Tech/Ops Sevcon Reports Fourth Quarter and Annual Results

    BURLINGTON, Mass.--Nov. 6, 2001--Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported net income per diluted share of $.14 compared to $.16 for the same quarter last year, a decrease of 13%. Sales were $5,896,000 compared to $6,821,000 for the same quarter last year, a decrease of 14%. The traditionally slow business levels in the fourth quarter were compounded by the disruption of air traffic following the tragic events of September 11, which caused delays in shipments from Europe into the USA, and by the bankruptcy, in June 2001, of UpRight Inc., a major customer in the aerial lift industry. Operating income for the fourth fiscal quarter was $634,000 compared to $745,000 for the same quarter last year, a decrease of 15%, mainly due to lower volumes.
    Sales in fiscal 2001 were $27,002,000, compared to $30,360,000 recorded in fiscal 2000. The year-to-year decrease in sales of 11% was due to both the weakness of European currencies compared to the dollar which reduced reported sales by 5% and by difficult conditions in the aerial lift market. Operating Income for the year was $1,652,000 compared to $4,108,000 in last fiscal year. The most significant reasons for the year-to-year decrease in operating income were lower volumes, the $855,000 third quarter charge relating to the customer bankruptcy, and a charge in the second quarter for workforce reduction of $390,000. The impact of these charges on fiscal 2001 was equivalent to $.26 per share. Net income for the fiscal year was $1,101,000, compared to $2,805,000 in fiscal 2000. Basic and fully diluted income per share was $0.35 compared to $.90 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.

Financial Highlights / 2001      (in thousands except per share data)

                     Three months ended         Twelve months ended
                  September 30 September 30  September 30 September 30
                     2001         2000          2001         2000

Net sales          $ 5,896      $ 6,821       $27,002      $30,360

Operating income       634          745         1,652        4,108

Income before
 income taxes          678          747         1,714        4,196

Net income         $   428      $   515       $ 1,101      $ 2,805

Basic income per
 share             $   .14      $   .17       $   .35      $   .90

Diluted income per
 share             $   .14      $   .16       $   .35      $   .90

Cash dividend per
 share             $   .18      $   .18       $   .72      $   .72

Average shares
 outstanding         3,110        3,115         3,110        3,115