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 SECOND QUARTER RESULTS
Southborough, Mass. May 4, 2005..... Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported net income of $172,000, or $.05 per share, for the second fiscal
quarter ended April 2, 2005. Net income increased by $30,000, from $142,000 in
the comparable period last year. Basic and fully diluted net income was $.05
per share, unchanged compared with the second quarter of last year. Sales in
the second quarter were $8,094,000 compared to $7,273,000 for the second
quarter of last year. Foreign currency fluctuations caused an increase in
reported revenues of $240,000, or 3%, and volumes shipped were 8% ahead of the
prior year period.
Operating income for the second quarter was $285,000, an increase of $5,000
compared to the second quarter of last year. Gross profit increased by $141,000
compared to last year. The benefit of higher sales volumes was offset by lower
margins on new products in the aerial lift market and by adverse foreign
currency fluctuations. Operating expense for the second quarter was $136,000
higher than the same period last year. This was mainly due to higher selling
expense as the Company continues the launch of its espAC range of advanced new
electric vehicle controls and adverse foreign currency fluctuations, partially
offset by decreased engineering consulting expense.
For the six month period, net income was $192,000, or $.06 per diluted share,
compared to $223,000, or $.07 per diluted share last year. Revenues in the
first six months of fiscal 2005 were $15,636,000, an increase of $1,897,000,
or 14%, compared to last year. Foreign currency fluctuations resulted in a
$605,000 increase in reported sales. Volumes were 9% ahead of the prior year.
Gross profit increased by $374,000 due to increased volumes, less the adverse
impact of foreign currency fluctuations. Higher spending on sales and marketing
for new products was partially offset by reduced engineering expense, resulting
in a net increase in operating expenses of $522,000. Operating income for the
six-month period was $305,000, compared to $453,000, in the first half of the
prior year. Foreign currency fluctuations decreased year-to-date reported
operating income by $185,000 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 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.
Second Quarter 2005 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Six months ended
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April 2 April 3 April 2 April 3
2005 2004 2005 2004
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Net sales $8,094 $7,273 $15,636 $13,739
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Operating income 285 280 305 453
Income before income taxes 265 220 295 344
Net income $ 172 $ 142 $ 192 $ 223
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Basic income per share $ .05 $ .05 $ .06 $ .07
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Diluted income per share $ .05 $ .05 $ .06 $ .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 2, September 30,
2005 2004
(unaudited) (derived from
audited statements)
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Cash, and cash equivalents $ 410 $ 905
Receivables 6,456 6,109
Inventories 4,060 4,043
Prepaid expenses and other current assets 1,379 931
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Total current assets 12,305 11,988
Long-term assets 4,685 4,620
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Total assets $ 16,990 $ 16,608
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Other current liabilities $ 6,109 $ 6,083
Deferred taxes 64 61
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Stockholders' investment $ 10,817 $ 10,464
Total liabilities and stockholders'
Investment $ 16,990 $ 16,608
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