Tech/Ops Sevcon Reports Improved First Quarter Results
SOUTHBOROUGH, Mass.--Jan. 2, 20064, 2006--Tech/Ops Sevcon, Inc. (AMEX:TO) reported net income of $160,000, or $.05 per share, for the first fiscal quarter ended December 31, 2005. Net income increased by $140,000, or $.04 per share, from $20,000, or $.01 per share, for the comparable period last year. Sales in the first quarter were $7,821,000 compared to $7,542,000 for the comparable period last year, an increase of 4%. Volumes shipped were 9% ahead of the prior year period, partially offset by foreign currency fluctuations which decreased reported revenues by 5%.Operating income for the first quarter was $244,000, an increase of $224,000 compared to the first quarter of last year. Gross profit increased by $205,000, mainly due to higher sales volumes, offset by foreign currency fluctuations. Operating expenses were $19,000 lower than the prior year. This was mainly due to a decrease arising from foreign currency fluctuations of $175,000 partly offset by increased engineering spend 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, 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.
First Quarter 2006 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended
December 31 January 1
2005 2005
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Net sales $7,821 $7,542
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Operating income 244 20
Income before income taxes 246 30
Net income $160 $20
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Basic income per share $.05 $.01
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Diluted income per share $.05 $.01
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Cash dividend per share $.03 $.03
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Average shares outstanding - basic 3,127 3,125
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Summarized Balance Sheet Data
(in thousands of dollars)
December 31, September 30,
2005 2005
(unaudited) (derived from
audited
statements)
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Cash and cash equivalents $602 $1,130
Receivables 5,926 6,193
Inventories 3,957 3,737
Prepaid expenses and other current assets 1,082 915
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Total current assets 11,567 11,975
Long-term assets 4,428 4,471
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Total assets $15,995 $16,446
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Other current liabilities $5,447 $5,824
Deferred taxes 33 33
Stockholders' investment 10,515 10,589
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Total liabilities and stockholders'
investment $15,995 $16,446
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