----

----

**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 April 1, 2006**

**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, 2006** |
|-------------------------------------------------|------------------------------------------------|
| **Common                stock, par value $.10** | **3,209,051**                                  |

----

Index

**TECH****/OPS,      SEVCON LTD**

**FORM      10-Q**

**FOR      THE QUARTER ENDED APRIL 1, 2006**

**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                                                 | 20       |
| **I****tem                4** Controls                and Procedures                                                                                | 21       |
| **PART                II - OTHER INFORMATION**                                                                                                           | 22       |
| **Item                4** Submission                of Matters to a Vote of Security Holder**s**                                                    | 22       |
| **Item                6** Exhibits                                                                                                                  | 22       |
| **SIGNATURES**                                                                                                                                           | 22       |
| **INDEX                OF EXHIBITS**                                                                                                                     | 22       |

----

Index

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

**CONSOLIDATED****BALANCE      SHEETS**

| (in                thousands of dollars except per share data)                                                                                                                                                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                        |   | **April                1,****2006** |   | September                30,2005 |   |
|                                                                                                                                                                                                                        |   |   **(unaudited)** |   | (derived                from audited statements) |   |
| **ASSETS**                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| **Current                assets:**                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                    |   | **$** | **1,027** |   | $ | 1,130 |   |
| Receivables,                net of allowances for doubtful accounts of $155 at April 1, 2006                and                $144 at September 30, 2005                                                                   |   |   | **6,122** |   |   | 6,193 |   |
| Inventories                                                                                                                                                                                                                 |   |   | **4,925** |   |   | 3,737 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                    |   |   | **1,206** |   |   | 915 |   |
| Total                current assets                                                                                                                                                                                         |   |   | **13,280** |   |   | 11,975 |   |
| **Property,                plant and equipment:**                                                                                                                                                                           |   |   |   |   |   |   |   |
| At                cost                                                                                                                                                                                                      |   |   | **9,698** |   |   | 9,593 |   |
| Less:                accumulated depreciation and amortization                                                                                                                                                              |   |   | **6,733** |   |   | 6,557 |   |
| Net                property, plant and equipment                                                                                                                                                                            |   |   | **2,965** |   |   | 3,036 |   |
| Goodwill                                                                                                                                                                                                                    |   |   | **1,435** |   |   | 1,435 |   |
| **Total                assets**                                                                                                                                                                                             |   | **$** | **17,680** |   | $ | 16,446 |   |
|                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ INVESTMENT**                                                                                                                                                           |   |   |   |   |   |   |   |
| **Current                liabilities:**                                                                                                                                                                                     |   |   |   |   |   |   |   |
| Accounts                payable                                                                                                                                                                                             |   | **$** | **3,885** |   | $ | 2,599 |   |
| Dividend                payable                                                                                                                                                                                             |   |   | **96** |   |   | 95 |   |
| Accrued                expenses                                                                                                                                                                                             |   |   | **2,545** |   |   | 2,685 |   |
| Accrued                and deferred taxes on income                                                                                                                                                                         |   |   | **257** |   |   | 445 |   |
| Total                current liabilities                                                                                                                                                                                    |   |   | **6,783** |   |   | 5,824 |   |
| Deferred                taxes on income                                                                                                                                                                                     |   |   | **33** |   |   | 33 |   |
| Commitments                and contingencies                                                                                                                                                                                |   |   |   |   |   |   |   |
| **S****tockholders’                investment**                                                                                                                                                                       |   |   |   |   |   |   |   |
| Preferred                stock, par value $.10 per share - authorized - 1,000,000                shares;outstanding                - none                                                                                   |   |   | **-** |   |   | - |   |
| Common                stock, par value $.10 per share - authorized - 8,000,000                shares;outstanding                3,209,051 shares at April 1, 2006 and 3,172,051 shares at September                30, 2005 |   |   | **321** |   |   | 317 |   |
| Premium                paid in on common stock                                                                                                                                                                              |   |   | **4,216** |   |   | 4,310 |   |
| Retained                earnings                                                                                                                                                                                            |   |   | **6,703** |   |   | 6,394 |   |
| Unearned                compensation on restricted stock                                                                                                                                                                    |   |   | **-** |   |   | (180 | ) |
| Cumulative                other comprehensive loss                                                                                                                                                                          |   |   | **(376** | **)** |   | (252 | ) |
| Total                stockholders’ investment                                                                                                                                                                         |   |   | **10,864** |   |   | 10,589 |   |
| **Total                liabilities and stockholders’ investment**                                                                                                                                                     |   | **$** | **17,680** |   | $ | 16,446 |   |
|  The                accompanying notes are an integral part of these consolidated financial                statements                                                                                                  |

----

Index

**CONSOLIDATED      STATEMENTS OF INCOME**

|     (in                  thousands except per share data) |   |
|-------------------------------------------------------------------------------|--------|
|                                                                          |   | Three                  months ended |   | Six                  months ended |   |
|                                                                          |   | **April                  1,****2006** |   | April                  2,2005 |   | **April                  1,****2006** |   | April                  2,2005 |   |
| Net                  sales                                                    |   | **$** | **8,562** |   | $ | 8,094 |   | **$** | **16,383** |   | $ | 15,636 |   |
| Costs                  and expenses:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of sales                                                |   |   | **5,245** |   |   | 4,968 |   |   | **10,019** |   |   | 9,668 |   |
| Selling,                  research and administrative                         |   |   | **2,755** |   |   | 2,841 |   |   | **5,558** |   |   | 5,663 |   |
|                                                                          |   |   | **8,000** |   |   | 7,809 |   |   | **15,577** |   |   | 15,331 |   |
| Operating                  income                                             |   |   | **562** |   |   | 285 |   |   | **806** |   |   | 305 |   |
| Interest                  expense                                             |   |   | **(14** | **)** |   | (21 | ) |   | **(35** | **)** |   | (27 | ) |
| Interest                  income                                              |   |   | **1** |   |   | 1 |   |   | **2** |   |   | 1 |   |
| Foreign                  currency gain or (loss)                              |   |   | **(24** | **)** |   | - |   |   | **(2** | **)** |   | 16 |   |
| Income                  before income taxes                                   |   |   | **525** |   |   | 265 |   |   | **771** |   |   | 295 |   |
| Income                  taxes                                                 |   |   | **(183** | **)** |   | (93 | ) |   | **(269** | **)** |   | (103 | ) |
| Net                  income                                                   |   | **$** | **342** |   | $ | 172 |   | **$** | **502** |   | $ | 192 |   |
| Basic                  income per share                                       |   | **$** | **.11** |   | $ | .05 |   | **$** | **.16** |   | $ | .06 |   |
| Fully                  diluted income per share                               |   | **$** | **.11** |   | $ | .05 |   | **$** | **.16** |   | $ | .06 |   |

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

|   (in                thousands of dollars)            |   |
|-----------------------------------------------------------------|--------|
|                                                            |   | Three                months ended |   | Six                months ended |   |
|                                                            |   | **April                1,****2006** |   | April                2,2005 |   | **April                1,****2006** |   | April                2,2005 |   |
| Net                income                                       |   | **$** | **342** |   | $ | 172 |   | **$** | **502** |   | $ | 192 |   |
| Foreign                currency translation adjustment          |   |   | **71** |   |   | (198 | ) |   | **(111** | **)** |   | 340 |   |
| Changes                in fair market value of cash flow hedges |   |   | **(12** | **)** |   | - |   |   | **(13** | **)** |   | (15 | ) |
| Comprehensive                income (loss)                      |   | **$** | **401** |   | $ | (26 | ) | **$** | **378** |   | $ | 517 |   |

|  The                accompanying notes are an integral part of these consolidated financial                statements. |
|-----------------------------------------------------------------------------------------------------------------------------|

----

Index

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

|                                                                                                                                             |   | (in                    thousands of dollars) |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                                                                                             |   | Six                    months ended          |       |
|                                                                                                                                             |   | **April                    1,****2006**      |       | April                    2,2005 |   |
| Cash                    flow from operating activities:                                                                                          |   |                                         |       |   |   |   |   |
| Net                    income                                                                                                                    |   | **$**                                        | **502**    |   | $ | 192 |   |
| Adjustments                    to reconcile net income to net cash from operating                    activities:                                 |   |                                         |       |   |   |   |   |
| Depreciation                    and amortization                                                                                                 |   |                                         | **304**    |   |   | 337 |   |
| Stock-based                    compensation                                                                                                      |   |                                         | **90**     |   |   | 26 |   |
| Deferred                    tax benefit                                                                                                          |   |                                         | **-**      |   |   | 3 |   |
| Increase                    (decrease) in cash resulting from changes in operating assets                    and                    liabilities: |   |                                         |       |   |   |   |   |
| Receivables                                                                                                                                      |   |                                         | **71**     |   |   | (347 | ) |
| Inventories                                                                                                                                      |   |                                         | **(1,188** | **)** |   | (17 | ) |
| Prepaid                    expenses and other current assets                                                                                     |   |                                         | **(278**   | **)** |   | (433 | ) |
| Accounts                    payable                                                                                                              |   |                                         | **1,286**  |   |   | (194 | ) |
| Accrued                    expenses                                                                                                              |   |                                         | **(140**   | **)** |   | 60 |   |
| Accrued                    and deferred taxes on income                                                                                          |   |                                         | **(188**   | **)** |   | 159 |   |
| Net                    cash generated from (used by) operating activities                                                                        |   |                                         | **459**    |   |   | (214 | ) |
| Cash                    flow used by investing activities:                                                                                       |   |                                         |       |   |   |   |   |
| Acquisition                    of property, plant and equipment                                                                                  |   |                                         | **(238**   | **)** |   | (258 | ) |
| Net                    cash used by investing activities                                                                                         |   |                                         | **(238**   | **)** |   | (258 | ) |
| Cash                    flow used by financing activities:                                                                                       |   |                                         |       |   |   |   |   |
| Dividends                    paid                                                                                                                |   |                                         | **(191**   | **)** |   | (189 | ) |
| Net                    cash used by financing activities                                                                                         |   |                                         | **(191**   | **)** |   | (189 | ) |
| Effect                    of exchange rate changes on cash                                                                                       |   |                                         | **(133**   | **)** |   | 166 |   |
| Net                    (decrease) in cash                                                                                                        |   |                                         | **(103**   | **)** |   | (495 | ) |
| Beginning                    balance - cash and cash equivalents                                                                                 |   |                                         | **1,130**  |   |   | 905 |   |
| Ending                    balance - cash and cash equivalents                                                                                    |   | **$**                                        | **1,027**  |   | $ | 410 |   |
| Supplemental                    disclosure of cash flow information:                                                                             |   |                                         |       |   |   |   |   |
| Cash                    paid for income taxes                                                                                                    |   | **$**                                        | **592**    |   | $ | 314 |   |
| Cash                    paid for interest                                                                                                        |   | **$**                                        | **35**     |   | $ | 27 |   |
| Supplemental                    disclosure of non-cash financing activity:                                                                       |   |                                         |       |   |   |   |   |
| Dividend                    declared                                                                                                             |   | **$**                                        | **96**     |   | $ | 95 |   |

|  The                accompanying notes are an integral part of these consolidated financial                statements. |
|-----------------------------------------------------------------------------------------------------------------------------|

----

Index

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

**Notes      to Consolidated Financial Statements - April 1, 2006**

| **(1)** | **Basis                of Presentation** |
|---------|------------------------------------------|

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

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

----

Index

| (in                thousands of dollars except per share data)                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                 |   | Three                months ended |   | Six                months ended |   |
|                                                                                                                                 |   | April                2,2005 |   | April                2,2005 |   |
| Net                income - As reported                                                                                              |   | $ | 172 |   | $ | 192 |   |
| Stock-based                compensation expense determined under fair value method for all option                awards (net of tax) |   |   | (14 | ) |   | (28 | ) |
| Net                income - Pro forma                                                                                                |   | $ | 158 |   | $ | 164 |   |
| Basic                net income per share - As reported                                                                              |   | $ | .05 |   | $ | .06 |   |
| Basic                net income per share - Pro forma                                                                                |   | $ | .05 |   | $ | .05 |   |
| Diluted                net income per share - As reported                                                                            |   | $ | .05 |   | $ | .06 |   |
| Diluted                net income per share - Pro forma                                                                              |   | $ | .05 |   | $ | .05 |   |

|                                   |   | **2006** |    | 2005   |   |
|----------------------------------------|--------|----------|---------|--------|--------|
| Risk-free                interest rate |   |     | **N/A** |   |   | N/A |   |
| Expected                dividend yield |   |     | **N/A** |   |   | N/A |   |
| Expected                life (years)   |   |     | **N/A** |   |   | N/A |   |
| Expected                volatility     |   |     | **N/A** |   |   | N/A |   |

|                                             |   |    Options#                of shares |    |   Weighted                average Exercise Price |   | Weighted                average remaining contractual life (years) |   |    Aggregate                Intrinsic Value |                   |
|--------------------------------------------------|--------|-----------------------------------------------------|---------|------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|------------------------------------------------------------|------------------------|
| Outstanding                at September 30, 2005 |   |                                                | 182,000 |                                                       | $      | 9.26                                                               |   |                                                       |                   |   |   |   |   |
| Granted                                          |   |                                                | -       |                                                       |   |                                                               |   |                                                       |                   |   |   |   |   |
| Exercised                                        |   |                                                | -       |                                                       |   |                                                               |   |                                                       |                   |   |   |   |   |
| Cancelled                                        |   |                                                | -       |                                                       |   |                                                               |   |                                                       |                   |   |   |   |   |
| Outstanding                at April 1, 2006      |   |                                                | 182,000 |                                                       | $      | 9.26                                                               |   |                                                       | 3                years |   | $ | 148,000 |   |
| Exercisable                at April 1, 2006      |   |                                                | 114,100 |                                                       | $      | 10.87                                                              |   |                                                       | 3                years |   | $ | 51,000 |   |

----

Index

|                                                         |   |  Number                  of shares of Restricted Stock |    | Weighted                  Average Grant-Date Fair Value |   |
|--------------------------------------------------------------|--------|-------------------------------------------------------------|---------|---------------------------------------------------------|--------|
| Non-vested                  balance as of September 30, 2005 |   |                                                        | 47,000  |                                                    | $      | 6.18 |   |
| Granted                                                      |   |                                                        | 37,000  |                                                    | $      | 5.58 |   |
| Vested                                                       |   |                                                        | (19,000 | )                                                       | $      | 6.64 |   |
| Forfeited                                                    |   |                                                        | -       |                                                    |   | N/A |   |
| Non-vested                  balance as of April 1, 2006      |   |                                                        | 65,000  |                                                    | $      | 5.70 |   |

----

Index

|                                                                                                   |   | (in                  thousands of dollars) |    |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                   |   | Three                  Months ended        |    | Six                  Months ended |   |
|                                                                                                   |   | **April                  1,****2006**      |    | April                  2, 2005 |   | **April                  1,****2006** |   | April                  1, 2005 |   |
| Stock                  option expense under SFAS # 123R *                                              |   | **$**                                      | **10**  |   | $ | - |   | **$** | **23** |   | $ | - |   |
| Restricted                  stock grants:                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
| Employees                                                                                              |   |                                       | **16**  |   |   | 9 |   |   | **27** |   |   | 12 |   |
| Non-employee                  directors                                                                |   |                                       | **19**  |   |   | 14 |   |   | **40** |   |   | 14 |   |
| Total                  stock based compensation expense                                                |   | **$**                                      | **45**  |   | $ | 23 |   | **$** | **90** |   | $ | 26 |   |
| *                  Pro-forma expense disclosed for options accounted for under                  APB#25 |   | **$**                                      | **N/A** |   | $ | 14 |   | **$** | **N/A** |   | $ | 28 |   |

**(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 |   |
|                                                                                                                      |   | **April                1,****2006**                 |      | April                2,2005 |   | **April                1,****2006** |   | April                2,2005 |   |
| Net                income                                                                                                 |   | **$**                                               | **342**   |   | $ | 172 |   | **$** | **502** |   | $ | 192 |   |
| Weighted                average shares outstanding - basic                                                                |   |                                                | **3,141** |   |   | 3,125 |   |   | **3,134** |   |   | 3,125 |   |
| Basic                income per share                                                                                     |   | **$**                                               | **.11**   |   | $ | .05 |   | **$** | **.16** |   | $ | .06 |   |
| Common                stock equivalents                                                                                   |   |                                                | **17**    |   |   | 34 |   |   | **18** |   |   | 28 |   |
| Weighted                average shares outstanding - diluted                                                              |   |                                                | **3,158** |   |   | 3,159 |   |   | **3,152** |   |   | 3,153 |   |
| Diluted                income per share                                                                                   |   | **$**                                               | **.11**   |   | $ | .05 |   | **$** | **.16** |   | $ | .06 |   |
| No.                of options that are anti-dilutive excluded from calculation of common                stock equivalents |   |                                                | **105**   |   |   | 111 |   |   | **105** |   |   | 111 |   |

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

----

Index

|                                           |   | (in                thousands of dollars)            |       |
|------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                           |   | **Three                months ended April 1, 2006** |       |
|                                           |   | **Contro****ls**                                    |       | **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** |   |

|                                       |   | Three                months ended April 2, 2005 |   |
|--------------------------------------------|--------|-------------------------------------------------|--------|
|                                       |   | Controls                                        |   | Capacitors |   | Corporate |   | Total |   |
| Sales                to external customers |   | $                                               | 7,718  |   | $ | 376 |   | $ | - |   | $ | 8,094 |   |
| Inter-segment                revenues      |   |                                            | -      |   |   | 83 |   |   | - |   |   | 83 |   |
| Operating                income            |   |                                            | 335    |   |   | (2 | ) |   | (48 | ) |   | 285 |   |
| Identifiable                assets         |   |                                            | 15,402 |   |   | 882 |   |   | 706 |   |   | 16,990 |   |

|                                             |   | **Six                months ended April 1, 2006** |       |
|--------------------------------------------------|--------|---------------------------------------------------|------------|
|                                             |   | **Contro****ls**                                  |       | **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** |   |

|                                         |   | Six                months ended April 2, 2005 |   |
|----------------------------------------------|--------|-----------------------------------------------|--------|
|                                         |   | Controls                                      |   | Capacitors |   | Corporate |   | Total |   |
| Sales                to external customers   |   | $                                             | 14,860 |   | $ | 776 |   | $ | - |   | $ | 15,636 |   |
| Inter-segment                revenues        |   |                                          | -      |   |   | 149 |   |   | - |   |   | 149 |   |
| Operating                income (loss)       |   |                                          | 493    |   |   | (20 | ) |   | (168 | ) |   | 305 |   |
| Depreciation                and amortization |   |                                          | 311    |   |   | 26 |   |   | - |   |   | 337 |   |
| Identifiable                assets           |   |                                          | 15,402 |   |   | 882 |   |   | 706 |   |   | 16,990 |   |
| Capital                expenditures          |   |                                          | 257    |   |   | 1 |   |   | - |   |   | 258 |   |

|                                                              |   | (in                thousands of dollars) |      |
|-------------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                              |   | Three                Months ended        |      | Six                Months ended |   |
|                                                              |   | April                1,2006              |      | April                2,2005 |   | April                1,2006 |   | April                2,2005 |   |
| Electronic                controllers for battery driven vehicles |   | **$**                                    | **5,775** |   | $ 5,632 | **$** | **11,031** |   | $ | 10,558 |   |
| Accessory                and aftermarket products and services    |   |                                     | **2,324** |   | 2,086 |   | **4,571** |   |   | 4,302 |   |
| Total                controls segment revenues                    |   | **$**                                    | **8,099** |   | $ 7,718 | **$** | **15,602** |   | $ | 14,860 |   |

----

Index

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

|                                            |   | (in                thousands of dollars) |     |
|-------------------------------------------------|--------|------------------------------------------|----------|
|                                            |   | Three                Months ended        |     | Six                Months ended |   |
|                                            |   | **April                1,****2006**      |     | April                2,2005 |   | **April                1,****2006** |   | April                2,2005 |   |
| Research                and Development expense |   | **$**                                    | **866**  |   | $ | 946 |   | **$** | **1,782** |   | $ | 1,780 |   |
| Percentage                of sales              |   |                                     | **10.1** | **%** |   | 11.7 | % |   | **10.9** | **%** |   | 11.4 | % |

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

|                                                  |   | (in                thousands of dollars) |     |
|-------------------------------------------------------|--------|------------------------------------------|----------|
|                                                  |   | Three                Months ended        |     | Six                Months ended |   |
|                                                  |   | **April                1,****2006**      |     | April                2,2005 |   | **April                1,****2006** |   | April                2,2005 |   |
| Service                cost                           |   | **$**                                    | **93**   |   | $ | 111 |   | **$** | **186** |   | $ | 221 |   |
| Interest                cost                          |   |                                     | **229**  |   |   | 231 |   |   | **457** |   |   | 460 |   |
| Expected                return on plan assets         |   |                                     | **(215** | **)** |   | (216 | ) |   | **(429** | **)** |   | (431 | ) |
| Amortization                of transition obligation  |   |                                     | **-**    |   |   | - |   |   | **-** |   |   | - |   |
| Amortization                of prior service cost     |   |                                     | **13**   |   |   | 13 |   |   | **26** |   |   | 26 |   |
| Recognized                net actuarial gain (loss)   |   |                                     | **-**    |   |   | - |   |   | **-** |   |   | - |   |
| Net                periodic benefit cost              |   |                                     | **120**  |   |   | 139 |   |   | **240** |   |   | 277 |   |
| Net                cost of defined contribution plans |   | **$**                                    | **8**    |   | $ | 7 |   | **$** | **16** |   | $ | 14 |   |

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

|                          |   | (in                thousands of dollars) |      |
|-------------------------------|--------|------------------------------------------|-----------|
|                          |   | April                1,2006              |      | September                30,2005 |   |
| Raw                materials  |   | **$**                                    | **2,261** |   | $ | 1,596 |   |
| Work-in-process               |   |                                     | **395**   |   |   | 174 |   |
| Finished                goods |   |                                     | **2,269** |   |   | 1,967 |   |
|                          |   | **$**                                    | **4,925** |   | $ | 3,737 |   |

----

Index

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

|                                                  |   | (in                thousands of dollars) |      |
|-------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                  |   | **April                1,****2006**      |      | September                30,2005 |   |
| Accrued                compensation and related costs |   | **$**                                    | **937**   |   | $ | 1,101 |   |
| Warranty                reserves                      |   |                                     | **450**   |   |   | 364 |   |
| Other                accrued expenses                 |   |                                     | **1,158** |   |   | 1,220 |   |
|                                                  |   | **$**                                    | **2,545** |   | $ | 2,685 |   |

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

|                                                                                                           |   | (in                thousands of dollars) |     |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|----------|
|                                                                                                           |   | Three                Months Ended        |     | Six                Months Ended |   |
|                                                                                                           |   | April                1,2006              |     | April                2,2005 |   | April                1,2006 |   | April                2,2005 |   |
| Warranty                reserves at beginning of period                                                        |   | **$**                                    | **382**  |   | $ | 429 |   | **$** | **364** |   | $ | 386 |   |
| Decrease                in beginning balance for warranty obligations settled during the                period |   |                                     | **(115** | **)** |   | (109 | ) |   | **(218** | **)** |   | (226 | ) |
| Other                changes to pre-existing warranties                                                        |   |                                     | **53**   |   |   | (5 | ) |   | **47** |   |   | 12 |   |
| Net                increase in warranty reserves for products sold during the                period            |   |                                     | **130**  |   |   | 89 |   |   | **257** |   |   | 232 |   |
| Warranty                reserves at end of period                                                              |   | **$**                                    | **450**  |   | $ | 404 |   | **$** | **450** |   | $ | 404 |   |

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

**FORWARD      LOOKING STATEMENTS**

**NEW      ACCOUNTING PRONOUNCEMENTS**

----

Index

**CRITICAL      ACCOUNTING ESTIMATES**

**Bad      Debts**

----

Index

**Inventories      **

**Warranty      Costs **

**Goodwill      Impairment **

----

Index

**Pension      Plan Assumptions**

**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**

----

Index

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

**Results      of Operations**

**Three      months ended April 1, 2006**

|                                                             |   |  Second                Quarter |      | %                change due to: |   |
|------------------------------------------------------------------|--------|-------------------------------------|-----------|---------------------------------|--------|
|                                                             |   |  **2006**                      |      |  2005                      |   |  Total |   |  Currency |   | Volume                / other |   |
| **Sales:**                                                       |   |                                |      |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**                               | **8,099** |                            | $      | 7,718 |   |   | 5 | % |   | -5 | % |   | 10 | % |
| Capacitors-                to external customers                 |   |                                | **463**   |                            |   | 376 |   |   | 23 | % |   | -11 | % |   | 34 | % |
| Capacitors                - inter-segment                        |   |                                | **16**    |                            |   | 83 |   |   | -81 | % |   | -11 | % |   | -70 | % |
| Capacitors                - total                                |   |                                | **479**   |                            |   | 459 |   |   | 4 | % |   | -11 | % |   | 15 | % |
| Total                sales to external customers                 |   |                                | **8,562** |                            |   | 8,094 |   |   | 6 | % |   | -5 | % |   | 11 | % |
| **Gross                Profit:**                                 |   |                                |      |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                | **3,093** |                            |   | 2,959 |   |   | 5 | % |   | -6 | % |   | 11 | % |
| Capacitors                                                       |   |                                | **224**   |                            |   | 167 |   |   | 34 | % |   | -12 | % |   | 46 | % |
| Total                                                            |   |                                | **3,317** |                            |   | 3,126 |   |   | 6 | % |   | -7 | % |   | 13 | % |
| **Selling                research and administrative expenses:** |   |                                |      |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                | **2,536** |                            |   | 2,624 |   |   | -3 | % |   | -7 | % |   | 4 | % |
| Capacitors                                                       |   |                                | **188**   |                            |   | 169 |   |   | 11 | % |   | -2 | % |   | 13 | % |
| Unallocated                corporate expense                     |   |                                | **32**    |                            |   | 48 |   |   | -33 | % |   | - | % |   | -33 | % |
| Total                                                            |   |                                | **2,756** |                            |   | 2,841 |   |   | -3 | % |   | -7 | % |   | 4 | % |
| **Operating                income:**                             |   |                                |      |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                | **558**   |                            |   | 335 |   |   | 67 | % |   | -2 | % |   | 69 | % |
| Capacitors                                                       |   |                                | **36**    |                            |   | (2 | ) |   | n/a |   |   | n/a |   |   | n/a |   |
| Unallocated                corporate expense                     |   |                                | **(32**   | **)**                           |   | (48 | ) |   | -33 | % |   | - | % |   | -33 | % |
| Total                                                            |   |                                | **562**   |                            |   | 285 |   |   | 97 | % |   | -9 | % |   | 106 | % |
| **Other                income and expense**                      |   |                                | **(37**   | **)**                           |   | (20 | ) |   | 85 | % |   | 60 | % |   | 25 | % |
| **Income                before income taxes**                    |   |                                | **525**   |                            |   | 265 |   |   | 98 | % |   | -14 | % |   | 112 | % |
| **Income                taxes**                                  |   |                                | **(183**  | **)**                           |   | (93 | ) |   | 98 | % |   | -14 | % |   | 112 | % |
| **Net                Income**                                    |   | **$**                               | **342**   |                            | $      | 172 |   |   | 98 | % |   | -14 | % |   | 112 | % |

----

Index

----

Index

**Six      months ended April 1, 2006**

|                                                             |   | Six                months ended  |       | %                change due to: |   |
|------------------------------------------------------------------|--------|----------------------------------|------------|---------------------------------|--------|
|                                                             |   | **April                1, 2006** |       | April                2, 2005    |   |  Total |   |  Currency |   | Volume                / other |   |
| **Sales:**                                                       |   |                             |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**                            | **15,602** |                            | $      | 14,860 |   |   | 5 | % |   | -5 | % |   | 10 | % |
| Capacitors-                to external customers                 |   |                             | **781**    |                            |   | 776 |   |   | 1 | % |   | -9 | % |   | 10 | % |
| Capacitors                - inter-segment                        |   |                             | **35**     |                            |   | 149 |   |   | -77 | % |   | -9 | % |   | -68 | % |
| Capacitors                - total                                |   |                             | **816**    |                            |   | 925 |   |   | -12 | % |   | -9 | % |   | -3 | % |
| Total                sales to external customers                 |   |                             | **16,383** |                            |   | 15,636 |   |   | 5 | % |   | -5 | % |   | 10 | % |
| **Gross                Profit:**                                 |   |                             |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                             | **6,013**  |                            |   | 5,617 |   |   | 7 | % |   | -7 | % |   | 14 | % |
| Capacitors                                                       |   |                             | **351**    |                            |   | 351 |   |   | - | % |   | -9 | % |   | 9 | % |
| Total                                                            |   |                             | **6,364**  |                            |   | 5,968 |   |   | 7 | % |   | -7 | % |   | 14 | % |
| **Selling                research and administrative expenses:** |   |                             |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                             | **5,060**  |                            |   | 5,124 |   |   | -1 | % |   | -7 | % |   | 6 | % |
| Capacitors                                                       |   |                             | **369**    |                            |   | 371 |   |   | -1 | % |   | -9 | % |   | 8 | % |
| Unallocated                corporate expense                     |   |                             | **129**    |                            |   | 168 |   |   | -23 | % |   | 0 | % |   | -23 | % |
| Total                                                            |   |                             | **5,558**  |                            |   | 5,663 |   |   | -2 | % |   | -6 | % |   | 4 | % |
| **Operating                income:**                             |   |                             |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                             | **953**    |                            |   | 493 |   |   | 93 | % |   | -7 | % |   | 100 | % |
| Capacitors                                                       |   |                             | **(18**    | **)**                           |   | (20 | ) |   | -10 | % |   | -9 | % |   | -1 | % |
| Unallocated                corporate expense                     |   |                             | **(129**   | **)**                           |   | (168 | ) |   | -23 | % |   | 0 | % |   | -23 | % |
| Total                                                            |   |                             | **806**    |                            |   | 305 |   |   | 164 | % |   | -13 | % |   | 177 | % |
| **Other                income and expense**                      |   |                             | **(35**    | **)**                           |   | (10 | ) |   | 250 | % |   | 180 | % |   | 70 | % |
| **Income                before income taxes**                    |   |                             | **771**    |                            |   | 295 |   |   | 161 | % |   | -20 | % |   | 181 | % |
| **Income                taxes**                                  |   |                             | **(269**   | **)**                           |   | (103 | ) |   | 161 | % |   | -20 | % |   | 181 | % |
| **Net                Income**                                    |   | **$**                            | **502**    |                            | $      | 192 |   |   | 161 | % |   | -20 | % |   | 181 | % |

----

Index

**Financial      Condition**

----

Index

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

**Foreign      currency risk**

----

Index

|                                                                |   | (in                thousands, except average contract rates) |         |
|---------------------------------------------------------------------|--------|--------------------------------------------------------------|--------------|
|                                                                |   | Expected                maturity or transaction date         |         |   |   |
|                                                                |   | FY2006                                                       |         | FY2007 |   | Total |   | Fair                Value |   |
| **On                balance sheet financial instruments:**          |   |                                                         |         |   |   |   |   |   |   |   |   |   |   |
| In                $ US Functional Currency                          |   |                                                         |         |   |   |   |   |   |   |   |   |   |   |
| Accounts                receivable in pounds                        |   |                                                         | 1,221        |   |   | - |   |   | 1,221 |   |   | 1,221 |   |
| Accounts                receivable in euros                         |   |                                                         | 2,622        |   |   | - |   |   | 2,622 |   |   | 2,622 |   |
| Accounts                payable in pounds                           |   |                                                         | 2,675        |   |   | - |   |   | 2,675 |   |   | 2,675 |   |
| Accounts                payable in euros                            |   |                                                         | 378          |   |   | - |   |   | 378 |   |   | 378 |   |
| **Anticipated                Transactions and related derivatives** |   |                                                         |         |   |   |   |   |   |   |   |   |   |   |
| In                $ US Functional Currency                          |   |                                                         |         |   |   |   |   |   |   |   |   |   |   |
| **Firmly                committed sales contracts**                 |   |                                                         |         |   |   |   |   |   |   |   |   |   |   |
| In                pounds                                            |   |                                                         | 1,153        |   |   | - |   |   | 1,153 |   |   | - |   |
| In                Euros                                             |   |                                                         | 1,531        |   |   | - |   |   | 1,531 |   |   | - |   |
| **Forward                exchange agreements**                      |   |                                                         |         |   |   |   |   |   |   |   |   |   |   |
| Sell                US Dollars for British Pounds                   |   |                                                         | 2,050        |   |   | 250 |   |   | 2,300 |   |   | -* |   |
| Sell                Euros for British Pounds                        |   |                                                         | 1,452        |   |   | - |   |   | 1,452 |   |   | (13)* |   |
| Average                contractual exchange rate                    |   | $                                                            | 1.73-£1 |   | $ | 1.73-£1 |   | $ | 1.73-£1 |   |   |   |   |
| Amount                recorded as other comprehensive income        |   | $                                                            | (13          | ) | $ | - |   | $ | (13 | ) | $ | (13 | ) |

**Interest      Rate Risk**

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

----

Index

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

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

Item      6. Exhibits      

**SIGNATURES**

|                              | TECH/OPS                SEVCON, INC                                                                      |
|-----------------------------------|----------------------------------------------------------------------------------------------------------|
|                              |                                                                                                     |
|                              |                                                                                                     |
| Date:                May 12, 2006 | By:                /s/ Paul A. McPartlin                                                                 |
|                              | Paul                A. McPartlin                                                                         |
|                              | Chief                Financial Officer (Principal financial and chief 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. |

----

Index