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 THIRD QUARTER RESULTS
Southborough, Mass. August 4, 2004..... Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported that net income for its third fiscal quarter was $103,000, or $.03
per diluted share, which was in line with last year's results for the same
period when the Company had net income of $98,000, or $.03 per diluted share.
Revenues for the third quarter were $7,486,000, an increase of $1,525,000, or
26%, compared to the prior year's $5,961,000. Foreign currency fluctuations
accounted for $435,000 or 7% of the increase in reported sales but had an
insignificant impact on operating income. Volumes increased by 18% compared to
the third quarter of last year mainly due to gains in the controls business.
Engineering expense, mainly on advanced new products, was $296,000 higher than
the third quarter of last year. Operating income for the third quarter was
$121,000 compared to $161,000 in the same quarter last year.
For the nine month period net income was $326,000, or $.10 per diluted share,
compared to $315,000, also $.10 per diluted share, last year. Revenues in the
first nine months of this year were $21,255,000, an increase of $3,481,000,
or 20%, compared to last year. Foreign currency fluctuations accounted for
$1,635,000 or 9% of the increase in reported sales. Volumes were 11% higher
than the prior year period. The gross profit percentage increased to 40.3%
of sales compared to 38.8% in the same period last year. Higher operating
expenses, mainly related to new product engineering, sales and marketing and
adverse foreign currency affects increased operating expenses by $1,569,000
compared to the same period last year. Operating income for the nine months
was $574,000 compared to $478,000 in the first nine months of fiscal 2003.
The increase in operating income was mainly due to increased volumes and
foreign currency fluctuations, partially offset by the higher operating
expense mainly related to 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 2004 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Nine months ended
July 3 June 30 July 3 June 30
2004 2003 2004 2003
Net sales $7,486 $5,961 $21,225 $17,744
Operating income 121 161 574 478
Income before income taxes 157 150 501 484
Net income $103 $98 $326 $315
Basic income per share $.03 $.03 $.10 $.10
Diluted income per share $.03 $.03 $.10 $.10
Cash dividend per share $.03 $.03 $.09 $.09
Average shares outstanding 3,125 3,125 3,125 3,125
Summarized Balance Sheet Data (in thousands of dollars)
July 3, September 30
2004 2003
(unaudited) (derived from audited
statements)
Cash, cash equivalents and short-term
investments $562 $524
Receivables 5,552 4,088
Inventories 4,102 3,999
Prepaid expenses and other current assets 879 762
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Total current assets 11,095 9,373
Long-term assets 4,676 4,361
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Total assets $15,771 $13,734
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Current liabilities $5,330 $4,009
Deferred taxes 82 77
Stockholders' investment $10,359 $9,648
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Total liabilities and stockholders' investment $15,771 $13,734
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