Tech/Ops Sevcon Reports Annual and Fourth Quarter Results and Announces Quarterly Cash Dividend

    BURLINGTON, Mass.--Dec. 16, 2002--Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported net income per share for the twelve months ended September 30, 2002 of $.02 compared to $.35 last year. Sales in fiscal 2002 were $21,872,000, compared to $27,002,000 recorded in fiscal 2001. The year-to-year decrease in sales of 19% was due mainly to the reduction in shipment volumes to the Company's fork lift truck, aerial lift and airport ground support markets. Reduced capital expenditure by end users was the main cause of the decline in the markets served by the Company. Foreign currency fluctuations resulted in a year-to-year increase in reported sales of $500,000, or 2%. Operating income for the year was $45,000 compared to $1,652,000 in fiscal 2001. In fiscal 2001 the company incurred a charge of $855,000 relating to a customer bankruptcy and a charge of $390,000 for workforce reductions. The most significant reason for the year-to-year decrease in operating income was lower volumes. Net income for the fiscal year was $57,000, compared to $1,101,000 in fiscal 2001.
    For the fourth quarter sales were $5,540,000 compared to $5,896,000 for the prior year period, a decrease of 6%. Shipment volumes were 11% lower than the same period last year. The effect of currency fluctuations was to increase reported sales in the fourth quarter by 5%. The operating loss for the fiscal quarter was $330,000 compared to operating income of $634,000 for the fourth fiscal quarter last year. The decrease in profit was mainly due to lower volumes, currency effects, higher operating expenses in Europe and an additional charge of $209,000 related to the UK pension plan. The Company reported a loss per share of $.07 for the fourth quarter of fiscal 2002 compared to a profit of $.14 per share for the same quarter last year.
    The Board of Directors today declared a regular quarterly cash dividend of $.03 per share for the first quarter of fiscal 2003. The dividend will be paid on January 16, 2003 to shareholders of record on December 31, 2002.
    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 / 2002       (in thousands except per share data)

                                Three months ended Twelve months ended
                                 Sept. 30 Sept. 30  Sept. 30  Sept. 30
                                   2002     2001      2002      2001

Net sales                         $5,540    $5,896   $21,872  $27,002

Operating income (loss)             (330)      634        45    1,652

Income (loss) before income taxes   (315)      678        88    1,714

Net income (loss)                  $(205)     $428       $57   $1,101

Basic income (loss) per share      $(.07)     $.14      $.02     $.35

Diluted income (loss) per share    $(.07)     $.14      $.02     $.35

Cash dividend per share             $.03      $.18      $.30     $.72

Average shares outstanding         3,123     3,110     3,117    3,110