Exhibit 99
Tech/Ops Sevcon Third Quarter News Release
Tech/Ops Sevcon, Inc.
155 Northboro Road
Southborough, MA 01772
Telephone (508) 281 5510 For Release: IMMEDIATE
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News For Further Information Contact
Release Paul A. McPartlin
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TECH/OPS SEVCON REPORTS THIRD QUARTER RESULTS
Southborough, Mass. July 21, 2003..... Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported that net income for its third fiscal quarter was $98,000, or $.03 per
diluted share, compared to last year's results for the same period when the
Company had net income of $19,000, or $.01 per diluted share. Revenues for the
third quarter were $5,961,000, an increase of $606,000, or 11%, compared to the
prior year's $5,355,000. The revenue increase was attributable almost entirely
to foreign currency fluctuations. Volumes were in line with the third quarter of
last year. Operating income for the third quarter was $161,000, compared to an
operating loss of $18,000 in the third quarter of last year. Better margins and
positive foreign currency fluctuations contributed to improved operating income.
However, third quarter operating income was reduced by additional engineering
expense on new product development.
For the nine month period, net income was $315,000, or $.10 per diluted share,
compared to $262,000, or $.08 per diluted share last year. Revenues in the first
nine months of this year were $17,744,000, an increase of $1,412,000, or 9%,
compared to last year. This increase was attributable to foreign currency
fluctuations partly offset by volumes 1% lower than last year. Sales to the
capacitor, fork lift truck and other electric vehicle markets were ahead of the
previous year; however, sales to the airport ground support, aerial lift and
mining markets were lower than last year. Operating income for the nine months
was $478,000, an increase of $103,000, or 27%, compared to the first nine months
of fiscal 2002. The increase in operating income was mainly due to a positive
impact of foreign currency fluctuations and improved margins on new products
partially offset by higher engineering expense on new products.
Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and marketing
of microprocessor based controls for electric vehicles. The controls are used to
vary the speed and movement of vehicles, to integrate specialized functions, and
to prolong the shift life of the vehicles? batteries. Sevcon supplies customers
throughout the world from its operations in the United Kingdom, the USA, France,
the Far East, and through an international dealer network. The Company's
customers are manufacturers of fork lift trucks, aerial lifts, mining vehicles,
airport tractors, sweepers, and other battery powered vehicles.
Third Quarter 2003 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Nine months ended
June 30 June 30 June 30 June30
2003 2002 2003 2002
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Net sales $ 5,961 $ 5,355 $ 17,744 $ 16,332
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Operating income (loss) 161 (18) 478 375
Income before income taxes 150 30 484 403
Net income $ 98 $ 19 $ 315 $ 262
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Basic income per share $ .03 $ .01 $ .10 $ .08
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Diluted income per share $ .03 $ .01 $ .10 $ .08
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Cash dividend per share $ .03 $ .09 $ .09 $ .27
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Average shares outstanding 3,125 3,118 3,125 3,114
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Summarized Balance Sheet Data (in thousands of dollars)
June 30, September 30,
2003 2002
(unaudited)(derived from
audited
statements)
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Cash, cash equivalents and short-term investments $ 462 $ 695
Receivables 4,473 3,938
Inventories 4,536 4,137
Prepaid expenses and other current assets 738 539
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Total current assets 10,209 9,309
Long-term assets 4,367 4,212
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Total assets $ 14,576 $ 13,521
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Current liabilities $ 4,532 $ 3,975
Deferred taxes 93 93
Stockholders' Investment $ 9,951 $ 9,453
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Total liabilities and stockholders' Investment $ 14,576 $ 13,521
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