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 ANNUAL AND FOURTH QUARTER RESULTS AND ANNOUNCES
QUARTERLY
CASH DIVIDEND
Southborough, Mass. December 4, 2007.. Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported a 17% increase in net income to $1,303,000, or $.41 per share, for
the year ended September 30, 2007.
Fiscal 2007 compared to 2006
Revenues of $39.2 million were 13% ahead of last year; volumes were up
by 7%, and a further gain of 6% was due to a positive foreign currency
impact.
Operating income was $2,063,000, an increase of 12%. There was an
adverse foreign currency impact on operating income of $545,000,
mainly due to the weakness of the US Dollar. Excluding this
foreign currency change, operating income improved by 41%.
Net income was 17% ahead of last year at $1,303,000. Foreign currency
changes reduced net income by $350,000; underlying net income
was up by 48%.
Diluted net income per share was $.41, up by $.06 compared to last
year. Adjusted for the impact of the weakening US dollar, diluted
net income per share would have been $.51, an increase of $.16,
or 46%, compared to last year.
Fourth quarter 2007 compared to fourth quarter 2006
Sales increased by 15% to $10.3 million; volumes up 8%, positive
foreign currency impact of 7%.
Management changes in the capacitor business during the fourth quarter
incurred one-time costs of $297,000.
Fourth quarter operating income was $179,000. Foreign currency
Fluctuations had an adverse impact of $118,000 and management changes
cost $297,000. Adjusted for the impact of foreign currency and
management changes, underlying operating income would have been
$594,000, compared to $454,000 in 2006, an increase of 31%.
Net income of $164,000 was $79,000 behind last year. Foreign currency
and management changes reduced net income by $185,000 or 46%. Adjusting
for this impact net income would have increased by $106,000, or 44%.
Diluted net income per share was $.05 compared to $.08 last year.
First Quarter 2008 Dividend
The Board of Directors today declared a quarterly cash dividend of $.03
per share for the first quarter of fiscal 2008. The dividend will be
paid on January 3, 2008 to stockholders of record on December 19, 2007.
Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and
Marketing of microprocessor based controls for zero emission 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.
Financial Highlights 2007
(in thousands except per share data)
Three months ended Twelve months ended
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Sept 30 Sept 30 Sept 30 Sept 30
2007 2006 2007 2006
--------- -------- ------- -------
Net sales $10,272 $8,934 $39,213 $34,630
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Operating income 179 454 2,063 1,844
Income before income taxes 244 399 1,988 1,734
Net income $164 $243 $1,303 $1,114
---------- -------- ------- -------
Basic income per share $.05 $.08 $.41 $.35
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Diluted income per share $.05 $.08 $.41 $.35
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Cash dividend per share $.03 $.03 $.12 $.12
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Average shares outstanding 3,181 3,146 3,167 3,139
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Summarized Balance Sheet Data
(in thousands of dollars)
September 30, September 30,
2007 2006
------------- -------------
Cash and cash equivalents $1,014 $1,290
Receivables 8,714 6,187
Inventories 5,422 4,717
Prepaid expenses and other current assets 916 847
Total current assets 16,066 13,041
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Long-term assets 5,860 5,611
Total assets $21,926 $18,652
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Current liabilities $7,187 $5,673
Liability for pension benefits 2,244 2,886
Other long-term liabilities 61 56
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Stockholders' equity $12,434 $10,037
Total liabilities and
stockholders' investment $21,926 $18,652
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