Sevcon Reports Financial Results for Third Quarter Fiscal 2013

Sevcon Reports Financial Results for Third Quarter Fiscal 2013

SOUTHBOROUGH, Mass., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Sevcon, Inc.
(Nasdaq:SEV) reported financial results for the third quarter of fiscal 2013
ended June 29, 2013.

Third-Quarter Fiscal 2013 Results Summary

  *Revenues were $8.7 million, compared with $8.9 million in the third
    quarter of fiscal 2012, reflecting ongoing mixed conditions in the
    Company's markets.
  *Operating income was $293,000, compared with $35,000 in the third quarter
    last year. Foreign currency fluctuations reduced operating income by
    $256,000 compared to the same period last year, due mainly to the weakness
    of the US dollar compared to the euro. Excluding the impact of currency,
    operating income was $514,000 higher than the same period last year.
  *There was an income tax charge of $47,000 compared with an income tax
    benefit of $99,000, in the same period last year.
  *Net income was $124,000, or $0.04 per diluted share, compared with net
    income of $156,000, or $0.05 per diluted share, a year earlier.

Nine-Month Fiscal 2013 Results Summary

  *Revenues were $23.3 million, compared with $27.5 million in the first nine
    months of fiscal 2012. This decline reflected a continuation of product
    demand fluctuations in most of the Company's markets that began in the
    fourth quarter of fiscal 2012. Foreign currency exchange rates were
    similar to last year's nine-month period and had little effect on reported
  *Operating loss was $1.4 million, which includes a $605,000 restructuring
    charge in the second quarter of this fiscal year, compared with operating
    income of $982,000, which included $159,000 in U.K. government grant
    income, in the first nine months of last year.
  *Net loss was $1,116,000, or $(0.33) per share, compared with net income of
    $910,000, or $0.27 per diluted share, for the first nine months of fiscal

Management Comments

"Sevcon's third-quarter results were in line with our expectations," said
President and CEO Matt Boyle. "Our traditional off-road business was up
robustly year-over-year, particularly in Asia, despite continued weakness in
the global mining sector. This growth was offset, however, by lower sales in
our on-road business, primarily in Europe. At the same time, the restructuring
initiatives we implemented in the second quarter are on track toward
delivering the $2 million of annualized operating expense reduction that we

"We are continuing to expand our portfolio of relationships with OEM and
automotive suppliers in Europe, Asia and North America," Boyle said.
"Leveraging our industry-leading technology in close cooperation with our
customers, we are continuing to develop new solutions for making electric
vehicles safer, more convenient and cheaper to run. We were recently awarded a
grant by the local government in the U.K., equivalent to $450,000, to assist
in the development of a new range of high-voltage controls, which will offset
engineering spend on this project. The grant covers an expected 18-month
development and implementation program. We also recently launched the first
product in what we envision as a full line of Gen4 DC controllers, which will
encompass products in a variety of sizes similar to the sizes we cover with
our successful Gen4 AC controllers. We expect our Gen4 DC products to be
highly price and performance competitive and well-suited to a large number of
applications, especially in the global off-road construction and distribution

"We believe that Sevcon is well-positioned for the challenges ahead," said
Boyle. "Fundamentally, we are in the right place at the right time with our
technology and products and with our expanding portfolio of OEM relationships,
although our near-term visibility is cloudier than we would like. We are
confident that, with our lower cost structure and conservative balance sheet,
a more consistent recovery in end-market demand will enhance the operating
leverage in our business. We remain committed to growth and improved
profitability, and look forward to reporting continued progress toward these

Third Quarter Fiscal 2013 Conference Call Details

Sevcon has scheduled a conference call to review its results for the third
quarter of fiscal 2013 tomorrow, August 7, 2013 at 9:00 a.m. ET. Those who
wish to listen to the conference call webcast should visit the Investor
Relations section of the company's website at The live call
also can be accessed by dialing (877) 407-5790 or (201) 689-8328 prior to the
start of the call. If you are unable to listen to the live call, the webcast
will be archived on the company's website.

Third Quarter Fiscal 2013 Financial Highlights
(in thousands except per share data)

                                 Three months ended Nine months ended
                                 (Unaudited)        (Unaudited)
                                 June 29   June 30  June 29   June 30
                                 2013      2012     2013      2012
Net sales                         $8,675    $8,878   $23,332   $27,494
Operating income (loss)          293       35       (1,355)   982
Income (loss) before income taxes 171       57       (1,815)   1,058
Net income (loss)                $124      $156     $(1,116)  $910
Basic income (loss) per share     $0.04     $0.05    $(0.33)   $0.27
Diluted income (loss) per share   $0.04     $0.05    $(0.33)   $0.27
Average shares outstanding        3,365     3,341    3,356     3,330

Summarized Balance Sheet Data                         
 (in thousands)                                      
                                          June 29     September 30
                                          2013        2012
                                          (Unaudited) (Derived from
                                                     audited statements)
Cash and cash equivalents                  $1,338      $2,823
Receivables                                6,669       5,858
Inventories                                5,820       6,346
Prepaid expenses and other current assets  1,535       1,932
Total current assets                       15,362      16,949
Long-term assets                           7,309       6,612
Total assets                               $22,671     $23,561
Current liabilities                        $7,291      $5,044
Liability for pension benefits             9,496       10,264
Other long-term liabilities                38          1,774
Stockholders' equity                       $5,846      6,479
Total liabilities and stockholders' equity $22,671     $23,561

About Sevcon, Inc.

Sevcon is a world leader in the design and manufacture of microprocessor based
controls for zero emission electric and hybrid vehicles. The controls are used
to vary the speed and movement of vehicles, to integrate specialized functions
and to optimize the energy consumption of the vehicle's power source. The
Company supplies customers throughout the world from its operations in the
USA, the U.K., France and the Asia Pacific region and through an international
dealer network. Sevcon's customers are manufacturers of on and off-road
vehicles including cars, trucks, buses, motorcycles, fork lift trucks, aerial
lifts, mining vehicles, airport tractors, sweepers and other electrically
powered vehicles. For more information visit

Forward-Looking Statements

Statements in this release about Sevcon's prospects for fiscal 2013 and beyond
are forward-looking statements subject to risks and uncertainties that could
cause actual results to differ materially from those we anticipate. In
particular: global demand for electric vehicles may not grow as much as we
expect; our customers' products may not be as successful as those of other
entrants in the electric vehicle market who are supplied by our competitors;
and we are dependent on a few key suppliers and subcontractors for most
components, sub-assemblies and finished products, and we may not be able to
establish alternative sources of supply in time if supplies are
interrupted.Please see the company's most recent forms 10-K and 10-Q on file
with the SEC for further information regarding Sevcon's risk factors.

CONTACT: David Calusdian
         Sharon Merrill Associates
         1 (617) 542 5300
         Matt Boyle
         President and CEO
         1 (508) 281 5503

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