Sevcon Wins Substantial Contract for Automotive Drivetrain
SOUTHBOROUGH, Mass., Feb. 02, 2017 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV) today reported that it has been contracted by a Sino/European manufacturer of pure electric vehicles for an on-road development & production program. This is Sevcon's sixth major project in the development pipeline.
Sevcon had been working with the customer throughout 2016 to help optimize the drivetrain for the project. Sevcon will now develop an inverter based on its existing Gen5 technology. Start of production is expected to be in the fall of 2018. Over the initial three-year production period, revenues are likely to total in the range of $150 to $200 million. The agreement contains two near-term milestones, including the initial product sample and proof-of-concept in the current second quarter of fiscal 2017, and performance testing in the customer's vehicle in the fourth quarter of fiscal 2017.
"This new long-term program is further confirmation of both the success of our strategy and the strong reputation that Sevcon has developed with on-road automotive manufacturers," said Sevcon President and CEO Matt Boyle. "We have been investing aggressively in engineering talent, and that strategy is resulting in a continuously growing on-road project pipeline. We look forward to reporting further progress as we add to our pipeline and move our six major development projects toward production."
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.
Statements in this release about Sevcon's product development and sales and its 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: the new contract contains nonbinding terms for the production and sale of product in the customer's discretion if the development phase is successful and Sevcon may not receive the orders it expects under the new contract; capital markets are cyclical and weakness in the United States and international economies may harm our business; global demand for 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 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; 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.com