----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**x**
**      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the quarterly period ended March 31, 2007**

**o**
**      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**TECH/OPS      SEVCON, INC.**

*(Exact      name of registrant as specified in its charter)*

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

**155      Northboro Road, Southborough, Massachusetts, 01772**

*(Address      of principal executive offices and zip code)*

**(508)      281 5510**

*(Registrant's      telephone number, including area code)*

**x**
**o**

**o**
**o**
** **
** **
**x**

**o**
**x**

| **Class**                                       | **Outstanding                at May 11, 2007** |
|-------------------------------------------------|------------------------------------------------|
| **Common                stock, par value $.10** | **3,223,051**                                  |

----

**TECH****/OPS      SEVCON, INC.**

**FORM      10-Q**

**FOR      THE QUARTER ENDED MARCH 31, 2007**

**INDEX**

| **PART                I -FINANCIAL INFORMATION**                                                                                                         | **PAGE** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **Item                1** **Financial                Statements**                                                                                   | 3        |
| Consolidated                Balance Sheets                                                                                                               | 3        |
| Consolidated                Statements of Income                                                                                                         | 4        |
| Consolidated                Statements of Comprehensive Income                                                                                           | 4        |
| Consolidated                Statements of Cash Flows                                                                                                     | 5        |
| Notes                to Consolidated Financial Statements                                                                                                | 6        |
| **Item                2** Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 12       |
| **Item                3** Quantitative                and Qualitative Disclosures about Market Risk                                                 | 18       |
| **I****tem                4** Controls                and Procedures                                                                                | 19       |
| **PART                II - OTHER INFORMATION**                                                                                                           | 20       |
| **Item                1A** Risk                Factors                                                                                              | 20       |
| **Item                4** Submission                of Matters to a Vote of Security Holder**s**                                                    | 20       |
| **Item                6** Exhibits                                                                                                                  | 20       |
| **SIGNATURES**                                                                                                                                           | 21       |
| **INDEX                OF EXHIBITS**                                                                                                                     | 21       |

----

**ITEM      1****.      FINANCIAL STATEMENTS**

**CONSOLIDATED****BALANCE      SHEETS**

| (in                  thousands of dollars except per share data)                                                                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                 |   |   | **March                31,****2007**  |   |   | September                  30,2006 |   |
|                                                                                                                                                                                                                       |   |   | **(unaudited)**  |   |   | (derived                  from audited statements) |   |
| **ASSETS**                                                                                                                                                                                                                           |   |   |   |   |   |   |   |
| **Current                  assets:**                                                                                                                                                                                                 |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                           |   | **$** | **234** |   | $ | 1,290 |   |
| Receivables,                  net of allowances for doubtful accounts of $157 at March 31, 2007                  and                  $141 at September 30, 2006                                                                     |   |   | **8,678** |   |   | 6,187 |   |
| Inventories                                                                                                                                                                                                                          |   |   | **4,698** |   |   | 4,717 |   |
| Prepaid                  expenses and other current assets                                                                                                                                                                           |   |   | **1,157** |   |   | 847 |   |
| Total                  current assets                                                                                                                                                                                                |   |   | **14,767** |   |   | 13,041 |   |
| **Property,                  plant and equipment:**                                                                                                                                                                                  |   |   |   |   |   |   |   |
| At                  cost                                                                                                                                                                                                             |   |   | **11,478** |   |   | 10,497 |   |
| Less:                  accumulated depreciation and amortization                                                                                                                                                                     |   |   | **7,860** |   |   | 7,202 |   |
| Net                  property, plant and equipment                                                                                                                                                                                   |   |   | **3,618** |   |   | 3,295 |   |
| Long-term                  deferred tax asset                                                                                                                                                                                        |   |   | **889** |   |   | 881 |   |
| Goodwill                                                                                                                                                                                                                             |   |   | **1,435** |   |   | 1,435 |   |
| **Total                  assets**                                                                                                                                                                                                    |   | **$** | **20,709** |   | $ | 18,652 |   |
|                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ INVESTMENT**                                                                                                                                                                  |   |   |   |   |   |   |   |
| **Current                  liabilities:**                                                                                                                                                                                            |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                                                                                                    |   | **$** | **3,468** |   | $ | 2,397 |   |
| Dividend                  payable                                                                                                                                                                                                    |   |   | **97** |   |   | 96 |   |
| Accrued                  expenses                                                                                                                                                                                                    |   |   | **2,393** |   |   | 2,701 |   |
| Accrued                  and deferred taxes on income                                                                                                                                                                                |   |   | **824** |   |   | 479 |   |
| Total                  current liabilities                                                                                                                                                                                           |   |   | **6,782** |   |   | 5,673 |   |
| Liability                  for pension benefits                                                                                                                                                                                      |   |   | **2,914** |   |   | 2,886 |   |
| Other                  long term liabilities                                                                                                                                                                                         |   |   | **59** |   |   | 56 |   |
| Total                  liabilities                                                                                                                                                                                                   |   |   | **9,755** |   |   | 8,615 |   |
| Commitments                  and contingencies                                                                                                                                                                                       |   |   |   |   |   |   |   |
| **S****tockholder                  equity**                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Preferred                  stock, par value $.10 per share - authorized - 1,000,000                  shares;outstanding                  - none                                                                                      |   |   | **-** |   |   | - |   |
| Common                  stock, par value $.10 per share - authorized - 8,000,000                  shares;outstanding                  3,223,051 shares at March 31, 2007 and 3,211,051 shares at September                  30, 2006 |   |   | **322** |   |   | 321 |   |
| Premium                  paid in on common stock                                                                                                                                                                                     |   |   | **4,401** |   |   | 4,309 |   |
| Retained                  earnings                                                                                                                                                                                                   |   |   | **7,586** |   |   | 7,123 |   |
| Cumulative                  other comprehensive loss                                                                                                                                                                                 |   |   | **(1,355** | **)** |   | (1,716 | ) |
| Total                  stockholder equity                                                                                                                                                                                            |   |   | **10,954** |   |   | 10,037 |   |
| **Total                  liabilities and stockholder equity**                                                                                                                                                                        |   | **$** | **20,709** |   | $ | 18,652 |   |
|  The                  accompanying notes are an integral part of these consolidated financial                  statements                                                                                                       |

----

**CONSOLIDATED      STATEMENTS OF INCOME**

| (in                thousands of dollars except per share data) |
|----------------------------------------------------------------|
|                                                           |   | Three                months ended  | Six                months ended |
|                                                           |   |   | **March                31,****2007**  |   |   | April                1,2006 |   |   | **March                31,****2007** |   |   | April                1,2006 |   |
| Net                sales                                       |   | **$** | **10,374** |   | $ | 8,562 |   | **$** | **18,600** |   | $ | 16,383 |   |
| Cost                of sales                                   |   |   | **6,360** |   |   | 5,245 |   |   | **11,588** |   |   | 10,019 |   |
| Gross                Profit                                    |   |   | **4,014** |   |   | 3,317 |   |   | **7,012** |   |   | 6,364 |   |
| Selling,                research and administrative expenses   |   |   | **3,116** |   |   | 2,755 |   |   | **5,910** |   |   | 5,558 |   |
| Operating                income                                |   |   | **898** |   |   | 562 |   |   | **1,102** |   |   | 806 |   |
| Interest                expense                                |   |   | **(2** | **)** |   | (14 | ) |   | **(7** | **)** |   | (35 | ) |
| Interest                income                                 |   |   | **2** |   |   | 1 |   |   | **4** |   |   | 2 |   |
| Foreign                currency loss                           |   |   | **(23** | **)** |   | (24 | ) |   | **(90** | **)** |   | (2 | ) |
| Income                before income taxes                      |   |   | **875** |   |   | 525 |   |   | **1,009** |   |   | 771 |   |
| Income                taxes                                    |   |   | **(307** | **)** |   | (183 | ) |   | **(353** | **)** |   | (269 | ) |
| Net                income                                      |   | **$** | **568** |   | $ | 342 |   | **$** | **656** |   | $ | 502 |   |
| Basic                income per share                          |   | **$** | **.18** |   | $ | .11 |   | **$** | **.21** |   | $ | .16 |   |
| Fully                diluted income per share                  |   | **$** | **.18** |   | $ | .11 |   | **$** | **.21** |   | $ | .16 |   |

**CONSOLIDATED****STATEMENTS OF COMPREHENSIVE INCOME**

|                                                              | (in                thousands of dollars)  |
|-------------------------------------------------------------------|------------------------------------------------|
|                                                              |                                           | Three                months ended  | Six                months ended |
|                                                              |                                           |   | **March                31,****2007**  |   |   | April                1,2006 |   |   | **March                31,****2007** |   |   | April                1,2006 |   |
| Net                income                                         |                                           | **$** | **568** |   | $ | 342 |   | **$** | **656** |   | $ | 502 |   |
| Foreign                currency translation adjustment            |                                           |   | **20** |   |   | 71 |   |   | **335** |   |   | (111 | ) |
| Changes                in fair market value of cash flow hedges   |                                           |   | **-** |   |   | (12 | ) |   | **-** |   |   | (13 | ) |
| Amortization                of pension transition items to income |                                           |   | **14** |   |   |   |   |   | **26** |   |   |   |   |
| Comprehensive                income (loss)                        |                                           | **$** | **602** |   | $ | 401 |   | **$** | **1,017** |   | $ | 378 |   |

----

**CONSOLIDATED****STATEMENTS OF CASH FLOWS**

|                                                                                                                       |   | (in                thousands of dollars)  |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                                                                  |   | Six                months ended           |
|                                                                                                                  |   |                                           | **March                31,****2007**  |   |   | April                1,2006 |   |
| Cash                flow from operating activities:                                                                   |   |                                           |   |   |   |   |   |
| Net                income                                                                                             |   | **$**                                          | **656** |   | $ | 502 |   |
| Adjustments                to reconcile net income to net cash from operating                activities:              |   |                                           |   |   |   |   |   |
| Depreciation                and amortization                                                                          |   |                                           | **363** |   |   | 304 |   |
| Stock-based                compensation                                                                               |   |                                           | **93** |   |   | 90 |   |
| Deferred                tax benefit                                                                                   |   |                                           | **(8** | **)** |   | - |   |
| Increase                (decrease) in cash resulting from changes in operating assets and                liabilities: |   |                                           |   |   |   |   |   |
| Receivables                                                                                                           |   |                                           | **(2,491** | **)** |   | 71 |   |
| Inventories                                                                                                           |   |                                           | **19** |   |   | (1,188 | ) |
| Prepaid                expenses and other current assets                                                              |   |                                           | **(310** | **)** |   | (278 | ) |
| Accounts                payable                                                                                       |   |                                           | **1,071** |   |   | 1,286 |   |
| Accrued                expenses                                                                                       |   |                                           | **(308** | **)** |   | (140 | ) |
| Accrued                and deferred taxes on income                                                                   |   |                                           | **345** |   |   | (188 | ) |
| Net                cash generated from (used by) operating activities                                                 |   |                                           | **(570** | **)** |   | 459 |   |
| Cash                flow used by investing activities:                                                                |   |                                           |   |   |   |   |   |
| Acquisition                of property, plant and equipment                                                           |   |                                           | **(528** | **)** |   | (238 | ) |
| Net                cash used by investing activities                                                                  |   |                                           | **(528** | **)** |   | (238 | ) |
| Cash                flow used by financing activities:                                                                |   |                                           |   |   |   |   |   |
| Dividends                paid                                                                                         |   |                                           | **(192** | **)** |   | (191 | ) |
| Net                cash (used by) financing activities                                                                |   |                                           | **(192** | **)** |   | (191 | ) |
| Effect                of exchange rate changes on cash                                                                |   |                                           | **234** |   |   | (133 | ) |
| Net                decrease in cash                                                                                   |   |                                           | **(1,056** | **)** |   | (103 | ) |
| Beginning                balance - cash and cash equivalents                                                          |   |                                           | **1,290** |   |   | 1,130 |   |
| Ending                balance - cash and cash equivalents                                                             |   | **$**                                          | **234** |   | $ | 1,027 |   |
| Supplemental                disclosure of cash flow information:                                                      |   |                                           |   |   |   |   |   |
| Cash                paid for income taxes                                                                             |   | **$**                                          | **226** |   | $ | 592 |   |
| Cash                paid for interest                                                                                 |   | **$**                                          | **7** |   | $ | 35 |   |
| Supplemental                disclosure of non-cash financing activity:                                                |   |                                           |   |   |   |   |   |
| Dividend                declared                                                                                      |   | **$**                                          | **97** |   | $ | 96 |   |

----

**TECH****/OPS      SEVCON, INC**.

**Notes      to Consolidated Financial Statements - March 31, 2007**

**(1)****Basis      of Presentation**

**(2)**
**New      Accounting Pronouncements **

**(3)**
**Stock-Based      Compensation Plans**

----

|                                             |   |   |                                    |   |   |                                           |   |   |                                                              |   |   |                                                    |   |
|--------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|
|                              |   |   | Options#                of shares  |   |   | Weighted                average Exercise Price |   |   | Weighted                average remaining contractual life (years | )      |   | Aggregate                Intrinsic                Value |   |
| Outstanding                at September 30, 2006 |   |   | 172,000                                 |   | $      | 9.35                                           |   |   |                                                              |   |   |                                                    |   |
| Granted                                          |   |   | -                                       |   |   |                                           |   |   |                                                              |   |   |                                                    |   |
| Exercised                                        |   |   | -                                       |   |   |                                           |   |   |                                                              |   |   |                                                    |   |
| Cancelled                                        |   |   | (20,000                                 | )      | $      | 14.31                                          |   |   |                                                              |   |   |                                                    |   |
| Outstanding                at March 31, 2007     |   |   | 152,000                                 |   | $      | 8.70                                           |   |   | 2.8                years                                          |   | $      | 170,000                                                 |   |
| Exercisable                at March 31, 2007     |   |   | 108,350                                 |   | $      | 9.84                                           |   |   | 3.1                years                                          |   | $      | 87,000                                                  |   |

|                                                       |   |   |                                                            |   |   |                                                  |   |
|------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|
|                                                  |   |   | Number                of shares of Restricted Stock   |   |   | Weighted                Average Grant-Date Fair Value |   |
| Non-vested                balance as of September 30, 2006 |   |   | 65,000                                                          |   | $      | 5.70                                                  |   |
| Granted                                                    |   |   | 12,000                                                          |   | $      | 7.66                                                  |   |
| Vested                                                     |   |   | (24,000                                                         | )      | $      | 5.72                                                  |   |
| Forfeited                                                  |   |   | -                                                               |   |   | N/A                                                   |   |
| Non-vested                balance as of March 31, 2007     |   |   | 53,000                                                          |   | $      | 6.14                                                  |   |

----

|                                                       |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   | Three                Months ended         | Six                Months ended |
|                                                  |   |                                           | **March                31,****2007**  |   |   | April                1, 2006 |   |   | **March                31,****2007** |   |   | April                1, 2006 |   |
| Stock                option expense under SFAS # 123R |   | **$**                                          | **9** |   | $ | 10 |   | **$** | **20** |   | $ | 23 |   |
| Restricted                stock grants:               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Employees                                             |   |                                           | **16** |   |   | 16 |   |   | **35** |   |   | 27 |   |
| Non-employee                directors                 |   |                                           | **21** |   |   | 19 |   |   | **38** |   |   | 40 |   |
| Total                stock based compensation expense |   | **$**                                          | **46** |   | $ | 45 |   | **$** | **93** |   | $ | 90 |   |

**(4)**
**Cash      Dividends**

**(5)**
**Calculation      of Earnings per Share and Weighted Average Shares      Outstanding**

|                                                                                                                          |   | (in                thousands except per share data)  |
|--------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|
|                                                                                                                     |   | Three                Months ended                    | Six                Months ended |
|                                                                                                                     |   |                                                      | **March                31,****2007**  |   |   | April                1,2006 |   |   | **March                31,****2007** |   |   | April                1,2006 |   |
| Net                income                                                                                                |   | **$**                                                     | **568** |   | $ | 342 |   | **$** | **656** |   | $ | 502 |   |
| Weighted                average shares outstanding - basic                                                               |   |                                                      | **3,167** |   |   | 3,141 |   |   | **3,158** |   |   | 3,134 |   |
| Basic                income per share                                                                                    |   | **$**                                                     | **.18** |   | $ | .11 |   | **$** | **.21** |   | $ | .16 |   |
| Common                stock equivalents                                                                                  |   |                                                      | **28** |   |   | 17 |   |   | **37** |   |   | 18 |   |
| Weighted                average shares outstanding - diluted                                                             |   |                                                      | **3,195** |   |   | 3,158 |   |   | **3,195** |   |   | 3,152 |   |
| Diluted                income per share                                                                                  |   | **$**                                                     | **.18** |   | $ | .11 |   | **$** | **.21** |   | $ | .16 |   |
| No                of options that are anti-dilutive excluded from calculation of common                stock equivalents |   |                                                      | **80** |   |   | 105 |   |   | **100** |   |   | 105 |   |

**(6)**
**Segment      information**

----

|                                                |   | (in                thousands of dollars)              |
|------------------------------------------------|--------|------------------------------------------------------------|
|                                           |   | **Three                months ended March 31, 2007**  |
|                                           |   |                                                       | **Controls**  |   |   | **Capacitors** |   |   | **Corporate** |   |   | **Total** |   |
| **Sales                to external customers** |   | **$**                                                      | **9,881** |   | **$** | **493** |   | **$** | **-** |   | **$** | **10,374** |   |
| **Inter-segment                revenues**      |   |                                                       | **-** |   |   | **16** |   |   | **-** |   |   | **16** |   |
| **Operating                income**            |   |                                                       | **929** |   |   | **42** |   |   | **(73** | **)** |   | **898** |   |
| **Identifiable                assets**         |   |                                                       | **19,252** |   |   | **968** |   |   | **489** |   |   | **20,709** |   |

|                                       |   | Three                months ended April 1, 2006  |
|--------------------------------------------|--------|-------------------------------------------------------|
|                                       |   |                                                  | Controls  |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales                to external customers |   | $                                                     | 8,099 |   | $ | 463 |   | $ | - |   | $ | 8,562 |   |
| Inter-segment                revenues      |   |                                                  | - |   |   | 16 |   |   | - |   |   | 16 |   |
| Operating                income            |   |                                                  | 558 |   |   | 36 |   |   | (32 | ) |   | 562 |   |
| Identifiable                assets         |   |                                                  | 16,019 |   |   | 969 |   |   | 692 |   |   | 17,680 |   |

|                                             |   | **Six                months ended March 31, 2007**  |
|--------------------------------------------------|--------|----------------------------------------------------------|
|                                             |   |                                                     | **Controls**  |   |   | **Capacitors** |   |   | **Corporate** |   |   | **Total** |   |
| **Sales                to external customers**   |   | **$**                                                    | **17,684** |   | **$** | **916** |   | **$** | **-** |   | **$** | **18,600** |   |
| **Inter-segment                revenues**        |   |                                                     | **-** |   |   | **31** |   |   | **-** |   |   | **31** |   |
| **Operating                income**              |   |                                                     | **1,248** |   |   | **(33** | **)** |   | **(113** | **)** |   | **1,102** |   |
| **Depreciation                and amortization** |   |                                                     | **331** |   |   | **28** |   |   | **4** |   |   | **363** |   |
| **Identifiable                assets**           |   |                                                     | **19,252** |   |   | **968** |   |   | **489** |   |   | **20,709** |   |
| **Capital                expenditures**          |   |                                                     | **452** |   |   | **72** |   |   | **4** |   |   | **528** |   |

|                                         |   | Six                months ended April 1, 2006  |
|----------------------------------------------|--------|-----------------------------------------------------|
|                                         |   |                                                | Controls  |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales                to external customers   |   | $                                                   | 15,602 |   | $ | 781 |   | $ | - |   | $ | 16,383 |   |
| Inter-segment                revenues        |   |                                                | - |   |   | 35 |   |   | - |   |   | 35 |   |
| Operating                income (loss)       |   |                                                | 953 |   |   | (18 | ) |   | (129 | ) |   | 806 |   |
| Depreciation                and amortization |   |                                                | 280 |   |   | 24 |   |   | - |   |   | 304 |   |
| Identifiable                assets           |   |                                                | 16,019 |   |   | 969 |   |   | 692 |   |   | 17,680 |   |
| Capital                expenditures          |   |                                                | 211 |   |   | 27 |   |   | - |   |   | 238 |   |

|                                                                     |   | (in                  thousands of dollars)  |
|---------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                |   | Three                  Months ended         | Six                  Months ended |
|                                                                |   |                                             | **March                  31,****2007**  |   |   | April                  1,2006 |   |   | **March                  31,****2007** |   |   | April                  1,2006 |   |
| Electronic                  controllers for battery driven vehicles |   | **$**                                            | **7,297** |   | $ | 5,775 |   | **$** | **12,473** |   | $ | 11,031 |   |
| Accessory                  and aftermarket products and services    |   |                                             | **2,584** |   |   | 2,324 |   |   | **5,211** |   |   | 4,571 |   |
| Total                  controls segment revenues                    |   | **$**                                            | **9,881** |   | $ | 8,099 |   | **$** | **17,684** |   | $ | 15,602 |   |

**(7)**
**Research      and Development**

|                                                 |   | (in                thousands of dollars)  |
|-------------------------------------------------|--------|------------------------------------------------|
|                                            |   | Three                Months ended         | Six                Months ended |
|                                            |   |                                           | **March                31,****2007**  |   |   | April                1,2006 |   |   | **March                31,****2007** |   |   | April                1,2006 |   |
| Research                and Development expense |   | **$**                                          | **1,004** |   | $ | 866 |   | **$** | **1,899** |   | $ | 1,782 |   |
| Percentage                of sales              |   |                                           | **9.7**%**** |   |   | 10.1% |   |   | **10.2**%**** |   |   | 10.9% |   |

----

----

----

**(8)**
**Employee      Benefit Plans**

|                                                       |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   | Three                Months ended         | Six                Months ended |
|                                                  |   |                                           | **March                31,****2007**  |   |   | April                1,2006 |   |   | **March                31,****2007** |   |   | April                1,2006 |   |
| Service                cost                           |   | **$**                                          | **147** |   | $ | 93 |   | **$** | **292** |   | $ | 186 |   |
| Interest                cost                          |   |                                           | **287** |   |   | 229 |   |   | **570** |   |   | 457 |   |
| Expected                return on plan assets         |   |                                           | **(284** | **)** |   | (215 | ) |   | **(564** | **)** |   | (429 | ) |
| Amortization                of transition obligation  |   |                                           | **-** |   |   | - |   |   | **-** |   |   | - |   |
| Amortization                of prior service cost     |   |                                           | **15** |   |   | 13 |   |   | **29** |   |   | 26 |   |
| Recognized                net actuarial gain (loss)   |   |                                           | **3** |   |   | - |   |   | **6** |   |   | - |   |
| Net                periodic benefit cost              |   |                                           | **168** |   |   | 120 |   |   | **333** |   |   | 240 |   |
| Net                cost of defined contribution plans |   | **$**                                          | **11** |   | $ | 8 |   | **$** | **22** |   | $ | 16 |   |

|                                                                   |   | (in                  thousands of dollars)  |
|------------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                   |   |                                             |  Six                  Months ended  |   |
|                                                                   |   |                                             | **March                  31,****2007**  |   |   | April                  1,2006 |   |
| Liability                  for pension benefits at beginning of period |   | **$**                                            | **2,886** |   | $ | N/A |   |
| Net                  periodic benefit cost                             |   |                                             | **333** |   |   | N/A |   |
| Plan                  contributions                                    |   |                                             | **(379** | **)** |   | N/A |   |
| Effect                  of exchange rate changes                       |   |                                             | **74** |   |   | N/A |   |
| Balance                  at end of period                              |   | **$**                                            | **2,914** |   | $ | N/A |   |

|                                                                                                                                           |   |   | Unrecognized                transition obligation  |   |   | Unrecognized                prior service cost |   |   | Unrecognized                net actuarial gain (loss) |   |   | Deferred                Tax |   |   | Total |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-----------------------------|--------|--------|-------|--------|
| Balance                at September 30, 2006                                                                                                   |   | $      | 1                                                       |   | $      | 2,006                                          |   | $      | 765                                                   |   | $      | (849                        | )      | $      | 1,923 |   |
| Amounts                recognized in accumulated other comprehensive income in the second                quarter                of fiscal 2007 |   |   | -                                                       |   |   | (29                                            | )      |   | (6                                                    | )      |   | 9                           |   |   | (26   | )      |
| Balance                at March 31, 2007                                                                                                       |   | $      | 1                                                       |   | $      | 1,977                                          |   | $      | 759                                                   |   | $      | (840                        | )      | $      | 1,897 |   |
| Amounts                expected to be recognized in the remainder of fiscal 2007                                                               |   |   | -                                                       |   |   | (30                                            | )      |   | (6                                                    | )      |   | 11                          |   |   | (25   | )      |

----

**(9)**
**Inventories**

|                          |   | (in                thousands of dollars)  |
|-------------------------------|--------|------------------------------------------------|
|                          |   |                                           | **March                31,****2007**  |   |   | September                30,2006 |   |
| Raw                materials  |   | **$**                                          | **2,116** |   | $ | 2,195 |   |
| Work-in-process               |   |                                           | **274** |   |   | 119 |   |
| Finished                goods |   |                                           | **2,308** |   |   | 2,403 |   |
|                          |   | **$**                                          | **4,698** |   | $ | 4,717 |   |

**(10)**
**Accrued      expenses**

|                                                       |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   |                                           | **March                31,****2007**  |   |   | September                30,2006 |   |
| Accrued                compensation and related costs |   | **$**                                          | **745** |   | $ | 1,047 |   |
| Warranty                reserves                      |   |                                           | **418** |   |   | 364 |   |
| Other                accrued expenses                 |   |                                           | **1,230** |   |   | 1,290 |   |
|                                                  |   | **$**                                          | **2,393** |   | $ | 2,701 |   |

**(11)**
**Warranty      reserves**

|                                                                                                           |   | (in                thousands of dollars)  |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                                                           |   | Three                Months ended         | Six                Months ended |
|                                                                                                           |   |                                           | **March                31,****2007**  |   |   | April                1,2006 |   |   | **March                31,****2007** |   |   | April                1,2006 |   |
| Warranty                reserves at beginning of period                                                        |   | **$**                                          | **390** |   | $ | 382 |   | **$** | **364** |   | $ | 364 |   |
| Decrease                in beginning balance for warranty obligations settled during the                period |   |                                           | **(73** | **)** |   | (115 | ) |   | **(182** | **)** |   | (218 | ) |
| Other                changes to pre-existing warranties                                                        |   |                                           | **-** |   |   | 53 |   |   | **10** |   |   | 47 |   |
| Net                increase in warranty reserves for products sold during the                period            |   |                                           | **101** |   |   | 130 |   |   | **226** |   |   | 257 |   |
| Warranty                reserves at end of period                                                              |   | **$**                                          | **418** |   | $ | 450 |   | **$** | **418** |   | $ | 450 |   |

----

**Item      2.** **Management's****Discussion      and Analysis of Financial Condition and Results of      Operations.**

**FORWARD      LOOKING STATEMENTS**

**NEW      ACCOUNTING PRONOUNCEMENTS**

**CRITICAL      ACCOUNTING ESTIMATES**

**Bad      Debts**

----

**Inventories      **

**Warranty      Costs **

**Goodwill      Impairment **

----

**Pension      Plan Assumptions**

|  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%                                      | $450                                                                            | 16%                                          |
| Inflation                rate                                            | 0.1%                                      | 380                                                                             | 13%                                          |
| Salary                Increase                                           | 0.1%                                      | 190                                                                             | 7%                                           |
| Mortality                rate                                            | 1                year                     | 500                                                                             | 17%                                          |
| **Assumption                impacting plan assets:**                     |                                      |                                                                            |                                         |
| Return                on plan assets                                     | 0.1%                per year              | $18                per year                                                     | 1%                per year                   |

**OVERVIEW      OF SECOND QUARTER AND FIRST SIX MONTHS**

----

**Results      of Operations**

**Three      months ended March 31, 2007**

|                                                             |   |   | %                change due to:  |
|------------------------------------------------------------------|--------|--------|---------------------------------------|
|                                                             |   |   | **2007**                              |   |   | 2006 |   |   | Total |   |   | Currency |   |   | Volume                / other |   |
| **Sales:**                                                       |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**  | **9,881**                             |   | $ | 8,099 |   |   | 22% |   |   | 7% |   |   | 15% |   |
| Capacitors-                to external customers                 |   |   | **493**                               |   |   | 463 |   |   | 6% |   |   | 12% |   |   | -6% |   |
| Capacitors                - inter-segment                        |   |   | **16**                                |   |   | 16 |   |   | 0% |   |   | 12% |   |   | -12% |   |
| Capacitors                - total                                |   |   | **509**                               |   |   | 479 |   |   | 6% |   |   | 12% |   |   | -6% |   |
| Total                sales to external customers                 |   |   | **10,374**                            |   |   | 8,562 |   |   | 21 |   |   | 7% |   |   | 14% |   |
| **Gross                Profit:**                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |   | **3,791**                             |   |   | 3,093 |   |   | 23% |   |   | 0% |   |   | 23% |   |
| Capacitors                                                       |   |   | **223**                               |   |   | 224 |   |   | 0% |   |   | 12% |   |   | -12% |   |
| Total                                                            |   |   | **4,014**                             |   |   | 3,317 |   |   | 21% |   |   | 1% |   |   | 20% |   |
| **Selling                research and administrative expenses:** |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |   | **2,862**                             |   |   | 2,535 |   |   | 13% |   |   | 9% |   |   | 4% |   |
| Capacitors                                                       |   |   | **181**                               |   |   | 188 |   |   | -4% |   |   | 12% |   |   | -16% |   |
| Unallocated                corporate expense                     |   |   | **73**                                |   |   | 32 |   |   | 128% |   |   | 0% |   |   | 128% |   |
| Total                                                            |   |   | **3,116**                             |   |   | 2,755 |   |   | 13% |   |   | 9% |   |   | 4% |   |
| **Operating                income:**                             |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |  |
| Controls                                                         |   |   | **929**                               |   |   | 558 |   |   | 66% |   |   | -39% |   |   | 105% |   |
| Capacitors                                                       |   |   | **42**                                |   |   | 36 |   |   | 17% |   |   | 12% |   |   | 5% |   |
| Unallocated                corporate expense                     |   |   | **(73**                               | **)** |   | (32 | ) |   | 128% |   |   | 0% |   |   | 128% |   |
| Total                                                            |   |   | **898**                               |   |   | 562 |   |   | 60% |   |   | -38% |   |   | 98% |   |
| **Other                income and expense**                      |   |   | **(23**                               | **)** |   | (37 | ) |   | -38% |   |   | -14% |   |   | -24% |   |
| **Income                before income taxes**                    |   |   | **875**                               |   |   | 525 |   |   | 67% |   |   | -40% |   |   | 107% |   |
| **Income                taxes**                                  |   |   | **(307**                              | **)** |   | (183 | ) |   | 68% |   |   | -40% |   |   | 108% |   |
| **Net                Income**                                    |   | **$**  | **568**                               |   | $ | 342 |   |   | 66% |   |   | -40% |   |   | 106% |   |

----

**Six      months ended March 31, 2007**

|                                                             |   | Six                months ended  | %                change due to:         |
|------------------------------------------------------------------|--------|---------------------------------------|-----------------------------------------|
|                                                             |   |                                  | **March                31, 2007**  |   |   | April                1, 2006 |   |   | Total |   |   | Currency |   |   | Volume                / other |   |
| **Sales:**                                                       |   |                                  |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**                                 | **17,684**                              |   | $ | 15,602 |   |   | 13% |   |   | 6% |   |   | 7% |   |
| Capacitors-                to external customers                 |   |                                  | **916**                                 |   |   | 781 |   |   | 17% |   |   | 12% |   |   | 5% |   |
| Capacitors                - inter-segment                        |   |                                  | **31**                                  |   |   | 35 |   |   | -11% |   |   | 12% |   |   | -23% |   |
| Capacitors                - total                                |   |                                  | **947**                                 |   |   | 816 |   |   | 16% |   |   | 12% |   |   | 4% |   |
| Total                sales to external customers                 |   |                                  | **18,600**                              |   |   | 16,383 |   |   | 14% |   |   | 7% |   |   | 7% |   |
| **Gross                Profit:**                                 |   |                                  |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                  | **6,657**                               |   |   | 6,013 |   |   | 11% |   |   | 4% |   |   | 7% |   |
| Capacitors                                                       |   |                                  | **355**                                 |   |   | 351 |   |   | 1% |   |   | 12% |   |   | -11% |   |
| Total                                                            |   |                                  | **7,012**                               |   |   | 6,364 |   |   | 10% |   |   | 4% |   |   | 6% |   |
| **Selling                research and administrative expenses:** |   |                                  |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                  | **5,409**                               |   |   | 5,060 |   |   | 7% |   |   | 8% |   |   | -1% |   |
| Capacitors                                                       |   |                                  | **388**                                 |   |   | 369 |   |   | 5% |   |   | 12% |   |   | -7% |   |
| Unallocated                corporate expense                     |   |                                  | **113**                                 |   |   | 129 |   |   | -12% |   |   | 0% |   |   | -12% |   |
| Total                                                            |   |                                  | **5,910**                               |   |   | 5,558 |   |   | 6% |   |   | 8% |   |   | -2% |   |
| **Operating                income:**                             |   |                                  |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                  | **1,248**                               |   |   | 953 |   |   | 31% |   |   | -20% |   |   | 51% |   |
| Capacitors                                                       |   |                                  | **(33**                                 | **)** |   | (18 | ) |   | 83% |   |   | 12% |   |   | 71% |   |
| Unallocated                corporate expense                     |   |                                  | **(113**                                | **)** |   | (129 | ) |   | -12% |   |   | 0% |   |   | -12% |   |
| Total                                                            |   |                                  | **1,102**                               |   |   | 806 |   |   | 37% |   |   | -25% |   |   | 62% |   |
| **Other                income and expense**                      |   |                                  | **(93**                                 | **)** |   | (35 | ) |   | 166% |   |   | 246% |   |   | -80% |   |
| **Income                before income taxes**                    |   |                                  | **1,009**                               |   |   | 771 |   |   | 31% |   |   | -37% |   |   | 68% |   |
| **Income                taxes**                                  |   |                                  | **(353**                                | **)** |   | (269 | ) |   | 31% |   |   | -37% |   |   | 68% |   |
| **Net                Income**                                    |   | **$**                                 | **656**                                 |   | $ | 502 |   |   | 31% |   |   | -37% |   |   | 68% |   |

----

**Financial      Condition**

----

**Item      3.**
**Quantitative      **
**and      Qualitative Disclosures about Market Risk.**

**Foreign      currency risk**

----

|                                                                                                |   | (in                thousands of dollars, except average contract                rates)  |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|
|                                                                                                |   | Expected                maturity or transaction date                                    |   |   |   |
|                                                                                                |   |                                                                                         | FY2007  |   |   | FY2008 |   |   | Total |   |   | Fair                Value |   |
| **On                balance sheet financial instruments:**                                          |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| In                $ US Functional Currency                                                          |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                receivable in pounds                                                        |   |                                                                                         | 2,038 |   |   | - |   |   | 2,038 |   |   | 2,038 |   |
| Accounts                receivable in euros                                                         |   |                                                                                         | 4,049 |   |   | - |   |   | 4,049 |   |   | 4,049 |   |
| Accounts                payable in pounds                                                           |   |                                                                                         | 2,565 |   |   | - |   |   | 2,565 |   |   | 2,565 |   |
| Accounts                payable in euros                                                            |   |                                                                                         | 385 |   |   | - |   |   | 385 |   |   | 385 |   |
| **Anticipated                Transactions and related derivatives**                                 |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| In                $ US Functional Currency                                                          |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Firmly                committed sales contracts**                                                 |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| In                pounds                                                                            |   |                                                                                         | 1,693 |   |   | - |   |   | 1,693 |   |   | - |   |
| In                Euros                                                                             |   |                                                                                         | 2,059 |   |   | - |   |   | 2,059 |   |   | - |   |
| **Forward                exchange agreements**                                                      |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Sell                US Dollars for British Pounds                                                   |   |                                                                                         | 1,100 |   |   | - |   |   | 1,100 |   |   | 15 |   |
| Sell                Euros for British Pounds                                                        |   |                                                                                         | 1,596 |   |   | - |   |   | 1,596 |   |   | - |   |
| Average                contractual exchange rate                                                    |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| US                Dollars = British Pound                                                           |   |                                                                                         | 1.93                = 1 |   |   | - |   |   | 1.93                = 1 |   |   | - |   |
| Euros                = British Pound                                                                |   |                                                                                         | 1.47                = 1 |   |   | - |   |   | 1.47                = 1 |   |   | - |   |
| Amount                recorded as other     comprehensive                income |   | $                                                                                            | - |   | $ | - |   | $ | - |   | $ | - |   |

**Interest      Rate Risk**

**Item      4.** **Controls****and Procedures.**

----

**PART      II.** **OTHER****INFORMATION**

Item      1A.      Risk Factors

**Capital      goods markets are cyclical**

**Single      source materials and sub-contractors may not meet the Company’s      needs.**

**Damage      to the Company’s or sub-contractor’s buildings would hurt      results.**

**Product      liability claims may have a material adverse effect**

Item      4. Submission      of Matters to a Vote of Security Holders 

----

**SIGNATURES**

|                              | TECH/OPS                SEVCON, INC                                  |
|-----------------------------------|----------------------------------------------------------------------|
|                              |                                                                 |
|                              |                                                                 |
| Date:                May 11, 2007 | By:                /s/ Paul A. McPartlin                             |
|                              | Paul                A. McPartlin                                     |
|                              | Chief                Financial Officer (Principal Financial Officer) |
|                              |
| Date:                May 11, 2007 | By:                /s/ Paul N. Farquhar                              |
|                              | Paul                N. Farquhar                                      |
|                              | Principal                Accounting Officer                          |
|                              |                                                                 |

|    | **Exhibit                Index**                                                                                                                                                                                        |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                    |
| Exhibit | Description                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                    |
| 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. Furnished                herewith. |

----