----

**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 December 30, 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 February 13, 2007** |
|-------------------------------------------------|-----------------------------------------------------|
| **Common                stock, par value $.10** | **3,211,051**                                       |

----

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

**FORM      10-Q**

**FOR      THE QUARTER ENDED DECEMBER 30, 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 | 11       |
| **Item                3** Quantitative                and Qualitative Disclosures about Market Risk                                                 | 17       |
| **I****tem                4** Controls                and Procedures                                                                                | 18       |
| **PART                II - OTHER INFORMATION**                                                                                                           | 18       |
| **Item                1A** Risk                Factors                                                                                              | 18       |
| **Item                6** Exhibits                                                                                                                  | 19       |
| **SIGNATURES**                                                                                                                                           | 19       |
| **INDEX                OF EXHIBITS**                                                                                                                     | 19       |

----

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

**CONSOLIDATED****BALANCE      SHEETS**

| (in                thousands of dollars except per share data)                                                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                            |   | **December                30,****2006** |   | September                30,2006 |   |
|                                                                                                                                                                                            |   |   **(unaudited)** |   | (derived                from audited statements) |   |
| **ASSETS**                                                                                                                                                                                      |   |   |   |   |   |   |   |
| **Current                assets:**                                                                                                                                                              |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                        |   | **$** | **1,626** |   | $ | 1,290 |   |
| Receivables,                net of allowances for doubtful accounts of $150 at December 30, 2006                and                $141 at September 30, 2006                                   |   |   | **6,213** |   |   | 6,187 |   |
| Inventories                                                                                                                                                                                     |   |   | **4,633** |   |   | 4,717 |   |
| Prepaid                expenses and other current assets                                                                                                                                        |   |   | **875** |   |   | 847 |   |
| Total                current assets                                                                                                                                                             |   |   | **13,347** |   |   | 13,041 |   |
| **Property,                plant and equipment:**                                                                                                                                               |   |   |   |   |   |   |   |
| At                cost                                                                                                                                                                          |   |   | **11,195** |   |   | 10,497 |   |
| Less:                accumulated depreciation and amortization                                                                                                                                  |   |   | **7,683** |   |   | 7,202 |   |
| Net                property, plant and equipment                                                                                                                                                |   |   | **3,512** |   |   | 3,295 |   |
| Long-term                deferred tax asset                                                                                                                                                     |   |   | **916** |   |   | 881 |   |
| Goodwill                                                                                                                                                                                        |   |   | **1,435** |   |   | 1,435 |   |
| **Total                assets**                                                                                                                                                                 |   | **$** | **19,210** |   | $ | 18,652 |   |
|                                                                                                                                                                                            |   |   |   |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ INVESTMENT**                                                                                                                               |   |   |   |   |   |   |   |
| **Current                liabilities:**                                                                                                                                                         |   |   |   |   |   |   |   |
| Accounts                payable                                                                                                                                                                 |   | **$** | **2,733** |   | $ | 2,397 |   |
| Dividend                payable                                                                                                                                                                 |   |   | **96** |   |   | 96 |   |
| Accrued                expenses                                                                                                                                                                 |   |   | **2,439** |   |   | 2,701 |   |
| Accrued                and deferred taxes on income                                                                                                                                             |   |   | **488** |   |   | 479 |   |
| Total                current liabilities                                                                                                                                                        |   |   | **5,756** |   |   | 5,673 |   |
| Liability                for pension benefits                                                                                                                                                   |   |   | **2,992** |   |   | 2,886 |   |
| Other                long term liabilities                                                                                                                                                      |   |   | **59** |   |   | 56 |   |
| Total                liabilities                                                                                                                                                                |   |   | **8,807** |   |   | 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 $.10 per share - authorized - 8,000,000                shares;outstanding                3,211,051 shares at December 31, 2006 and at September 30, 2006 |   |   | **321** |   |   | 321 |   |
| Premium                paid in on common stock                                                                                                                                                  |   |   | **4,356** |   |   | 4,309 |   |
| Retained                earnings                                                                                                                                                                |   |   | **7,115** |   |   | 7,123 |   |
| Cumulative                other comprehensive loss                                                                                                                                              |   |   | **(1,389** | **)** |   | (1,716 | ) |
| Total                stockholder equity                                                                                                                                                         |   |   | **10,403** |   |   | 10,037 |   |
| **Total                liabilities and stockholder equity**                                                                                                                                     |   | **$** | **19,210** |   | $ | 18,652 |   |
|  The                accompanying notes are an integral part of these consolidated financial                statements                                                                      |

----

**CONSOLIDATED      STATEMENTS OF INCOME**

| (in                thousands except per share data)          |   |
|--------------------------------------------------------------|--------|
|                                                         |   | Three                months ended |   |
|                                                         |   | **December                30, 2006** |   | December                31, 2005 |   |
| Net                sales                                     |   | **$** | **8,226** |   | $ | 7,821 |   |
| Cost                of sales                                 |   |   | **5,228** |   |   | 4,774 |   |
| Gross                Profit                                  |   |   | **2,998** |   |   | 3,047 |   |
| Selling,                research and administrative expenses |   |   | **2,794** |   |   | 2,803 |   |
| Operating                income                              |   |   | **204** |   |   | 244 |   |
| Interest                expense                              |   |   | **(5** | **)** |   | (21 | ) |
| Interest                income                               |   |   | **2** |   |   | 1 |   |
| Foreign                currency gain or (loss)               |   |   | **(67** | **)** |   | 22 |   |
| Income                before income taxes                    |   |   | **134** |   |   | 246 |   |
| Income                taxes                                  |   |   | **(46** | **)** |   | (86 | ) |
| Net                income                                    |   | **$** | **88** |   | $ | 160 |   |
| Basic                income per share                        |   | **$** | **.03** |   | $ | .05 |   |
| Fully                diluted income per share                |   | **$** | **.03** |   | $ | .05 |   |

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

|                                                              |   | (in                thousands of dollars)  |
|-------------------------------------------------------------------|--------|------------------------------------------------|
|                                                              |   | Three                months ended         |
|                                                              |   |                                           | **December                30, 2006**  |   |   | December                31, 2005 |   |
| Net                income                                         |   | **$**                                          | **88** |   | $ | 160 |   |
| Foreign                currency translation adjustment            |   |                                           | **315** |   |   | (182 | ) |
| Changes                in fair market value of cash flow hedges   |   |                                           | **-** |   |   | (1 | ) |
| Amortization                of pension transition items to income |   |                                           | **12** |   |   | - |   |
| Comprehensive                income (loss)                        |   | **$**                                          | **415** |   | $ | (23 | ) |

----

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

|                                                                                                                  |   | (in                thousands of dollars) |      |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                                                                                  |   | Three                months ended        |      |
|                                                                                                                  |   | **December                31,****2006**  |      | December                31,2005 |   |
| Cash                flow from operating activities:                                                                   |   |                                     |      |   |   |   |   |
| Net                income                                                                                             |   | **$**                                    | **88**    |   | $ | 160 |   |
| Adjustments                to reconcile net income to net cash from operating                activities:              |   |                                     |      |   |   |   |   |
| Depreciation                and amortization                                                                          |   |                                     | **178**   |   |   | 152 |   |
| Stock-based                compensation                                                                               |   |                                     | **47**    |   |   | 44 |   |
| Deferred                tax benefit                                                                                   |   |                                     | **(35**   | **)** |   | - |   |
| Increase                (decrease) in cash resulting from changes in operating assets and                liabilities: |   |                                     |      |   |   |   |   |
| Receivables                                                                                                           |   |                                     | **(26**   | **)** |   | 267 |   |
| Inventories                                                                                                           |   |                                     | **84**    |   |   | (220 | ) |
| Prepaid                expenses and other current assets                                                              |   |                                     | **(28**   | **)** |   | (166 | ) |
| Accounts                payable                                                                                       |   |                                     | **336**   |   |   | (21 | ) |
| Accrued                expenses                                                                                       |   |                                     | **(262**  | **)** |   | (150 | ) |
| Accrued                and deferred taxes on income                                                                   |   |                                     | **9**     |   |   | (207 | ) |
| Net                cash generated from (used by) operating activities                                                 |   |                                     | **391**   |   |   | (141 | ) |
| Cash                flow used by investing activities:                                                                |   |                                     |      |   |   |   |   |
| Acquisition                of property, plant and equipment                                                           |   |                                     | **(237**  | **)** |   | (161 | ) |
| Net                cash used by investing activities                                                                  |   |                                     | **(237**  | **)** |   | (161 | ) |
| Cash                flow used by financing activities:                                                                |   |                                     |      |   |   |   |   |
| Dividends                paid                                                                                         |   |                                     | **(96**   | **)** |   | (95 | ) |
| Net                cash generated from (used by) financing activities                                                 |   |                                     | **(96**   | **)** |   | (95 | ) |
| Effect                of exchange rate changes on cash                                                                |   |                                     | **278**   |   |   | (131 | ) |
| Net                increase (decrease) in cash                                                                        |   | **$**                                    | **336**   |   | $ | (528 | ) |
| Beginning                balance - cash and cash equivalents                                                          |   |                                     | **1,290** |   |   | 1,130 |   |
| Ending                balance - cash and cash equivalents                                                             |   | **$**                                    | **1,626** |   | $ | 602 |   |
| Supplemental                disclosure of cash flow information:                                                      |   |                                     |      |   |   |   |   |
| Cash                paid for income taxes                                                                             |   | **$**                                    | **196**   |   | $ | 265 |   |
| Cash                paid for interest                                                                                 |   | **$**                                    | **5**     |   | $ | 20 |   |
| Supplemental                disclosure of non-cash financing activity:                                                |   |                                     |      |   |   |   |   |
| Dividend                declared                                                                                      |   | $                                        | **96**    |   | $ | 96 |   |

----

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

**Notes      to Consolidated Financial Statements - December 31, 2006**

| **(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 December 30, 2006  |   |                                                | 152,000 |                                                       | $      | 8.70                                                               |   |                                                       | 3.0                years |   | $ | 242,000 |   |
| Exercisable                at December 30, 2006  |   |                                                | 105,900 |                                                       | $      | 9.73                                                               |   |                                                       | 3.4                years |   | $ | 124,000 |   |

|                                                  |   |   | 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                                                    |   |   | -                                                               |   |   | N/A                                                   |   |
| Vested                                                     |   |   | (12,000                                                         | )      | $      | 5.72                                                  |   |
| Forfeited                                                  |   |   | -                                                               |   |   | N/A                                                   |   |
| Non-vested                balance as of December 30, 2006  |   |   | 53,000                                                          |   | $      | 5.70                                                  |   |

----

|                                                       |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   | Three                Months ended         |
|                                                  |   |                                           | **Dec                30,****2006**  |   |   | Dec                31, 2005 |   |
| Stock                option expense under SFAS # 123R |   | **$**                                          | **11** |   | $ | 13 |   |
| Restricted                stock grants:               |   |                                           |   |   |   |   |   |
| Employees                                             |   |                                           | **19** |   |   | 9 |   |
| Non-employee                directors                 |   |                                           | **17** |   |   | 22 |   |
| Total                stock based compensation expense |   | **$**                                          | **47** |   | $ | 44 |   |

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

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

|                                                                                                                         |   | (in                thousands except per share data) |                                          |
|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-----------------------------------------------|
|                                                                                                                         |   | Three                Months ended              |
|                                                                                                                         |   |                                                | **December                30,****2006**  |   |   | December                31,2005 |   |
| Net                income                                                                                                    |   | **$**                                               | **88**                                        |   | $ | 160 |   |
| Weighted                average shares outstanding - basic                                                                   |   |                                                | **3,147**                                     |   |   | 3,127 |   |
| Basic                income per share                                                                                        |   | **$**                                               | **.03**                                       |   | $ | .05 |   |
| Common                stock equivalents                                                                                      |   |                                                | **46**                                        |   |   | 35 |   |
| Weighted                average shares outstanding - diluted                                                                 |   |                                                | **3,193**                                     |   |   | 3,162 |   |
| Diluted                income per share                                                                                      |   | **$**                                               | **.03**                                       |   | $ | .05 |   |
| Number                of options that are anti-dilutive excluded from calculation of common                stock equivalents |   |                                                | **90**                                        |   |   | 100 |   |

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

----

|                                             |   | (in                thousands of dollars)                  |                   |
|--------------------------------------------------|--------|-----------------------------------------------------------|------------------------|
|                                             |   | **Three                months ended December 30, 2006**   |                   |
|                                             |   |                                                      | **Contro****ls**  |   |   | **Capacitors** |   |   | **Corporate** |   |   | **Total** |   |
| **Sales                to external customers**   |   | **$**                                                     | **7,803**              |   | **$** | **423** |   | **$** | **-** |   | **$** | **8,226** |   |
| **Inter-segment                revenues**        |   |                                                      | **-**                  |   |   | **15** |   |   | **-** |   |   | **15** |   |
| **Operating                income**              |   |                                                      | **319**                |   |   | **(75** | **)** |   | **(40** | **)** |   | **204** |   |
| **Depreciation                and amortization** |   |                                                      | **165**                |   |   | **13** |   |   | **-** |   |   | **178** |   |
| **Identifiable                assets**           |   |                                                      | **17,763**             |   |   | **1,028** |   |   | **419** |   |   | **19,210** |   |
| **Capital                expenditures**          |   |                                                      | **175**                |   |   | **62** |   |   | **-** |   |   | **237** |   |
|                                             |   |                                                      |
|                                                  |   | Three                months ended December 31, 2005  |
|                                             |   |                                                      | Controls          |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales                to external customers       |   | $                                                         | 7,503                  |   | $ | 318 |   | $ | - |   | $ | 7,821 |   |
| Inter-segment                revenues            |   |                                                      | -                      |   |   | 19 |   |   | - |   |   | 19 |   |
| Operating                income                  |   |                                                      | 395                    |   |   | (54 | ) |   | (97 | ) |   | 244 |   |
| Depreciation                and amortization     |   |                                                      | 139                    |   |   | 13 |   |   | - |   |   | 152 |   |
| Identifiable                assets               |   |                                                      | 14,475                 |   |   | 824 |   |   | 696 |   |   | 15,995 |   |
| Capital                expenditures              |   |                                                      | 126                    |   |   | 35 |   |   | - |   |   | 161 |   |

|                                                              |   | (in                thousands of dollars) |                                          |
|-------------------------------------------------------------------|--------|------------------------------------------|-----------------------------------------------|
|                                                              |   | Three                Months ended   |
|                                                              |   |                                     | **December                30,****2006**  |   |   | December                31,2005 |   |
| Electronic                controllers for battery driven vehicles |   | **$**                                    | **5,176**                                     |   | $ | 5,256 |   |
| Accessory                and aftermarket products and services    |   |                                     | **2,627**                                     |   |   | 2,247 |   |
| Total                controls segment revenues                    |   | **$**                                    | **7,803**                                     |   | $ | 7,503 |   |

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

|                                                 |   | (in                thousands of dollars)  |
|-------------------------------------------------|--------|------------------------------------------------|
|                                            |   | Three                Months ended         |
|                                            |   |                                           | **December                30,****2006**  |   |   | December                31,2005 |   |
| Research                and Development expense |   | **$**                                          | **895** |   | $ | 916 |   |
| Percentage                of sales              |   |                                           | **10.9** |   |   | 11.7 | % |

----

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

|                                                  |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   | Three                Months ended         |
|                                                       |   |                                           | **December                30,****2006**  |   |   | December                31,2005 |   |
| Service                cost                           |   | **$**                                          | **145** |   | $ | 93 |   |
| Interest                cost                          |   |                                           | **283** |   |   | 228 |   |
| Expected                return on plan assets         |   |                                           | **(280** | **)** |   | (214 | ) |
| Amortization                of transition obligation  |   |                                           | **-** |   |   | - |   |
| Amortization                of prior service cost     |   |                                           | **14** |   |   | 13 |   |
| Recognized                net actuarial gain (loss)   |   |                                           | **3** |   |   | - |   |
| Net                periodic benefit cost              |   |                                           | **165** |   |   | 120 |   |
| Net                cost of defined contribution plans |   | **$**                                          | **11** |   | $ | 8 |   |

|                                                                   |   | (in                  thousands of dollars)  |
|------------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                   |   | Three                  Months ended         |
|                                                                   |   |                                             | **December                  30,**** 2006**  |   |   | December                  31,2005 |   |
| Liability                  for pension benefits at beginning of period |   | **$**                                            | **2,886** |   | $ | N/A |   |
| Net                  periodic benefit cost                             |   |                                             | **165** |   |   | N/A |   |
| Plan                  contributions                                    |   |                                             | **(153** | **)** |   | N/A |   |
| Effect                  of exchange rate changes                       |   |                                             | **94** |   |   | N/A |   |
| Balance                  at end of period                              |   | **$**                                            | **2,992** |   | $ | 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 first                quarter                of fiscal 2007 |   |   | -                                                     |   |   | (14                                            | )      |   | (3                                                    | )      |   | 5                           |   |   | (12   | )      |
| Balance                at December 30, 2006                                                                                                   |   | $      | (1                                                    | )      | $      | 2,006                                          |   | $      | 765                                                   |   | $      | (849                        | )      | $      | 1,923 |   |
| Amounts                expected to be recognized in the remainder of fiscal 2007                                                              |   |   | -                                                     |   |   | (42                                            | )      |   | (9                                                    | )      |   | 15                          |   |   | (36   | )      |

----

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

|                          |   | (in                thousands of dollars) |                                   |
|-------------------------------|--------|------------------------------------------|----------------------------------------|
|                          |   |                                     | December                30, 2006  |   |   | September                30,2006 |   |
| Raw                materials  |   | **$**                                    | **2,290**                              |   | $ | 2,195 |   |
| Work-in-process               |   |                                     | **177**                                |   |   | 119 |   |
| Finished                goods |   |                                     | **2,166**                              |   |   | 2,403 |   |
|                          |   | **$**                                    | **4,633**                              |   | $ | 4,717 |   |

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

|                                                  |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   |                                           | December                30, 2006  |   |   | September                30,2006 |   |
| Accrued                compensation and related costs |   | **$**                                          | **560** |   | $ | 1,047 |   |
| Warranty                reserves                      |   |                                           | **390** |   |   | 364 |   |
| Other                accrued expenses                 |   |                                           | **1,489** |   |   | 1,290 |   |
|                                                  |   | **$**                                          | **2,439** |   | $ | 2,701 |   |

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

|                                                                                                           |   | (in                thousands of dollars) |                                   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|----------------------------------------|
|                                                                                                           |   | Three                Months Ended        |                                   |
|                                                                                                           |   |                                     | December                30, 2006  |   |   | December                31,2005 |   |
| Warranty                reserves at beginning of period                                                        |   | **$**                                    | **364**                                |   | $ | 364 |   |
| Decrease                in beginning balance for warranty obligations settled during the                period |   |                                     | **(109**                               | **)** |   | (103 | ) |
| Other                changes to pre-existing warranties                                                        |   |                                     | **10**                                 |   |   | **(6** | **)** |
| Net                increase in warranty reserves for products sold during the                period            |   |                                     | **125**                                |   |   | 127 |   |
| Warranty                reserves at end of period                                                              |   | **$**                                    | **390**                                |   | $ | 382 |   |

**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 **

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**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 FIRST QUARTER**

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**Results      of Operations**

**Three      months ended December 30, 2006**

|                                                             |   | Three                months ended |                                 | %                change due to: |   |
|------------------------------------------------------------------|--------|-----------------------------------|--------------------------------------|---------------------------------|--------|
|                                                             |   |                              | December              30, 2006  |                            |   | December                31, 2005 |   |   | Total |   |   | Currency |   |   | Volume                / other |   |
| **Sales:**                                                       |   |                              |                                 |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**                             | **7,803**                            |                            | $      | 7,503 |   |   | 4 | % |   | 6 | % |   | -2 | % |
| Capacitors-                to external customers                 |   |                              | **423**                              |                            |   | 318 |   |   | 33 | % |   | 11 | % |   | 22 | % |
| Capacitors                - inter-segment                        |   |                              | **15**                               |                            |   | 19 |   |   | -21 | % |   | 11 | % |   | -32 | % |
| Capacitors                - total                                |   |                              | **438**                              |                            |   | 337 |   |   | 30 | % |   | 11 | % |   | 19 | % |
| Total                sales to external customers                 |   |                              | **8,226**                            |                            |   | 7,821 |   |   | 5 | % |   | 6 | % |   | -1 | % |
| **Gross                Profit:**                                 |   |                              |                                 |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                              | **2,866**                            |                            |   | 2,920 |   |   | -2 | % |   | 7 | % |   | -9 | % |
| Capacitors                                                       |   |                              | **132**                              |                            |   | 127 |   |   | 4 | % |   | 11 | % |   | -7 | % |
| Total                                                            |   |                              | **2,998**                            |                            |   | 3,047 |   |   | -2 | % |   | 7 | % |   | -9 | % |
| **Selling                research and administrative expenses:** |   |                              |                                 |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                              | **2,547**                            |                            |   | 2,525 |   |   | 1 | % |   | 7 | % |   | -6 | % |
| Capacitors                                                       |   |                              | **207**                              |                            |   | 181 |   |   | 14 | % |   | 11 | % |   | 3 | % |
| Unallocated                corporate expense                     |   |                              | **40**                               |                            |   | 97 |   |   | -59 | % |   | 0 | % |   | -59 | % |
| Total                                                            |   |                              | **2,794**                            |                            |   | 2,803 |   |   | 0 | % |   | 7 | % |   | -7 | % |
| **Operating                income:**                             |   |                              |                                 |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                              | **319**                              |                            |   | 395 |   |   | -19 | % |   | 6 | % |   | -25 | % |
| Capacitors                                                       |   |                              | **(75**                              | **)**                           |   | (54 | ) |   | 39 | % |   | 11 | % |   | 28 | % |
| Unallocated                corporate expense                     |   |                              | **(40**                              | **)**                           |   | (97 | ) |   | -59 | % |   | 0 | % |   | 59 | % |
| Total                                                            |   |                              | **204**                              |                            |   | 244 |   |   | -16 | % |   | 7 | % |   | -23 | % |
| **Other                income and expense**                      |   |                              | **(70**                              | **)**                           |   | 2 |   |   | - | % |   | - | % |   | - | % |
| **Income                before income taxes**                    |   |                              | **134**                              |                            |   | 246 |   |   | -46 | % |   | -30 | % |   | -16 | % |
| **Income                taxes**                                  |   |                              | **(46**                              | **)**                           |   | (86 | ) |   | -47 | % |   | -31 | % |   | -16 | % |
| **Net                Income**                                    |   | **$**                             | **88**                               |                            | $      | 160 |   |   | -45 | % |   | -30 | % |   | -15 | % |

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**Financial      Condition**

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

**Foreign      currency risk**

|                                                                | (in                thousands, 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                        | 1,478                                                                          | - | 1,478 | 1,478 |
| Accounts                receivable in euros                         | 3,006                                                                          | - | 3,006 | 3,006 |
| Accounts                payable in pounds                           | 2,053                                                                          | - | 2,053 | 2,053 |
| Accounts                payable in euros                            | 349                                                                            | - | 349 | 349 |
| **Anticipated                Transactions and related derivatives** |                                                                           |   |   |   |
| In                $ US Functional Currency                          |                                                                           |   |   |   |
| **Firmly                committed sales contracts**                 |                                                                           |   |   |   |
| In                pounds                                            | 1,982                                                                          | - | 1,982 | - |
| In                Euros                                             | 1,708                                                                          | - | 1,708 | - |
| **Forward                exchange agreements**                      |                                                                           |   |   |   |
| Sell                US Dollars for British Pounds                   | -                                                                              | - | - | - |
| Sell                Euros for British Pounds                        | -                                                                              | - | - | - |
| Average                contractual exchange rate                    | N/A                                                                            | N/A | N/A |   |
| Amount                recorded as other comprehensive income        | $                          - | $                        - | $                        - | $        -  |

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**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.**

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

Item      6. Exhibits      

**SIGNATURES**

|                                   | TECH/OPS                SEVCON, INC                                                                      |
|----------------------------------------|----------------------------------------------------------------------------------------------------------|
|                                   |                                                                                                     |
|                                   |                                                                                                     |
| Date:                February 13, 2007 | 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. |

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