Tech/Ops Sevcon Reports Record Earnings in Third Quarter

16 July 1998

Tech/Ops Sevcon Reports Record Earnings in Third Quarter

    BOSTON--July 16, 1998--Tech/Ops Sevcon, Inc. (AMEX:TO) reported that net income for its third fiscal quarter ended June 27, 1998 was $1,002,000, or $.32 per share, a record for any fiscal quarter. In the third quarter of last year the company had net income of $205,000, or $.07 per share, after recording a pre-tax charge of $600,000, equal to $.13 per share, to reflect the costs of product improvement and changes in organization. On a comparable basis, before the pre-tax charge in 1997 of $600,000, operating income and income per share increased by 60 percent. Revenues for the three months were $8,472,000, an increase of 24 percent over the prior year's $6,842,000.
    For the nine month period, net income was $2,537,000, or $.82 per share, compared to $1,291,000 or $.42 per share last year, a gain of 97%. Revenues in 1998 were $24,146,000 compared to $20,172,000 last year, an increase of 20 percent. Operating income for the nine months was 93% higher than the prior year.
    Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and marketing of micro-computer based solid-state controls for electric vehicles. These controllers vary the speed of vehicles, improve performance, and prolong the shift life of batteries. From its operations in the United Kingdom, USA and France, and through an international dealer network, Sevcon ships to customers throughout the industrialized world. The company's customers are manufacturers of fork life trucks, aerial lifts, mining vehicles, airport tractors, sweepers, and other battery powered vehicles.


Third Quarter 1998 Financial Highlights (unaudited)

    (000's)
                           Three Months Ended      Nine months ended
                          June 27    June 28      June 27     June 28
                             1998       1997         1998        1997

Net sales                 $ 8,472     $ 6,842    $ 24,146    $ 20,172
Operating income            1,519         351       3,938       2,044
Income before income 
 taxes                      1,571         317       3,952       1,980
Net income                $ 1,002     $   205    $  2,537    $  1,291
Basic income per share    $   .32     $   .07    $    .82    $    .42
Fully-diluted income
 per share                $   .32     $   .07    $    .81    $    .41
Cash dividend per share   $   .15     $   .15    $    .45    $    .45
Average shares 
 outstanding                3,103       3,090       3,099       3,090