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 SECOND QUARTER RESULTS
Southborough, Mass. April 27, 2004..... Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported that net income for its second fiscal quarter was $142,000, or $.05
per diluted share, compared to last year's results when the Company had net
income of $211,000, or $.07 per diluted share. Revenues for the second quarter
were $7,273,000, an increase of $1,135,000, or 18%, compared to the prior
year's $6,138,000. Foreign currency fluctuations resulted in a $645,000
increase in reported sales. Second quarter volumes were 8% higher than last
year mainly due to gains in the controls business. Engineering expense, mainly
on advanced new products, was $386,000 higher than the second quarter of last
year, Operating income for the second quarter was $280,000 compared to $303,000
in the same quarter lastyear. Foreign currency changes compared to last year
resulted in a decrease of $20,000 in second quarter operating income.
For the six month period, net income was $223,000, or $.07 per diluted share,
compared to $217,000, or $.07 per diluted share last year. Revenues in the first
six months of fiscal 2004 were $13,739,000, an increase of $1,956,000, or 17%,
compared to last year. Foreign currency fluctuations resulted in a $1,200,000
increase in reported sales. Volumes were 6% ahead of the prior year. Higher
spending on new products resulted in an increase in engineering expense of
$647,000, equivalent to $.13 per share. Operating income for the six-month
period was $453,000, compared to $317,000, in the first half of the prior year.
Foreign currency fluctuations increased year-to-date reported operating income
by $140,000 compared to the same period last year.
Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and marketing
of microprocessor based controls or 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.
Second Quarter 2004 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Six months ended
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April 3 March 31 April 3 March 31
2004 2003 2004 2003
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Net sales $7,273 $6,138 $13,739 $11,783
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Operating income 280 303 453 317
Income before income taxes 220 325 344 334
Net Income $ 142 $ 211 $ 223 $ 217
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Basic income per share $ .05 $ .07 $ .07 $ .07
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Diluted income per share $ .05 $ .07 $ .07 $ .07
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Cash dividend per share $ .03 $ .03 $ .06 $ .06
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Average shares outstanding 3,125 3,125 3,125 3,125
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Summarized Balance Sheet Data (in thousands of dollars)
April 3, September 30,
2004 2003
(unaudited) (derived from
audited
Satements)
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Cash, and cash equivalents $207 $524
Receivables 5,206 4,088
Inventories 4,048 3,999
Prepaid expenses and other current assets 904 762
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Total current assets 10,365 9,373
Long-term assets 4,687 4,361
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Total assets $15,052 $13,734
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Other current liabilities $4,669 $4,009
Deferred taxes 82 77
Stockholders' investment $10,301 $9,648
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Total liabilities and stockholders' investment $15,052 $13,734
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To our shareholders:
If you would like to receive a copy of the Company's Form 10-Q, which will be
available as soon as filed, in early May, please send your request to:
Investor Relations
Tech/Ops Sevcon, Inc.
155 Northboro Road
Southborough, MA 01772
E-mail investor.relations@sevcon.com
www.techopssevcon.com