Tech/Ops Sevcon Reports Third Quarter Results
SOUTHBOROUGH, Mass.--July 21, 2003--Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported that net income for its third fiscal quarter was $98,000, or $.03 per diluted share, compared to last year's results for the same period when the Company had net income of $19,000, or $.01 per diluted share. Revenues for the third quarter were $5,961,000, an increase of $606,000, or 11%, compared to the prior year's $5,355,000. The revenue increase was attributable almost entirely to foreign currency fluctuations. Volumes were in line with the third quarter of last year. Operating income for the third quarter was $161,000, compared to an operating loss of $18,000 in the third quarter of last year. Better margins and positive foreign currency fluctuations contributed to improved operating income. However, third quarter operating income was reduced by additional engineering expense on new product development.For the nine month period, net income was $315,000, or $.10 per diluted share, compared to $262,000, or $.08 per diluted share last year. Revenues in the first nine months of this year were $17,744,000, an increase of $1,412,000, or 9%, compared to last year. This increase was attributable to foreign currency fluctuations partly offset by volumes 1% lower than last year. Sales to the capacitor, fork lift truck and other electric vehicle markets were ahead of the previous year; however, sales to the airport ground support, aerial lift and mining markets were lower than last year. Operating income for the nine months was $478,000, an increase of $103,000, or 27%, compared to the first nine months of fiscal 2002. The increase in operating income was mainly due to a positive impact of foreign currency fluctuations and improved margins on new products partially offset by higher engineering expense on new products.
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 2003 Financial Highlights (unaudited)
(in thousands except per share data)
Three months Nine months
ended ended
June 30 June 30 June 30 June 30
2003 2002 2003 2002
Net sales $5,961 $5,355 $17,744 $16,332
Operating income (loss) 161 (18) 478 375
Income before income taxes 150 30 484 403
Net income $98 $19 $315 $262
Basic income per share $.03 $.01 $.10 $.08
Diluted income per share $.03 $.01 $.10 $.08
Cash dividend per share $.03 $.09 $.09 $.27
Average shares outstanding 3,125 3,118 3,125 3,114
Summarized Balance Sheet Data (in thousands of dollars)
June 30, September 30,
2003 2002
(unaudited) (derived from
audited
statements)
Cash, cash equivalents and short-term
investments $462 $695
Receivables 4,473 3,938
Inventories 4,536 4,137
Prepaid expenses and other current assets 738 539
Total current assets 10,209 9,309
Long-term assets 4,367 4,212
Total assets $14,576 $13,521
Current liabilities $4,532 $3,975
Deferred taxes 93 93
Stockholders' investment $9,951 $9,453
Total liabilities and stockholders'
investment $14,576 $13,521