----

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

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE

| 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) |                        |

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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                                                                                                        | 6        |
| 3.          LEGAL PROCEEDINGS                                                                                                 | 6        |
| 4.          SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                               | 6        |
| 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, 2010 and 2009                                                                                                                      | 14       |
| Consolidated Statements of Operations for the Years ended September 30, 2010 and 2009                                                                                           | 15       |
| Consolidated Statements of Comprehensive Loss for the Years ended September 30, 2010 and 2009                                                                                   | 15       |
| Consolidated Statements of Stockholders’ Equity for the Years ended September 30, 2010 and 2009                                                                           | 16       |
| Consolidated Statements of Cash Flows for the Years ended September 30, 2010 and 2009                                                                                           | 17       |
| Notes to Consolidated Financial Statements                                                                                                                                      | 18       |
| Reports of Independent Registered Public Accounting Firms                                                                                                                       | 31       |
| 9.          CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIALDISCLOSURE                               | 32       |
| 9A          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

BUSINESS

General

Marketing

Patents

Backlog

Raw

----

INDEX

Competition

Research

Environmental

Executive

Employees

RISK

----

INDEX

----

INDEX

PROPERTIES

LEGAL

SUBMISSION

PART

MARKET

|                                                                                                                                |   | Quarter 1 |   |   | Quarter 2 |   |   | Quarter 3 |   |   | Quarter 4 |   |   | Year   |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|
| 2010 Quarters                                                                                                                       |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |
| Common stock price per share-High                                                                                                   |   | $         | 3.67   |   |      | $      | 5.20   |      |   | $      | 5.30      |   |   | $      | 5.53   |   |   | $ | 5.53 |   |
|                  -Low                               |   | $         | 2.11   |   |      | $      | 2.20   |      |   | $      | 4.39      |   |   | $      | 4.25   |   |   | $ | 2.11 |   |
| 2009 Quarters                                                                                                                       |   |      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |
| Common stock price per share        -     High                     |   | $         | 5.08   |   |      | $      | 3.99   |      |   | $      | 2.73      |   |   | $      | 3.81   |   |   | $ | 5.08 |   |
|                  -     Low |   |      | 1.93   |   |      |   | 1.33   |      |   |   | 1.11      |   |   |   | 2.03   |   |   |   | 1.11 |   |

MANAGEMENT'S

----

INDEX

----

INDEX

| Plan Assumption                                       | Change in Assumption | Favorable (unfavorable) Impact on Funded Status(in thousands of dollars)                                                                                                                                     | Change in funded status |
|-------------------------------------------------------|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| Assumptions impacting accumulated benefit obligation: |                 |                                                                                                                                                                                                         |                    |
| Discount rate                                         | (0.1)%               |            $ (544)                                                                                                                                    | 7%                      |
| Inflation rate                                        | 0.1%                 |                       (331)                                                                         | 4%                      |
| Salary Increase                                       | 0.5%                 |                                   (511) | 6%                      |
| Mortality rate                                        | 1 year               |                       (527)                                                                         | 6%                      |

----

INDEX

|                                                                                             |   | (in thousands of dollars) |   |   | Favorable (unfavorable) % change due to: |   |
|--------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------------------------------------|--------|
|                                                                                             |   | 2010                      |   |   | 2009                                     |   |   | Total |   |   | Currency |   |   | Volume |   |
| Sales                                                                                            |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Controls - to external customers                                                                 |   | $                         | 24,434 |   |                                     | $      | 18,783 |   |   |   | 30 |   |   |   | 1 |   |   |   | 29 |   |
| Capacitors- to external customers                                                                |   |                      | 1,619  |   |                                     |   | 1,556 |   |   |   | 4 |   |   |   | 2 |   |   |   | 2 |   |
| Capacitors - inter-segment                                                                       |   |                      | 30     |   |                                     |   | 37 |   |   |   | (19 | ) |   |   | 2 |   |   |   | (21 | ) |
| Capacitors – total                                                                         |   |                      | 1,649  |   |                                     |   | 1,593 |   |   |   | 3 |   |   |   | 2 |   |   |   | 1 |   |
| Total sales to external customers                                                                |   |                      | 26,053 |   |                                     |   | 20,339 |   |   |   | 28 |   |   |   | 1 |   |   |   | 27 |   |
| Gross Profit                                                                                     |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                                                         |   |                      | 8,347  |   |                                     |   | 6,321 |   |   |   | 32 |   |   |   | 2 |   |   |   | 30 |   |
| Capacitors                                                                                       |   |                      | 773    |   |                                     |   | 701 |   |   |   | 10 |   |   |   | 3 |   |   |   | 7 |   |
| Total                                                                                            |   |                      | 9,120  |   |                                     |   | 7,022 |   |   |   | 30 |   |   |   | 2 |   |   |   | 28 |   |
| Selling, research and administrative expenses, restructuring charge and pension curtailment gain |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                                                         |   |                      | 8,215  |   |                                     |   | 7,531 |   |   |   | (9 | ) |   |   | (1 | ) |   |   | (8 | ) |
| Capacitors                                                                                       |   |                      | 697    |   |                                     |   | 637 |   |   |   | (3 | ) |   |   | (2 | ) |   |   | (1 | ) |
| Restructuring charge                                                                             |   |                      | -      |   |                                     |   | 356 |   |   |   | 100 |   |   |   | - |   |   |   | 100 |   |
| Pension curtailment gain                                                                         |   |                      | (507   | )      |                                     |   | - |   |   |   | 100 |   |   |   | - |   |   |   | 100 |   |
| Unallocated corporate expense                                                                    |   |                      | 386    |   |                                     |   | 364 |   |   |   | (6 | ) |   |   | - |   |   |   | (6 | ) |
| Total                                                                                            |   |                      | 8,791  |   |                                     |   | 8,888 |   |   |   | 1 |   |   |   | (1 | ) |   |   | 2 |   |
| Operating income (loss)                                                                          |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                                                         |   |                      | 639    |   |                                     |   | (1,528 | ) |   |   | 142 |   |   |   | - |   |   |   | 142 |   |
| Capacitors                                                                                       |   |                      | 76     |   |                                     |   | 26 |   |   |   | 192 |   |   |   | 16 |   |   |   | 176 |   |
| Unallocated corporate expense                                                                    |   |                      | (386   | )      |                                     |   | (364 | ) |   |   | (6 | ) |   |   | - |   |   |   | (6 | ) |
| Total                                                                                            |   |                      | 329    |   |                                     |   | (1,866 | ) |   |   | 118 |   |   |   | - |   |   |   | 118 |   |
| Other income and expense                                                                         |   |                      | 177    |   |                                     |   | (201 | ) |   |   | 188 |   |   |   | 167 |   |   |   | 21 |   |
| Income (loss) before income taxes                                                                |   |                      | 506    |   |                                     |   | (2,067 | ) |   |   | 125 |   |   |   | 17 |   |   |   | 108 |   |
| Benefit for income taxes                                                                         |   |                      | 360    |   |                                     |   | 592 |   |   |   | (39 | ) |   |   | 41 |   |   |   | (80 | ) |
| Net income (loss)                                                                                |   | $                         | 866    |   |                                     | $      | (1,475 | ) |   |   | 159 |   |   |   | 40 |   |   |   | 119 |   |

----

INDEX

|                                                    |   | (in thousands of dollars except percentages) |   |
|---------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                    |   | Sales                                        |   |   | Cost of sales |   |   | Gross Profit |   |   | Gross Profit % |   |
| Actual 2009                                             |   | $                                            | 20,339 |   |   | $ | 13,317 |   |   | $ | 7,022 |   |   |   | 34.5 | % |
| Change in 2010 due to:                                  |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency fluctuations                           |   |                                         | 197    |   |   |   | (76 | ) |   |   | 273 |   |   |   | 1.0 | % |
| Increased volume, assuming 2009 gross profit percentage |   |                                         | 5,517  |   |   |   | 3,614 |   |   |   | 1,903 |   |   |   | - |   |
| Other cost of sales changes, net                        |   |                                         | -      |   |   |   | 78 |   |   |   | (78 | ) |   |   | (0.5 | %) |
| Actual 2010                                             |   | $                                            | 26,053 |   |   | $ | 16,933 |   |   | $ | 9,120 |   |   |   | 35.0 | % |

----

INDEX

| Selling, research and administrative expenses, before restructuring charges and pension curtailment gain                                   |   | (in thousands of dollars) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
| Reported expense in 2010                                                                                                                   |   | $                         | 9,298  |   |
| Reported expense in 2009                                                                                                                   |   |                      | 8,532  |   |
| Increase in expense                                                                                                                        |   |                      | 766    |   |
| Increase due to:                                                                                                                           |   |                      |   |   |
| Effect of exchange rate changes                                                                                                            |   |                      | 117    |   |
| Higher research and sales and marketing expense, net of currency effect                                                                    |   |                      | 263    |   |
| Higher administrative expense, net of currency effect                                                                                      |   |                      | 386    |   |
| Total increase in selling, research and administrative expenses, before restructuring charges in 2009 and pension curtailment gain in 2010 |   | $                         | 766    |   |

----

INDEX

QUANTITATIVE

----

INDEX

| (in thousands of dollars, except average contract rates) |   |
|----------------------------------------------------------|--------|
|                                                     |   |                                       Expected maturity or transaction date |   |
|                                                     |   | FY2011 |   |   | Fair Value |   |
| On balance sheet financial instruments:                  |   |   |   |   |   |   |
| In $ U.S. Functional Currency                            |   |   |   |   |   |   |
| Accounts receivable in British Pounds                    |   |   | 1,033 |   |   |   | 1,033 |   |
| Accounts receivable in Euros                             |   |   | 1,754 |   |   |   | 1,754 |   |
| Accounts payable in British Pounds                       |   |   | 1,186 |   |   |   | 1,186 |   |
| Accounts payable in Euros                                |   |   | 1,394 |   |   |   | 1,394 |   |
| Anticipated Transactions                                 |   |   |   |   |   |   |   |   |
| In $ U.S. Functional Currency                            |   |   |   |   |   |   |   |   |
| Firmly committed sales contracts                         |   |   |   |   |   |   |   |   |
| In British Pounds                                        |   |   | 877 |   |   |   | 877 |   |
| In Euros                                                 |   |   | 623 |   |   |   | 623 |   |

----

INDEX

FINANCIAL

CONSOLIDATED

| ASSETS                                                                                              |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Current assets:                                                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                                                           |   | $      | 803    |   |   | $      | 632 |   |
| Receivables, net of allowances for doubtful accounts of $53 in 2010 and $92 in 2009                 |   |   | 5,277  |   |   |   | 3,383 |   |
| Inventories                                                                                         |   |   | 5,048  |   |   |   | 4,723 |   |
| Prepaid expenses and other current assets                                                           |   |   | 1,410  |   |   |   | 1,398 |   |
| Total current assets                                                                                |   |   | 12,538 |   |   |   | 10,136 |   |
| Property, plant and equipment, at cost:                                                             |   |   |   |   |   |   |   |   |
| Land and improvements                                                                               |   |   | 22     |   |   |   | 22 |   |
| Buildings and improvements                                                                          |   |   | 1,878  |   |   |   | 1,955 |   |
| Equipment                                                                                           |   |   | 9,426  |   |   |   | 8,768 |   |
|                                                                                                |   |   | 11,326 |   |   |   | 10,745 |   |
| Less: accumulated depreciation and amortization                                                     |   |   | 8,232  |   |   |   | 7,874 |   |
| Net property, plant and equipment                                                                   |   |   | 3,094  |   |   |   | 2,871 |   |
| Long-term deferred tax assets                                                                       |   |   | 2,806  |   |   |   | 2,357 |   |
| Goodwill                                                                                            |   |   | 1,435  |   |   |   | 1,435 |   |
| Other long-term assets                                                                              |   |   | 11     |   |   |   | 11 |   |
| Total assets                                                                                        |   | $      | 19,884 |   |   | $      | 16,810 |   |
|  LIABILITIES AND STOCKHOLDERS’ EQUITY                                                    |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                |   |   |   |   |   |   |   |   |
|     Current debt                                                                |   | $      | 84     |   |   | $      | - |   |
| Accounts payable                                                                                    |   |   | 3,717  |   |   |   | 1,730 |   |
| Accrued expenses                                                                                    |   |   | 1,591  |   |   |   | 1,611 |   |
| Accrued taxes on income                                                                             |   |   | 40     |   |   |   | - |   |
| Total current liabilities                                                                           |   |   | 5,432  |   |   |   | 3,341 |   |
| Liability for pension benefits                                                                      |   |   | 8,203  |   |   |   | 7,166 |   |
| Other long term liabilities                                                                         |   |   | 153    |   |   |   | 48 |   |
| Total liabilities                                                                                   |   |   | 13,788 |   |   |   | 10,555 |   |
| 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                 |   |   |   |   |   |   |   |   |
| 3,340,322 shares in 2010 and 3,326,322 shares in 2009                                          |   |   | 334    |   |   |   | 333 |   |
| Premium paid in on common stock                                                                     |   |   | 5,132  |   |   |   | 5,033 |   |
| Retained earnings                                                                                   |   |   | 7,755  |   |   |   | 6,889 |   |
| Accumulated other comprehensive loss                                                                |   |   | (7,125 | )      |   |   | (6,000 | ) |
| Total stockholders’ equity                                                                    |   |   | 6,096  |   |   |   | 6,255 |   |
| Total liabilities and stockholders’ equity                                                    |   | $      | 19,884 |   |   | $      | 16,810 |   |

----

INDEX

CONSOLIDATED

|                                          |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net sales                                     |   | $      | 26,053 |   |   | $      | 20,339 |   |
| Cost of sales                                 |   |   | 16,933 |   |   |   | 13,317 |   |
| Gross profit                                  |   |   | 9,120  |   |   |   | 7,022 |   |
| Selling, research and administrative expenses |   |   | 9,298  |   |   |   | 8,532 |   |
| Restructuring charge                          |   |   | -      |   |   |   | 356 |   |
| Pension curtailment gain                      |   |   | 507    |   |   |   | - |   |
| Operating income (loss)                       |   |   | 329    |   |   |   | (1,866 | ) |
| Interest expense                              |   |   | (49    | )      |   |   | (81 | ) |
| Interest income                               |   |   | 68     |   |   |   | 54 |   |
| Foreign currency gain (loss)                  |   |   | 158    |   |   |   | (174 | ) |
| Income (loss) before income taxes             |   |   | 506    |   |   |   | (2,067 | ) |
| Benefit for income taxes                      |   |   | 360    |   |   |   | 592 |   |
| Net income (loss)                             |   | $      | 866    |   |   | $      | (1,475 | ) |
| Basic income (loss) per share                 |   | $      | .26    |   |   | $      | (.46 | ) |
| Diluted income (loss) per share               |   | $      | .26    |   |   | $      | (.46 | ) |

CONSOLIDATED

|                                     |   | 2010   |   |   | 2009   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net income (loss)                        |   | $      | 866    |   |   | $      | (1,475 | ) |
| Foreign currency translation adjustment  |   |   | (191   | )      |   |   | (769 | ) |
| Pension liability adjustment, net of tax |   |   | (934   | )      |   |   | (4,704 | ) |
| Comprehensive loss                       |   | $      | (259   | )      |   | $      | (6,948 | ) |

----

INDEX

CONSOLIDATED

|                                                      |   |                       |      |   | (in thousands of dollars) |   |
|-----------------------------------------------------------|--------|----------------------------|-----------|--------|---------------------------|--------|
|                                                      |   | Common StockS.10 par value |      |   |                      |   |   |   |   |   |   |   |
|                                                      |   | Number of Shares      |      |   | CommonStock               |   |   | Premium paid in on common stock |   |   | Retained Earnings |   |   | Accumulated other comprehensive loss |   |   | Total stockholders’ equity |   |
| Balance September 30, 2008                                |   |                       | 3,276,322 |   |                      | $      | 328 |   |   | $ | 4,881 |   |   | $ | 8,364 |   |   | $ | (527 | ) |   | $ | 13,046 |   |
| Net loss                                                  |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   | (1,475 | ) |   |   |   |   |   |   | (1,475 | ) |
| Currency translation adjustment                           |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   | (769 | ) |   |   | (769 | ) |
| Issuance of restricted stock                              |   |                       | 500,000   |   |                      |   | 5 |   |   |   | (5 | ) |   |   |   |   |   |   |   |   |   |   | - |   |
| Stock-based  compensation                       |   |                       |      |   |                      |   |   |   |   |   | 157 |   |   |   |   |   |   |   |   |   |   |   | 157 |   |
| Pension liability adjustment, net of taxbenefit of $1,877 |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   | (4,704 | ) |   |   | (4,704 | ) |
| Balance September 30, 2009                                |   |                       | 3.326,322 |   |                      | $      | 333 |   |   | $ | 5,033 |   |   | $ | 6,889 |   |   | $ | (6,000 | ) |   | $ | 6,255 |   |
| Net income                                                |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   | 866 |   |   |   |   |   |   |   | 866 |   |
| Currency translation adjustment                           |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   | (191 | ) |   |   | (191 | ) |
| Issuance of restricted stock                              |   |                       | 14,000    |   |                      |   | 1 |   |   |   | (1 | ) |   |   |   |   |   |   |   |   |   |   | - |   |
| Stock-based compensation                                  |   |                       |      |   |                      |   |   |   |   |   | 113 |   |   |   |   |   |   |   |   |   |   |   | 113 |   |
| Tax charge related to stock-based compensation            |   |                       |      |   |                      |   |   |   |   |   | (13 | ) |   |   |   |   |   |   |   |   |   |   | (13 | ) |
| Pension liability adjustment, net of taxbenefit of $410   |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   | (934 | ) |   |   | (934 | ) |
| Balance September 30, 2010                                |   |                       | 3,340,322 |   |                      | $      | 334 |   |   | $ | 5,132 |   |   | $ | 7,755 |   |   | $ | (7,125 | ) |   | $ | 6,096 |   |

----

INDEX

CONSOLIDATED

|                                                                                                  |   | 2010   |   |   | 2009   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash flow from operating activities:                                                                  |   |   |   |   |   |   |
| Net income (loss)                                                                                     |   | $      | 866    |   |   | $      | (1,475 | ) |
| Adjustments to reconcile net income (loss) to net cash generated from (used by) operating activities: |   |   |   |   |   |   |   |   |
| Depreciation                                                                                          |   |   | 578    |   |   |   | 575 |   |
| Loss on sale of fixed assets                                                                          |   |   | 3      |   |   |   | 3 |   |
| Stock-based compensation                                                                              |   |   | 113    |   |   |   | 157 |   |
| Pension contributions less than (in excess of) pension expenses                                       |   |   | 283    |   |   |   | (66 | ) |
| Pension curtailment gain                                                                              |   |   | (507   | )      |   |   | - |   |
| Deferred tax benefit                                                                                  |   |   | (66    | )      |   |   | (162 | ) |
| Increase (decrease) in cash resulting from changes in operating assets and liabilities:               |   |   |   |   |   |   |   |   |
| Receivables                                                                                           |   |   | (1,950 | )      |   |   | 3,230 |   |
| Inventories                                                                                           |   |   | (383   | )      |   |   | (86 | ) |
| Prepaid expenses and other current assets                                                             |   |   | (693   | )      |   |   | 5 |   |
| Accounts payable                                                                                      |   |   | 1,998  |   |   |   | (1,567 | ) |
| Accrued expenses                                                                                      |   |   | (73    | )      |   |   | (561 | ) |
| Accrued taxes on income                                                                               |   |   | 769    |   |   |   | (589 | ) |
| Net cash generated from (used by) operating activities                                                |   |   | 938    |   |   |   | (536 | ) |
| Cash flow used by investing activities:                                                               |   |   |   |   |   |   |   |   |
| Acquisition of property, plant and equipment                                                          |   |   | (848   | )      |   |   | (243 | ) |
| Net cash used by investing activities                                                                 |   |   | (848   | )      |   |   | (243 | ) |
| Cash flow generated from (used by) financing activities:                                              |   |   |   |   |   |   |   |   |
| Dividends paid                                                                                        |   |   | -      |   |   |   | (98 | ) |
| Proceeds of long term debt                                                                            |   |   | 190    |   |   |   | - |   |
| Net cash generated from (used by) financing activities                                                |   |   | 190    |   |   |   | (98 | ) |
| Effect of exchange rate changes on cash                                                               |   |   | (109   | )      |   |   | (121 | ) |
| Net increase (decrease) in cash                                                                       |   |   | 171    |   |   |   | (998 | ) |
| Beginning balance - cash and cash equivalents                                                         |   |   | 632    |   |   |   | 1,630 |   |
| Ending balance - cash and cash equivalents                                                            |   | $      | 803    |   |   | $      | 632 |   |
| Supplemental disclosure of cash flow information:                                                     |   |   |   |   |   |   |   |   |
| Cash paid for income taxes                                                                            |   | $      | -      |   |   | $      | 307 |   |
| Cash paid for interest                                                                                |   | $      | 49     |   |   | $      | 81 |   |

----

INDEX

NOTES

|                                                                           |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Warranty reserves at beginning of year                                         |   | $      | 217    |   |   | $      | 362 |   |
| Decrease in beginning balance for warranty obligations settled during the year |   |   | (194   | )      |   |   | (318 | ) |
| Other changes to pre-existing warranties                                       |   |   | 16     |   |   |   | 98 |   |
| Foreign currency translation adjustment                                        |   |   | (4     | )      |   |   | (29 | ) |
| Net increase in warranty reserves for products sold during the year            |   |   | 61     |   |   |   | 104 |   |
| Warranty reserves at end of year                                               |   | $      | 96     |   |   | $      | 217 |   |

----

INDEX

|            |   | 2010   |   |   | 2009   |   |
|-----------------|--------|--------|--------|--------|--------|--------|
| Raw materials   |   | $      | 536    |   |   | $      | 676 |   |
| Work-in-process |   |   | 68     |   |   |   | 141 |   |
| Finished goods  |   |   | 4,444  |   |   |   | 3,906 |   |
|            |   | $      | 5,048  |   |   | $      | 4,723 |   |

----

INDEX

|                                                    |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net income (loss)                                       |   | $      | 866    |   |   | $      | (1,475 | ) |
| Weighted average shares outstanding                     |   |   | 3,273  |   |   |   | 3,241 |   |
| Basic income (loss) per share                           |   | $      | .26    |   |   | $      | (.46 | ) |
| Common stock equivalents                                |   |   | 22     |   |   |   | - |   |
| Average common and common equivalent shares outstanding |   |   | 3,295  |   |   |   | 3,241 |   |
| Diluted income (loss) per share                         |   | $      | .26    |   |   | $      | (.46 | ) |

----

INDEX

----

INDEX

|                                         |   |  Shares under option |    |   |  Weighted averageexercise price |   |   | Weighted average remaining contractual life (years) |   |         |  Aggregate Intrinsic value |   |
|----------------------------------------------|--------|---------------------------|---------|--------|--------------------------------------|--------|--------|-----------------------------------------------------|--------|--------------|---------------------------------|--------|
| Outstanding at September 30, 2008            |   |                      | 63,500  |   |                                 | $      | 7.03   |                                                |   | 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      |                            |   | $ | - |   |
| Exercised in 2010                            |   |                      | -       |   |                                 | $      | -      |                                                |   |         | -                               |   |   |   | - |   |
| Cancelled in 2010                            |   |                      | (17,500 | )      |                                 | $      | 10.75  |                                                |   |         | -                               |   |   |   | - |   |
| Outstanding at September  30, 2010 |   |                      | 46,000  |   |                                 | $      | 5.62   |                                                |   | 2 years |                            |   | $ | 25,400 |   |
| Exercisable at September  30, 2010 |   |                      | 36,500  |   |                                 | $      | 5.62   |                                                |   | 2 years |                            |   | $ | 20,500 |   |

|  Price range                           |  Shares under option |  Weighted average remaining contractual life |
|---------------------------------------------|---------------------------|---------------------------------------------------|
| $   4.37 - $  6.56 | 36,000                    |  2.6 years                                   |
| $   6.57 - $  9.85 | 10,000                    |  1.1 years                                   |
|                                        | 46,000                    |  2.1 years                                   |

----

INDEX

|                                                           |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning Balance – Non-vested                           |   |   | 79     |   |   |   | 54 |   |
| Granted to employees – 5 year vesting                    |   |   | -      |   |   |   | 40 |   |
| Granted to non-employee directors – 1 year vesting       |   |   | 14     |   |   |   | 12 |   |
| Vested                                                         |   |   | (33    | )      |   |   | (25 | ) |
| Forfeited                                                      |   |   | -      |   |   |   | (2 | ) |
| Ending Balance – Non-vested                              |   |   | 60     |   |   |   | 79 |   |
| Weighted-average fair value for shares granted during the year |   | $      | 2.60   |   |   | $      | 2.13 |   |
| Weighted-average fair value for shares vested during the year  |   | $      | 3.94   |   |   | $      | 6.50 |   |
| Weighted-average fair value for ending balance - non-vested    |   | $      | 3.20   |   |   | $      | 3.62 |   |

|     |   | 2010   |   |   | 2009   |   |
|----------|--------|--------|--------|--------|--------|--------|
| Domestic |   | $      | 461    |   |   | $      | (752 | ) |
| Foreign  |   |   | 45     |   |   |   | (1,315 | ) |
|     |   | $      | 506    |   |   | $      | (2,067 | ) |

|    |   | 2010    |   |
|---------|--------|---------|--------|
|    |   | Current |   |   | Deferred |   |
| Federal |   | $       | -      |   |   | $ | 39 |   |
| State   |   |    | 10     |   |   |   | 8 |   |
| Foreign |   |    | 37     |   |   |   | (454 | ) |
|    |   | $       | 47     |   |   | $ | (407 | ) |

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

----

INDEX

|                                                            |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Statutory Federal income tax rate                               |   |   | (34%)  |   |   |   | (34%) |   |
| Computed tax provision (benefit) at statutory rate              |   | $      | 173    |   |   | $      | (703 | ) |
| Increases (decreases) resulting from:                           |   |   |   |   |   |   |   |   |
| Foreign tax rate differentials                                  |   |   | (7     | )      |   |   | 60 |   |
| State taxes net of federal tax benefit                          |   |   | 4      |   |   |   | - |   |
| Change in deferred tax valuation allowance                      |   |   | (118   | )      |   |   | 331 |   |
| Foreign dividends, net of foreign tax credit                    |   |   | -      |   |   |   | - |   |
| Foreign research incentives                                     |   |   | (412   | )      |   |   | (315 | ) |
| Other                                                           |   |   | -      |   |   |   | 35 |   |
| Income tax benefit in the consolidated statements of operations |   | $      | (360   | )      |   | $      | (592 | ) |

|                              |   |             |   |   | 2010               |   |   |            |   |
|-----------------------------------|--------|------------------|--------|--------|--------------------|--------|--------|-----------------|--------|
|                              |   | Domestic current |   |   | Domestic long-term |   |   | Foreign current |   |   | Foreign long-term |   |
| Assets:                           |   |             |   |   |               |   |   |            |   |   |   |   |
| Pension accruals                  |   | $                | -      |   |               | $      | 221    |            |   | $ | - |   |   | $ | 2,195 |   |
| Inventory basis differences       |   |             | 38     |   |               |   | -      |            |   |   | - |   |   |   | - |   |
| Warranty reserves                 |   |             | 18     |   |               |   | -      |            |   |   | - |   |   |   | - |   |
| Foreign tax credit carry forwards |   |             | -      |   |               |   | 142    |            |   |   | - |   |   |   | - |   |
| Accrued compensation expense      |   |             | 29     |   |               |   | -      |            |   |   | - |   |   |   | 44 |   |
| Net operating losses              |   |             | 144    |   |               |   | 306    |            |   |   | 754 |   |   |   | - |   |
| Other (net)                       |   |             | 3      |   |               |   | 205    |            |   |   | - |   |   |   | - |   |
|                              |   |             | 232    |   |               |   | 874    |            |   |   | 754 |   |   |   | 2,239 |   |
| Liabilities:                      |   |             |   |   |               |   |   |            |   |   |   |   |   |   |   |   |
| Property basis differences        |   |             | -      |   |               |   | 43     |            |   |   | - |   |   |   | (67 | ) |
| Net asset                         |   |             | 232    |   |               |   | 917    |            |   |   | 754 |   |   |   | 2,172 |   |
| Valuation allowance               |   |             | (51    | )      |               |   | (283   | )               |   |   | - |   |   |   | - |   |
| Net deferred tax asset            |   | $                | 181    |   |               | $      | 634    |            |   | $ | 754 |   |   | $ | 2,172 |   |

----

INDEX

|                              |   |             |   |   | 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 |   |

|                                   |   | 2010   |   |   | 2009   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Accrued compensation and related costs |   | $      | 884    |   |   | $      | 666 |   |
| Warranty reserves                      |   |   | 96     |   |   |   | 217 |   |
| Other accrued expenses                 |   |   | 611    |   |   |   | 728 |   |
|                                   |   | $      | 1,591  |   |   | $      | 1,611 |   |

----

INDEX

|                                                         |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Change in benefit obligation:                                |   |   |   |   |   |   |
| Benefit obligation at beginning of year                      |   | $      | 21,541 |   |   | $      | 18,540 |   |
| Service cost                                                 |   |   | 321    |   |   |   | 280 |   |
| Interest cost                                                |   |   | 1,189  |   |   |   | 1,127 |   |
| Plan participants contributions                              |   |   | 152    |   |   |   | 159 |   |
| Actuarial loss (gain)                                        |   |   | 1,639  |   |   |   | 3,344 |   |
| Gains on curtailments                                        |   |   | (507   | )      |   |   | - |   |
| Benefits paid                                                |   |   | (435   | )      |   |   | (391 | ) |
| Foreign currency exchange rate changes                       |   |   | (263   | )      |   |   | (1,518 | ) |
| Benefit obligation at end of year                            |   |   | 23,637 |   |   |   | 21,541 |   |
| Change in plan assets:                                       |   |   |   |   |   |   |   |   |
| Fair value of plan assets at beginning of year               |   |   | 14,375 |   |   |   | 18,162 |   |
| Return on plan assets                                        |   |   | 931    |   |   |   | (2,199 | ) |
| Employer contributions                                       |   |   | 592    |   |   |   | 436 |   |
| Plan participants contributions                              |   |   | 152    |   |   |   | 159 |   |
| Benefits paid                                                |   |   | (435   | )      |   |   | (391 | ) |
| Foreign currency exchange rate changes                       |   |   | (181   | )      |   |   | (1,792 | ) |
| Fair value of plan assets at end of year                     |   |   | 15,434 |   |   |   | 14,375 |   |
| Funded status                                                |   |   | (8,203 | )      |   |   | (7,166 | ) |
| Liability for pension benefits recorded in the balance sheet |   | $      | (8,203 | )      |   | $      | (7,166 | ) |

----

INDEX

|                    |   | 2010 |   |   | 2009   |   |
|-------------------------|--------|------|--------|--------|--------|--------|
| Non current liabilities |   | $    | 8,203  |   |   | $      | 7,166 |   |

|                                  |   | 2010   |   |   | 2009   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
| Actuarial loss net of tax benefit     |   | $      | 968    |   |   | $      | 4,737 |   |
| Prior service cost net of tax benefit |   |   | (34    | )      |   |   | (33 | ) |
|                                  |   | $      | 934    |   |   | $      | 4,704 |   |

|                                     |   | 2010   |   |   | 2009   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
| Components of net periodic benefit cost: |   |   |   |   |   |   |
| Service cost                             |   | $      | 321    |   |   | $      | 280 |   |
| Interest cost                            |   |   | 1,189  |   |   |   | 1,127 |   |
| Expected return on plan assets           |   |   | (914   | )      |   |   | (1,084 | ) |
| Gains on curtailments                    |   |   | (507   | )      |   |   | - |   |
| Amortization of prior service cost       |   |   | 48     |   |   |   | 47 |   |
| Amortization of net loss                 |   |   | 231    |   |   |   | - |   |
| Net periodic benefit cost                |   | $      | 368    |   |   | $      | 370 |   |
| Net cost of defined contribution plans   |   | $      | 42     |   |   | $      | 30 |   |

|                                     | 2010        | 2009        |
|------------------------------------------|-------------|-------------|
| Plan obligations:                        |        |        |
| Discount rate                            |  5.25% |  5.65% |
| Rate of compensation increase            |  3.32% |  3.21% |
| Net periodic benefit cost:               |        |        |
| Discount rate                            |  5.25% |  5.65% |
| Expected long term return on plan assets |  7.14% |  6.41% |
| Rate of compensation increase            |  3.32% |  3.21% |

----

INDEX

|                                                          |   |   Level 1*(Quoted prices in active markets) |   |   | Level 2**(Significant observable inputs) |   |   | Level 3***(Unobservable inputs) |   |
|---------------------------------------------------------------|--------|--------------------------------------------------|--------|--------|------------------------------------------|--------|--------|---------------------------------|--------|
| Mutual Funds                                                  |   |                                             |   |   |                                     | -      |   |                            |   | - |   |
| Standard Life Pension Global Absolute Returns Strategies Fund |   |                                             | 5,146  |   |                                     |   | -      |                            |   |   | - |   |
| Standard Life UK Indexed Linked Fund                          |   |                                             | 1,296  |   |                                     |   | -      |                            |   |   | - |   |
| Standard Life Long Corporate Bond Fund                        |   |                                             | 1,292  |   |                                     |   | -      |                            |   |   | - |   |
| CF Ruffer Absolute Return Fund                                |   |                                             | 5,064  |   |                                     |   | -      |                            |   |   | - |   |
| BNY Mellon Large Cap Stock Fund                               |   |                                             | 483    |   |                                     |   | -      |                            |   |   | - |   |
| BNY Mellon Focused Equity Opp M. Fund                         |   |                                             | 122    |   |                                     |   | -      |                            |   |   | - |   |
| BNY Mellon U.S. Core Equity 130/30 Fund                       |   |                                             | 81     |   |                                     |   | -      |                            |   |   | - |   |
| Dreyfus U.S. Equity Fund                                      |   |                                             | 173    |   |                                     |   | -      |                            |   |   | - |   |
| BNY Mellon Short Term U.S. Government Securities Fund         |   |                                             | 31     |   |                                     |   | -      |                            |   |   | - |   |
| BNY Mellon Intermediate Bond Fund                             |   |                                             | 592    |   |                                     |   | -      |                            |   |   | - |   |
| BNY Mellon Bond Fund Class M                                  |   |                                             | 496    |   |                                     |   | -      |                            |   |   | - |   |
| Other Types of Investments                                    |   |                                             |   |   |                                     |   | -      |                            |   |   | - |   |
| Cash                                                          |   |                                             | 658    |   |                                     |   | -      |                            |   |   | - |   |
| Total                                                         |   |                                             | 15,434 |   |                                     |   | -      |                            |   |   | - |   |

| * | Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments will primarily hold stocks or bonds, or a combination of stocks and bonds. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | The Company currently does not have any Level 2 pension plan financial assets. |
|----|--------------------------------------------------------------------------------|

| *** | The Company currently does not have any Level 3 pension plan financial assets. |
|-----|--------------------------------------------------------------------------------|

| 2011              |   | $      | 361   |   |
|-------------------|--------|--------|-------|--------|
| 2012              |   |   | 360   |   |
| 2013              |   |   | 453   |   |
| 2014              |   |   | 644   |   |
| 2015              |   |   | 716   |   |
| 2016 – 2020 |   |   | 3,945 |   |

----

INDEX

|                        |   |     |   |   |       |   |   |     2010 |   |   |   |   |
|-----------------------------|--------|----------|--------|--------|------------|--------|--------|-------------------------|--------|--------|--------|--------|
|                        |   | Controls |   |   | Capacitors |   |   | Corporate               |   |   | Total  |   |
| Sales to external customers |   | $        | 24,434 |   |       | $      | 1,619  |                    |   | $      | -      |   |   | $ | 26,053 |   |
| Inter-segment revenues      |   |     | -      |   |       |   | 30     |                    |   |   | -      |   |   |   | 30 |   |
| Operating income (loss)     |   |     | 639    |   |       |   | 76     |                    |   |   | (386   | )      |   |   | 329 |   |
| Depreciation                |   |     | 524    |   |       |   | 52     |                    |   |   | 2      |   |   |   | 578 |   |
| Identifiable assets         |   |     | 18,027 |   |       |   | 1,053  |                    |   |   | 804    |   |   |   | 19,884 |   |
| Capital expenditures        |   |     | 562    |   |       |   | 286    |                    |   |   | -      |   |   |   | 848 |   |
|                        |   |     |   |   |       |   |   |                    |   |   | 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           |   |     | 545    |   |       |   | 33     |                    |   |   | -      |   |   |   | 578 |   |
| Identifiable assets         |   |     | 15,478 |   |       |   | 752    |                    |   |   | 580    |   |   |   | 16,810 |   |
| Capital expenditures        |   |     | 237    |   |       |   | 6      |                    |   |   | -      |   |   |   | 243 |   |

|               |   | 2010   |   |   | 2009   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
| Sales:-            |   |   |   |   |   |   |
| U.S. sales         |   | $      | 13,585 |   |   | $      | 10,787 |   |
| Foreign sales:     |   |   |   |   |   |   |   |   |
| United Kingdom     |   |   | 8,385  |   |   |   | 5,685 |   |
| France             |   |   | 4,083  |   |   |   | 3,867 |   |
| Total Foreign      |   |   | 12,468 |   |   |   | 9,552 |   |
| Total sales        |   | $      | 26,053 |   |   | $      | 20,339 |   |
| Long-lived assets: |   |   |   |   |   |   |   |   |
| U.S.A.             |   | $      | 2,105  |   |   | $      | 2,061 |   |
| Foreign:           |   |   |   |   |   |   |   |   |
| United Kingdom     |   |   | 5,150  |   |   |   | 4,485 |   |
| France             |   |   | 44     |   |   |   | 110 |   |
| Korea and Japan    |   |   | 13     |   |   |   | 18 |   |
| Total Foreign      |   |   | 5,207  |   |   |   | 4,613 |   |
| Total              |   | $      | 7,312  |   |   | $      | 6,674 |   |

----

INDEX

|                                                               |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Electronic controls for zero emission and hybrid electric vehicles |   | $      | 13,818 |   |   | $      | 10,612 |   |
| Accessory and aftermarket products and services                    |   |   | 10,616 |   |   |   | 8,171 |   |
| Total controls segment revenues                                    |   | $      | 24,434 |   |   | $      | 18,783 |   |

| 2011 |   | $      | 37 |   |
|------|--------|--------|----|--------|
| 2012 |   |   | 39 |   |
| 2013 |   |   | 42 |   |
| 2014 |   |   | 45 |   |
| 2015 |   |   | 27 |   |

|                                   |   | (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 atOctober 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

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INDEX

CHANGES

CONTROLS

| ·   | 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 financial statements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

OTHER

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INDEX

PART

DIRECTORS

| Name of Officer  | Age | Position                                                |
|------------------|-----|---------------------------------------------------------|
| Matthew Boyle    | 48  | President & Chief Executive Officer                 |
| Paul N. Farquhar | 48  | Vice President, Treasurer & Chief Financial Officer |

EXECUTIVE

SECURITY 

CERTAIN

PRINCIPAL

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INDEX

PART

EXHIBITS

| (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

| *(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 year ended September 30, 2008).                                                                                                     |
| *(10)(a) | Tech/Ops Sevcon, Inc. 1996 Equity Incentive Plan and amendment thereto (incorporated by reference to 2004 Proxy Statement filed on December 29, 2003 and Exhibit 10.1 to Quarterly Report on Form 10-Q for the quarter ended April 3, 2010, respectively). |
| *(10)(b) | Form of Option for 1996 Equity Incentive Plan (incorporated by reference to Exhibit (10) (b) to Annual Report for the 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 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 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 year ended September 30, 1994).                                           |
| *(10)(f) | Directors’ Retirement Plan (incorporated by reference to Exhibit (10) (b) to Annual Report for the 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 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) | Service Agreement dated as of July 1, 2010, between Mathew Boyle and Sevcon Limited (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on July 6, 2010).                                                                       |
| *(10)(j) | Noncompetition/Nonsolicitation Agreement dated as of July 1, 2010, between Matthew Boyle and Tech/Ops Sevcon, Inc. (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed on July 6, 2010).                                        |
| *(10)(k) | Service Agreement dated as of July 1, 2010, between Paul N. Farquhar and Sevcon Limited (incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed on July 6, 2010).                                                                   |
| *(10)(l) | Noncompetition/Nonsolicitation Agreement dated as of July 1, 2010, between Paul N. Farquhar and Tech/Ops Sevcon, Inc. (incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K filed on July 6, 2010).                                     |
| (10)(m)  | Summary of Director and Executive Officer Non-Plan Compensation (filed herewith).                                                                                                                                                                          |
| (21)     | Subsidiaries of the registrant (filed herewith).                                                                                                                                                                                                           |
| (23.1)   | Consent of Caturano and Company, Inc. (filed herewith).                                                                                                                                                                                                    |
| (23.2)   | Consent of McGladrey & Pullen, LLP (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 23, 2010 |
|   | Matthew Boyle                         |              |
|   | President and Chief Executive Officer |              |

| SIGNATURE                | TITLE                                                 | DATE              |
|--------------------------|-------------------------------------------------------|-------------------|
| /s/ Matthew Boyle        | President, Chief Executive                            | December 23, 2010 |
| Matthew Boyle            | Officer and Director                                  |              |
|                     | (Principal Executive Officer)                         |              |
|                     |                                                  |              |
| /s/ Paul N. Farquhar     | Vice President, Chief Financial Officer and Treasurer | December 23, 2010 |
| Paul N. Farquhar         | (Principal Accounting Officer)                        |              |
|                     |                                                  |              |
| /s/ Maarten D. Hemsley   | Director                                              | December 23, 2010 |
| Maarten D. Hemsley       |                                                  |              |
|                     |                                                  |              |
| /s/ Paul B. Rosenberg    | Director                                              | December 23, 2010 |
| Paul B. Rosenberg        |                                                  |              |
|                     |                                                  |              |
| /s/ Marvin G. Schorr     | Director                                              | December 23, 2010 |
| Marvin G. Schorr         |                                                  |              |
|                     |                                                  |              |
| /s/ Bernard F. Start     | Director                                              | December 23, 2010 |
| Bernard F. Start         |                                                  |              |
|                     |                                                  |              |
| /s/ David R. A. Steadman | Director                                              | December 23, 2010 |
| David R. A. Steadman     |                                                  |              |
|                     |                                                  |              |
| /s/ Paul O. Stump        | Director                                              | December 23, 2010 |
| Paul O. Stump            |                                                  |              |
|                     |                                                  |              |
| /s/ Frederick.A.Wang     | Director                                              | December 23, 2010 |
| Frederick. A. Wang       |                                                  |              |
|                     |                                                  |              |

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INDEX

SCHEDULE II

Reserves

| Allowance for doubtful accounts         |   | 2010   |   |   | 2009   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance at beginning of year            |   |   | 92     |   |   |   | 86 |   |
| Additions charged to costs and expenses |   |   | 35     |   |   |   | 12 |   |
| Deductions from reserves:               |   |   |   |   |   |   |   |   |
| Reduction in reserve                    |   |   | (22    | )      |   |   | 6 |   |
| Write off of uncollectible accounts     |   |   | (52    | )      |   |   | - |   |
| Balance at end of year                  |   |   | 53     |   |   |   | 92 |   |
|                                    |   |   |   |   |   |   |   |   |

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