Starts shipments to a Chinese Auto OEM
Secures $4.8M of New Engineering Services Orders from Three European High-Performance Automobile Manufacturers
SOUTHBOROUGH, Mass., Aug. 02, 2017 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq: SEV ) today reported that it has started shipments to a Chinese automotive manufacturer, supplying its Gen5 based controller. The production shipments commenced in July. The Company estimates that if the customer’s production schedule advances according to plan, the contract would be worth up to $40 million in revenue to Sevcon over the life of the program, which runs through 2021.
The Company also announced new orders from three European high-performance automobile manufacturers. The first of the three orders is to provide engineering services for the development of another hybrid supercar, the second provides engineering and hardware supply for Formula E work and the third provides engineering and pre-production services for electric vehicles. In sum, revenues from these engineering services contracts are estimated at approximately $4.8 million. Assuming successful development, start of production for all three OEMs would begin in 2018 and end in 2021.
About Sevcon, Inc.
Sevcon is a global supplier of control and power solutions for zero-emission, electric and hybrid vehicles. Its products control on- and off-road vehicle speed and movement, integrate specialized functions, optimize energy consumption and help reduce air pollution. Sevcon’s Bassi Division produces battery chargers for electric vehicles; power management and uninterrupted power source systems for industrial, medical and telecom applications; and electronic instrumentation for battery laboratories. The company supplies customers from its operations in the U.S., U.K., France, Germany, Italy, China and the Asia Pacific region, as well as through an international dealer network. Learn more about Sevcon at www.sevcon.com .
Forward-Looking Statements
Statements in this release about the Company’s Chinese shipments and new orders, and the anticipated benefits to the Company, are forward-looking statements that are based on management’s present expectations and involve risks and uncertainties that could cause actual results to differ materially from those projected. Important factors that could cause these statements not to be realized include that we may not be able to successfully complete the development of the controllers contracted by particular customers, the manufacturers for whom we are performing development work may decide not to commence production or purchase from us, and the markets for the particular vehicles may not develop as the manufacturers hope. Additional important factors are set forth under “Risk Factors” and elsewhere in the Forms 10-K and 10-Q we file with the SEC.
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.com
