Sevcon Reports 24% Growth in Revenues for First Quarter Fiscal 2012
25 January 2012 - 9:31AM
Sales Driven by Higher Demand for On-Road
Electric Vehicle Products
Earnings Grow to $0.08 per Diluted Share
Sevcon, Inc. (Nasdaq:SEV) reported financial results for the first
quarter of fiscal 2012 ended December 31, 2011.
First Quarter fiscal 2012 Results Summary
- Revenues increased 24% to $8.5 million from $6.9 million in the
first quarter of fiscal 2011, reflecting increased shipment
volumes. Foreign currency exchange rates were similar to last year
and had little effect on reported sales.
- Operating expense increased by $395,000 from the first quarter
of fiscal 2011 to $2.7 million. In the first quarter of 2011 Sevcon
received a UK government grant that reduced reported engineering
expense by $217,000. Investment in sales and engineering resources
during the first quarter of fiscal 2012 was the major cause of the
$178,000 increase on a comparable basis.
- Sevcon reported operating income for the first quarter of
fiscal 2012 of $252,000, compared with $33,000 in the same quarter
last year.
- Net income was $284,000, or $0.08 per diluted share, in the
first quarter of fiscal 2012, compared with $5,000, or breakeven, a
year earlier.
Management Comments
"Business with new customers in the on-road electric vehicle
sector and continued demand for aerial work platform and forklift
truck applications combined to accelerate Sevcon's top-line growth
and improved our profitability in the first quarter of fiscal
2012," said President and CEO Matt Boyle. "This was a strong sales
quarter for us in Europe and the Asia Pacific region. Contributing
significantly to this growth were several new relationships with
manufacturers of innovative zero-emissions vehicles for production
in volume, including electric scooters, four-wheel drive electric
all-terrain vehicles, and electric city cars."
"Our results this quarter also were driven by growth in
engineering revenue from major global automotive OEMs, who are
increasingly turning to Sevcon for world-class capabilities in
electric vehicle power electronics and drivetrain technology,"
Boyle said. "In addition, we made significant advances in product
development, highlighted by the release of new on-road variants of
our Gen4 range of controllers, which have been highly successful in
expanding our presence in the on-road electric vehicle market
globally. For example, we were awarded a contract to supply
pioneering Gen4-based drivetrain control technology for a new range
of utility and all-terrain vehicles being manufactured in China by
the Zhejiang Xinyang Industry Co. Ltd. In addition, we partnered
with several larger companies in key applications, including a rare
earth element, material reduction project with Cummins Generator
Technologies."
"Our first-quarter results demonstrate that we are executing
successfully on our strategy to supplement sales to our customers
in the industrial vehicle segment by capitalizing on opportunities
in the on-road electric vehicle sector," said Boyle. "Looking
forward, we remain optimistic about continued 2012 growth on both
the top and bottom lines."
First Quarter Fiscal 2012 Financial
Highlights |
|
|
(in thousands except per share
data) |
|
|
|
Three months ended |
|
December 31, |
January 1 |
|
2011 |
2011 |
|
(unaudited) |
(unaudited) |
Net sales |
$8,515 |
$6,883 |
|
|
|
Operating Income |
252 |
33 |
Income before income taxes |
373 |
6 |
Net Income |
$284 |
$5 |
Basic Income per share |
$.09 |
$.00 |
Diluted Income per share |
$.08 |
$.00 |
Average shares outstanding |
3,313 |
3,285 |
|
|
|
|
|
|
Summarized Balance Sheet
Data |
|
|
|
(in thousands of
dollars) |
|
December 31, 2011
(unaudited) |
September 30, 2011 (derived from
audited statements) |
Cash and cash equivalents |
$306 |
$1,797 |
Receivables |
6,783 |
5,952 |
Inventories |
7,794 |
7,478 |
Prepaid expenses and other current
assets |
1,147 |
1,281 |
Total current assets |
16,030 |
16,508 |
Long-term assets |
6,394 |
6,439 |
Total assets |
$22,424 |
$22,947 |
|
|
|
Current liabilities |
$5,240 |
$6,010 |
Liability for pension benefits |
7,593 |
7,634 |
Other long-term liabilities |
1,802 |
1,813 |
Stockholders' equity |
$7,789 |
7,490 |
Total liabilities and stockholders'
equity |
$22,424 |
$22,947 |
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 www.sevcon.com
The Sevcon, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=9607
Forward-Looking Statements
Statements in this release about Sevcon's prospects for fiscal
2012 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
dcalusdian@InvestorRelations.com
Matt Boyle
President and CEO
1 (508) 281 5503
matt.boyle@Sevcon.com
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