Sevcon's Revenues Increase 8% in Third Quarter Fiscal 2012
July 23 2012 - 5:22PM
Results Driven by Continued Growth in Volume
Shipments of Gen4 Motor Controllers for On-Road Electric
Vehicles
Company Delivers Earnings of $0.05 Per Diluted
Share
Sevcon, Inc. (Nasdaq:SEV), a global manufacturer of drivetrain
controls for electric and hybrid vehicles, today reported financial
results for the third quarter of fiscal 2012 ended June 30,
2012.
Third Quarter Fiscal 2012 Results Summary
- Revenues increased 8% to $8.9 million, from $8.2 million in the
third quarter of fiscal 2011, primarily driven by increased demand
for the Company's Gen4 controller product line, which more than
offset lower demand for the Company's traditional industrial and
transportation products. Foreign currency exchange rates reduced
revenues 7%.
- Operating income was $35,000, after recording $49,000 in U.K.
government grant income. This compares with operating income of
$177,000 in the same quarter last year.
- Net income was $156,000, or $0.05 per diluted share, compared
with $144,000, or $0.05 per diluted share, a year earlier.
Nine-Month Fiscal 2012 Results Summary
- Revenues increased 20% to $27.5 million, from $22.9 million in
the first nine months of fiscal 2012, reflecting increased Gen4
controller demand. Foreign currency fluctuations reduced revenues
3%.
- Operating income was $982,000, which included $159,000 in U.K.
government grant income. This compares with $868,000 in the same
period last year when the Company recorded $600,000 in U.K.
government grant income and also recorded a gain of $451,000 from
the proceeds of the sale of a surplus property in the U.K.
Excluding these items from both periods, operating income for the
first nine months of fiscal 2012 was $1.0 million higher than last
year.
- Net income was $910,000, or $0.27 per diluted share, compared
with $654,000, or $0.20 per diluted share, for the first nine
months of fiscal 2011.
Management Comments
"Third-quarter revenues in Sevcon's core business, the Controls
segment, were up 18% from a year ago, excluding the impact of
foreign currency," said President and CEO Matt Boyle. "It is a very
mixed picture, however, as we have seen global weakness in
construction and mining activity which led to soft product demand
for traditional off-road industrial electric vehicle (EV)
applications. This was more than offset by higher demand for our
Gen4 range of AC motor controllers for on-road vehicles. Control
segment revenues, excluding the impact of foreign currency, grew
29% year-over-year in Europe, but declined 12% and 5% in the Asia
Pacific and North American markets, respectively, due to lower
off-road shipments."
"Our third-quarter results demonstrate that we are continuing to
execute successfully on our strategy to supplement sales to our
customers in the off-road industrial EV segment by capitalizing on
opportunities in the on-road EV sector," said Boyle. "Our
third-quarter sales reflect previously announced volume shipments
of products for the Renault Twizy which are currently on sale in
Europe."
"Looking forward, our plans focus on projects currently underway
in Europe, China and North America," Boyle said. "Although the
majority of these future projects are for on-road EVs, we also are
working on some potentially important new products with OEMs and
Tier 1 suppliers in the industrial off-road sector.
We plan to continue expanding our capabilities in engineering
and sales to generate and support future projects like these, with
the goal of winning additional on-road EV business." said
Boyle.
Paul Farquhar, the Chief Financial Officer, said. "On July 11
the UK subsidiary Sevcon Limited commenced a consultation period
with the members of the UK pension plan, seeking approval to close
the plan to future accrual. The consultation period of a mandatory
minimum of 60 days will conclude in September. If agreement is
reached to close the plan to future accrual then the subsidiary
will replace the present final salary plan with a defined
contribution arrangement."
Third Quarter Fiscal 2012 Conference Call
Details
Sevcon has scheduled a conference call to review its
third-quarter results tomorrow, July 24, 2012 at 9:00 a.m. ET. A
webcast of the call will be available at the Investor Relations
section of the Company's website, www.sevcon.com. 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 2012
Financial Highlights |
(in thousands except per
share data) |
|
|
|
|
Three months ended |
Nine months ended |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
June 30 |
July 2 |
June 30 |
July 2 |
|
2012 |
2011 |
2012 |
2011 |
Revenues |
$8,878 |
$8,208 |
$27,494 |
$22,878 |
Operating income |
35 |
177 |
982 |
868 |
Income before income taxes |
57 |
165 |
1,058 |
756 |
Net income |
$156 |
$144 |
$910 |
$654 |
Basic income per share |
$0.05 |
$0.05 |
$0.27 |
$0.20 |
Diluted income per share |
$0.05 |
$0.05 |
$0.27 |
$0.20 |
Average shares outstanding |
3,341 |
3,310 |
3,330 |
3,301 |
|
|
|
|
|
Summarized Balance Sheet
Data |
|
(in thousands
of dollars) |
|
June 30 |
September 30 |
|
2012 |
2011 |
|
(Unaudited) |
(Derived from audited statements) |
|
|
|
Cash and cash equivalents |
$1,838 |
$1,797 |
Receivables |
5,995 |
5,952 |
Inventories |
6,782 |
7,478 |
Prepaid expenses and other current
assets |
1,402 |
1,281 |
Total current assets |
16,017 |
16,508 |
Long-term assets |
6,131 |
6,439 |
Total assets |
$22,148 |
$22,947 |
|
|
|
Current liabilities |
$4,344 |
$6,010 |
Liability for pension benefits |
7,523 |
7,634 |
Other long-term liabilities |
1,782 |
1,813 |
Stockholders' equity |
$8,499 |
7,490 |
Total liabilities and stockholders'
equity |
$22,148 |
$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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