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SEV announces +.14 (taxed) vs -.39 on 36% increase in revenues

http://finance.yahoo.com/news/sevcon-reports-financial-results-first-011442847.html

SOUTHBOROUGH, Mass., Feb. 4, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (SEV) reported financial results for the first quarter of fiscal 2014 ended December 28, 2013. The Company also announced separately today that it has received the required approval of the government authorities in China to establish a joint venture with a subsidiary of a Chinese Tier 1 automotive supplier.

First-Quarter Fiscal 2014 Results Summary

Revenues increased 36% to $9.0 million, from $6.6 million in the first quarter of fiscal 2013, reflecting improving conditions in the Company's markets.
Operating income was $710,000, compared with an operating loss of $1.2 million in the first quarter last year. There was an income tax provision of $121,000 in the first quarter of fiscal 2014, compared with an income tax benefit of $108,000 in the year-earlier quarter.
Net income was $488,000, or $0.14 per diluted share, compared with a net loss of $1.3 million, or a loss of $0.39 per share, in the first quarter of fiscal 2013.

Subsequent Event

In January 2014, a customer of Sevcon SAS, the French subsidiary of the Company, was placed into administration. The receivable from the customer is $555,000 including taxes. The Company is pursuing full payment of the debt. It is not clear at this time if the debt can or will be repaid and its collection is subject to a legal process.

Management Comments

"Sevcon's revenue growth in the first quarter was driven by increased product shipments in the majority of our markets and in all three of the geographic regions we serve," said President and CEO Matt Boyle. "Our sales growth in North America was driven by substantially stronger demand, year-over-year, in our traditional off-road markets, primarily for fork-lift truck and aerial work platform applications. Demand also was significantly higher in Japan and China, primarily for off-road applications as well. Although the European economy still faces challenges, this was our second consecutive quarter of growth in that region, largely driven by increased product demand for 4-wheel EV applications in the on-road market."

"Looking forward, the underlying demand patterns appear to be strengthening in the majority of our markets worldwide," said Boyle. "Our customers are expressing a greater sense of confidence in the future, and our lead times and order visibility are steadily improving. Sevcon's portfolio of customer relationships and product pipeline are continuing to expand, and our revenues have grown both sequentially and year-over-year for the past two quarters. As we announced separately today, Sevcon has entered into a joint-venture agreement with Risenbo Technology Co., Ltd., based in Hubei Province, China. The new joint venture company will market and sell existing and future Sevcon products for on-road electric and hybrid vehicle applications principally to that country's Tier 1 automotive suppliers."

"While rebuilding our momentum on the top line we are making progress on the bottom line as well," Boyle said. "Our business continues to benefit from having a low-cost, flexible manufacturing model. As a result, we believe that Sevcon is positioned to deliver significant margin leverage on incremental sales as conditions in our markets improve."