EX-99 3 b.txt NEWS RELEASE FISCAL 2004 Q1 Tech/Ops Sevcon, Inc. 155 Northboro Road Southborough, MA 01772 Telephone (508) 281 5510 For Release: IMMEDIATE News For Further Information Contact: Release Paul McPartlin TECH/OPS SEVCON REPORTS FIRST QUARTER RESULTS Southborough, Mass. January 27, 2004..... Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported net income of $81,000, or $.03 per share, for the first fiscal quarter ended December 31, 2003. Net income increased by $75,000, or $.03 per share, compared to $6,000, or $.00 per share, from the comparable period last year. Sales in the first quarter were $6,466,000 compared to $5,645,000 for the comparable period last year. Foreign currency fluctuations caused an increase in reported revenues of $555,000, or 10%, and volumes shipped were 5% ahead of the prior year period. During the first quarter revenues from the aerial lift, airport ground support and mining markets increased compared to the same period last year. Sales volumes into the fork lift truck market were lower compared to the first quarter of last year and this market continues to be depressed. Operating income for the first quarter was $173,000, an increase of $159,000 compared to the first quarter of last year. Higher volumes and foreign currency fluctuations increased operating income by $350,000, offset by a $191,000 increase in engineering expense, mainly on advanced 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. Tech/Ops Sevcon, Inc. First Quarter 2004 Financial Highlights (unaudited) (in thousands except per share data) Three months ended December 31 December 31 2003 2002 ------------ ----------- Net sales $ 6,466 $ 5,645 ------------ ----------- Operating income 173 14 Income before income taxes 124 9 Net income $ 81 $ 6 ------------ ---------- Basic income per share $ .03 $ .00 ------------ ---------- Diluted income per share $ .03 $ .00 ------------ ---------- Cash dividend per share $ .03 $ .03 ------------ ---------- Average shares outstanding 3,125 3,125 ------------ ---------- Summarized Balance Sheet Data (in thousands of dollars) December September 31, 2003 30, 2003 (unaudited ) (derived from audited statements) ------------- ------------ Cash, cash equivalents and short-term investments $ 551 $ 524 Receivables 4,536 4,088 Inventories 4,015 3,999 Prepaid expenses and other current assets 869 762 ------------- ------------ Total current assets 9,971 9,373 Long-term assets 4,578 4,361 ------------- ------------ Total assets $ 14,549 $ 13,734 ------------- ------------ Other current liabilities $ 4,315 $ 4,009 Deferred taxes 81 77 Stockholders' investment 10,153 9,648 ------------- ------------ Total liabilities and stockholders' investment $ 14,549 $ 13,734