Tech/Ops Sevcon Reports Fourth Quarter and Annual Results
SOUTHBOROUGH, Mass.–(BUSINESS WIRE)– Tech/Ops Sevcon, Inc. (NASDAQ symbol TO) reported a net loss for the fourth fiscal quarter of $741,000, or $0.23 per share and a net loss of $1,475,000 or $.46 for the year ended September 30, 2009
Fourth quarter fiscal 2009 compared to fourth quarter fiscal 2008
Fiscal 2009 compared to fiscal 2008
Domestic and Foreign Pension Plans
In the fourth quarter the Company recorded an additional book liability of $4,704,000 net of a tax benefit, relating to its UK and US pension plans. The increased book liability was due to several factors, including a reduction in the discount rates in the US and the UK compared to the prior year and the reduced value of plan assets due to the current economic climate. In fiscal 2010 it is estimated that the Company will make contributions to its domestic and foreign pension plans of $634,000, (2009: $456,000). Actual payment obligations with respect to this liability come due over an extended period and will depend on changes in the same factors over that period.
Suspension of Dividend
The company’s business currently remains stable. However, worldwide economic conditions have caused uncertainty regarding the longer term. Accordingly, the company has taken measures to conserve cash. Consistent with this, the Board determined to suspend the dividend in the first quarter of fiscal 2009 and will consider its reinstatement on a quarter by quarter basis.
Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and marketing of microprocessor based controls for zero emission 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.
Financial Highlights 2009
(in thousands except per share data)
Three months ended
Twelve months ended
Summarized Balance Sheet Data
(in thousands of dollars)
September 30,2009
September 30,2008