Sevcon posts Q4 loss despite jump in revenue
Southborough-based Sevcon posted an operating loss of $94,000 in its fiscal fourth quarter, thanks to one-time expenses. But the maker of microprocessor-based controls for electric and hybrid vehicles reported quarterly and yearly revenue gains of 13 and 18 percent, respectively, on Tuesday afternoon.
Revenue for the fourth quarter, which ended Sept. 30, totaled $10 million, up from $8.9 million a year earlier, while revenue for the year rose to $37.9 million from $32.2 million.
“This was our seventh consecutive quarter of top-line growth as sales increased 3 percent from the third quarter. Since the first quarter of fiscal 2013, we have seen consistent improvement in underlying market demand, order visibility, shipments and revenue in most of our markets, although Western Europe continues to lag,” President and CEO Matt Boyle said in a statement.
Sevcon attributed the annual revenue gain to increased sales in its traditional off-road segment, which grew 22 percent. Sales for on-road applications increased 4.5 percent in China, but those gains were partially offset by lower sales in Europe, the company said.
Boyle said that, looking forward, capital allocation and structure are “key strategic priorities.” . He said the company is actively executing those goals, and he referenced Sevcon’s oversubscribed rights offering to its shareholders in September as a factor that will help fuel growth.
The company blamed the operating loss on increased expenses in the fourth quarter due to the establishment of a Chinese joint venture and a charge related to a bankrupt customer in France. The expenses totaled $699,000. A year earlier, Sevcon posted operating income of $407,000.
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