Exhibit 99.2
Tech/Ops Sevcon Inc.
155 Northboro Road Southborough, MA 01772
Telephone (508) 281 5510
News Release
For release: Immediately
For further information contact: Paul McPartlin
TECH/OPS SEVCON REPORTS FIRST QUARTER RESULTS
Southborough, Mass. January 25, 2005.... Tech/Ops Sevcon, Inc.(AMEX symbol TO)
reported net income of $20,000, or $.01 per share, for the first fiscal quarter
ended January 1, 2005. Net income decreased by $61,000, or $.02 per share, from
$81,000, or $.03 per share, for the comparable period last year. Sales in the
first quarter were $7,542,000 compared to $6,466,000 for the comparable period
last year. Foreign currency fluctuations caused an increase in reported
revenues of $370,000, or 6%, and volumes shipped were 11% ahead of the prior
year period.
Operating income for the first quarter was $20,000, a decrease of $153,000
compared to the first quarter of last year. Higher sales and foreign currency
fluctuations increased gross profit by $234,000, which was offset by a $387,000
increase in operating expenses. Foreign currency fluctuations caused $140,000
of the operating expense increase, with lower engineering expense more than
offset by higher selling expense as the Company starts to launch its new espAC
range of advanced new electric vehicle controls.
At the Annual Meeting and the subsequent board meeting held on January 24,2005,
the following changes in the composition of the board of directors occurred:
* Mr. Matt Boyle, the Company's President and CEO was re-elected to the board
for a three year term.
* Mr. Paul Stump was elected to the board for a three year term.
* Mr. Vincent Vappi retired from the board after 34 years as a member of the
board of the Company and its predecessor, Tech/Ops Inc.
* Mr. David Steadman was elected as chairman of the board of directors,
replacing Dr. Marvin Schorr who has been chairman of the Company since 1988.
Dr Schorr continues to be a director of the Company.
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, and 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.
First Quarter 2005 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended
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January 1 December 31
2005 2003
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Net sales $7,542 $6,466
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Operating income 20 173
Income before income taxes 30 124
Net income $ 20 $ 81
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Basic income per share $ .01 $ .03
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Diluted income per share $ .01 $ .03
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Cash dividend per share $ .03 $ .03
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Average shares outstanding 3,140 3,125
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Summarized Balance Sheet Data
(in thousands of dollars)
January 1, September 30,
2005 2004
(unaudited) (derived from
audited
statements)
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Cash, cash equivalents and short-term investments $ 600 $ 905
Receivables 6,370 6,109
Inventories 3,979 4,043
Prepaid expenses and other current assets 980 931
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Total current assets 11,929 11,988
Long-term assets 4,671 4,620
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Total assets $16,600 $16,608
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Other current liabilities $ 5,620 $ 6,083
Deferred taxes 65 61
Stockholders' investment 10,915 10,464
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Total liabilities and stockholders' investment $16,600 $16,608
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