance costs, and converted to U.S. dollars at the July 2, 2016 exchange rate of $0.906 Euros per U.S. dollar, are as follows (in thousands of dollars): 2018 $ 1,159 2019 1,545 2020 1,545 2021 11,199 15,448 Less: debt issuance costs (232 ) Total $ 15,216

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jul. 02, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(16) Commitments and Contingencies Sevcon, Inc. is involved in various legal proceedings in the ordinary course of business but believes that it is remote that the outcome will be material to operations. The Company maintains a directors' retirement plan which provides for certain retirement benefits to non-employee directors. Effective January 1997 the plan was frozen and no further benefits are being accrued. While the cost of the plan has been fully charged to expense, the plan is not separately funded. The estimated maximum liability which has been recorded based on the cost of buying deferred annuities at July 2, 2016 and September 30, 2015 was $144,000 and $153,000, respectively. Minimum rental commitments under all non-cancelable leases are as follows for the years ended September 30, 2016 - $604,000; 2017 - $580,000; 2018 - $536,000; 2019 - $492,000; 2020 - $492,000 and $2,237,000 thereafter. The U.K. subsidiaries of the Company have given to a bank a security interest in certain leasehold and freehold property assets as security for overdraft facilities of $1,200,000. There were no amounts outstanding on the overdraft facilities at July 2, 2016 and at September 30, 2015.

Changes in Other Comprehensive

Changes in Other Comprehensive Loss	9 Months Ended
	Jul. 02, 2016
Changes in Other Comprehensive Loss [Abstract]
Changes in Other Comprehensive Loss	(17) Changes in Other Comprehensive Loss The following table illustrates changes in the balances of each component of accumulated other comprehensive loss in 2016 and 2015: (in thousands of dollars) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Balance September 30, 2014 (956 ) (7,873 ) (8,829 ) Other comprehensive loss for the period (318 ) (1,857 ) (2,175 ) Balance September 30, 2015 (1,274 ) (9,730 ) (11,004 ) Other comprehensive income (loss) for the period (160 ) 203 43 Balance July 2, 2016 (1,434 ) (9,527 ) (10,961 )

Related Parties

Related Parties	9 Months Ended
	Jul. 02, 2016
Related Parties [Abstract]
Related Parties	(18) Related Parties Bassi Holding (see Note 3) is considered a related party as a stockholder of the Company. As at July 2, 2016 there was a balance of $2,478,000 payable by the Company to Bassi Holding included in Debt to related parties. This debt relates to dividends payable to Bassi Holding as a result of the acquisition on January 29, 2016. During the three and nine month periods ended July 2, 2016 the Company also paid rent to Bassi Holding in the amounts of $83,000 and $138,000 respectively. No rent was paid in the three and nine month periods ended July 4, 2015. On August 2, 2016, Ryan Morris, a member of the Board, was elected Executive Chairman of the Board. Mr Morris is considered a related party as he is President of Meson Capital Partners LLC, a shareholder of the Company

Subsequent events

Subsequent events	9 Months Ended
	Jul. 02, 2016
Subsequent events [Abstract]
Subsequent events	(19) Subsequent events In preparing these interim consolidated financial statements, the Company has evaluated, for potential recognition or disclosure, events or transactions subsequent to the end of the most recent quarterly period, the issuance date of these financial statements. On July 6, 2016, the Company entered into a Securities Purchase Agreement with certain institutional and accredited investors, under which it agreed to sell 1,124,000 units, each consisting of one share of common stock, $0.10 par value, and half a warrant to purchase one share of common stock, at a price of $9.12 per unit, for total gross proceeds of $10,250,880. The participating investors include funds affiliated with the principal institutional stockholders of the Company and funds managed by two of the Company’s directors. No further material subsequent events were identified that require recognition or disclosure in these financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Jul. 02, 2016
Acquisitions [Abstract]
Summary of allocation of fair value	The fair value of the total consideration has been allocated based on the estimated fair values of assets acquired and liabilities assumed as follows (in thousands) (in thousands of dollars) January 29, 2016 Consideration Cash $ 10,832 Common stock (500,000 shares of Sevcon, Inc.) 4,760 Fair value of pre-acquisition dividends payable to Bassi Holding 3,503 Fair value of total consideration $ 19,095 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 1,577 Accounts receivable 3,318 Inventory 4,183 Property and equipment 923 Other assets 715 Accounts payable (3,513 ) Accrued and other current liabilities (2,020 ) Deferred tax liabilities (1,947 ) Other long-term liabilities $ (1,360 ) $ 1,876 Estimated fair value of identifiable intangible assets acquired: Developed technologies 325 Customer relationships 8,774 Trade name 758 Order backlog 325 10,182 Fair value of total consideration, excluding goodwill 12,058 Goodwill 7,037 Fair value of total consideration $ 19,095
Components of intangible assets acquired, net of deferred tax	The following table sets forth the components of intangible assets acquired in connection with the Bassi acquisition (dollars in thousands): Amount Assigned Amortization Period (in years) Definite-lived intangible assets: Developed technologies $ 325 7.0 Customer relationships 8,774 10.0 Trade name 758 10.0 Order backlog 325 1.0 Total intangible assets acquired $ 10,182
Pro forma financial information	The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on October 1, 2014. (in thousands of dollars) Nine months ended July 2, 2016 Nine months ended July 4, 2015 Revenue $ 41,857 $ 42,228 Net income (loss) $ (1,397 ) $ 368

Stock-based compensation plans

Stock-based compensation plans (Tables)	9 Months Ended
	Jul. 02, 2016
Stock-based compensation plans [Abstract]
Schedule of weighted average fair value assumptions of stock options	The weighted average input assumptions used and resulting fair values of stock options were as follows for fiscal 2016: Expected life (in years) 4.0 Risk-free interest rate 1.55 % Volatility 61.43 % Dividend yield 0.00 % Weighted-average fair value per share $ 4.81
Summary of option activity under employee share option plan	A summary of option activity under the employee share option plan as of July 2, 2016, and changes during the nine months then ended is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of September 30, 2015 - $ - - $ - Granted 38,460 $ 9.94 5.00 $ 11,153 Exercised - - - - Forfeited or Expired - - - - Outstanding at July 2, 2016 38,460 $ 9.94 4.46 $ nil Exercisable - - - - Vested and expected to vest 34,737 $ 9.94 4.46 $ nil
Summary of restricted stock activity	A summary of restricted stock and stock option activity, including both performance based awards and time-based awards, for the nine months ended July 2, 2016 is as follows: Number of shares of Restricted Stock Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2014 168,600 $ 5.27 Granted 92,600 $ 7.49 Vested (64,600 ) $ 6.32 Non-vested balance as of September 30, 2015 196,600 $ 5.97 Granted 41,240 $ 9.89 Cancelled (3,300 ) $ 9.82 Vested (91,600 ) $ 6.72 Non-vested balance as of July 2, 2016 142,940 $ 6.53 Number of shares of Stock Options Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2015 - $ - Granted 38,460 $ 4.81 Vested - $ - Non-vested balance as of July 2, 2016 38,460 $ 4.81

Calculation of earnings per s28

Calculation of earnings per share and weighted average shares outstanding (Tables)	9 Months Ended
	Jul. 02, 2016
Calculation of earnings per share and weighted average shares outstanding [Abstract]
Basic and fully diluted earnings per share	Basic and diluted net income per common share for the three and nine month periods ended July 2, 2016 and July 4, 2015 were calculated as follows: (in thousands of dollars except per share data) Three months ended Nine months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Numerator: Net income (loss) attributable to common stockholders for computing net income (loss) per ordinary share – basic $ (1,538 ) $ 171 $ (3,221 ) $ 881 Dividend eliminated upon assumed conversion of convertible preferred stock - - - 335 Net income (loss) attributable to common stockholders for computing net income (loss) per ordinary share – diluted $ (1,538 ) $ 171 $ (3,221 ) $ 1,216 Denominator: Weighted average shares used in calculating net income (loss) per ordinary share – basic 4,070 3,486 3,828 3,459 Adjustment for assumed conversion of convertible preferred stock - - - 1,374 Adjustment for shares issuable upon vesting of restricted stock - 91 - 80 Weighted average shares used in calculating net income (loss) per ordinary share – diluted 4,070 3,577 3,828 4,913 Net income (loss) per ordinary share – basic $ (0.38 ) $ 0.04 $ (0.84 ) $ 0.25 Net income (loss) per ordinary share – diluted $ (0.38 ) $ 0.04 $ (0.84 ) $ 0.25 No. of shares of convertible preferred stock that are anti-dilutive excluded from calculation of common stock equivalents 1,347 1,357 1,353 -

Segment information (Tables)

Segment information (Tables)	9 Months Ended
	Jul. 02, 2016
Segment information [Abstract]
Information concerning operations of business segments	The Company does not allocate income taxes, interest income and expense or foreign currency translation gains and losses to segments. Information concerning operations of these businesses is as follows: (in thousands of dollars) Three months ended July 2, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 8,462 405 5,046 - 13,913 Inter segment revenues - - - - - Operating income (loss) (511 ) (5 ) (257 ) (158 ) (931 ) Identifiable assets, excluding goodwill 38,149 901 8,715 3,853 51,618 Goodwill 1,435 - 7,169 - 8,604 Three months ended July 4, 2015 Controls Capacitors Chargers Corporate Total Sales to external customers 9,820 526 - - 10,346 Inter-segment revenues - - - - - Operating income 342 5 - (86 ) 261 Identifiable assets, excluding goodwill 24,033 1,248 - 7,150 32,431 Goodwill 1,435 - - - 1,435 Nine months ended July 2, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 25,968 1,215 9,026 - 36,209 Inter-segment revenues - - - - - Operating income (loss) (449 ) (61 ) 9 (1,921 ) (2,422 ) Identifiable assets, excluding goodwill 38,149 901 8,715 3,853 51,618 Goodwill 1,435 - 7,169 - 8,604 Nine months ended July 4, 2015 Controls Capacitors Chargers Corporate Total Sales to external customers 29,000 1,619 - - 30,619 Inter-segment revenues - 3 - - 3 Operating income 1,064 121 - 32 1,217 Identifiable assets, excluding goodwill 24,033 1,248 - 7,150 32,431 Goodwill 1,435 - - - 1,435
Revenues of electronic controls segment by products and services	In the electronic controls segment, revenues derive from the following products and services: (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Electronic controls for zero emission and hybrid electric vehicles $ 5,638 $ 7,445 $ 17,876 $ 19,746 Accessory and aftermarket products and services 2,824 2,375 8,092 9,254 Total controls segment revenues $ 8,462 $ 9,820 $ 25,968 $ 29,000

Employee benefit plans (Tables)

Employee benefit plans (Tables)	9 Months Ended
	Jul. 02, 2016
Employee benefit plans [Abstract]
Components of the net pension cost	The Company uses a September 30 measurement date for its defined benefit pension plans. (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Interest cost $ 304 $ 308 $ 885 $ 928 Service cost 49 - 82 - Expected return on plan assets (281 ) (311 ) (846 ) (937 ) Amortization of net loss 128 66 278 198 Net periodic benefit cost 200 63 399 189 Net cost of defined contribution plans $ 105 $ 87 $ 388 $ 359 Net cost of all employee benefit plans $ 305 $ 150 $ 787 $ 548
Movement in liability for pension benefits	The following table sets forth the movement in the liability for pension benefits in the nine month periods ended July 2, 2016 and July 4, 2015, respectively: (in thousands of dollars) Nine Months ended July 2, 2016 July 4, 2015 Liability for pension benefits at beginning of period 10,963 9,529 Liability assumed on acquisition of subsidiary 1,167 - Interest cost 885 928 Service cost 82 - Expected return on plan assets (846 ) (937 ) Plan withdrawals (36 ) - Plan contributions (477 ) (497 ) Effect of exchange rate changes (1,211 ) (349 ) Balance at end of period 10,527 8,674
Amounts recognized in balance sheet	Amounts recognized in the balance sheet consist of: (in thousands of dollars) July 2, 2016 July 4, 2015 Non-current liabilities $ 10,527 $ 8,674
Amounts recognized in accumulated other comprehensive loss	Amounts recognized in accumulated other comprehensive loss consist of: (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Actuarial loss, net of $39 and $74 tax benefit for the three and nine month periods, respectively, (2015: net of $16 and $47 tax benefit for the three and nine month periods, respectively) $ 89 $ 50 $ 203 $ 151
Pension plan assets measured and recorded at fair value	The table below presents information about the Company’s pension plan assets measured and recorded at fair value as of July 2, 2016 and indicates the fair value hierarchy of the inputs utilized by the Company to determine the fair values. (in thousands of dollars) July 2, 2016 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) - 12,011 - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 4,869 - U.S. Mutual Funds and Fixed Income Funds 1,176 - - U.S. Equity Funds 1,970 - - Other Types of Investments Cash 1,159 - - Total 4,305 16,880 - (in thousands of dollars) September 30, 2015 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) - 13,044 - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 3,845 - U.S. Mutual Funds and Fixed Income Funds 2,557 - - U.S. Equity Funds 350 - - Other Types of Investments Cash 331 - - Total 3,238 16,889 - * Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. ** Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration. *** The Company currently does not have any Level 3 pension plan financial assets.
Estimated future benefit payments	The following estimated benefit payments have been, or are expected, to be paid: (in thousands of dollars) 2016 $ 426 2017 514 2018 532 2019 540 2020 550 2021 – 2025 $ 2,958

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jul. 02, 2016
Inventories [Abstract]
Inventories	Inventories, net of reserve, were comprised of: (in thousands of dollars) July 2, 2016 September 30, 2015 Raw materials $ 6,540 $ 2,453 Work-in-process 200 90 Finished goods 7,408 4,247 $ 14,148 $ 6,790

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Jul. 02, 2016
Accrued expenses [Abstract]
Analysis of other accrued expenses	Set out below is an analysis of other accrued expenses at July 2, 2016 and September 30, 2015, which shows separately any items in excess of 5% of total current liabilities: (in thousands of dollars) July 2, 2016 September 30, 2015 Accrued compensation and related costs $ 1,607 $ 827 Other accrued expenses 2,082 1,146 $ 3,689 $ 1,973

Warranty reserves (Tables)

Warranty reserves (Tables)	9 Months Ended
	Jul. 02, 2016
Warranty reserves [Abstract]
Movement in warranty reserves	The movement in warranty reserves was as follows: (in thousands of dollars) Three Months ended Nine Months ended July 2, 2016 July 4, 2015 July 2, 2016 July 4, 2015 Warranty reserves at beginning of period $ 249 $ 144 $ 278 $ 153 Liability assumed on acquisition of subsidiary - 34 - Decrease in beginning balance for warranty obligations settled during the period - - (72 ) - Foreign currency translation adjustment (6 ) 3 (2 ) (9 ) Net increase in warranty reserves for products sold during the period - - 5 3 Warranty reserves at end of period $ 243 $ 147 $ 243 $ 147

Debt (Tables)

Debt (Tables)	9 Months Ended
	Jul. 02, 2016
Debt [Abstract]
Annual principal payments on long term debt	Annual principal payments on long term bank debt, net of debt issuance costs, and converted to U.S. dollars at the July 2, 2016 exchange rate of $0.906 Euros per U.S. dollar, are as follows (in thousands of dollars): 2018 $ 1,159 2019 1,545 2020 1,545 2021 11,199 15,448 Less: debt issuance costs (232 ) Total $ 15,216

Changes in Other Comprehensiv35

Changes in Other Comprehensive Loss (Tables)	9 Months Ended
	Jul. 02, 2016
Changes in Other Comprehensive Loss [Abstract]
Component of accumulated other comprehensive loss	The following table illustrates changes in the balances of each component of accumulated other comprehensive loss in 2016 and 2015: (in thousands of dollars) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Balance September 30, 2014 (956 ) (7,873 ) (8,829 ) Other comprehensive loss for the period (318 ) (1,857 ) (2,175 ) Balance September 30, 2015 (1,274 ) (9,730 ) (11,004 ) Other comprehensive income (loss) for the period (160 ) 203 43 Balance July 2, 2016 (1,434 ) (9,527 ) (10,961 )

Basis of presentation (Details)

Basis of presentation (Details)	9 Months Ended
	Jul. 02, 2016
Basis of presentation [Abstract]
Equity interest ownership	50.00%
Third party's equity interest ownership	50.00%

Acquisitions (Details)

Acquisitions (Details) $ / shares in Units, € in Thousands	Jan. 29, 2016USD ($)$ / sharesshares	Jan. 29, 2016EUR (€)shares	Jul. 02, 2016USD ($)	Jul. 04, 2015USD ($)	Jul. 02, 2016USD ($)	Jul. 04, 2015USD ($)	Sep. 30, 2015USD ($)
Summary of allocation of fair value [Abstract]
Cash					$ 10,832,000	$ 0
Common stock (500,000 shares of Sevcon, Inc.)					4,760,000	0
Assets acquired and liabilities assumed Net [Abstract]
Goodwill			$ 8,604,000	$ 1,435,000	8,604,000	1,435,000	$ 1,435,000
Net sales			13,913,000	10,346,000	36,209,000	30,619,000
Net income			(1,529,000)	279,000	(3,025,000)	1,185,000
Acquisition costs			$ 8,000	$ 0	1,425,000	0
Bassi S.r.l. Unipersonale [Member]
Business Acquisition [Line Items]
Shares issued for acquisition (in shares) | shares	500,000	500,000
Value of stock issued for acquisition	$ 4,800,000
Stock price (in dollars per share) | $ / shares	$ 9.52
Payment of assumed liability	$ 3,500,000	€ 3,230
Term of liability for acquisition	3 years	3 years
Summary of allocation of fair value [Abstract]
Cash	$ 10,832,000	€ 10,000
Common stock (500,000 shares of Sevcon, Inc.)	4,760,000
Fair value of pre-acquisition dividends payable to Bassi Holding	3,503,000
Fair value of total consideration	19,095,000
Assets acquired and liabilities assumed Net [Abstract]
Cash	1,577,000
Accounts receivable	3,318,000
Inventory	4,183,000
Property and equipment	923,000
Other assets	715,000
Accounts payable	(3,513,000)
Accrued and other current liabilities	(2,020,000)
Deferred tax liabilities	(1,947,000)
Other long-term liabilities	(1,360,000)
Assets acquired and liabilities assumed Net	1,876,000
Intangible assets	10,182,000
Fair value of total consideration, excluding goodwill	12,058,000
Goodwill	7,037,000
Fair value of total consideration	19,095,000
Gross amount of contracts	3,428,000
Amount expected to be uncollectible	110,000
Total intangible assets acquired	10,182,000
Net sales					9,000,000
Net income					0
Acquisition costs					1,425,000
Non-recurring expense relating to the fair value adjustments					257,000
Pro forma information [Abstract]
Revenue					41,857,000	42,228,000
Net income (loss)					$ (1,397,000)	$ 368,000
Bassi S.r.l. Unipersonale [Member] | Developed Technologies [Member]
Assets acquired and liabilities assumed Net [Abstract]
Intangible assets	325,000
Total intangible assets acquired	$ 325,000
Amortization period	7 years	7 years
Bassi S.r.l. Unipersonale [Member] | Customer Relationships [Member]
Assets acquired and liabilities assumed Net [Abstract]
Intangible assets	$ 8,774,000
Total intangible assets acquired	$ 8,774,000
Amortization period	10 years	10 years
Bassi S.r.l. Unipersonale [Member] | Trade Names [Member]
Assets acquired and liabilities assumed Net [Abstract]
Intangible assets	$ 758,000
Total intangible assets acquired	$ 758,000
Amortization period	10 years	10 years
Bassi S.r.l. Unipersonale [Member] | Order Backlog [Member]
Assets acquired and liabilities assumed Net [Abstract]
Intangible assets	$ 325,000
Total intangible assets acquired	$ 325,000
Amortization period	1 year	1 year

Stock-based compensation plan38

Stock-based compensation plans (Details)	1 Months Ended	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Dec. 31, 2015USD ($)Employee$ / sharesshares	Jul. 02, 2016USD ($)$ / sharesshares	Jul. 04, 2015USD ($)	Apr. 04, 2015USD ($)Employee$ / sharesshares	Jul. 02, 2016USD ($)Employee$ / sharesshares	Jul. 04, 2015USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares
Weighted Average Grant-Date Fair Value [Abstract]
Stock based compensation expense | $		$ 169,000	$ 147,000		$ 527,000	$ 406,000
Unrecognized compensation expense | $		$ 679,000			$ 679,000
Weighted average period for unrecognized compensation expense to be recognized					1 year 10 months 24 days
Stock Options [Member]
Fair Value of Stock Options using Black-Scholes-Merton Option-Pricing Model [Abstract]
Expected life					4 years
Risk-free interest rate					1.55%
Volatility					61.43%
Dividend yield					0.00%
Weighted-average fair value per share (in dollars per share) | $ / shares					$ 4.81
Outstanding Shares [Abstract]
Outstanding shares, beginning balance (in shares)					0
Outstanding shares, granted (in shares)					38,460
Outstanding shares, exercised (in shares)					0
Outstanding shares, forfeited or expired (in shares)					0
Outstanding shares, ending balance (in shares)		38,460			38,460		0
Outstanding shares, exercisable (in shares)		0			0
Outstanding shares, vested and expected to vest (in shares)		34,737			34,737
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares					$ 0
Weighted average exercise price, granted (in dollars per share) | $ / shares					9.94
Weighted average exercise price, exercised (in dollars per share) | $ / shares					0
Weighted average exercise price, forfeited or expired (in dollars per share) | $ / shares					0
Weighted average exercise price, ending balance (in dollars per share) | $ / shares		$ 9.94			9.94		$ 0
Weighted average exercise price, exercisable (in dollars per share) | $ / shares		0			0
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares		$ 9.94			$ 9.94
Weighted Average Remaining Contractual Term [Abstract]
Weighted average remaining contractual term					4 years 5 months 16 days		0 years
Weighted average remaining contractual term, granted					5 years
Weighted average remaining contractual term, exercised					0 years
Weighted average remaining contractual term, forfeited or expired					0 years
Weighted average remaining contractual term, exercisable					0 years
Weighted average remaining contractual term, vested and expected to vest					4 years 5 months 16 days
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, beginning balance | $					$ 0
Aggregate intrinsic value, granted | $					11,153
Aggregate intrinsic value, exercised | $					0
Aggregate intrinsic value, forfeited or expired | $					0
Aggregate intrinsic value, ending balance | $							$ 0
Aggregate intrinsic value, exercisable | $		0			0
Aggregate intrinsic value, vested and expected to vest | $
Number of shares of Stock Options [Abstract]
Non-vested balance, beginning of period (in shares)					0
Granted (in shares)					38,460
Vested (in shares)					0
Non-vested balance, end of period (in shares)		38,460			38,460		0
Weighted Average Grant-Date Fair Value [Abstract]
Non-vested balance, beginning of period (in dollars per share) | $ / shares					$ 0
Granted (in dollars per share) | $ / shares					4.81
Vested (in dollars per share) | $ / shares					0
Non-vested balance, ending of period (in dollars per share) | $ / shares		$ 4.81			$ 4.81		$ 0
Restricted Stock [Member]
Number of shares of Restricted Stock [Roll Forward]
Non-vested balance, beginning of period (in shares)				168,600	196,600	168,600	168,600
Granted (in shares)					41,240		92,600
Cancelled (in shares)					(3,300)
Vested (in shares)					(91,600)		(64,600)
Non-vested balance, end of period (in shares)		142,940			142,940		196,600
Weighted Average Grant-Date Fair Value [Roll Forward]
Non-vested balance, beginning of period (in dollars per share) | $ / shares				$ 5.27	$ 5.97	$ 5.27	$ 5.27
Granted (in dollars per share) | $ / shares					9.89		7.49
Cancelled (in dollars per share) | $ / shares					9.82
Vested (in dollars per share) | $ / shares					6.72		6.32
Non-vested balance, ending of period (in dollars per share) | $ / shares		$ 6.53			$ 6.53		$ 5.97
Weighted Average Grant-Date Fair Value [Abstract]
Charge to income for restricted stock | $				$ 65,000
Restricted Stock [Member] | Nine Non-Employees [Member]
Number of shares of Restricted Stock [Roll Forward]
Granted (in shares)				30,600	29,700
Weighted Average Grant-Date Fair Value [Abstract]
Number of employees directors with restricted stock grant | Employee				9	9
Estimated fair value of stock at date of grant | $				$ 225,000	$ 292,000
Period for recognition of unearned compensation				12 months	12 months
Charge to income for restricted stock | $				$ 131,000	$ 94,000
Quarterly charge to income for restricted stock | $					65,000
Restricted Stock [Member] | Four Employees [Member]
Number of shares of Restricted Stock [Roll Forward]
Granted (in shares)	11,540
Weighted Average Grant-Date Fair Value [Abstract]
Number of employees directors with restricted stock grant | Employee	4
Estimated fair value of stock at date of grant | $	$ 116,000
Period for recognition of unearned compensation	3 years
Charge to income for restricted stock | $		$ 8,000			$ 18,000
Quarterly charge to income for restricted stock | $	$ 8,000
Performance Shares [Member] | Nine Non-Employees [Member]
Weighted Average Grant-Date Fair Value [Abstract]
Number of employees directors with restricted stock grant | Employee	9
Exercise price (in dollars per share) | $ / shares	$ 9.94
Estimated fair value of stock at date of grant | $	$ 185,000
Period for recognition of unearned compensation	3 years
Quarterly charge to income for restricted stock | $	$ 14,000
1996 Equity Incentive Plan [Member]
Weighted Average Grant-Date Fair Value [Abstract]
Shares reserved and available for grant (in shares)		336,990			336,990		139,578

Cash dividends (Details)

Cash dividends (Details) - USD ($)	9 Months Ended
	Jul. 02, 2016	Apr. 15, 2016	Sep. 30, 2015
Preference share dividends [Abstract]
Preferred stock, outstanding (in shares)	449,011		452,124
Series A Convertible Preferred Stock, stated value (in dollars per share)	$ 0.10		$ 0.10
Series A Convertible Preferred Stock [Member]
Preference share dividends [Abstract]
Preferred stock, issued (in shares)	449,011
Preferred stock, outstanding (in shares)	449,011
Series A Convertible Preferred Stock, stated value (in dollars per share)	$ 24
Percentage of cumulative annual dividend, Series A Convertible Preferred Stock	4.00%
Semi annual dividend		$ 216,816
Dividend payable	Apr. 15, 2015
Next semi-annual dividend payable	Oct. 15, 2015

Calculation of earnings per s40

Calculation of earnings per share and weighted average shares outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Numerator [Abstract]
Net (loss) income attributable to common stockholders	$ (1,538)	$ 171	$ (3,221)	$ 881
Dividend eliminated upon assumed conversion of convertible preferred stock	0	0	0	335
Net income (loss) attributable to common stockholders for computing net income (loss) per ordinary share - diluted	$ (1,538)	$ 171	$ (3,221)	$ 1,216
Denominator [Abstract]
Weighted average shares used in calculating net income (loss) per ordinary share - basic (in shares)	4,070,000	3,486,000	3,828,000	3,459,000
Adjustment for assumed conversion of convertible preferred stock (in shares)	0	0	0	1,374,000
Adjustment for shares issuable upon vesting of restricted stock (in shares)	0	91,000	0	80,000
Weighted average shares used in calculating net income (loss) per ordinary share - diluted (in shares)	4,070,000	3,577,000	3,828,000	4,913,000
Net income (loss) per ordinary share - basic (in dollars per share)	$ (0.38)	$ 0.04	$ (0.84)	$ 0.25
Net income (loss) per ordinary share - diluted (in dollars per share)	$ (0.38)	$ 0.04	$ (0.84)	$ 0.25
No. of shares of convertible preferred stock that are anti-dilutive excluded from calculation of common stock equivalents (in shares)	1,347	1,357	1,353	0

Segment information (Details)

Segment information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2016USD ($)	Jul. 04, 2015USD ($)	Jul. 02, 2016USD ($)Segment	Jul. 04, 2015USD ($)	Sep. 30, 2015USD ($)
Segment information [Abstract]
Number of reportable segments | Segment			3
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	$ 13,913	$ 10,346	$ 36,209	$ 30,619
Operating income (loss)	(931)	261	(2,422)	1,217
Identifiable assets, excluding goodwill	51,618	32,431	51,618	32,431
Goodwill	8,604	1,435	8,604	1,435	$ 1,435
Reportable Segments [Member] | Controls [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	8,462	9,820	25,968	29,000
Operating income (loss)	(511)	342	(449)	1,064
Identifiable assets, excluding goodwill	38,149	24,033	38,149	24,033
Goodwill	1,435	1,435	1,435	1,435
Reportable Segments [Member] | Capacitors [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	405	526	1,215	1,619
Operating income (loss)	(5)	5	(61)	121
Identifiable assets, excluding goodwill	901	1,248	901	1,248
Goodwill	0	0	0	0
Reportable Segments [Member] | Chargers [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	5,046	0	9,026	0
Operating income (loss)	(257)	0	9	0
Identifiable assets, excluding goodwill	8,715	0	8,715	0
Goodwill	7,169	0	7,169	0
Intersegment Eliminations [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0	0	3
Intersegment Eliminations [Member] | Controls [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0	0	0
Intersegment Eliminations [Member] | Capacitors [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0	0	3
Intersegment Eliminations [Member] | Chargers [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0	0	0
Corporate [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0	0	0
Operating income (loss)	(158)	(86)	(1,921)	32
Identifiable assets, excluding goodwill	3,853	7,150	3,853	7,150
Goodwill	$ 0	$ 0	$ 0	$ 0

Segment information, Revenues f

Segment information, Revenues from Electronic Controls Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Revenue from External Customer [Line Items]
Revenue from external customer	$ 13,913	$ 10,346	$ 36,209	$ 30,619
Reportable Segments [Member] | Controls [Member]
Revenue from External Customer [Line Items]
Revenue from external customer	8,462	9,820	25,968	29,000
Reportable Segments [Member] | Controls [Member] | Electronic Controls for Zero Emission and Hybrid Electric Vehicles [Member]
Revenue from External Customer [Line Items]
Revenue from external customer	5,638	7,445	17,876	19,746
Reportable Segments [Member] | Controls [Member] | Accessory and Aftermarket Products and Services and Engineering Contracts [Member]
Revenue from External Customer [Line Items]
Revenue from external customer	$ 2,824	$ 2,375	$ 8,092	$ 9,254

Research and development (Detai

Research and development (Details) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Jul. 02, 2016	Jul. 02, 2016	Jul. 04, 2015	Sep. 30, 2015
Cummins Generator Technologies and Newcastle University [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Grant income recorded		$ 0	$ 56,000
Research and development expense on projects		7,000	245,000
U.K. Regional Growth Fund [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Grant income recorded		115,000	27,000
Research and development expense on projects		392,000	$ 149,000
Total grants awarded				$ 625,000
Refundable tax credits on research and development	$ 315,000	$ 315,000

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Jul. 02, 2016
Income Taxes [Abstract]
Effective tax rate	4.00%
Statutory tax rate	34.00%

Employee benefit plans (Details

Employee benefit plans (Details) - USD ($)		3 Months Ended		9 Months Ended
		Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Sep. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Unfunded liability		$ 161,000	$ 152,000	$ 161,000	$ 152,000
Components of net pension cost [Abstract]
Interest cost		304,000	308,000	885,000	928,000
Service cost		49,000	0	82,000	0
Expected return on plan assets		(281,000)	(311,000)	(846,000)	(937,000)
Amortization of net loss		128,000	66,000	278,000	198,000
Net periodic benefit cost		200,000	63,000	399,000	189,000
Net cost of defined contribution plans		105,000	87,000	388,000	359,000
Net cost of all employee benefit plans		305,000	150,000	787,000	548,000
Movement in liability for pension benefits [Roll forward]
Liability for pension benefits at beginning of period				10,963,000	9,529,000
Liability assumed on acquisition of subsidiary				1,167,000	0
Interest cost		304,000	308,000	885,000	928,000
Service cost		49,000	0	82,000	0
Expected return on plan assets		(281,000)	(311,000)	(846,000)	(937,000)
Plan withdrawals				(36,000)	0
Plan contributions				(477,000)	(497,000)
Effect of exchange rate changes				(1,211,000)	(349,000)
Balance at end of period		10,527,000	8,674,000	10,527,000	8,674,000
Amounts recognized in balance sheet [Abstract]
Non-current liabilities		10,527,000	8,674,000	10,527,000	8,674,000	$ 10,963,000
Amounts recognized in accumulated other comprehensive loss [Abstract]
Actuarial loss, net of $39 and $74 tax benefit for the three and nine month periods, respectively, (2015: net of $16 and $47 tax benefit for the three and nine month periods, respectively)		89,000	50,000	203,000	151,000
Actuarial loss, tax benefit		39,000	$ 16,000	74,000	$ 47,000
Estimated future benefit payments [Abstract]
2,016		426,000		426,000
2,017		514,000		514,000
2,018		532,000		532,000
2,019		540,000		540,000
2,020		550,000		550,000
2021 - 2025		2,958,000		2,958,000
Level 1 (Quoted Prices in Active Markets) [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	4,305,000		4,305,000		3,238,000
Level 1 (Quoted Prices in Active Markets) [Member] | Adept Strategy 9 Fund [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	0		0		0
Level 1 (Quoted Prices in Active Markets) [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	0		0		0
Level 1 (Quoted Prices in Active Markets) [Member] | U.S. Mutual Funds and Fixed Income Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	1,176,000		1,176,000		2,557,000
Level 1 (Quoted Prices in Active Markets) [Member] | U.S. Equity Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	1,970,000		1,970,000		350,000
Level 1 (Quoted Prices in Active Markets) [Member] | Cash [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	1,159,000		1,159,000		331,000
Level 2 (Significant Observable Inputs) [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	16,880,000		16,880,000		16,889,000
Level 2 (Significant Observable Inputs) [Member] | Adept Strategy 9 Fund [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	12,011,000		12,011,000		13,044,000
Level 2 (Significant Observable Inputs) [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	4,869,000		4,869,000		3,845,000
Level 2 (Significant Observable Inputs) [Member] | U.S. Mutual Funds and Fixed Income Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	0		0		0
Level 2 (Significant Observable Inputs) [Member] | U.S. Equity Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	0		0		0
Level 2 (Significant Observable Inputs) [Member] | Cash [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	0		0		0
Level 3 (Unobservable Inputs) [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0		0		0
Level 3 (Unobservable Inputs) [Member] | Adept Strategy 9 Fund [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0		0		0
Level 3 (Unobservable Inputs) [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0		0		0
Level 3 (Unobservable Inputs) [Member] | U.S. Mutual Funds and Fixed Income Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0		0		0
Level 3 (Unobservable Inputs) [Member] | U.S. Equity Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0		0		0
Level 3 (Unobservable Inputs) [Member] | Cash [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0		0		$ 0
U.S. Defined Benefit Plan [Member]
Estimated future employer contributions [Abstract]
Employer contributions				150,000
Estimated future employer contributions in current fiscal year				50,000
U.K. Defined Benefit Plan [Member]
Estimated future employer contributions [Abstract]
Employer contributions				327,000
Estimated future employer contributions in current fiscal year				426,000
Bassi S.r.l. Unipersonale [Member]
Defined Benefit Plan Disclosure [Line Items]
Unfunded liability		$ 1,245,000		$ 1,245,000
[1]	Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds.
[2]	Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company's pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration.
[3]	The Company currently does not have any Level 3 pension plan financial assets.

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Sep. 30, 2015
Inventories [Abstract]
Raw materials	$ 6,540	$ 2,453
Work-in-process	200	90
Finished goods	7,408	4,247
Inventories	$ 14,148	$ 6,790

Fair value of financial instr47

Fair value of financial instruments (Details)	Jul. 02, 2016USD ($)
Level 2 (Significant Observable Inputs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long term debt	$ 15,448,000

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Sep. 30, 2015
Accrued expenses [Abstract]
Percentage of total current liabilities used to analyze accrued expenses	5.00%	5.00%
Accrued compensation and related costs	$ 1,607	$ 827
Other accrued expenses	2,082	1,146
Accrued expenses	$ 3,689	$ 1,973

Warranty reserves (Details)

Warranty reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015
Movement in warranty reserves [Roll Forward]
Warranty reserves at beginning of period	$ 249	$ 144	$ 278	$ 153
Liability assumed on acquisition of subsidiary	0		34	0
Decrease in beginning balance for warranty obligations settled during the period	0	0	(72)	0
Foreign currency translation adjustment	(6)	3	(2)	(9)
Net increase in warranty reserves for products sold during the period	0	0	5	3
Warranty reserves at end of period	$ 243	$ 147	$ 243	$ 147

Debt (Details)

Debt (Details)	9 Months Ended
	Jul. 02, 2016USD ($)	Jul. 02, 2016EUR (€)	Sep. 30, 2015USD ($)
Debt [Abstract]
Total overdraft facility	$ 1,200,000
Annual principal payments on long term debt [Abstract]
Total	15,216,000		$ 0
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 15,448,000	€ 14,000,000
Line of credit facility, expiration date	Jan. 27, 2021
Line of credit facility, amount outstanding	$ 15,448,000	€ 14,000,000
Euros per dollar exchange rate	0.906	0.906
Annual principal payments on long term debt [Abstract]
2,018	$ 1,159,000
2,019	1,545,000
2,020	1,545,000
2,021	11,199,000
Total	15,448,000
Less: Debt issuance costs	(232,000)
Total	$ 15,216,000
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Ratio of net debt to EBITDA, Current fiscal year	3.5
Ratio of net debt to EBITDA, year two	3.5
Ratio of net debt to EBITDA, thereafter	3
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | EuroLIBOR [Member]
Line of Credit Facility [Line Items]
Margin interest rate	3.00%
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | EuroLIBOR [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Margin interest rate	0.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Jul. 02, 2016	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Maximum recorded liability of deferred annuities	$ 144,000	$ 153,000
Minimum rental commitments under non-cancelable leases [Abstract]
2,016	604,000
2,017	580,000
2,018	536,000
2,019	492,000
2,020	492,000
Thereafter	2,237,000
Total overdraft facility	1,200,000
Outstanding amount on Overdraft facility	$ 0	$ 0

Changes in Other Comprehensiv52

Changes in Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jul. 02, 2016	Sep. 30, 2015
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	$ 15,712
Other comprehensive income (loss) for the period	43	$ (2,175)
Balance at the end of the period	17,692	15,712
Accumulated Other Comprehensive Loss [Member]
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	(11,004)	(8,829)
Balance at the end of the period	(10,961)	(11,004)
Foreign Currency Items [Member]
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	(1,274)	(956)
Other comprehensive income (loss) for the period	(160)	(318)
Balance at the end of the period	(1,434)	(1,274)
Defined Benefit Pension Plans [Member]
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	(9,730)	(7,873)
Other comprehensive income (loss) for the period	203	(1,857)
Balance at the end of the period	$ (9,527)	$ (9,730)

Related Parties (Details)

Related Parties (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 02, 2016	Jul. 04, 2015	Jul. 02, 2016	Jul. 04, 2015	Aug. 02, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Long-term debt to related parties	$ 1,507,000		$ 1,507,000			$ 0
Meson Capital Partners LLC [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Percentage of outstanding common stock owned by investment adviser and general partner					19.60%
Bassi Holding [Member]
Related Party Transaction [Line Items]
Long-term debt to related parties	2,478,000		2,478,000
Related party transaction	$ 83,000	$ 0	$ 138,000	$ 0

Subsequent events (Details)

Subsequent events (Details)	Jul. 06, 2016USD ($)$ / sharesshares	Jul. 02, 2016Director$ / shares	Sep. 30, 2015$ / shares
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) | $ / shares		$ 0.10	$ 0.10
Number of directors managing affiliated funds | Director		2
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of units sold (in unit) | shares	1,124,000
Number of common stock in each offering unit (in shares) | shares	1
Common stock, par value (in dollars per share) | $ / shares	$ 0.10
Number of warrant in each offering unit (in shares) | shares	0.5
Stock price (in dollars per share) | $ / shares	$ 9.12
Proceeds from sale of units gross | $	$ 10,250,880