Tech/Ops Sevcon, Inc.
155 Northboro Road
Southborough, MA 01772
Telephone (508) 281 5510 For Release: IMMEDIATE
News For Further Information Contact
Release Paul A McPartlin
TECH/OPS SEVCON REPORTS ANNUAL AND FOURTH QUARTER RESULTS
Southborough, Mass. November 13, 2003. Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported that net income for the year ended September 30, 2003 was $83,000,
or $.03 per diluted share, compared to last year's results when the Company
had net income of $57,000, or $.02 per diluted share. Revenues for fiscal 2003
were $23,113,000, an increase of $1,241,000, or 6%, compared to the prior
year's $21,872,000. Foreign currency fluctuations, principally the strength of
the Euro and British pound compared to the US dollar, accounted for an increase
of $1,885,000 in reported sales. Excluding the foreign currency impact, volumes
were 3% lower than last year due to depressed conditions in most of the markets
served by the Company. Operating income for fiscal 2003 was $151,000, compared
to $45,000 last year. Better margins and positive foreign currency fluctuations
contributed to improved operating income; however, in the current fiscal year
higher engineering expense on advanced new products, lower volumesand increased
inventory obsolescence adversely impacted operating income.
Fourth quarter sales were $5,369,000, a decrease of $171,000, or 3%, compared to
the prior year?s $5,540,000. Foreign currency fluctuations increased reported
revenues in the fourth quarter by $295,000; therefore volumes were lower than
the same quarter last year by $466,000, or 8%. The fourth quarter is
traditionally slow due to many customers shutting their plants for a summer
vacation. Only the aerial lift and capacitor markets showed any growth compared
to last year's fourth quarter, all other markets served by the Company declined.
There was an operating loss of $327,000 in the fourth quarter of the current
fiscal year, compared to an operating loss of $330,000 for the same quarter last
year. Lower volumes, increased new product engineering expense and higher
inventory obsolescence adversely impacted fourth quarter results in fiscal 2003.
Better margins and positive foreign currency fluctuations contributed positively
to this year's operating results. In the fourth quarter of last year the
operating loss was adversely impacted by a charge of $209,000 relating to the UK
pension plan. There was a net loss of $232,000 for the fourth quarter of fiscal
2003 compared to a net loss of $205,000 for the same quarter last year. The net
loss per diluted share was $.07 in the fourth quarter of both fiscal 2003 and
2002.
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.
Financial Highlights 2003
(in thousands except per share data)
Three months ended Twelve months ended
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Sept 30 Sept 30 Sept 30 Sept 30
2003 2002 2003 2002
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Net sales $5,369 $5,540 $23,113 $21,872
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Operating income (loss) (327) (330) 151 45
Income before income taxes (356) (315) 128 88
Net income $(232) $(205) $83 $57
================ ==================
Basic income per share $(.07) $(.07) $.03 $.02
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Diluted income per share $(.07) $(.07) $.03 $.02
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Cash dividend per share $.03 $.03 $.12 $.30
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Average shares outstanding 3,125 3,123 3,125 3,117
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Summarized Balance Sheet Data (derived from audited statements)
(in thousands of dollars)
September 30, September 30,
2003 2002
============= =============
Cash, cash equivalents and short-term investments $524 $695
Receivables 4,088 3,938
Inventories 3,999 4,137
Prepaid expenses and other current assets 762 539
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Total current assets 9,373 9,309
Long-term assets 4,361 4,212
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Total assets $13,734 $13,521
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Current liabilities $4,009 $3,975
Deferred taxes 77 93
Stockholders' Investment $9,648 $9,453
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$13,734 $13,521
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