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 BETTER SECOND QUARTER SALES AND PROFITS
Southborough, Mass. May 2, 2006..... Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported net income of $342,000, or $.11 per share, for the second fiscal
quarter ended April 1, 2006. Net income increased by 99% from $172,000 in
the comparable period last year. Basic and fully diluted net income was
$.11 per share, an increase of $.06 per share compared with the second
quarter of last year. Sales in the second quarter were 6% ahead at
$8,562,000 compared to $8,094,000 for the second quarter of last year.
Volumes shipped were 11% ahead of the prior year period, partially offset
by foreign currency fluctuations which caused a decrease in reported
revenues of $445,000, or 5%.
Operating income for the second quarter was $562,000, an increase of $277,000,
or 97%, compared to the second quarter of last year. Gross profit increased
by $191,000 compared to last year. The benefit of higher volumes was
partially 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 $86,000 lower than the same period last year.
For the six month period, net income was $502,000, or $.16 per diluted share,
compared to $192,000, or $.06 per diluted share last year. Revenues in the
first six months of fiscal 2006 were $16,383,000, an increase of $747,000,
or 5%, compared to last year. Foreign currency fluctuations resulted in an
$825,000 decrease in reported sales. Volumes were 10% ahead of the prior year.
Gross profit increased by $396,000 due to increased volumes, less the adverse
impact of foreign currency fluctuations. Operating expenses were $105,000
lower than last year, with higher spend on sales and engineering more than
offset by the impact of foreign currency fluctuations. Operating income for
the six-month period was $806,000, an increase of $501,000, or 164%, compared
to $305,000, in the first half of the prior year. Foreign currency
fluctuations decreased year-to-date reported operating income by $40,000
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 2006 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Six months ended
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April 1 April 2 April 1 April 2
2006 2005 2006 2005
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Net sales $8,562 $8,094 $16,383 $15,636
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Operating income 562 285 806 305
Income before income taxes 525 265 771 295
Net income $ 342 $ 172 $ 502 $ 192
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Basic income per share $ .11 $ .05 $ .16 $ .06
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Diluted income per share $ .11 $ .05 $ .16 $ .06
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Cash dividend per share $ .03 $ .03 $ .06 $ .06
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Average shares outstanding 3,141 3,125 3,134 3,125
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Summarized Balance Sheet Data (in thousands of dollars)
April 1, 2006 September 30,2005
(unaudited) (derived from
audited
statements)
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Cash, and cash equivalents $ 1,027 $ 1,130
Receivables 6,122 6,193
Inventories 4,925 3,737
Prepaid expenses and other current assets 1,206 915
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Total current assets 13,280 11,975
Long-term assets 4,400 4,471
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Total assets $17,680 $16,446
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Other current liabilities $ 6,783 $ 5,824
Deferred taxes 33 33
Stockholders' investment $10,864 $10,589
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Total liabilities and stockholders' investment $17,680 $16,446
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