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 RECORD QUARTERLY REVENUES AND INCREASED PROFITS
Southborough, Mass. July 25, 2006..... Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported net income of $369,000, or $.12 per share, for the third fiscal
quarter ended July 1, 2006. Net income increased by $153,000, or 71% from
$216,000 in the comparable period last year. Basic and fully diluted net
income was $.12 per share, an increase of $.05 per share compared with the
third quarter of last year. Sales in the third quarter were 10% ahead at
$9,313,000, the highest quarterly revenues recorded by the Company. Volumes
shipped were 10% ahead of the prior year period, and foreign currency
fluctuations had a small positive impact on reported revenues.
Operating income for the third quarter was $584,000, an increase of $203,000,
or 53%, compared to the third quarter of last year. Gross profit increased by
$392,000 compared to last year and was 38.1% of sales compared to 37.4% in the
third quarter of last year. The increase in gross profit was mainly due to
increased volumes and, to a lesser extent, due to the positive impact of
foreign currency fluctuations. Operating expense for the third quarter was
$189,000 higher than the same period last year.
For the nine month period, net income was 113% higher at $871,000, or $.28
per diluted share, compared to $408,000, or $.13 per diluted share last year.
Revenues in the first nine months of fiscal 2006 were $25,696,000, an increase
of $1,607,000, or 7%, compared to last year. Foreign currency fluctuations
resulted in a $780,000 decrease in reported sales. Volumes were 10% ahead of
the prior year. Gross profit increased by $788,000 due to increased volumes,
partially offset by the adverse impact of foreign currency fluctuations.
Operating expenses were $84,000 higher than last year, with higher spend on
sales and engineering partially offset by the impact of foreign currency
fluctuations. Operating income for the nine month period was
$1,390,000, an increase of $704,000, or 103%, compared to $686,000, in the
first nine months of the prior year. Foreign currency fluctuations increased
year-to-date reported operating income by $85,000 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.
Third Quarter 2006 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Nine months ended
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July 1 July 2 July 1 July 2
2006 2005 2006 2005
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Net sales $9,313 $8,453 $25,696 $24,089
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Operating income 584 381 1,390 686
Income before income taxes 564 333 1,335 628
Net income $ 369 $ 216 $ 871 $ 408
================== =================
Basic income per share $ .12 $ .07 $ .28 $ .13
================== =================
Diluted income per share $ .12 $ .07 $ .28 $ .13
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Cash dividend per share $ .03 $ .03 $ .09 $ .09
================== =================
Average shares outstanding 3,144 3,125 3,134 3,125
================== =================
Summarized Balance Sheet Data (in thousands of dollars)
July 1, 2006 September 30,
(unaudited) 2005
(derived from
audited
statements)
=============== ===============
Cash, and cash equivalents $ 330 $ 1,130
Receivables 6,819 6,193
Inventories 5,523 3,737
Prepaid expenses and other current assets 1,195 915
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Total current assets 13,867 11,975
Long-term assets 4,613 4,471
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Total assets $ 18,480 $ 16,446
=============== ===============
Due to banks $ 426 $ -
Other current liabilities 6,287 5,824
Deferred taxes 35 33
Stockholder equity 11,732 10,589
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Total liabilities and stockholder equity $ 18,480 $ 16,446
=============== ===============
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 mid August,
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