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SOUTHBOROUGH, Mass., Aug. 5, 2015 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV) reported financial results for the third quarter of fiscal 2015 ended July 4, 2015.
Third-Quarter Fiscal 2015 Results Summary
Nine-Month Fiscal 2015 Result Summary
"Sevcon's third-quarter sales grew 7 percent year-on-year, despite weak conditions in some of our traditional off-road markets and the unfavorable impact of foreign exchange rates," said President and CEO Matt Boyle. "Our growth this quarter was mainly driven by sales of our powertrain solutions for an expanding range of on-road applications. It also reflected higher product volumes shipped to Seakeeper, a manufacturer of marine gyro stabilizers. This growth was partially offset by ongoing weak conditions in the global mining vehicle sector. In addition, foreign currency fluctuations significantly reduced our reported sales."
"Against this short-term backdrop, we are continuing to build momentum in our markets," Boyle said. "We are seeing steadily growing product demand not only for on-road electric and hybrid vehicle applications but also for applications in off-road sectors such as marine and agriculture. Our initiatives to accelerate growth in our traditional off-road industrial markets are progressing well. In the on-road sector, our ongoing investments in engineering and technical innovation, most of which are charged to income on a current basis, have enabled us to forge strong partnerships with some of the largest companies in the world. These alliances are creating lasting relationships that get our products 'designed in' and help us grow as our customers grow."
"Taking the longer view, many traditional internal combustion and mechanical systems are being replaced by electrical solutions that improve efficiency, reduce emissions, and lower overall cost in both off-road and on-road applications," said Boyle. "Our OEM partnerships that are focused on this trend toward electrification are beginning to transition from prototype to volume production. We expect to remain in an investment phase to allow us to capitalize on the growing number of electrification projects in our sales pipeline. We also continue to consider acquisitions of intellectual property and other products that could allow us to take advantage of customer opportunities more quickly than if we were limited to internal development. Our vision is for Sevcon to become the leading supplier of electrification technology to our target industrial and automotive markets. We are committed to realizing this vision in the years ahead."
Third-Quarter Fiscal 2015 Conference Call Details
Sevcon has scheduled a conference call to review its results for the third quarter of fiscal 2015 tomorrow, August 6, 2015 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 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 2015 Financial Highlights|
|(In thousands except per-share data)|
|Three months ended||Nine months ended|
|July 4,||June 28,||July 4,||June 28,|
|Foreign currency gain (loss)||(21)||(7)||258||(131)|
|Change in fair value of cash flow hedges||132||--||(68)||--|
|Income before income taxes||362||188||1,373||936|
|Income taxes (provision) benefit||(83)||34||(188)||(64)|
|Net loss attributable to non-controlling interest||2||--||31||--|
|Net income attributable to Sevcon, Inc. and subsidiaries||281||222||1,216||872|
|Series A Preference Share dividends||(110)||--||(335)||--|
|Net income attributable to common stockholders||171||222||881||872|
|Basic income per share||$0.04||$0.07||$0.25||$0.26|
|Diluted income per share||$0.04||$0.06||$0.25||$0.25|
|Average shares outstanding - Basic||3,486||3,406||3,459||3,394|
|Average shares outstanding - Diluted||4,959||3,499||4,922||3,468|
|Summarized Balance Sheet Data|
|(in thousands of dollars)|
|July 4,||September 30,|
|Cash and cash equivalents||$8,548||$11,238|
|Prepaid expenses and other current assets||2,573||1,747|
|Total current assets||26,045||26,120|
|Liability for pension benefits||8,674||9,529|
|Other long-term liabilities||500||1,700|
|Total liabilities and stockholders' equity||$33,866||$33,967|
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of 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. Sevcon supplies customers throughout the world from its operations in the USA, the UK, France, Germany, Italy and the Asia Pacific region and through an international dealer network. Sevcon's customers operate in diverse markets and include manufacturers of electric motors, cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, agricultural tractors and implements, and other electrically powered vehicles and systems. For more information, visit www.sevcon.com.
Statements in this release about Sevcon's future financial results are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those we anticipate. In particular: capital markets are cyclical and weakness in the United States and international economies may harm our business; global demand for electric vehicles incorporating our products 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; we may not be able to attract and retain the level of high quality engineering staff that we need to develop the new and improved products we need to be successful; 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; we may not be able to raise the capital we anticipate needing to grow our business; and companies we acquire may be more costly to acquire and integrate, or may not generate as much revenue and earnings, as we anticipate. 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 SEV@InvestorRelations.com Matt Boyle President and CEO 1 (508) 281 5503 matt.boyle@Sevcon.comNEXT ARTICLE
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