Tech/Ops Sevcon Reports Third Quarter Results

    BURLINGTON, Mass.--July 23, 2002--Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported that net income for its third fiscal quarter was $19,000, or $.01 per diluted share, compared to last year's results when the Company had net income of $408,000, or $.13 per diluted share. Revenues for the third quarter were $5,355,000, a decrease of $2,325,000, or 30%, compared to the prior year's $7,680,000. All of the Company's markets remain depressed due to the world-wide slowdown in capital spending. There was a year-to-year decrease in third quarter operating income of $674,000 resulting in an operating loss of $18,000. This decrease was principally due to lower volumes in the current quarter that was partially offset by lower expense relating to a charge last year of $855,000 due to a customer bankruptcy.
    For the nine month period, net income was $262,000, or $.08 per diluted share, compared to $673,000, or $.21 per diluted share last year. Revenues in the first nine months of this year were $16,332,000, a decrease of $4,774,000 compared to last year. Volumes were 23% lower than last year, mainly due to slow demand in the aerial lift, fork lift truck, airport ground support and capacitor markets. Operating income for the nine months was $375,000, a decrease of $643,000, compared to the first nine months of fiscal 2001. Lower volumes were the main cause of the decrease in operating income. The volume impact was partially offset by lower expense relating to charges incurred in fiscal 2001 for a customer bankruptcy of $855,000, product rectification costs of $450,000 and $390,000 for the cost of workforce reductions.
    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, 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 2002 Financial Highlights (unaudited)
     (in thousands except per share data)

                                Three months ended  Nine months ended

                                June 30    June 30   June 30   June 30
                                  2002       2001      2002      2001

Net sales                       $ 5,355    $ 7,680   $16,332   $21,106

Operating income (loss)             (18)       656       375     1,018

Income before income taxes           30        629       403     1,036

Net income                      $    19    $   408   $   262   $   673

Basic income per share          $   .01    $   .13   $   .08   $   .22

Diluted income per share        $   .01    $   .13   $   .08   $   .21

Cash dividend per share         $   .09    $   .18   $   .27   $   .54

Average shares outstanding        3,118      3,110     3,114     3,111