----

 x
  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OFTHE

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OFTHE

|                   Delaware                                                                        | 04-2985631                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|                     (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

|                  (Title of Each Class)                  | (Name      of Exchange on Which Registered) |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|                  COMMON STOCK, PAR VALUE $.10 PER SHARE | NASDAQ      CAPITAL MARKET                  |

| Large      accelerated filer o | Accelerated      filer o | Non-accelerated      filer o                       | Smaller      reporting company x |
|--------------------------------|--------------------------|----------------------------------------------------|----------------------------------|
|                           |                     | (Do      not check if a smaller reporting company) |                             |

----

INDEX

| ITEM                                                                                                                                                                                      | PAGE     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| PART I                                                                                                                                                                                    |     |
| 1.          BUSINESS                                                                                                                    |     |
| General      description                                                                                                                                                                  | 3        |
| Marketing      and sales                                                                                                                                                                  | 3        |
| Patents                                                                                                                                                                                   | 3        |
| Backlog                                                                                                                                                                                   | 3        |
| Raw      materials                                                                                                                                                                        | 3        |
| Competition                                                                                                                                                                               | 4        |
| Research      and development                                                                                                                                                             | 4        |
| Environmental regulations                                                                                                                                                                 | 4        |
| Executive      Officers                                                                                                                                                                   | 4        |
| Employees      and labor relations                                                                                                                                                        | 4        |
| 1A.       RISK FACTORS                                                                                                                                 | 4        |
| 2.          PROPERTIES                                                                                                                  | 5        |
| 3.          LEGAL PROCEEDINGS                                                                                                           | 5        |
| 4.          SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS                                                                    | 5        |
| PART II                                                                                                                                                                                   |     |
| 5.          MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER      MATTERS ANDISSUER      PURCHASES OF EQUITY SECURITIES |  6  |
| 7.          MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL      CONDITION AND RESULTS OFOPERATIONS                             |  6  |
| 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK                                                                              | 12       |
| 8.          FINANCIAL STATEMENTS AND SUPPLEMENTARY    DATA                                                                              |     |
| Consolidated      Balance Sheets at September 30, 2009 and 2008                                                                                                                           | 14       |
| Consolidated Statements of Operations for the Years      ended September 30, 2009 and 2008                                                                                                | 15       |
| Consolidated Statements of Comprehensive Income      (loss) for the Years ended September 30, 2009 and 2008                                                                               | 15       |
| Consolidated Statements of Stockholders’ Equity for      the Years ended September 30, 2009 and 2008                                                                                | 16       |
| Consolidated Statements of Cash Flows for the Years      ended September 30, 2009 and 2008                                                                                                | 17       |
| Notes to      Consolidated Financial Statements                                                                                                                                           | 18       |
| Report of      Independent Registered Public Accounting Firm                                                                                                                              | 31       |
| 9.           CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIALDISCLOSURE                              | 32       |
| 9A(T).   CONTROLS AND PROCEDURES                                                                                                                                                | 32       |
| 9B.         OTHER INFORMATION                                                                                                                | 32       |
| PART III                                                                                                                                                                                  |     |
| 10.          DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE                                                                | 33       |
| 11.          EXECUTIVE COMPENSATION                                                                                                     | 33       |
| 12.          SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT, AND RELATEDSTOCKHOLDER MATTERS                   |  33 |
| 13.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR INDEPENDENCE                                             | 33       |
| 14.          PRINCIPAL ACCOUNTING FEES AND SERVICES                                                                                     | 33       |
| PART IV                                                                                                                                                                                   |     |
| 15.          EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                                                    |     |
| Exhibits                                                                                                                                                                                  | 34       |
| Financial statement    schedules                                                                                                                                                          | 34       |
| SIGNATURES                                                                                                                                                                                | 35       |
| SCHEDULES                                                                                                                                                                                 |     |
| II          Reserves                                                                                                                    | 39       |

----

PART I

ITEM 1

General Description

Marketing and sales

Patents

Backlog

Rawmaterials

----

INDEX

Competition

Research and development

Environmental regulations

Executive Officers

Employees and labor relations

ITEM 1A RISK FACTORS

----

INDEX

ITEM 2 PROPERTIES

ITEM 3

ITEM 4 

----

INDEX

PART II

ITEM 5

|                                                                                                                                                              |   | Quarter      1 |           |   | Quarter      2 |   |           | Quarter      3 |   |   | Quarter      4 |   |   | Year   |           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|----------------|--------|----------------|----------------|--------|--------|----------------|--------|--------|--------|----------------|
| 2009      Quarters                                                                                                                                                |   |           |           |   |           |   |           |           |   |   |           |   |   |   |           |
| Cash      dividends per share                                                                                                                                     |   | $              | -              |   |           | $      | -              |           |   | $      | -              |   |   | $      | -              |   |   | $ | - |   |
| Common      stock price per share-High -Low                                                                                                                  |   | $              | 5.08 1.93 |   |           | $      | 3.99 1.33 |           |   | $      | 2.73 1.11 |   |   | $      | 3.81 2.03 |   |   | $ | 5.08 1.11 |   |
| 2008      Quarters                                                                                                                                                |   |           |           |   |           |   |           |           |   |   |           |   |   |   |           |   |   |   |   |   |
| Cash      dividends per share                                                                                                                                     |   | $              | .03            |   |           | $      | .03            |           |   | $      | .03            |   |   | $      | .03            |   |   | $ | .12 |   |
| Common      stock price per      share        -          High -          Low |   | $              | 9.07 6.30 |   |           | $      | 8.435.75       |           |   | $      | 8.556.30       |   |   | $      | 6.754.00       |   |   | $ | 9.074.00 |   |

ITEM 7

----

INDEX

----

INDEX

| Plan      Assumption                                       | Change      in Assumption | Impact      on Funded Status(in      thousands of dollars)                                    | Change      in funded status |
|------------------------------------------------------------|---------------------------|-----------------------------------------------------------------------------------------------|------------------------------|
| Assumptions      impacting accumulated benefit obligation: |                      |                                                                                          |                         |
| Discount      rate                                         | 0.1%                      |                  $ 509                 | 7%                           |
| Inflation      rate                                        | 0.1%                      |                369 | 5%                           |
| Salary      Increase                                       | 0.5%                      |                     652 | 9%                           |
| Mortality      rate                                        | 1      year               |                     479 | 7%                           |

----

INDEX

|                                                                          |   |   |   |   |   |   |   | (in      thousands of dollars except percentages) |   |
|-------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------------------------------------------|--------|
|                                                                          |   |   |   |   |   |   |   |                                              |   |   | %      change due to: |   |   |   |   |
|                                                                          |   | 2009   |   |   | 2008   |   |   | Total                                             |   |   | Currency |   |   | Volume |   |
| Sales                                                                         |   |   |   |   |   |   |   |                                              |   |   |   |   |   |   |   |
| Controls - to external      customers                                         |   | $      | 18,783 |   |   | $      | 37,280 |                                              |   |   | -50 | % |   |   | -5 | % |   |   | -45 | % |
| Capacitors- to external      customers                                        |   |   | 1,556  |   |   |   | 1,939  |                                              |   |   | -20 | % |   |   | -23 | % |   |   | 3 | % |
| Capacitors -      inter-segment                                               |   |   | 37     |   |   |   | 45     |                                              |   |   | -18 | % |   |   | -23 | % |   |   | 5 | % |
| Capacitors – total                                                      |   |   | 1,593  |   |   |   | 1,984  |                                              |   |   | -20 | % |   |   | -23 | % |   |   | 3 | % |
| Total sales to external      customers                                        |   |   | 20,339 |   |   |   | 39,219 |                                              |   |   | -48 | % |   |   | -5 | % |   |   | -43 | % |
| Gross      Profit                                                             |   |   |   |   |   |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                                      |   |   | 6,321  |   |   |   | 13,074 |                                              |   |   | -52 | % |   |   | -5 | % |   |   | -47 | % |
| Capacitors                                                                    |   |   | 701    |   |   |   | 700    |                                              |   |   | 0 | % |   |   | -29 | % |   |   | 29 | % |
| Total                                                                         |   |   | 7,022  |   |   |   | 13,774 |                                              |   |   | -49 | % |   |   | -6 | % |   |   | -43 | % |
| Selling      research and administrative expenses and restructuring    charge |   |   |   |   |   |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                                      |   |   | 7,531  |   |   |   | 10,556 |                                              |   |   | -29 | % |   |   | -10 | % |   |   | -19 | % |
| Capacitors                                                                    |   |   | 637    |   |   |   | 884    |                                              |   |   | -28 | % |   |   | -10 | % |   |   | -18 | % |
| Restructuring    charge                                                       |   |   | 356    |   |   |   | 700    |                                              |   |   | -49 | % |   |   | -8 | % |   |   | -41 | % |
| Unallocated corporate      expense                                            |   |   | 364    |   |   |   | 460    |                                              |   |   | -21 | % |   |   | 0 | % |   |   | -21 | % |
| Total                                                                         |   |   | 8,888  |   |   |   | 12,600 |                                              |   |   | -29 | % |   |   | -12 | % |   |   | -17 | % |
| Operating      income (loss)                                                  |   |   |   |   |   |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                                      |   |   | (1,528 | )      |   |   | 1,818  |                                              |   |   | -184 | % |   |   | 38 | % |   |   | -222 | % |
| Capacitors                                                                    |   |   | 26     |   |   |   | (184   | )                                                 |   |   | -114 | % |   |   | 3 | % |   |   | -117 | % |
| Unallocated corporate      expense                                            |   |   | (364   | )      |   |   | (460   | )                                                 |   |   | -21 | % |   |   | 0 | % |   |   | -21 | % |
| Total                                                                         |   |   | (1,866 | )      |   |   | 1,174  |                                              |   |   | -259 | % |   |   | 58 | % |   |   | -317 | % |
| Other      income and expense                                                 |   |   | (201   | )      |   |   | 63     |                                              |   |   | -419 | % |   |   | -508 | % |   |   | 89 | % |
| Income      (loss) before income taxes                                        |   |   | (2,067 | )      |   |   | 1,237  |                                              |   |   | -267 | % |   |   | 30 | % |   |   | -297 | % |
| Provision      (benefit) for income taxes                                     |   |   | 592    |   |   |   | (433   | )                                                 |   |   | -237 | % |   |   | 24 | % |   |   | -261 | % |
| Net      income (loss)                                                        |   | $      | (1,475 | )      |   | $      | 804    |                                              |   |   | -283 | % |   |   | 33 | % |   |   | -316 | % |

----

INDEX

|                                                         |   |   |    |   | (in      thousands of dollars except percentages) |   |
|--------------------------------------------------------------|--------|--------|---------|--------|---------------------------------------------------|--------|
|                                                         |   | Sales  |    |   | Cost      of sales                                |   |   | Gross      Profit |   |   | Gross      Profit      % |   |
| Actual      Fiscal 2008                                      |   | $      | 39,219  |   |                                              | $      | 25,445 |   |   | $ | 13,774 |   |   |   | 35.1 | % |
| Change      in fiscal 2009 due to:                           |   |   |    |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency      fluctuations                           |   |   | (2,175  | )      |                                              |   | (1,379 | ) |   |   | (796 | ) |   |   | (0.4 | %) |
| Decreased volume, assuming 2008      gross profit percentage |   |   | (16,705 | )      |                                              |   | (10,842 | ) |   |   | (5,863 | ) |   |   | - |   |
| Other cost of sales changes,      net                        |   |   | -       |   |                                              |   | 93 |   |   |   | (93 | ) |   |   | (0.2 | %) |
| Actual      Fiscal 2009                                      |   | $      | 20,339  |   |                                              | $      | 13,317 |   |   | $ | 7,022 |   |   |   | 34.5 | % |

| Selling,      research and administrative expenses, before restructuring      charges                                  |  (in      thousands of dollars) |   |
|------------------------------------------------------------------------------------------------------------------------|--------------------------------------|--------|
| Reported      expense in fiscal 2009                                                                                   |                                 | $      | 8,532 |   |
| Reported      expense in fiscal 2008                                                                                   |                                 |   | 11,900 |   |
| Decrease      in expense                                                                                               |                                 |   | (3,368 | ) |
| Decrease      due to:                                                                                                  |                                 |   |   |   |
| Effect of exchange rate      changes                                                                                   |                                 |   | (1,440 | ) |
| Lower research and sales and      marketing expense, net of currency effect                                            |                                 |   | (1,214 | ) |
| Lower administrative expense,      net of currency effect                                                              |                                 |   | (714 | ) |
| Total      decrease in selling, research and administrative expenses, before      restructuring charges in fiscal 2009 |                                 | $      | (3,368 | ) |

----

INDEX

----

INDEX

ITEM 7A 

----

INDEX

| (in      thousands of dollars, except average contract rates) |   |
|---------------------------------------------------------------|--------|
|                                                          |   | Expected      maturity or transaction date |   |
|                                                          |   | FY2010 |   |   | Fair      Value |   |
| On      balance sheet financial instruments:                  |   |   |   |   |   |   |
| In $ U.S. Functional      Currency                            |   |   |   |   |   |   |
| Accounts receivable in British      Pounds                    |   |   | 381 |   |   |   | 381 |   |
| Accounts receivable in      Euros                             |   |   | 961 |   |   |   | 961 |   |
| Accounts payable in British      Pounds                       |   |   | 279 |   |   |   | 279 |   |
| Accounts payable in      Euros                                |   |   | 1,094 |   |   |   | 1,094 |   |
| Anticipated      Transactions                                 |   |   |   |   |   |   |   |   |
| In $ U.S. Functional      Currency                            |   |   |   |   |   |   |   |   |
| Firmly committed sales      contracts                         |   |   |   |   |   |   |   |   |
| In British    Pounds                                          |   |   | 799 |   |   |   | 799 |   |
| In Euros                                                      |   |   | 456 |   |   |   | 456 |   |

----

INDEX

ITEM 8

CONSOLIDATED BALANCE SHEETS

| ASSETS                                                                                                      |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Current      assets:                                                                                        |   |   |   |   |   |   |
| Cash and cash      equivalents                                                                              |   | $      | 632    |   |   | $      | 1,630 |   |
| Receivables, net of allowances      for doubtful accounts of $92 in 2009 and $86 in 2008                    |   |   | 3,383  |   |   |   | 7,087 |   |
| Inventories                                                                                                 |   |   | 4,723  |   |   |   | 4,970 |   |
| Prepaid expenses and other      current assets                                                              |   |   | 1,398  |   |   |   | 862 |   |
| Total      current assets                                                                                   |   |   | 10,136 |   |   |   | 14,549 |   |
| Property,      plant and equipment, at cost:                                                                |   |   |   |   |   |   |   |   |
| Land and      improvements                                                                                  |   |   | 22     |   |   |   | 25 |   |
| Buildings and      improvements                                                                             |   |   | 1,955  |   |   |   | 2,166 |   |
| Equipment                                                                                                   |   |   | 8,768  |   |   |   | 9,409 |   |
|                                                                                                        |   |   | 10,745 |   |   |   | 11,600 |   |
| Less: accumulated depreciation      and amortization                                                        |   |   | 7,874  |   |   |   | 8,053 |   |
| Net      property, plant and equipment                                                                      |   |   | 2,871  |   |   |   | 3,547 |   |
| Long-term      deferred tax assets                                                                          |   |   | 2,357  |   |   |   | 202 |   |
| Goodwill                                                                                                    |   |   | 1,435  |   |   |   | 1,435 |   |
| Other      long-term assets                                                                                 |   |   | 11     |   |   |   | 22 |   |
| Total      assets                                                                                           |   | $      | 16,810 |   |   | $      | 19,755 |   |
|  LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                       |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                                   |   |   |   |   |   |   |   |   |
| Accountspayable                                                                                             |   | $      | 1,730  |   |   | $      | 3,713 |   |
| Dividendpayable                                                                                             |   |   | -      |   |   |   | 98 |   |
| Accruedexpenses                                                                                             |   |   | 1,611  |   |   |   | 2,410 |   |
| Accrued taxes on      income                                                                                |   |   | -      |   |   |   | 56 |   |
| Total      current liabilities                                                                              |   |   | 3,341  |   |   |   | 6,277 |   |
| Liability      for pension benefits                                                                         |   |   | 7,166  |   |   |   | 378 |   |
| Other      long term liabilities                                                                            |   |   | 48     |   |   |   | 54 |   |
| Total      liabilities                                                                                      |   |   | 10,555 |   |   |   | 6,709 |   |
| Commitments      and contingencies (note 6)                                                                 |   |   | -      |   |   |   | - |   |
| Stockholders’      equity                                                                             |   |   |   |   |   |   |   |   |
| Preferred stock, par value $.10      per share - authorized - 1,000,000 shares; outstanding –    none |   |   | -      |   |   |   | - |   |
| Common stock, par value $.10      per share - authorized - 8,000,000 shares; outstanding                    |   |   |   |   |   |   |   |   |
| 3,326,322 shares in 2009 and      3,276,322 shares in 2008                                                  |   |   | 333    |   |   |   | 328 |   |
| Premium paid in on common      stock                                                                        |   |   | 5,033  |   |   |   | 4,881 |   |
| Retained    earnings                                                                                        |   |   | 6,889  |   |   |   | 8,364 |   |
| Accumulated other comprehensive      loss                                                                   |   |   | (6,000 | )      |   |   | (527 | ) |
| Total      stockholders’ equity                                                                       |   |   | 6,255  |   |   |   | 13,046 |   |
| Total      liabilities and stockholders’ equity                                                       |   | $      | 16,810 |   |   | $      | 19,755 |   |

----

INDEX

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                               |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net      sales                                     |   | $      | 20,339 |   |   | $      | 39,219 |   |
| Cost      of sales                                 |   |   | 13,317 |   |   |   | 25,445 |   |
| Gross      profit                                  |   |   | 7,022  |   |   |   | 13,774 |   |
| Selling,      research and administrative expenses |   |   | 8,532  |   |   |   | 11,900 |   |
| Restructuring      charge                          |   |   | 356    |   |   |   | 700 |   |
| Operating      income (loss)                       |   |   | (1,866 | )      |   |   | 1,174 |   |
| Interest      expense                              |   |   | (81    | )      |   |   | (108 | ) |
| Interest      income                               |   |   | 54     |   |   |   | 8 |   |
| Foreign      currency gain (loss)                  |   |   | (174   | )      |   |   | 163 |   |
| Income      (loss) before income taxes             |   |   | (2,067 | )      |   |   | 1,237 |   |
| Provision      (benefit) for income taxes          |   |   | (592   | )      |   |   | 433 |   |
| Net      income (loss)                             |   | $      | (1,475 | )      |   | $      | 804 |   |
| Basic      income (loss) per share                 |   | $      | (.46   | )      |   | $      | .25 |   |
| Diluted      income (loss) per share               |   | $      | (.46   | )      |   | $      | .25 |   |

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS)

|                                                  |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net      income (loss)                                |   | $      | (1,475 | )      |   | $      | 804 |   |
| Foreign      currency translation adjustment          |   |   | (769   | )      |   |   | (1,001 | ) |
| Changes      in fair market value of cash flow hedges |   |   | -      |   |   |   | (3 | ) |
| Pension      liability adjustment, net of tax         |   |   | (4,704 | )      |   |   | 951 |   |
| Comprehensive      income (loss)                      |   | $      | (6,948 | )      |   | $      | 751 |   |

----

INDEX

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’EQUITY

|                                                                                       |   |  Common      stock |   |   | Premium      paid      in on common      stock |   |   |  Retained      earnings |   |   | Unearned      compensation on restricted stock |   |   | Cumulative      other comprehensive income (loss) |   |   | Total      stockholders’ equity |   |
|--------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------------------------------|--------|--------|------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------|--------|
| Balance      September 30, 2007                                                            |   | $                       | 324    |   |                                           | $      | 4,623  |                         |   | $      | 7,961                                          |   |   | $                                                 | -      |   |                                  | $      | (474 | ) |   | $ | 12,434 |   |
| Net      income                                                                            |   |                    |   |   |                                           |   |   |                         |   |   | 804                                            |   |   |                                              |   |   |                                  |   |   |   |   |   | 804 |   |
| Dividends      ($.12 per share)                                                            |   |                    |   |   |                                           |   |   |                         |   |   | (392                                           | )      |   |                                              |   |   |                                  |   |   |   |   |   | (392 | ) |
| Currency      translation adjustment                                                       |   |                    |   |   |                                           |   |   |                         |   |   |                                           |   |   |                                              |   |   |                                  |   | (1,001 | ) |   |   | (1,001 | ) |
| Change      in fair market value of cash flow hedge                                        |   |                    |   |   |                                           |   |   |                         |   |   |                                           |   |   |                                              |   |   |                                  |   | (3 | ) |   |   | (3 | ) |
| Issuance      of restricted stock                                                          |   |                    | 3      |   |                                           |   | (3     | )                            |   |   |                                           |   |   |                                              |   |   |                                  |   |   |   |   |   | - |   |
| Exercise      of stock options                                                             |   |                    | 1      |   |                                           |   | 53     |                         |   |   |                                           |   |   |                                              |   |   |                                  |   |   |   |   |   | 54 |   |
| Purchase      and retirement of common stock in connection with stock option      exercise |   |                    |   |   |                                           |   |   |                         |   |   | (9                                             | )      |   |                                              |   |   |                                  |   |   |   |   |   | (9 | ) |
| Equity      compensation expense                                                           |   |                    |   |   |                                           |   | 208    |                         |   |   |                                           |   |   |                                              |   |   |                                  |   |   |   |   |   | 208 |   |
| Pension      liability adjustment, net of tax charge of $437                               |   |                    |   |   |                                           |   |   |                         |   |   |                                           |   |   |                                              |   |   |                                  |   | 951 |   |   |   | 951 |   |
| Balance      September 30, 2008                                                            |   | $                       | 328    |   |                                           | $      | 4,881  |                         |   | $      | 8,364                                          |   |   | $                                                 | -      |   |                                  | $      | (527 | ) |   | $ | 13,046 |   |
| Net      loss                                                                              |   |                    |   |   |                                           |   |   |                         |   |   | (1,475                                         | )      |   |                                              |   |   |                                  |   |   |   |   |   | (1,475 | ) |
| Currency      translation adjustment                                                       |   |                    |   |   |                                           |   |   |                         |   |   |                                           |   |   |                                              |   |   |                                  |   | (769 | ) |   |   | (769 | ) |
| Issuance      of restricted stock                                                          |   |                    | 5      |   |                                           |   | (5     | )                            |   |   |                                           |   |   |                                              |   |   |                                  |   |   |   |   |   | - |   |
| Equity      compensation expense                                                           |   |                    |   |   |                                           |   | 157    |                         |   |   |                                           |   |   |                                              |   |   |                                  |   |   |   |   |   | 157 |   |
| Pension      liability adjustment, net of tax benefit of $1,877                            |   |                    |   |   |                                           |   |   |                         |   |   |                                           |   |   |                                              |   |   |                                  |   | (4,704 | ) |   |   | (4,704 | ) |
| Balance      September 30, 2009                                                            |   | $                       | 333    |   |                                           | $      | 5,033  |                         |   | $      | 6,889                                          |   |   | $                                                 | -      |   |                                  | $      | (6,000 | ) |   | $ | 6,255 |   |

----

INDEX

CASH FLOWS

|                                                                                        |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash      flow from operating activities:                                                   |   |   |   |   |   |   |
| Net      income (loss)                                                                      |   | $      | (1,475 | )      |   | $      | 804 |   |
| Adjustments      to reconcile net income (loss) to net cash from operating      activities: |   |   |   |   |   |   |   |   |
| Depreciation and      amortization                                                          |   |   | 578    |   |   |   | 685 |   |
| Stock-based      compensation                                                               |   |   | 157    |   |   |   | 208 |   |
| Pension contributions in excess      of pension expenses                                    |   |   | (66    | )      |   |   | (367 | ) |
| Deferred tax    benefit                                                                     |   |   | (162   | )      |   |   | (27 | ) |
| Increase (decrease) in cash      resulting from changes in operating assets andliabilities: |   |   |   |   |   |   |   |   |
| Receivables                                                                                 |   |   | 3,230  |   |   |   | 1,459 |   |
| Inventories                                                                                 |   |   | (86    | )      |   |   | 26 |   |
| Prepaid expenses and other      current assets                                              |   |   | 5      |   |   |   | (75 | ) |
| Accounts    payable                                                                         |   |   | (1,567 | )      |   |   | 778 |   |
| Accrued    expenses                                                                         |   |   | (561   | )      |   |   | (742 | ) |
| Accrued taxes on      income                                                                |   |   | (589   | )      |   |   | (416 | ) |
| Net      cash generated from (used by) operating activities                                 |   |   | (536   | )      |   |   | 2,333 |   |
| Cash      flow used by investing activities:                                                |   |   |   |   |   |   |   |   |
| Acquisition of property, plant      and equipment                                           |   |   | (243   | )      |   |   | (931 | ) |
| Net      cash used by investing activities                                                  |   |   | (243   | )      |   |   | (931 | ) |
| Cash      flow used by financing activities:                                                |   |   |   |   |   |   |   |   |
| Dividends paid                                                                              |   |   | (98    | )      |   |   | (392 | ) |
| Exercise of stock      options                                                              |   |   | -      |   |   |   | 45 |   |
| Net cash used by financing      activities                                                  |   |   | (98    | )      |   |   | (347 | ) |
| Effect      of exchange rate changes on cash                                                |   |   | (121   | )      |   |   | (439 | ) |
| Net      increase (decrease) in cash                                                        |   |   | (998   | )      |   |   | 616 |   |
| Beginning      balance - cash and cash equivalents                                          |   |   | 1,630  |   |   |   | 1,014 |   |
| Ending      balance - cash and cash equivalents                                             |   | $      | 632    |   |   | $      | 1,630 |   |
| Supplemental      disclosure of cash flow information:                                      |   |   |   |   |   |   |   |   |
| Cash paid for income      taxes                                                             |   | $      | 307    |   |   | $      | 832 |   |
| Cash paid for      interest                                                                 |   | $      | 81     |   |   | $      | 108 |   |
| Supplemental      disclosure of non-cash financing activity:                                |   |   |   |   |   |   |   |   |
| Dividenddeclared                                                                            |   | $      | -      |   |   | $      | 98 |   |

----

INDEX

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|                                                                                     |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Warranty      reserves at beginning of year                                              |   | $      | 362    |   |   | $      | 458 |   |
| Decrease      in beginning balance for warranty obligations settled during the      year |   |   | (318   | )      |   |   | (178 | ) |
| Other      changes to pre-existing warranties                                            |   |   | 98     |   |   |   | - |   |
| Foreign      currency translation adjustment                                             |   |   | (29    | )      |   |   | - |   |
| Net      increase in warranty reserves for products sold during the      year            |   |   | 104    |   |   |   | 82 |   |
| Warranty      reserves at end of year                                                    |   | $      | 217    |   |   | $      | 362 |   |

----

INDEX

|                |   | 2009   |   |   | 2008   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| Raw      materials  |   | $      | 676    |   |   | $      | 930 |   |
| Work-in-process     |   |   | 141    |   |   |   | 96 |   |
| Finished      goods |   |   | 3,906  |   |   |   | 3,944 |   |
|                |   | $      | 4,723  |   |   | $      | 4,970 |   |

----

INDEX

|                                                         |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net      income (loss)                                       |   | $      | (1,475 | )      |   | $      | 804 |   |
| Weighted      average shares outstanding                     |   |   | 3,241  |   |   |   | 3,210 |   |
| Basic      income (loss) per share                           |   | $      | (.46   | )      |   | $      | .25 |   |
| Common      stock equivalents                                |   |   | -      |   |   |   | 29 |   |
| Average      common and common equivalent shares outstanding |   |   | 3,241  |   |   |   | 3,239 |   |
| Diluted      income (loss) per share                         |   | $      | (.46   | )      |   | $      | .25 |   |

----

INDEX

----

INDEX

----

INDEX

|                                   |   |  Shares      under option |    |   |  Weighted      averageexercise      price |   |   | Weighted      average remaining contractual life (years) |   |         |  Aggregate      Intrinsic value |   |
|----------------------------------------|--------|--------------------------------|---------|--------|------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------------|--------------------------------------|--------|
| Outstanding      at September 30, 2007 |   |                           | 129,000 |   |                                           | $      | 9.47   |                                                     |   | 2      years |                                 |   | $ | 204,000 |   |
| Exercised      in 2008                 |   |                           | (12,000 | )      |                                           | $      | 4.63   |                                                     |   |         |                                 |   |   |   |   |
| Cancelled      in 2008                 |   |                           | (53,500 | )      |                                           | $      | 13.66  |                                                     |   |         |                                 |   |   |   |   |
| Outstanding      at September 30, 2008 |   |                           | 63,500  |   |                                           | $      | 7.03   |                                                     |   | 3      years |                                 |   | $ | - |   |
| Exercisable      at September 30, 2008 |   |                           | 44,600  |   |                                           | $      | 7.29   |                                                     |   | 3      years |                                 |   | $ | - |   |
| Exercised      in 2009                 |   |                           | -       |   |                                           | $      | -      |                                                     |   |         | -                                    |   |   |   | - |   |
| Cancelled      in 2009                 |   |                           | -       |   |                                           | $      | -      |                                                     |   |         | -                                    |   |   |   | - |   |
| Outstanding      at September 30, 2009 |   |                           | 63,500  |   |                                           | $      | 7.03   |                                                     |   | 2      years |                                 |   | $ | - |   |
| Exercisable      at September 30, 2009 |   |                           | 50,300  |   |                                           | $      | 7.35   |                                                     |   | 2      years |                                 |   | $ | - |   |

| Price      range                                 |  Shares      under option | Weighted      average remaining      contractual life |
|--------------------------------------------------|--------------------------------|-------------------------------------------------------|
| $   4.37      - $  6.56 | 36,000                         | 4      years                                          |
| $   6.57      - $  9.85 | 10,000                         | 2      years                                          |
| $   9.86      - $14.79            | 17,500                         | 1      year                                           |
|                                             | 63,500                         | 2      years                                          |

----

INDEX

|                                                                |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning      Balance – Non-vested                           |   |   | 54     |   |   |   | 55 |   |
| Granted      to employees – 5 year vesting                    |   |   | 40     |   |   |   | 15 |   |
| Granted      to non-employee directors – 1 year vesting       |   |   | 12     |   |   |   | 12 |   |
| Vested                                                              |   |   | (25    | )      |   |   | (28 | ) |
| Forfeited                                                           |   |   | (2     | )      |   |   | - |   |
| Ending      Balance – Non-vested                              |   |   | 79     |   |   |   | 54 |   |
| Weighted-average      fair value for shares granted during the year |   | $      | 2.13   |   |   | $      | 7.27 |   |
| Weighted-average      fair value for shares vested during the year  |   | $      | 6.50   |   |   | $      | 6.76 |   |
| Weighted-average      fair value for ending balance - non-vested    |   | $      | 3.62   |   |   | $      | 6.47 |   |

|                                        |   | 2009   |   |   | 2008   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|
| Stock option    expense                     |   | $      | 22     |   |   | $      | 25 |   |
| Restricted stock      grants:               |   |   |   |   |   |   |   |   |
| Employees                                   |   | $      | 90     |   |   | $      | 100 |   |
| Non-employee      directors                 |   | $      | 45     |   |   | $      | 83 |   |
| Total stock based compensation      expense |   | $      | 157    |   |   | $      | 208 |   |

|     |   | 2009   |   |   | 2008   |   |
|----------|--------|--------|--------|--------|--------|--------|
| Domestic |   | $      | (752   | )      |   | $      | (411 | ) |
| Foreign  |   |   | (1,315 | )      |   |   | 1,648 |   |
|     |   | $      | (2,067 | )      |   | $      | 1,237 |   |

|    |   | 2009    |   |
|---------|--------|---------|--------|
|    |   | Current |   |   | Deferred |   |
| Federal |   | $       | -      |   |   | $ | 56 |   |
| State   |   |    | -      |   |   |   | 19 |   |
| Foreign |   |    | (430   | ) |   |   | (237 | ) |
|    |   | $       | (430   | ) |   | $ | (162 | ) |

|    |   | 2008    |   |
|---------|--------|---------|--------|
|    |   | Current |   |   | Deferred |   |
| Federal |   | $       | -      |   |   | $ | (57 | ) |
| State   |   |    | -      |   |   |   | (37 | ) |
| Foreign |   |    | 460    |   |   |   | 67 |   |
|    |   | $       | 460    |   |   | $ | (27 | ) |

----

INDEX

|                                                                                  |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Statutory      Federal income tax rate                                                |   |   | (34    | %)     |   |   | 34 | % |
| Computed      tax provision (benefit) at statutory rate                               |   | $      | (703   | )      |   | $      | 420 |   |
| Increases      (decreases) resulting from:                                            |   |   |   |   |   |   |   |   |
| Foreign tax rate      differentials                                                   |   |   | 60     |   |   |   | (37 | ) |
| State taxes net of federal tax      benefit                                           |   |   | -      |   |   |   | (24 | ) |
| Change in deferred tax valuation      allowance                                       |   |   | 331    |   |   |   | (66 | ) |
| Foreign dividends, net of      foreign tax credit                                     |   |   | -      |   |   |   | 66 |   |
| Foreign research      incentives                                                      |   |   | (315   | )      |   |   | - |   |
| Other                                                                                 |   |   | 35     |   |   |   | 74 |   |
| Income      tax provision (benefit) in the consolidated statements of      operations |   | $      | (592   | )      |   | $      | 433 |   |

|                                   |   |                  |   |   | 2009                    |   |   |                 |   |
|----------------------------------------|--------|-----------------------|--------|--------|-------------------------|--------|--------|----------------------|--------|
|                                   |   | Domestic      current |   |   | Domestic      long-term |   |   | Foreign      current |   |   | Foreign      long-term |   |
| Assets:                                |   |                  |   |   |                    |   |   |                 |   |   |   |   |
| Pension accruals                       |   | $                     | -      |   |                    | $      | 351    |                 |   | $ | - |   |   | $ | 1,808 |   |
| Inventory basis      differences       |   |                  | 38     |   |                    |   | -      |                 |   |   | - |   |   |   | - |   |
| Warranty reserves                      |   |                  | 23     |   |                    |   | -      |                 |   |   | - |   |   |   | - |   |
| Foreign tax credit carry      forwards |   |                  | -      |   |                    |   | 142    |                 |   |   | - |   |   |   | - |   |
| Accrued compensation      expense      |   |                  | 31     |   |                    |   | -      |                 |   |   | - |   |   |   | 34 |   |
| Net operating    losses                |   |                  | 199    |   |                    |   | 190    |                 |   |   | 359 |   |   |   | - |   |
| Other (net)                            |   |                  | 8      |   |                    |   | 228    |                 |   |   | - |   |   |   | - |   |
|                                   |   |                  | 299    |   |                    |   | 911    |                 |   |   | 359 |   |   |   | 1,842 |   |
| Liabilities:                           |   |                  |   |   |                    |   |   |                 |   |   |   |   |   |   |   |   |
| Property basis      differences        |   |                  | -      |   |                    |   | 40     |                 |   |   | - |   |   |   | (54 | ) |
| Net      asset                         |   |                  | 299    |   |                    |   | 951    |                 |   |   | 359 |   |   |   | 1,788 |   |
| Valuation      allowance               |   |                  | (102   | )      |                    |   | (382   | )                    |   |   | - |   |   |   | - |   |
| Net      deferred tax asset            |   | $                     | 197    |   |                    | $      | 569    |                 |   | $ | 359 |   |   | $ | 1,788 |   |

----

INDEX

|                                   |   |                  |   |   | 2008                    |   |   |                 |   |
|----------------------------------------|--------|-----------------------|--------|--------|-------------------------|--------|--------|----------------------|--------|
|                                   |   | Domestic      current |   |   | Domestic      long-term |   |   | Foreign      current |   |   | Foreign      long-term |   |
| Assets:                                |   |                  |   |   |                    |   |   |                 |   |   |   |   |
| Pension accruals                       |   | $                     | 76     |   |                    | $      | 132    |                 |   | $ | - |   |   | $ | 14 |   |
| Inventory basis      differences       |   |                  | 77     |   |                    |   | -      |                 |   |   | - |   |   |   | - |   |
| Warranty reserves                      |   |                  | 32     |   |                    |   | -      |                 |   |   | - |   |   |   | - |   |
| Foreign tax credit carry      forwards |   |                  | -      |   |                    |   | 130    |                 |   |   | - |   |   |   | - |   |
| Accrued compensation      expense      |   |                  | 59     |   |                    |   | -      |                 |   |   | - |   |   |   | 32 |   |
| Net operating    losses                |   |                  | 154    |   |                    |   | -      |                 |   |   | - |   |   |   | - |   |
| Other (net)                            |   |                  | 145    |   |                    |   | -      |                 |   |   | 44 |   |   |   | - |   |
|                                   |   |                  | 543    |   |                    |   | 262    |                 |   |   | 44 |   |   |   | 46 |   |
| Liabilities:                           |   |                  |   |   |                    |   |   |                 |   |   |   |   |   |   |   |   |
| Property basis      differences        |   |                  |   |   |                    |   | 35     |                 |   |   | 4 |   |   |   | (36 | ) |
| Net      asset                         |   |                  | 543    |   |                    |   | 297    |                 |   |   | 48 |   |   |   | 10 |   |
| Valuation      allowance               |   |                  | -      |   |                    |   | (105   | )                    |   |   | - |   |   |   | - |   |
| Net      deferred tax asset            |   | $                     | 543    |   |                    | $      | 192    |                 |   | $ | 48 |   |   | $ | 10 |   |

|                                        |   | 2009   |   |   | 2008   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|
| Accrued      compensation and related costs |   | $      | 497    |   |   | $      | 603 |   |
| Warranty      reserves                      |   |   | 217    |   |   |   | 362 |   |
| Other      accrued expenses                 |   |   | 897    |   |   |   | 1,445 |   |
|                                        |   | $      | 1,611  |   |   | $      | 2,410 |   |

----

INDEX

|                                                              |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Change      in benefit obligation:                                |   |   |   |   |   |   |
| Benefit      obligation at beginning of year                      |   | $      | 18,540 |   |   | $      | 24,524 |   |
| Service      cost                                                 |   |   | 280    |   |   |   | 565 |   |
| Interest      cost                                                |   |   | 1,127  |   |   |   | 1,383 |   |
| Plan      participants contributions                              |   |   | 159    |   |   |   | 264 |   |
| Actuarial      loss (gain)                                        |   |   | 3,344  |   |   |   | (3,372 | ) |
| Gains      on curtailments                                        |   |   | -      |   |   |   | (271 | ) |
| Benefits      paid                                                |   |   | (391   | )      |   |   | (2,078 | ) |
| Foreign      currency exchange rate changes                       |   |   | (1,518 | )      |   |   | (2,475 | ) |
| Benefit      obligation at end of year                            |   |   | 21,541 |   |   |   | 18,540 |   |
| Change      in plan assets:                                       |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year               |   |   | 18,162 |   |   |   | 22,280 |   |
| Return      on plan assets                                        |   |   | (2,199 | )      |   |   | (622 | ) |
| Employer      contributions                                       |   |   | 436    |   |   |   | 727 |   |
| Plan      participants contributions                              |   |   | 159    |   |   |   | 264 |   |
| Benefits      paid                                                |   |   | (391   | )      |   |   | (2,078 | ) |
| Foreign      currency exchange rate changes                       |   |   | (1,792 | )      |   |   | (2,409 | ) |
| Fair      value of plan assets at end of year                     |   |   | 14,375 |   |   |   | 18,162 |   |
| Funded      status                                                |   |   | (7,166 | )      |   |   | (378 | ) |
| Liability      for pension benefits recorded in the balance sheet |   | $      | (7,166 | )      |   | $      | (378 | ) |

----

INDEX

|                                          |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Components      of net periodic benefit cost: |   |   |   |   |   |   |
| Service cost                                  |   | $      | 280    |   |   | $      | 565 |   |
| Interest cost                                 |   |   | 1,127  |   |   |   | 1,383 |   |
| Expected return on plan      assets           |   |   | (1,084 | )      |   |   | (1,421 | ) |
| Gains on      curtailments                    |   |   | -      |   |   |   | (271 | ) |
| Amortization of prior service      cost       |   |   | 47     |   |   |   | 59 |   |
| Net periodic benefit      cost                |   | $      | 370    |   |   | $      | 315 |   |
| Net cost of defined      contribution plans   |   | $      | 30     |   |   | $      | 46 |   |

|                                          | 2009        | 2008        |
|-----------------------------------------------|-------------|-------------|
| Plan      obligations:                        |        |        |
| Discount rate                                 |  5.65% |  6.89% |
| Rate of compensation      increase            |  3.21% |  4.47% |
| Net      periodic benefit cost:               |        |        |
| Discount rate                                 |  5.65% |  6.89% |
| Expected long term return on      plan assets |  6.41% |  6.78% |
| Rate of compensation      increase            |  3.21% |  4.47% |

|                   |   |           |   |   | 2009           |   |   |   |   |   |           |   |   | 2008           |   |   |   |   |
|------------------------|--------|----------------|--------|--------|----------------|--------|--------|--------|--------|--------|----------------|--------|--------|----------------|--------|--------|--------|--------|
|                   |   | U.S.      Plan |   |   | U.K.      Plan |   |   | Total  |   |   | U.S.      Plan |   |   | U.K.      Plan |   |   | Total  |   |
| Equity      securities |   |           | 36%    |   |           |   | 30%    |   |   |   | 31%            |   |   |           | 34%    |   |   |   | 55% |   |   |   | 53% |   |
| Debt      securities   |   |           | 63%    |   |           |   | 48%    |   |   |   | 50%            |   |   |           | 57%    |   |   |   | 26% |   |   |   | 29% |   |
| Real      estate       |   |           | -      |   |           |   | 15%    |   |   |   | 14%            |   |   |           | -      |   |   |   | 16% |   |   |   | 15% |   |
| Other                  |   |           | 1%     |   |           |   | 7%     |   |   |   | 6%             |   |   |           | 9%     |   |   |   | 3% |   |   |   | 3% |   |
| Total                  |   |           | 100%   |   |           |   | 100%   |   |   |   | 100%           |   |   |           | 100%   |   |   |   | 100% |   |   |   | 100% |   |

----

INDEX

| 2010                   |   | $      | 420   |   |
|------------------------|--------|--------|-------|--------|
| 2011                   |   |   | 350   |   |
| 2012                   |   |   | 435   |   |
| 2013                   |   |   | 439   |   |
| 2014                   |   |   | 616   |   |
| 2015      – 2019 |   |   | 4,456 |   |

|                               |   |     |   |   |       |   |   | 2009      |   |   |   |   |
|------------------------------------|--------|----------|--------|--------|------------|--------|--------|-----------|--------|--------|--------|--------|
|                               |   | Controls |   |   | Capacitors |   |   | Corporate |   |   | Total  |   |
| Sales      to external customers   |   | $        | 18,783 |   |       | $      | 1,556  |      |   | $      | -      |   |   | $ | 20,339 |   |
| Inter-segment      revenues        |   |     | -      |   |       |   | 37     |      |   |   | -      |   |   |   | 37 |   |
| Operating      income (loss)       |   |     | (1,528 | )      |       |   | 26     |      |   |   | (364   | )      |   |   | (1,866 | ) |
| Depreciation      and amortization |   |     | 545    |   |       |   | 33     |      |   |   | -      |   |   |   | 578 |   |
| Identifiable      assets           |   |     | 15,478 |   |       |   | 752    |      |   |   | 580    |   |   |   | 16,810 |   |
| Capital      expenditures          |   |     | 237    |   |       |   | 6      |      |   |   | -      |   |   |   | 243 |   |
|                               |   |     |   |   |       |   |   |      |   |   | 2008   |   |   |   |   |   |
|                               |   | Controls |   |   | Capacitors |   |   | Corporate |   |   | Total  |   |
| Sales      to external customers   |   | $        | 37,280 |   |       | $      | 1,939  |      |   | $      | -      |   |   | $ | 39,219 |   |
| Inter-segment      revenues        |   |     | -      |   |       |   | 45     |      |   |   | -      |   |   |   | 45 |   |
| Operating      income (loss)       |   |     | 1,818  |   |       |   | (184   | )         |   |   | (460   | )      |   |   | 1,174 |   |
| Depreciation      and amortization |   |     | 637    |   |       |   | 48     |      |   |   | -      |   |   |   | 685 |   |
| Identifiable      assets           |   |     | 18,511 |   |       |   | 722    |      |   |   | 522    |   |   |   | 19,755 |   |
| Capital      expenditures          |   |     | 890    |   |       |   | 41     |      |   |   | -      |   |   |   | 931 |   |

----

INDEX

|                    |   | 2009   |   |   | 2008   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|
| Sales:-                 |   |   |   |   |   |   |
| U.S.      sales         |   | $      | 10,787 |   |   | $      | 15,953 |   |
| Foreign      sales:     |   |   |   |   |   |   |   |   |
| United Kingdom          |   |   | 5,685  |   |   |   | 11,766 |   |
| France                  |   |   | 3,867  |   |   |   | 11,500 |   |
| Total      Foreign      |   |   | 9,552  |   |   |   | 23,266 |   |
| Total      sales        |   | $      | 20,339 |   |   | $      | 39,219 |   |
| Long-lived      assets: |   |   |   |   |   |   |   |   |
| U.S.A.                  |   | $      | 2,061  |   |   | $      | 1,699 |   |
| Foreign:                |   |   |   |   |   |   |   |   |
| United Kingdom          |   |   | 4,485  |   |   |   | 3,363 |   |
| France                  |   |   | 110    |   |   |   | 113 |   |
| Korea and Japan         |   |   | 18     |   |   |   | 31 |   |
| Total      Foreign      |   |   | 4,613  |   |   |   | 3,507 |   |
| Total                   |   | $      | 6,674  |   |   | $      | 5,206 |   |

|                                                                    |   | 2009   |   |   | 2008   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Electronic      controls for zero emission and hybrid electric vehicles |   | $      | 10,612 |   |   | $      | 25,818 |   |
| Accessory      and aftermarket products and services                    |   |   | 8,171  |   |   |   | 11,462 |   |
| Total      controls segment revenues                                    |   | $      | 18,783 |   |   | $      | 37,280 |   |

|                                        |   | (in      thousands of dollars) |   |
|---------------------------------------------|--------|--------------------------------|--------|
| Severance and other related      costs |   | $                              | 298    |   |
| Professional      fees and other costs      |   |                           | 58     |   |
| Total      restructuring charge             |   | $                              | 356    |   |

|                                   |   |                                           |   |   | (in      thousands of dollars) |   |
|----------------------------------------|--------|------------------------------------------------|--------|--------|--------------------------------|--------|
|                                   |   | Balance      at October      1, 2008 |   |   |  Charges                  |   |   |  Payments |   |   | Balance      atSeptember      30,2009 |   |
| Severance      and other related costs |   |                                           | -      |   |                           |   | 298 |   |   |   | 298 |   |   |   | - |   |
| Professional      fees and other costs |   |                                           | -      |   |                           |   | 58 |   |   |   | 58 |   |   |   | - |   |
| Total                                  |   |                                           | -      |   |                           |   | 356 |   |   |   | 356 |   |   |   | - |   |

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INDEX

Report ofIndependent Registered Public Accounting Firm

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INDEX

ITEM 9

ITEM 9A(T) CONTROLS AND PROCEDURES

| ·   | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of our      assets; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that our receipts and expenditures are being      made only in accordance with authorizations of our management and      directors; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of our assets that could have      a material effect on the financialstatements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 9B OTHER INFORMATION

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INDEX

PART III

ITEM 10 

| Name      of Officer  | Age | Position                                                      |
|-----------------------|-----|---------------------------------------------------------------|
| Matthew      Boyle    | 47  | President      & Chief Executive Officer                  |
| Paul      N. Farquhar | 47  | Vice      President, Treasurer & Chief Financial  Officer |

ITEM 11 

ITEM 12 

ITEM 13 

ITEM 14 

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INDEX

PART IV

ITEM 15 EXHIBITS, FINANCIAL STATEMENT SCHEDULES

| (a)    | Financial statements and    schedule                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------|
|   | The      financial statements and financial statement schedule are filed as part of      this Annual Report on Form 10-K. |
| (b)    | Exhibits                                                                                                                  |
|   | The      exhibits filed as part of this Annual Report on Form 10-K are listed on      the Exhibit Index below.            |

INDEX TO EXHIBITS

|  *(3)(a)       | Certificate      of Incorporation of the registrant (incorporated by reference to Exhibit      (3) (a) to Quarterly Report on Form 10-Q for the quarter ended July 3,      2004).                                                           |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(3)(b)             | Amended      and Restated by-laws of the registrant (incorporated by reference to      Exhibit 3.2 to Current Report on Form 8-K filed on September 19,      2008).                                                                         |
| *(4)(a)             | Specimen      common stock certificate of the registrant (incorporated by reference to      Exhibit (4)(a) to Annual Report for fiscal year ended September 30,      2008).                                                                 |
| *(10)(a)            | Tech/Ops      Sevcon, Inc. 1996 Equity Incentive Plan (incorporated by reference to the      Registrant's 2004 Proxy Statement filed on December 29,    2003).                                                                              |
| *(10)(b)            | Form      of Option for 1996 Equity Incentive Plan (incorporated by reference to      Exhibit (10) (b) to Annual Report for the fiscal year ended September 30,      2002).                                                                 |
| *(10)(c)            | Form      of Restricted Stock Agreement for employees for 1996 Equity Incentive Plan      (incorporated by reference to Exhibit (10) (c) to Annual Report for the      fiscal year ended September 30, 2004).                               |
| *(10)(d)            | Form      of Restricted Stock Agreement for non-employee directors for 1996 Equity      Incentive Plan (incorporated by reference to Exhibit (10) (d) to Annual      Report for the fiscal year ended September 30, 2004).                  |
| *(10)(e)            | Form      of Indemnification Agreement dated January 4, 1988 between the registrant      and each of its directors (incorporated by reference to Exhibit (10) (e)      to Annual Report for the fiscal year ended September 30,      1994). |
| *(10)(f)            | Directors’      Retirement Plan (incorporated by reference to Exhibit (10) (b) to Annual      Report for the fiscal year ended September 30, 1990).                                                                                   |
| *(10)(g)            | Board      resolution terminating Directors’ Retirement Plan (incorporated by      reference to Exhibit (10) (e) to Annual Report for the fiscal year ended      September 30, 1997).                                                 |
| *(10)(h)            | Tech/Ops      Sevcon, Inc. 1998 Director Stock Option Plan (incorporated by reference to      Exhibit 10 to Quarterly Report on Form 10-Q for the quarter ended March      31, 1998).                                                       |
|        (10)(i) | Summary      of Director and Executive Officer Non-Plan Compensation (filed      herewith).                                                                                                                                            |
|   (21)    | Subsidiaries      of the registrant (filed herewith).                                                                                                                                                                                       |
|   (23)    | Consent      of Caturano and Company, P.C. (filed herewith).                                                                                                                                                                                |
|   (31.1)  | Certification      of Principal Executive Officer pursuant to section 302 of the      Sarbanes-Oxley Act of 2002 (filed herewith).                                                                                                          |
|   (31.2)  | Certification      of Principal Financial Officer pursuant to section 302 of the      Sarbanes-Oxley Act of 2002. (filed herewith).                                                                                                         |
|   (32.1)  | Certification      of Principal Executive Officer and Principal Financial Officer pursuant to      section 906 of the Sarbanes-Oxley Act of 2002 (filed      herewith).                                                                     |
|                |                                                                                                                                                                                                                                        |
|                |                                                                                                                                                                                                                                        |

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INDEX

SIGNATURES

|   | TECH/OPS      SEVCON, INC.                 |                   |
|--------|--------------------------------------------|------------------------|
|   |                                       |                   |
|   | By /s/ Matthew      Boyle                  | December      17, 2009 |
|   | Matthew      Boyle                         |                   |
|   | President      and Chief Executive Officer |                   |

| SIGNATURE                     | TITLE                                                      | DATE                   |
|-------------------------------|------------------------------------------------------------|------------------------|
| /s/      Matthew Boyle        | President,      Chief Executive                            | December      17, 2009 |
| Matthew Boyle                 | Officer      and Director                                  |                   |
|                          | (Principal      Executive Officer)                         |                   |
|                          |                                                       |                   |
| /s/      Paul N. Farquhar     | Vice      President, Chief Financial Officer and Treasurer | December      17, 2009 |
| Paul N. Farquhar              | (Principal      Accounting Officer)                        |                   |
|                          |                                                       |                   |
| /s/      Maarten D. Hemsley   | Director                                                   | December      17, 2009 |
| Maarten D.Hemsley             |                                                       |                   |
|                          |                                                       |                   |
| /s/      Paul B. Rosenberg    | Director                                                   | December      17, 2009 |
| Paul B. Rosenberg             |                                                       |                   |
|                          |                                                       |                   |
| /s/      Marvin G. Schorr     | Director                                                   | December      17, 2009 |
| Marvin G. Schorr              |                                                       |                   |
|                          |                                                       |                   |
| /s/      Bernard F. Start     | Director                                                   | December      17, 2009 |
| Bernard F. Start              |                                                       |                   |
|                          |                                                       |                   |
| /s/      David R. A. Steadman | Director                                                   | December      17, 2009 |
| David R. A.    Steadman       |                                                       |                   |
|                          |                                                       |                   |
| /s/      Paul O. Stump        | Director                                                   | December      17, 2009 |
| Paul O. Stump                 |                                                       |                   |
|                          |                                                       |                   |

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INDEX

SCHEDULE II

Reserves 

| Allowance      for doubtful accounts         |   | 2009   |   |   | 2008   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance      at beginning of year            |   |   | 86     |   |   |   | 180 |   |
| Additions      charged to costs and expenses |   |   | 12     |   |   |   | - |   |
| Deductions      from reserves:               |   |   |   |   |   |   |   |   |
| Accounts    collected                        |   |   | -      |   |   |   | (1 | ) |
| Reduction in      reserve                    |   |   | 6      |   |   |   | (97 | ) |
| Write off of uncollectible      accounts     |   |   | -      |   |   |   | 4 |   |
| Balance      at end of year                  |   |   | 92     |   |   |   | 86 |   |

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