----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

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

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the quarterly period ended June 30, 2007**

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

**SECURITIES      EXCHANGE ACT OF 1934**

**TECH/OPS      SEVCON, INC.**

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

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

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

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

**(508)      281 5510**

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

**x**
**o**

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

**o**
**x**

| **Class**                                       | **Outstanding                at August 10, 2007** |
|-------------------------------------------------|---------------------------------------------------|
| **Common                stock, par value $.10** | **3,229,455**                                     |

----

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

**FORM      10-Q**

**FOR      THE QUARTER ENDED JUNE 30, 2007**

**INDEX**

| **PART                I -FINANCIAL INFORMATION**                                                                                                         | **PAGE** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **Item                1** **Financial                Statements**                                                                                   | 3        |
| Consolidated                Balance Sheets                                                                                                               | 3        |
| Consolidated                Statements of Income                                                                                                         | 4        |
| Consolidated                Statements of Comprehensive Income                                                                                           | 4        |
| Consolidated                Statements of Cash Flows                                                                                                     | 5        |
| Notes                to Consolidated Financial Statements                                                                                                | 6        |
| **Item                2** Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 12       |
| **Item                3** Quantitative                and Qualitative Disclosures about Market Risk                                                 | 17       |
| **I****tem                4** Controls                and Procedures                                                                                | 18       |
| **PART                II - OTHER INFORMATION**                                                                                                           | 19       |
| **Item                1A** Risk                Factors                                                                                              | 19       |
| **Item                6** Exhibits                                                                                                                  | 19       |
| **SIGNATURES**                                                                                                                                           | 20       |
| **INDEX                OF EXHIBITS**                                                                                                                     | 20       |

----

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

**CONSOLIDATED****BALANCE      SHEETS**

| (in                thousands of dollars except per share data)                                                                                                                                                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                        |   |   | **June                30,****2007**  |   |   | September                30,2006 |   |
|                                                                                                                                                                                                              |   |   | **(unaudited)**  |   |   | (derived                fromauditedstatements | ) |
| **ASSETS**                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| **Current                assets:**                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                    |   | **$** | **907** |   | $ | 1,290 |   |
| Receivables,                net of allowances for doubtful accounts of $174 at June 30, 2007                and                $141 at September 30, 2006                                                                   |   |   | **8,828** |   |   | 6,187 |   |
| Inventories                                                                                                                                                                                                                 |   |   | **5,876** |   |   | 4,717 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                    |   |   | **953** |   |   | 847 |   |
| Total                current assets                                                                                                                                                                                         |   |   | **16,564** |   |   | 13,041 |   |
| **Property,                plant and equipment:**                                                                                                                                                                           |   |   |   |   |   |   |   |
| At                cost                                                                                                                                                                                                      |   |   | **11,974** |   |   | 10,497 |   |
| Less:                accumulated depreciation and amortization                                                                                                                                                              |   |   | **8,202** |   |   | 7,202 |   |
| Net                property, plant and equipment                                                                                                                                                                            |   |   | **3,772** |   |   | 3,295 |   |
| Long-term                deferred tax asset                                                                                                                                                                                 |   |   | **949** |   |   | 881 |   |
| Goodwill                                                                                                                                                                                                                    |   |   | **1,435** |   |   | 1,435 |   |
| **Total                assets**                                                                                                                                                                                             |   | **$** | **22,720** |   | $ | 18,652 |   |
|                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ INVESTMENT**                                                                                                                                                           |   |   |   |   |   |   |   |
| **Current                liabilities:**                                                                                                                                                                                     |   |   |   |   |   |   |   |
| Accounts                payable                                                                                                                                                                                             |   | **$** | **4,252** |   | $ | 2,397 |   |
| Dividend                payable                                                                                                                                                                                             |   |   | **97** |   |   | 96 |   |
| Accrued                expenses                                                                                                                                                                                             |   |   | **2,747** |   |   | 2,701 |   |
| Accrued                and deferred taxes on income                                                                                                                                                                         |   |   | **1,011** |   |   | 479 |   |
| Total                current liabilities                                                                                                                                                                                    |   |   | **8,107** |   |   | 5,673 |   |
| Liability                for pension benefits                                                                                                                                                                               |   |   | **2,964** |   |   | 2,886 |   |
| Other                long term liabilities                                                                                                                                                                                  |   |   | **59** |   |   | 56 |   |
| Total                liabilities                                                                                                                                                                                            |   |   | **11,130** |   |   | 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 $.10 per share - authorized - 8,000,000                shares;outstanding                3,229,455 shares at June 30, 2007 and 3,211,051 shares at September                30, 2006 |   |   | **323** |   |   | 321 |   |
| Premium                paid in on common stock                                                                                                                                                                              |   |   | **4,478** |   |   | 4,309 |   |
| Retained                earnings                                                                                                                                                                                            |   |   | **7,940** |   |   | 7,123 |   |
| Cumulative                other comprehensive loss                                                                                                                                                                          |   |   | **(1,151** | **)** |   | (1,716 | ) |
| Total                stockholder equity                                                                                                                                                                                     |   |   | **11,590** |   |   | 10,037 |   |
| **Total                liabilities and stockholder equity**                                                                                                                                                                 |   | **$** | **22,720** |   | $ | 18,652 |   |
|  The                accompanying notes are an integral part of these consolidated financial                statements                                                                                                  |

----

**CONSOLIDATED      STATEMENTS OF INCOME**

| (in                thousands of dollars except per share data) |   |
|----------------------------------------------------------------|--------|
|                                                           |   | Three                months ended  | Nine                months ended |
|                                                           |   |   | **June                30,****2007**  |   |   | July                1,2006 |   |   | **June                30,****2007** |   |   | July                1,2006 |   |
| Net                sales                                       |   | **$** | **10,341** |   | $ | 9,313 |   | **$** | **28,941** |   | $ | 25,696 |   |
| Cost                of sales                                   |   |   | **6,550** |   |   | 5,761 |   |   | **18,138** |   |   | 15,780 |   |
| Gross                Profit                                    |   |   | **3,791** |   |   | 3,552 |   |   | **10,803** |   |   | 9,916 |   |
| Selling,                research and administrative expenses   |   |   | **3,009** |   |   | 2,968 |   |   | **8,919** |   |   | 8,526 |   |
| Operating                income                                |   |   | **782** |   |   | 584 |   |   | **1,884** |   |   | 1,390 |   |
| Interest                expense                                |   |   | **(10** | **)** |   | (13 | ) |   | **(17** | **)** |   | (48 | ) |
| Interest                income                                 |   |   | **3** |   |   | 1 |   |   | **7** |   |   | 3 |   |
| Foreign                currency loss                           |   |   | **(40** | **)** |   | (8 | ) |   | **(130** | **)** |   | (10 | ) |
| Income                before income taxes                      |   |   | **735** |   |   | 564 |   |   | **1,744** |   |   | 1,335 |   |
| Income                taxes                                    |   |   | **(252** | **)** |   | (195 | ) |   | **(605** | **)** |   | (464 | ) |
| Net                income                                      |   | **$** | **483** |   | $ | 369 |   | **$** | **1,139** |   | $ | 871 |   |
| Basic                income per share                          |   | **$** | **.15** |   | $ | .12 |   | **$** | **.36** |   | $ | .28 |   |
| Fully                diluted income per share                  |   | **$** | **.15** |   | $ | .12 |   | **$** | **.36** |   | $ | .28 |   |

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

|                                                              |   | (in                thousands of dollars) |                                      |
|-------------------------------------------------------------------|--------|------------------------------------------|-------------------------------------------|
|                                                              |   | Three                months ended   | Nine                months ended          |
|                                                              |   |                                     | **June                30,****2007**  |   |   | July                1,2006 |   |   | **June                30,****2007** |   |   | July                1,2006 |   |
| Net                income                                         |   | **$**                                    | **483**                                   |   | $ | 369 |   | **$** | **1,139** |   | $ | 871 |   |
| Foreign                currency translation adjustment            |   |                                     | **193**                                   |   |   | 529 |   |   | **528** |   |   | 418 |   |
| Changes                in fair market value of cash flow hedges   |   |                                     | **-**                                     |   |   | 14 |   |   | **-** |   |   | 1 |   |
| Amortization                of pension transition items to income |   |                                     | **11**                                    |   |   | - |   |   | **37** |   |   | - |   |
| Comprehensive                income                               |   | **$**                                    | **687**                                   |   | $ | 912 |   | **$** | **1,704** |   | $ | 1,290 |   |

----

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

|                                                                                                                  |   | (in                thousands of dollars)  |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                                                                  |   | Nine                months ended          |
|                                                                                                                  |   |                                           | **June                30,****2007**  |   |   | July                1,2006 |   |
| Cash                flow from operating activities:                                                                   |   |                                           |   |   |   |   |   |
| Net                income                                                                                             |   | **$**                                          | **1,139** |   | $ | 871 |   |
| Adjustments                to reconcile net income to net cash from operating                activities:              |   |                                           |   |   |   |   |   |
| Depreciation                and amortization                                                                          |   |                                           | **555** |   |   | 469 |   |
| Stock-based                compensation                                                                               |   |                                           | **142** |   |   | 134 |   |
| Deferred                tax benefit                                                                                   |   |                                           | **(68** | **)** |   | 2 |   |
| Increase                (decrease) in cash resulting from changes in operating assets and                liabilities: |   |                                           |   |   |   |   |   |
| Receivables                                                                                                           |   |                                           | **(2,641** | **)** |   | (626 | ) |
| Inventories                                                                                                           |   |                                           | **(1,159** | **)** |   | (1,786 | ) |
| Prepaid                expenses and other current assets                                                              |   |                                           | **(106** | **)** |   | (281 | ) |
| Accounts                payable                                                                                       |   |                                           | **1,855** |   |   | 241 |   |
| Accrued                expenses                                                                                       |   |                                           | **46** |   |   | 239 |   |
| Accrued                and deferred taxes on income                                                                   |   |                                           | **532** |   |   | (18 | ) |
| Net                cash generated from (used by) operating activities                                                 |   |                                           | **295** |   |   | (755 | ) |
| Cash                flow used by investing activities:                                                                |   |                                           |   |   |   |   |   |
| Acquisition                of property, plant and equipment                                                           |   |                                           | **(783** | **)** |   | (462 | ) |
| Net                cash used by investing activities                                                                  |   |                                           | **(783** | **)** |   | (462 | ) |
| Cash                flow used by financing activities:                                                                |   |                                           |   |   |   |   |   |
| Dividends                paid                                                                                         |   |                                           | **(289** | **)** |   | (287 | ) |
| Exercise                of stock options                                                                              |   |                                           | **4** |   |   | 9 |   |
| Short-term                bank borrowings                                                                             |   |                                           | **-** |   |   | 426 |   |
| Net                cash (used by) generated from financing activities                                                 |   |                                           | **(285** | **)** |   | 148 |   |
| Effect                of exchange rate changes on cash                                                                |   |                                           | **390** |   |   | 269 |   |
| Net                decrease in cash                                                                                   |   |                                           | **(383** | **)** |   | (800 | ) |
| Beginning                balance - cash and cash equivalents                                                          |   |                                           | **1,290** |   |   | 1,130 |   |
| Ending                balance - cash and cash equivalents                                                             |   | **$**                                          | **907** |   | $ | 330 |   |
| Supplemental                disclosure of cash flow information:                                                      |   |                                           |   |   |   |   |   |
| Cash                paid for income taxes                                                                             |   | **$**                                          | **266** |   | $ | 619 |   |
| Cash                paid for interest                                                                                 |   | **$**                                          | **17** |   | $ | 48 |   |
| Supplemental                disclosure of non-cash financing activity:                                                |   |                                           |   |   |   |   |   |
| Dividend                declared                                                                                      |   | **$**                                          | **97** |   | $ | 96 |   |

----

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

**Notes      to Consolidated Financial Statements - June 30, 2007**

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

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

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

----

|                              |   |   | OptionsNo.                of shares  |   |   | Weighted                average Exercise Price |   |   | Weighted                average remaining contractual life (years | )      |   | AggregateIntrinsic                Value |   |
|--------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|
| Outstanding                at September 30, 2006 |   |   | 172,000                                   |   | $      | 9.35                                           |   |   |                                                              |   |   |                                    |   |
| Granted                                          |   |   | -                                         |   |   |                                           |   |   |                                                              |   |   |                                    |   |
| Exercised                                        |   |   | (8,000                                    | )      | $      | 4.37                                           |   |   |                                                              |   |   |                                    |   |
| Cancelled                                        |   |   | (20,000                                   | )      | $      | 14.31                                          |   |   |                                                              |   |   |                                    |   |
| Outstanding                at June 30, 2007      |   |   | 144,000                                   |   | $      | 8.94                                           |   |   | 2.5                years                                          |   | $      | 320,000                                 |   |
| Exercisable                at June 30, 2007      |   |   | 105,750                                   |   | $      | 9.66                                           |   |   | 3.1                years                                          |   | $      | 197,000                                 |   |

----

|                                                  |   |   | 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                                                    |   |   | 14,000                                                          |   | $      | 7.77                                                  |   |
| Vested                                                     |   |   | (24,000                                                         | )      | $      | 5.72                                                  |   |
| Forfeited                                                  |   |   | -                                                               |   |   | N/A                                                   |   |
| Non-vested                balance as of June 30, 2007      |   |   | 55,000                                                          |   | $      | 6.22                                                  |   |

|                                                    |   | (in                thousands of dollars)  |
|---------------------------------------------------------|--------|------------------------------------------------|
|                                                    |   | Three                Months ended         | Nine                Months ended |
|                                                    |   |                                           | **June                30,****2007**  |   |   | July                1, 2006 |   |   | **June                30,****2007** |   |   | July                1, 2006 |   |
| Stock                option expense under SFAS No. 123R |   | **$**                                          | **6** |   | $ | 13 |   | **$** | **27** |   | $ | 36 |   |
| Restricted                stock grants:                 |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Employees                                               |   |                                           | **19** |   |   | 14 |   |   | **54** |   |   | 41 |   |
| Non-employee                directors                   |   |                                           | **23** |   |   | 17 |   |   | **61** |   |   | 57 |   |
| Total                stock based compensation expense   |   | **$**                                          | **48** |   | $ | 44 |   | **$** | **142** |   | $ | 134 |   |

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

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

|                                                                                                                      |   | (in                thousands except per share data)  |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|
|                                                                                                                      |   | Three                Months ended                    | Nine                Months ended |
|                                                                                                                      |   |                                                      | **June                30,****2007**  |   |   | July                1,2006 |   |   | **June                30,****2007** |   |   | July                1,2006 |   |
| Net                income                                                                                                 |   | **$**                                                     | **483** |   | $ | 369 |   | **$** | **1,139** |   | $ | 871 |   |
| Weighted                average shares outstanding - basic                                                                |   |                                                      | **3,172** |   |   | 3,144 |   |   | **3,162** |   |   | 3,134 |   |
| Basic                income per share                                                                                     |   | **$**                                                     | **.15** |   | $ | .12 |   | **$** | **.36** |   | $ | .28 |   |
| Common                stock equivalents                                                                                   |   |                                                      | **53** |   |   | 30 |   |   | **44** |   |   | 22 |   |
| Weighted                average shares outstanding - diluted                                                              |   |                                                      | **3,225** |   |   | 3,174 |   |   | **3,206** |   |   | 3,156 |   |
| Diluted                income per share                                                                                   |   | **$**                                                     | **.15** |   | $ | .12 |   | **$** | **.36** |   | $ | .28 |   |
| No.                of options that are anti-dilutive excluded from calculation of common                stock equivalents |   |                                                      | **80** |   |   | 105 |   |   | **100** |   |   | 105 |   |

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

----

|                                               |   | (in                  thousands of dollars)             |
|----------------------------------------------------|--------|-------------------------------------------------------------|
|                                               |   | **Three                  months ended June 30, 2007**  |
|                                               |   |                                                        | **Controls**  |   |   | **Capacitors** |   |   | **Corporate** |   |   | **Total** |   |
| **Sales                  to external customers**   |   | **$**                                                       | **9,753** |   | **$** | **588** |   | **$** | **-** |   | **$** | **10,341** |   |
| **Inter-segment                  revenues**        |   |                                                        | **-** |   |   | **8** |   |   | **-** |   |   | **8** |   |
| **Operating                  income**              |   |                                                        | **963** |   |   | **8** |   |   | **(189** | **)** |   | **782** |   |
| **Identifiable                  assets**           |   |                                                        | **21,141** |   |   | **1,109** |   |   | **470** |   |   | **22,720** |   |
|                                               |   | Three                  months ended July 1, 2006       |
|                                               |   |                                                        | Controls  |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales                  to external customers       |   | $                                                           | 8,901 |   | $ | 412 |   | $ | - |   | $ | 9,313 |   |
| Inter-segment                  revenues            |   |                                                        | - |   |   | 18 |   |   | - |   |   | 18 |   |
| Operating                  income (loss)           |   |                                                        | 726 |   |   | (25 | ) |   | (117 | ) |   | 584 |   |
| Identifiable                  assets               |   |                                                        | 16,992 |   |   | 906 |   |   | 582 |   |   | 18,480 |   |
|                                               |   | **Nine                  months ended June 30, 2007**   |
|                                               |   |                                                        | **Controls**  |   |   | **Capacitors** |   |   | **Corporate** |   |   | **Total** |   |
| **Sales                  to external customers**   |   | **$**                                                       | **27,437** |   | **$** | **1,504** |   | **$** | **-** |   | **$** | **28,941** |   |
| **Inter-segment                  revenues**        |   |                                                        | **-** |   |   | **39** |   |   | **-** |   |   | **39** |   |
| **Operating                  income (loss)**       |   |                                                        | **2,211** |   |   | **(25** | **)** |   | **(302** | **)** |   | **1,884** |   |
| **Depreciation                  and amortization** |   |                                                        | **507** |   |   | **44** |   |   | **4** |   |   | **555** |   |
| **Identifiable                  assets**           |   |                                                        | **21,141** |   |   | **1,109** |   |   | **470** |   |   | **22,720** |   |
| **Capital                  expenditures**          |   |                                                        | **704** |   |   | **75** |   |   | **4** |   |   | **783** |   |
|                                               |   | Nine                  months ended July 1, 2006        |
|                                               |   |                                                        | Controls  |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales                  to external customers       |   | $                                                           | 24,503 |   | $ | 1,193 |   | $ | - |   | $ | 25,696 |   |
| Inter-segment                  revenues            |   |                                                        | - |   |   | 53 |   |   | - |   |   | 53 |   |
| Operating                  income (loss)           |   |                                                        | 1,679 |   |   | (43 | ) |   | (246 | ) |   | 1,390 |   |
| Depreciation                  and amortization     |   |                                                        | 427 |   |   | 42 |   |   | - |   |   | 469 |   |
| Identifiable                  assets               |   |                                                        | 16,992 |   |   | 906 |   |   | 582 |   |   | 18,480 |   |
| Capital                  expenditures              |   |                                                        | 396 |   |   | 24 |   |   | - |   |   | 420 |   |

|                                                                |   | (in                  thousands of dollars)  |
|---------------------------------------------------------------------|--------|--------------------------------------------------|
|                                                                |   | Three                  Months ended         | Nine                  Months ended |
|                                                                |   |                                             | June                  30,2007  |   |   | July                  1,2006 |   |   | **June                  30,****2007** |   |   | July                  1,2006 |   |
| Electronic                  controllers for battery driven vehicles |   | **$**                                            | **6,710** |   | $ | 6,260 |   | **$** | **19,183** |   | $ | 17,291 |   |
| Accessory                  and aftermarket products and services    |   |                                             | **3,043** |   |   | 2,641 |   |   | **8,254** |   |   | 7,212 |   |
| Total                  controls segment revenues                    |   | **$**                                            | **9,753** |   | $ | 8,901 |   | **$** | **27,437** |   | $ | 24,503 |   |

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

|                                            |   | (in                thousands of dollars)  |
|-------------------------------------------------|--------|------------------------------------------------|
|                                            |   | Three                Months ended              | Nine                Months ended |
|                                            |   |                                           | **June                30,****2007**  |   |   | July                1,2006 |   |   | **June                30,****2007** |   |   | July                1,2006 |   |
| Research                and Development expense |   | **$**                                          | **946** |   | $ | 919 |   | **$** | **2,845** |   | $ | 2,701 |   |
| Percentage                of sales              |   |                                           | **9.1%** |   |   | 9.9% |   |   | **9.8%** |   |   | 10.5% |   |

----

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

|                                                  |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   | Three                Months ended         | Nine                Months ended |
|                                                  |   |                                           | **June                30,****2007**  |   |   | July                1,2006 |   |   | **June                30,****2007** |   |   | July                1,2006 |   |
| Service                cost                           |   | **$**                                          | **149** |   | $ | 98 |   | **$** | **441** |   | $ | 284 |   |
| Interest                cost                          |   |                                           | **293** |   |   | 241 |   |   | **863** |   |   | 698 |   |
| Expected                return on plan assets         |   |                                           | **(290** | **)** |   | (227 | ) |   | **(854** | **)** |   | (656 | ) |
| Amortization                of transition obligation  |   |                                           | **-** |   |   | - |   |   | **-** |   |   | - |   |
| Amortization                of prior service cost     |   |                                           | **15** |   |   | 14 |   |   | **44** |   |   | 40 |   |
| Recognized                net actuarial gain          |   |                                           | **3** |   |   | - |   |   | **9** |   |   | - |   |
| Net                periodic benefit cost              |   |                                           | **170** |   |   | 126 |   |   | **503** |   |   | 366 |   |
| Net                cost of defined contribution plans |   | **$**                                          | **11** |   | $ | 9 |   | **$** | **33** |   | $ | 25 |   |

|                                                                 |   | (in                thousands of dollars)  |
|----------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                 |   | Nine                Months ended          |
|                                                                 |   |                                           | June                30,2007  |   |   | July                1,2006 |   |
| Liability                for pension benefits at beginning of period |   | **$**                                          | **2,886** |   | $ | N/A |   |
| Net                periodic benefit cost                             |   |                                           | **503** |   |   | N/A |   |
| Plan                contributions                                    |   |                                           | **(572** | **)** |   | N/A |   |
| Effect                of exchange rate changes                       |   |                                           | **147** |   |   | N/A |   |
| Balance                at end of period                              |   | **$**                                          | **2,964** |   | $ | N/A |   |

|                                                                                                                                                             | Unrecognizedtransition                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 nine months of fiscal                2007 |   -                                    |   (44)                                              |   (9)                                                                     |   16              |   (37) |
| Balance                at June 30, 2007                                                                                                                          | $1                                               | $1,962                                                        | $756                                                                                | $(833)                      | $1,886           |
| Amounts                expected to be recognized in the remainder of fiscal 2007                                                                                 |  -                                          |  (15)                                                    |  (3)                                                                           |  4                     |  (14)       |

----

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

|                          |   | (in                thousands of dollars)  |
|-------------------------------|--------|------------------------------------------------|
|                          |   |                                           | **June                30,****2007**  |   |   | September                30,2006 |   |
| Raw                materials  |   | **$**                                          | **2,855** |   | $ | 2,195 |   |
| Work-in-process               |   |                                           | **200** |   |   | 119 |   |
| Finished                goods |   |                                           | **2,821** |   |   | 2,403 |   |
|                          |   | **$**                                          | **5,876** |   | $ | 4,717 |   |

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

|                                                  |   | (in                thousands of dollars)  |
|-------------------------------------------------------|--------|------------------------------------------------|
|                                                  |   |                                           | **June                30,****2007**  |   |   | September                30,2006 |   |
| Accrued                compensation and related costs |   | **$**                                          | **1,205** |   | $ | 1,047 |   |
| Warranty                reserves                      |   |                                           | **470** |   |   | 364 |   |
| Other                accrued expenses                 |   |                                           | **1,072** |   |   | 1,290 |   |
|                                                  |   | **$**                                          | **2,747** |   | $ | 2,701 |   |

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

|                                                                                                           |   | (in                thousands of dollars)  |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                                                           |   | Three                Months ended         | Nine                Months ended |
|                                                                                                           |   |                                           | **June                30,****2007**  |   |   | July                1,2006 |   |   | **June                30,****2007** |   |   | July                1,2006 |   |
| Warranty                reserves at beginning of period                                                        |   | **$**                                          | **418** |   | $ | 450 |   | **$** | **364** |   | $ | 364 |   |
| Decrease                in beginning balance for warranty obligations settled during the                period |   |                                           | **(76** | **)** |   | (81 | ) |   | **(258** | **)** |   | (299 | ) |
| Other                changes to pre-existing warranties                                                        |   |                                           | **3** |   |   | 8 |   |   | **13** |   |   | 55 |   |
| Net                increase in warranty reserves for products sold during the                period            |   |                                           | **125** |   |   | 145 |   |   | **351** |   |   | 402 |   |
| Warranty                reserves at end of period                                                              |   | **$**                                          | **470** |   | $ | 522 |   | **$** | **470** |   | $ | 522 |   |

----

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

**FORWARD      LOOKING STATEMENTS**

**NEW      ACCOUNTING PRONOUNCEMENTS**

**CRITICAL      ACCOUNTING ESTIMATES**

**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 THIRD QUARTER AND FIRST NINE MONTHS**

----

**Results      of Operations**

**Three      months ended June 30, 2007**

|                                                             |   |   | %              change due to:  |
|------------------------------------------------------------------|--------|--------|-------------------------------------|
|                                                             |   |   | **2007**                            |   |   | 2006 |   |   | Total |   |   | Currency |   |   | Volume                / other |   |
| **Sales:**                                                       |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**  | **9,753**                           |   | $ | 8,901 |   |   | 10% |   |   | 4% |   |   | 6% |   |
| Capacitors                - to external customers                |   |   | **588**                             |   |   | 412 |   |   | 43% |   |   | 11% |   |   | 32% |   |
| Capacitors                - inter-segment                        |   |   | **8**                               |   |   | 18 |   |   | -56% |   |   | 11% |   |   | -67% |   |
| Capacitors                - total                                |   |   | **596**                             |   |   | 430 |   |   | 39% |   |   | 11% |   |   | 28% |   |
| Total                sales to external customers                 |   |   | **10,341**                          |   |   | 9,313 |   |   | 11% |   |   | 5% |   |   | 6% |   |
| **Gross                Profit:**                                 |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |   | **3,566**                           |   |   | 3,372 |   |   | 6% |   |   | -3% |   |   | 9% |   |
| Capacitors                                                       |   |   | **225**                             |   |   | 180 |   |   | 25% |   |   | 11% |   |   | 14% |   |
| Total                                                            |   |   | **3,791**                           |   |   | 3,552 |   |   | 7% |   |   | -2% |   |   | 9% |   |
| **Selling                research and administrative expenses:** |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |   | **2,603**                           |   |   | 2,646 |   |   | -2% |   |   | 5% |   |   | -7% |   |
| Capacitors                                                       |   |   | **217**                             |   |   | 205 |   |   | 6% |   |   | 11% |   |   | -5% |   |
| Unallocated                corporate expense                     |   |   | **189**                             |   |   | 117 |   |   | 62% |   |   | 0% |   |   | 62% |   |
| Total                                                            |   |   | **3,009**                           |   |   | 2,968 |   |   | 1% |   |   | 5% |   |   | -4% |   |
| **Operating                income:**                             |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |   | **963**                             |   |   | 726 |   |   | 33% |   |   | -32% |   |   | 65% |   |
| Capacitors                                                       |   |   | **8**                               |   |   | (25 | ) |   | 132% |   |   | 11% |   |   | 121% |   |
| Unallocated                corporate expense                     |   |   | **(189**                            | **)** |   | (117 | ) |   | 62% |   |   | 0% |   |   | 62% |   |
| Total                                                            |   |   | **782**                             |   |   | 584 |   |   | 34% |   |   | -39% |   |   | 73% |   |
| **Other                income and expense**                      |   |   | **(47**                             | **)** |   | (20 | ) |   | 135% |   |   | 170% |   |   | -35% |   |
| **Income                before income taxes**                    |   |   | **735**                             |   |   | 564 |   |   | 30% |   |   | -46% |   |   | 76% |   |
| **Income                taxes**                                  |   |   | **(252**                            | **)** |   | (195 | ) |   | 29% |   |   | -49% |   |   | 78% |   |
| **Net                Income**                                    |   | **$**  | **483**                             |   | $ | 369 |   |   | 31% |   |   | -45% |   |   | 76% |   |

----

**Nine      months ended June 30, 2007**

|                                                             |   | Nine                months ended  | %                change due to:           |
|------------------------------------------------------------------|--------|----------------------------------------|-------------------------------------------|
|                                                             |   |                                   | **June                30,****2007**  |   |   | July                1, 2006 |   |   | Total |   |   | Currency |   |   | Volume                / other |   |
| **Sales:**                                                       |   |                                   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                - to external customers                  |   | **$**                                  | **27,437**                                |   | $ | 24,503 |   |   | 12% |   |   | 6% |   |   | 6% |   |
| Capacitors                - to external customers                |   |                                   | **1,504**                                 |   |   | 1,193 |   |   | 26% |   |   | 12% |   |   | 14% |   |
| Capacitors                - inter-segment                        |   |                                   | **39**                                    |   |   | 53 |   |   | -26% |   |   | 12% |   |   | -38% |   |
| Capacitors                - total                                |   |                                   | **1,543**                                 |   |   | 1,246 |   |   | 24% |   |   | 12% |   |   | 12% |   |
| Total                sales to external customers                 |   |                                   | **28,941**                                |   |   | 25,696 |   |   | 13% |   |   | 6% |   |   | 7% |   |
| **Gross                Profit:**                                 |   |                                   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                   | **10,223**                                |   |   | 9,385 |   |   | 9% |   |   | 1% |   |   | 8% |   |
| Capacitors                                                       |   |                                   | **580**                                   |   |   | 531 |   |   | 9% |   |   | 12% |   |   | -3% |   |
| Total                                                            |   |                                   | **10,803**                                |   |   | 9,916 |   |   | 9% |   |   | 2% |   |   | 7% |   |
| **Selling                research and administrative expenses:** |   |                                   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                   | **8,012**                                 |   |   | 7,706 |   |   | 4% |   |   | 7% |   |   | -3% |   |
| Capacitors                                                       |   |                                   | **605**                                   |   |   | 574 |   |   | 5% |   |   | 12% |   |   | -7% |   |
| Unallocated                corporate expense                     |   |                                   | **302**                                   |   |   | 246 |   |   | 23% |   |   | 0% |   |   | 23% |   |
| Total                                                            |   |                                   | **8,919**                                 |   |   | 8,526 |   |   | 5% |   |   | 7% |   |   | -2% |   |
| **Operating                income:**                             |   |                                   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                         |   |                                   | **2,211**                                 |   |   | 1,679 |   |   | 32% |   |   | -25% |   |   | 57% |   |
| Capacitors                                                       |   |                                   | **(25**                                   | **)** |   | (43 | ) |   | 42% |   |   | 12% |   |   | 30% |   |
| Unallocated                corporate expense                     |   |                                   | **(302**                                  | **)** |   | (246 | ) |   | 23% |   |   | 0% |   |   | 23% |   |
| Total                                                            |   |                                   | **1,884**                                 |   |   | 1,390 |   |   | 36% |   |   | -30% |   |   | 66% |   |
| **Other                income and expense**                      |   |                                   | **(140**                                  | **)** |   | (55 | ) |   | 155% |   |   | 220% |   |   | -65% |   |
| **Income                before income taxes**                    |   |                                   | **1,744**                                 |   |   | 1,335 |   |   | 31% |   |   | -41% |   |   | 72% |   |
| **Income                taxes**                                  |   |                                   | **(605**                                  | **)** |   | (464 | ) |   | 30% |   |   | -42% |   |   | 72% |   |
| **Net                Income**                                    |   | **$**                                  | **1,139**                                 |   | $ | 871 |   |   | 31% |   |   | -40% |   |   | 71% |   |

----

**Financial      Condition**

----

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

**Foreign      currency risk**

----

|                                                                                                |   | (in                thousands of dollars, except average contract                rates)  |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|
|                                                                                                |   | Expected                maturity or transaction date                                    |   |   |   |
|                                                                                                |   |                                                                                         | FY2007  |   |   | FY2008 |   |   | Total |   |   | Fair                Value |   |
| **On                balance sheet financial instruments:**                                          |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| In                $ US Functional Currency                                                          |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                receivable in British Pounds                                                |   |                                                                                         | 1,674 |   |   | - |   |   | 1,674 |   |   | 1,674 |   |
| Accounts                receivable in Euros                                                         |   |                                                                                         | 4,572 |   |   | - |   |   | 4,572 |   |   | 4,572 |   |
| Accounts                payable in British Pounds                                                   |   |                                                                                         | 3,080 |   |   | - |   |   | 3,080 |   |   | 3,080 |   |
| Accounts                payable in Euros                                                            |   |                                                                                         | 424 |   |   | - |   |   | 424 |   |   | 424 |   |
| **Anticipated                Transactions and related derivatives**                                 |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| In                $ US Functional Currency                                                          |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Firmly                committed sales contracts**                                                 |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| In                British Pounds                                                                    |   |                                                                                         | 1,705 |   |   | - |   |   | 1,705 |   |   | - |   |
| In                Euros                                                                             |   |                                                                                         | 1,562 |   |   | - |   |   | 1,562 |   |   | - |   |
| **Forward                exchange agreements**                                                      |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Sell                US Dollars for British Pounds                                                   |   |                                                                                         | 1,400 |   |   | - |   |   | 1,400 |   |   | 14 |   |
| Average                contractual exchange rate                                                    |   |                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| US                Dollars = British Pound                                                           |   |                                                                                         | 1.99                = 1 |   |   | - |   |   | 1.99                = 1 |   |   | - |   |
| Amount                recorded as other     comprehensive                income |   | $                                                                                            | - |   | $ | - |   | $ | - |   | $ | - |   |

**Interest      Rate Risk**

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

----

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

Item      1A.      Risk Factors

**Capital      goods markets are cyclical**

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

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

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

Item      6. Exhibits      

----

**SIGNATURES**

|                                 | TECH/OPS                SEVCON, INC                                  |
|--------------------------------------|----------------------------------------------------------------------|
|                                 |                                                                 |
|                                 |                                                                 |
| Date:                August 10, 2007 | By:                /s/ Paul A. McPartlin                             |
|                                 | Paul                A. McPartlin                                     |
|                                 | Chief                Financial Officer (Principal Financial Officer) |
|                                 |
| Date:                August 10, 2007 | By:                /s/ Paul N. Farquhar                              |
|                                 | Paul                N. Farquhar                                      |
|                                 | Principal                Accounting Officer                          |
|                                 |                                                                 |

|    | **Exhibit                Index**                                                                                                                                                                                        |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                    |
| Exhibit | Description                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                    |
| 31.1    | Certification                of Principal Executive Officer pursuant to section 302 of the                Sarbanes-Oxley Act of 2002. Filed herewith.                                                                   |
|    |                                                                                                                                                                                                                    |
| 31.2    | Certification                of Principal Financial Officer pursuant to section 302 of the                Sarbanes-Oxley Act of 2002. Filed herewith.                                                                   |
|    |                                                                                                                                                                                                                    |
| 32.1    | Certification                of Principal Executive Officer and Principal Financial Officer pursuant                to                section 906 of the Sarbanes-Oxley Act of 2002. Furnished                herewith. |

----