----

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

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer o                       | Smaller reporting company x |
|---------------------------|---------------------|-----------------------------------------------|-----------------------------|
|                      |                | (Do not check if a smaller reporting company) |                        |

| Class                        | Outstanding at August 11, 2010 |
|------------------------------|--------------------------------|
| Common stock, par value $.10 | 3,340,322                      |

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INDEX

|                                                                                                                      | PAGE |
|---------------------------------------------------------------------------------------------------------------------------|------|
| PART I - FINANCIAL INFORMATION                                                                                            | 3    |
| Item 1    Financial Statements (unaudited)                                                            | 3    |
| Consolidated Balance Sheets                                                                                               | 3    |
| Consolidated Statements of Operations                                                                                     | 4    |
| Consolidated Statements of Comprehensive Income (Loss)                                                                    | 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   |
| Item 4    Controls and Procedures                                                                     | 17   |
| PART II - OTHER INFORMATION                                                                                               | 18   |
| Item 1    Legal Proceedings                                                                           | 18   |
| Item 1A Risk Factors                                                                                                 | 18   |
| Item 2    Unregistered Sales of Equity Securities and Use of Proceeds                                 | 19   |
| Item 3    Defaults upon Senior Securities                                                             | 19   |
| Item 4    (Removed and Reserved)                                                                      | 19   |
| Item 5    Other Information                                                                           | 19   |
| Item 6    Exhibits                                                                                    | 20   |
| SIGNATURES                                                                                                                | 20   |
| INDEX OF EXHIBITS                                                                                                         | 20   |

----

| (in thousands of dollars except per share data)                                                                                                               |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                          |   | July 3,2010 |   |   | September 30,2009 |   |
|                                                                                                                                                          |   |  (unaudited) |   |   | (derived from audited statements) |   |
| ASSETS                                                                                                                                                        |   |   |   |   |   |   |
| Current assets:                                                                                                                                               |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                     |   | $ | 983 |   |   | $ | 632 |   |
| Receivables, net of allowances for doubtful accounts of $42 at July 3, 2010and $92 at September 30, 2009                                                      |   |   | 4,537 |   |   |   | 3,383 |   |
| Inventories                                                                                                                                                   |   |   | 4,648 |   |   |   | 4,723 |   |
| Prepaid expenses and other current assets                                                                                                                     |   |   | 915 |   |   |   | 1,398 |   |
| Total current assets                                                                                                                                          |   |   | 11,083 |   |   |   | 10,136 |   |
| Property, plant and equipment:                                                                                                                                |   |   |   |   |   |   |   |   |
| At cost                                                                                                                                                       |   |   | 10,702 |   |   |   | 10,745 |   |
| Less: accumulated depreciation and amortization                                                                                                               |   |   | 7,804 |   |   |   | 7,874 |   |
| Net property, plant and equipment                                                                                                                             |   |   | 2,898 |   |   |   | 2,871 |   |
| Long-term deferred tax asset                                                                                                                                  |   |   | 2,277 |   |   |   | 2,357 |   |
| Goodwill                                                                                                                                                      |   |   | 1,435 |   |   |   | 1,435 |   |
| Other long-term assets                                                                                                                                        |   |   | 14 |   |   |   | 11 |   |
| Total assets                                                                                                                                                  |   | $ | 17,707 |   |   | $ | 16,810 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ INVESTMENT                                                                                                                |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                          |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                                              |   | $ | 2,816 |   |   | $ | 1,730 |   |
| Accrued expenses                                                                                                                                              |   |   | 1,387 |   |   |   | 1,611 |   |
| Accrued and deferred taxes on income                                                                                                                          |   |   | 47 |   |   |   | - |   |
| Total current liabilities                                                                                                                                     |   |   | 4,250 |   |   |   | 3,341 |   |
| Liability for pension benefits                                                                                                                                |   |   | 7,022 |   |   |   | 7,166 |   |
| Other long term liabilities                                                                                                                                   |   |   | 203 |   |   |   | 48 |   |
| Total liabilities                                                                                                                                             |   |   | 11,475 |   |   |   | 10,555 |   |
| Stockholders’ equity:                                                                                                                                   |   |   |   |   |   |   |   |   |
| Preferred stock, par value $.10 per share - authorized - 1,000,000 shares;outstanding – none                                                            |   |   | - |   |   |   | - |   |
| Common stock, par value $.10 per share - authorized - 8,000,000 shares;Outstanding 3,340,322 shares at July 3, 2010 and 3,326,322 shares atSeptember 30, 2009 |   |   |   334 |   |   |   |   333 |   |
| Premium paid in on common stock                                                                                                                               |   |   | 5,118 |   |   |   | 5,033 |   |
| Retained earnings                                                                                                                                             |   |   | 7,194 |   |   |   | 6,889 |   |
| Accumulated other comprehensive loss                                                                                                                          |   |   | (6,414 | ) |   |   | (6,000 | ) |
| Total stockholders’ equity                                                                                                                              |   |   | 6,232 |   |   |   | 6,255 |   |
| Total liabilities and stockholders’ equity                                                                                                              |   | $ | 17,707 |   |   | $ | 16,810 |   |

----

index

| (in thousands of dollars except per share data) |   |
|-------------------------------------------------|--------|
|                                            |   | Three months ended |   |   | Nine months ended |   |
|                                            |   | July 3,2010 |   |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Net sales                                       |   | $ | 6,490 |   |   | $ | 4,060 |   |   | $ | 19,022 |   |   | $ | 15,770 |   |
| Cost of sales                                   |   |   | 4,230 |   |   |   | 2,579 |   |   |   | 12,157 |   |   |   | 9,946 |   |
| Gross Profit                                    |   |   | 2,260 |   |   |   | 1,481 |   |   |   | 6,865 |   |   |   | 5,824 |   |
| Selling, research and administrative expenses   |   |   | 2,322 |   |   |   | 2,055 |   |   |   | 6,703 |   |   |   | 6,496 |   |
| Restructuring charge                            |   |   | - |   |   |   | (5 | ) |   |   | - |   |   |   | 298 |   |
| Operating (loss) income                         |   |   | (62 | ) |   |   | (569 | ) |   |   | 162 |   |   |   | (970 | ) |
| Interest expense                                |   |   | (6 | ) |   |   | (6 | ) |   |   | (16 | ) |   |   | (21 | ) |
| Interest income                                 |   |   | - |   |   |   | - |   |   |   | 26 |   |   |   | 4 |   |
| Foreign currency gain (loss)                    |   |   | 205 |   |   |   | 79 |   |   |   | 252 |   |   |   | (137 | ) |
| Income (loss) before income taxes               |   |   | 137 |   |   |   | (496 | ) |   |   | 424 |   |   |   | (1,124 | ) |
| Income tax (provision) benefit                  |   |   | (18 | ) |   |   | 196 |   |   |   | (119 | ) |   |   | 390 |   |
| Net income (loss)                               |   | $ | 119 |   |   | $ | (300 | ) |   | $ | 305 |   |   | $ | (734 | ) |
| Basic income (loss) per share                   |   | $ | .03 |   |   | $ | (.09 | ) |   | $ | .09 |   |   | $ | (.23 | ) |
| Fully diluted income (loss) per share           |   | $ | .03 |   |   | $ | (.09 | ) |   | $ | .09 |   |   | $ | (.23 | ) |

|                                               |   |               | (in thousands of dollars) |   |
|----------------------------------------------------|--------|--------------------|---------------------------|--------|
|                                               |   | Three months ended |                      |   | Nine months ended |   |
|                                               |   | July 3,2010        |                      |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Net income (loss)                                  |   | $                  | 119                       |   |   | $ | (300 | ) |   | $ | 305 |   |   | $ | (734 | ) |
| Foreign currency translation adjustment            |   |               | (190                      | )      |   |   | 934 |   |   |   | (439 | ) |   |   | (528 | ) |
| Amortization of pension transition items to income |   |               | 8                         |   |   |   | 8 |   |   |   | 25 |   |   |   | 24 |   |
| Comprehensive (loss) income                        |   | $                  | (63                       | )      |   | $ | 642 |   |   | $ | (109 | ) |   | $ | (1,238 | ) |

----

index

|                                                                                        |   | (in thousands of dollars) |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                        |   | Nine months ended         |   |
|                                                                                        |   | July 3,2010               |   |   | June 27,2009 |   |
| Cash flow from operating activities:                                                        |   |                      |   |   |   |   |
| Net income (loss)                                                                           |   | $                         | 305    |   |   | $ | (734 | ) |
| Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: |   |                      |   |   |   |   |   |   |
| Depreciation                                                                                |   |                      | 425    |   |   |   | 412 |   |
| Loss on disposal of fixed assets                                                            |   |                      | 6      |   |   |   | - |   |
| Stock-based compensation                                                                    |   |                      | 87     |   |   |   | 124 |   |
| Pension contributions less than (greater than) pension expense                              |   |                      | 222    |   |   |   | (6 | ) |
| Deferred tax provision                                                                      |   |                      | -      |   |   |   | 19 |   |
| Increase (decrease) in cash resulting from changes in operating assets and liabilities:     |   |                      |   |   |   |   |   |   |
| Receivables                                                                                 |   |                      | (1,358 | ) |   |   | 3,062 |   |
| Inventories                                                                                 |   |                      | (102   | ) |   |   | (642 | ) |
| Prepaid expenses and other current assets                                                   |   |                      | (68    | ) |   |   | (139 | ) |
| Accounts payable                                                                            |   |                      | 1,189  |   |   |   | (1,766 | ) |
| Accrued expenses                                                                            |   |                      | (135   | ) |   |   | (532 | ) |
| Accrued and deferred taxes on income                                                        |   |                      | 526    |   |   |   | (615 | ) |
| Net cash generated from (used by) operating activities                                      |   |                      | 1,097  |   |   |   | (817 | ) |
| Cash flow used by investing activities:                                                     |   |                      |   |   |   |   |   |   |
| Acquisition of property, plant and equipment                                                |   |                      | (608   | ) |   |   | (194 | ) |
| Net cash used by investing activities                                                       |   |                      | (608   | ) |   |   | (194 | ) |
| Cash flow generated from (used by) financing activities:                                    |   |                      |   |   |   |   |   |   |
| Dividends paid                                                                              |   |                      | -      |   |   |   | (98 | ) |
| Proceeds of long-term debt                                                                  |   |                      | 161    |   |   |   | - |   |
| Net cash generated from (used by) financing activities                                      |   |                      | 161    |   |   |   | (98 | ) |
| Effect of exchange rate changes on cash                                                     |   |                      | (299   | ) |   |   | (328 | ) |
| Net increase (decrease) in cash                                                             |   |                      | 351    |   |   |   | (1,437 | ) |
| Beginning balance - cash and cash equivalents                                               |   |                      | 632    |   |   |   | 1,630 |   |
| Ending balance - cash and cash equivalents                                                  |   | $                         | 983    |   |   | $ | 193 |   |
| Supplemental disclosure of cash flow information:                                           |   |                      |   |   |   |   |   |   |
| Cash paid for income taxes                                                                  |   | $                         | -      |   |   | $ | 235 |   |
| Cash paid for interest                                                                      |   | $                         | 13     |   |   | $ | 21 |   |
| Supplemental disclosure of non-cash financing activity:                                     |   |                      |   |   |   |   |   |   |
| Dividend declared                                                                           |   | $                         | -      |   |   | $ | - |   |

----

index

| (1) | Basis of presentation |
|-----|-----------------------|

----

index

|                                            |   |   OptionsNo. of shares |    |   |  WeightedaverageExercise Price |   |   | Weightedaverageremainingcontractuallife (years) |   |      |   AggregateIntrinsic Value |   |
|-------------------------------------------------|--------|----------------------------------|---------|--------|-------------------------------------|--------|--------|-------------------------------------------------|--------|-----------|--------------------------------------|--------|
| Outstanding at September 30, 2009               |   |                             | 63,500  |   |                                | $      | 7.03   |                                            |   | 2.0 years |                                 |   | $ | - |   |
| Granted                                         |   |                             | -       |   |                                |   | -      |                                            |   |      | -                                    |   |   |   | - |   |
| Exercised                                       |   |                             | -       |   |                                |   | -      |                                            |   |      | -                                    |   |   |   | - |   |
| Cancelled                                       |   |                             | (17,500 | )      |                                |   | 10.75  |                                            |   |      | -                                    |   |   |   | - |   |
| Outstanding and expected to vestat July 3, 2010 |   |                             | 46,000  |   |                                | $      | 5.62   |                                            |   | 2.3 years |                                 |   | $ | 22,600 |   |
| Exercisable at July 3, 2010                     |   |                             | 36,000  |   |                                | $      | 5.62   |                                            |   | 2.5 years |                                 |   | $ | 18,300 |   |

|                                        |   | Number of shares of Restricted Stock |    |   | Weighted AverageGrant-DateFair Value |   |
|---------------------------------------------|--------|--------------------------------------|---------|--------|--------------------------------------|--------|
| Non-vested balance as of September 30, 2009 |   |                                 | 79,000  |   |                                 | $      | 3.62 |   |
| Granted                                     |   |                                 | 14,000  |   |                                 | $      | 2.60 |   |
| Vested                                      |   |                                 | (33,000 | )      |                                 | $      | 3.94 |   |
| Forfeited                                   |   |                                 | -       |   |                                 | $      | - |   |
| Non-vested balance as of July 3, 2010       |   |                                 | 60,000  |   |                                 | $      | 3.20 |   |

----

index

|                                                                                                                      |   | (in thousands except per share data) |     |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                                                                      |   | Three Months ended                   |     |   | Nine Months ended |   |
|                                                                                                                      |   | July 3,2010                          |     |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Net income (loss)                                                                                                         |   | $                                    | 119      |   |   | $ | (300 | ) |   | $ | 305 |   |   | $ | (734 | ) |
| Weighted average shares outstanding - basic                                                                               |   |                                 | 3,280    |   |   |   | 3,247 |   |   |   | 3,270 |   |   |   | 3,239 |   |
| Basic income (loss) per share                                                                                             |   | $                                    | .03      |   |   | $ | (.09 | ) |   | $ | .09 |   |   | $ | (.23 | ) |
| Common stock equivalents                                                                                                  |   |                                 | 30       |   |   |   | - |   |   |   | 19 |   |   |   | - |   |
| Weighted average shares outstanding - diluted                                                                             |   |                                 | 3,310    |   |   |   | 3,247 |   |   |   | 3,289 |   |   |   | 3,239 |   |
| Diluted income (loss) per share                                                                                           |   | $                                    | .03      |   |   | $ | (.09 | ) |   | $ | .09 |   |   | $ | (.23 | ) |
| No. of options that are anti-dilutive excluded from calculation of common stock equivalents                               |   |                                 | 15       |   |   |   |  64 |   |   |   | 46 |   |   |   |  64 |   |
| No. of shares of non-vested restricted stock that are anti-dilutive excluded from calculation of common stock equivalents |   |                                 |   - |   |   |   |    79 |   |   |   |   - |   |   |   |    79 |   |

|                        |   | (in thousands of dollars)       |   |
|-----------------------------|--------|---------------------------------|--------|
|                        |   | Three months ended July 3, 2010 |   |
|                        |   | Controls                        |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales to external customers |   | $                               | 6,044  |   |   | $ | 446 |   |   | $ | - |   |   | $ | 6,490 |   |
| Inter-segment revenues      |   |                            | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating (loss) income     |   |                            | (27    | ) |   |   | 30 |   |   |   | (65 | ) |   |   | (62 | ) |
| Identifiable assets         |   |                            | 16,351 |   |   |   | 1,131 |   |   |   | 225 |   |   |   | 17,707 |   |

|                        |   | Three months ended June 27, 2009 |   |
|-----------------------------|--------|----------------------------------|--------|
|                        |   | Controls                         |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales to external customers |   | $                                | 3,665  |   |   | $ | 395 |   |   | $ | - |   |   | $ | 4,060 |   |
| Inter-segment revenues      |   |                             | -      |   |   |   | 6 |   |   |   | - |   |   |   | 6 |   |
| Operating (loss) income     |   |                             | (461   | ) |   |   | 7 |   |   |   | (115 | ) |   |   | (569 | ) |
| Identifiable assets         |   |                             | 14,056 |   |   |   | 791 |   |   |   | 611 |   |   |   | 15,458 |   |

----

index

|                        |   | Nine months ended July 3, 2010 |   |
|-----------------------------|--------|--------------------------------|--------|
|                        |   | Controls                       |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales to external customers |   | $                              | 17,811 |   |   | $ | 1,211 |   |   | $ | - |   |   | $ | 19,022 |   |
| Inter-segment revenues      |   |                           | -      |   |   |   | 14 |   |   |   | - |   |   |   | 14 |   |
| Operating income (loss)     |   |                           | 293    |   |   |   | 67 |   |   |   | (198 | ) |   |   | 162 |   |
| Depreciation                |   |                           | 397    |   |   |   | 33 |   |   |   | 1 |   |   |   | 431 |   |
| Identifiable assets         |   |                           | 16,351 |   |   |   | 1,131 |   |   |   | 225 |   |   |   | 17,707 |   |
| Capital expenditures        |   |                           | 337    |   |   |   | 271 |   |   |   | - |   |   |   | 608 |   |

|                        |   | Nine months ended June 27, 2009 |   |
|-----------------------------|--------|---------------------------------|--------|
|                        |   | Controls                        |   |   | Capacitors |   |   | Corporate |   |   | Total |   |
| Sales to external customers |   | $                               | 14,531 |   |   | $ | 1,239 |   |   | $ | - |   |   | $ | 15,770 |   |
| Inter-segment revenues      |   |                            | -      |   |   |   | 31 |   |   |   | - |   |   |   | 31 |   |
| Operating (loss) income     |   |                            | (773   | ) |   |   | 77 |   |   |   | (274 | ) |   |   | (970 | ) |
| Depreciation                |   |                            | 386    |   |   |   | 24 |   |   |   | 2 |   |   |   | 412 |   |
| Identifiable assets         |   |                            | 14,056 |   |   |   | 791 |   |   |   | 611 |   |   |   | 15,458 |   |
| Capital expenditures        |   |                            | 187    |   |   |   | 7 |   |   |   | - |   |   |   | 194 |   |

|                                                    |   | (in thousands of dollars) |   |
|---------------------------------------------------------|--------|---------------------------|--------|
|                                                    |   | Three Months ended        |   |   | Nine Months ended |   |
|                                                    |   | July 3,2010               |   |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Electronic controls for zero emission electric vehicles |   | $                         | 3,151  |   |   | $ | 1,811 |   |   | $ | 10,333 |   |   | $ | 8,259 |   |
| Accessory and aftermarket products and services         |   |                      | 2,893  |   |   |   | 1,854 |   |   |   | 7,478 |   |   |   | 6,272 |   |
| Total controls segment revenues                         |   | $                         | 6,044  |   |   | $ | 3,665 |   |   | $ | 17,811 |   |   | $ | 14,531 |   |

|                             |   | (in thousands of dollars) |   |
|----------------------------------|--------|---------------------------|--------|
|                             |   | Three Months ended        |   |   | Nine Months ended |   |
|                             |   | July 3,2010               |   |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Research and Development expense |   | $                         | 747    |   |   | $ | 621 |   |   | $ | 2,242 |   |   | $ | 2,057 |   |
| Percentage of sales              |   |                      | 11.5%  |   |   |   | 15.3% |   |   |   | 11.8% |   |   |   | 13.0% |   |

|                                   |   | (in thousands of dollars) |   |
|----------------------------------------|--------|---------------------------|--------|
|                                   |   | Three Months ended        |   |   | Nine Months ended |   |
|                                   |   | July 3,2010               |   |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Service cost                           |   | $                         | 78     |   |   | $ | 88 |   |   | $ | 242 |   |   | $ | 254 |   |
| Interest cost                          |   |                      | 287    |   |   |   | 288 |   |   |   | 892 |   |   |   | 830 |   |
| Expected return on plan assets         |   |                      | (220   | ) |   |   | (277 | ) |   |   | (685 | ) |   |   | (797 | ) |
| Amortization of net loss               |   |                      | 55     |   |   |   | - |   |   |   | 173 |   |   |   | - |   |
| Amortization of prior service cost     |   |                      | 11     |   |   |   | 12 |   |   |   | 35 |   |   |   | 34 |   |
| Net periodic benefit cost              |   |                      | 211    |   |   |   | 111 |   |   |   | 657 |   |   |   | 321 |   |
| Net cost of defined contribution plans |   | $                         | 6      |   |   | $ | 6 |   |   | $ | 19 |   |   | $ | 23 |   |

----

index

|                                                  |   | (in thousands of dollars) |   |
|-------------------------------------------------------|--------|---------------------------|--------|
|                                                  |   | Nine Months ended         |   |
|                                                  |   | July 3,2010               |   |   | June 27,2009 |   |
| Liability for pension benefits at beginning of period |   | $                         | 7,166  |   |   | $ | 378 |   |
| Net periodic benefit cost                             |   |                      | 657    |   |   |   | 321 |   |
| Plan contributions                                    |   |                      | (435   | ) |   |   | (305 | ) |
| Amortization of prior service cost                    |   |                      | (35    | ) |   |   | - |   |
| Effect of exchange rate changes                       |   |                      | (331   | ) |   |   | (111 | ) |
| Balance at end of period                              |   | $                         | 7,022  |   |   | $ | 283 |   |

|            |   | (in thousands of dollars) |   |
|-----------------|--------|---------------------------|--------|
|            |   | July 3,2010               |   |   | September 30,2009 |   |
| Raw materials   |   | $                         | 715    |   |   | $ | 676 |   |
| Work-in-process |   |                      | 59     |   |   |   | 141 |   |
| Finished goods  |   |                      | 3,874  |   |   |   | 3,906 |   |
|            |   | $                         | 4,648  |   |   | $ | 4,723 |   |

|                                   |   | (in thousands of dollars) |   |
|----------------------------------------|--------|---------------------------|--------|
|                                   |   | July 3,2010               |   |   | September 30,2009 |   |
| Accrued compensation and related costs |   | $                         | 859    |   |   | $ | 497 |   |
| Warranty reserves                      |   |                      | 225    |   |   |   | 217 |   |
| Other accrued expenses                 |   |                      | 303    |   |   |   | 897 |   |
|                                   |   | $                         | 1,387  |   |   | $ | 1,611 |   |

----

index

|                                                                             |   | (in thousands of dollars) |   |
|----------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                             |   | Three Months ended        |   |   | Nine Months ended |   |
|                                                                             |   | July 3,2010               |   |   | June 27,2009 |   |   | July 3,2010 |   |   | June 27,2009 |   |
| Warranty reserves at beginning of period                                         |   | $                         | 211    |   |   | $ | 193 |   |   | $ | 217 |   |   | $ | 362 |   |
| Decrease in beginning balance for warranty obligations settled during the period |   |                      | (36    | ) |   |   | (7 | ) |   |   | (92 | ) |   |   | (243 | ) |
| Other changes to pre-existing warranties                                         |   |                      | -      |   |   |   | (7 | ) |   |   | 16 |   |   |   | 86 |   |
| Foreign currency translation adjustment                                          |   |                      | (3     | ) |   |   | 20 |   |   |   | (10 | ) |   |   | (29 | ) |
| Net increase in warranty reserves for products sold during the period            |   |                      | 53     |   |   |   | 8 |   |   |   | 94 |   |   |   | 31 |   |
| Warranty reserves at end of period                                               |   | $                         | 225    |   |   | $ | 207 |   |   | $ | 225 |   |   | $ | 207 |   |

| (i)   | if the financial condition of any of the Company's customers deteriorates as a result of business declines, the Company may be required to increase its estimated allowance for bad debts; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | if actual future demand declines or does not recover as previously projected, inventory write-downs may be required; |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| (iii)   | as a consequence of the worldwide recession, some suppliers of certain  key components significantly reduced their manufacturing capacity; should the future manufacture and availability of these components not increase in line with actual demand for the Company’s products from customers, this could have a material adverse effect on our growth rate, future income and cash flows; or |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | significant negative industry or economic trends that adversely affect our future revenues and profits, or a reduction of our market capitalization relative to net book value, among other factors, may change the estimated future cash flows or other factors that we use to determine whether or not goodwill has been impaired and lead us to conclude that an impairment charge is required. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                   |   | Three months ended        |   |   |                                     |   |
|------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------------------------------------|--------|
|                                                                   |   | (in thousands of dollars) |   |   | Favorable (unfavorable) % change due to: |   |
|                                                                   |   | July 3, 2010              |   |   | June 27, 2009                            |   |   | Total |   |   | Currency |   |   | Volume |   |
| Sales:                                                                 |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Controls - to external customers                                       |   | $                         | 6,044  |   |                                     | $      | 3,665 |   |   |   | 65 |   |   |   | (3 | ) |   |   | 68 |   |
| Capacitors - to external customers                                     |   |                      | 446    |   |                                     |   | 395 |   |   |   | 13 |   |   |   | (3 | ) |   |   | 16 |   |
| Capacitors - inter-segment                                             |   |                      | -      |   |                                     |   | 6 |   |   |   | (100 | ) |   |   | (5 | ) |   |   | (95 | ) |
| Capacitors - total                                                     |   |                      | 446    |   |                                     |   | 401 |   |   |   | 11 |   |   |   | (3 | ) |   |   | (14 | ) |
| Total sales to external customers                                      |   |                      | 6,490  |   |                                     |   | 4,060 |   |   |   | 60 |   |   |   | (3 | ) |   |   | 63 |   |
| Gross Profit:                                                          |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                               |   |                      | 2,053  |   |                                     |   | 1,306 |   |   |   | 57 |   |   |   | 5 |   |   |   | 52 |   |
| Capacitors                                                             |   |                      | 207    |   |                                     |   | 175 |   |   |   | 18 |   |   |   | (3 | ) |   |   | 21 |   |
| Total                                                                  |   |                      | 2,260  |   |                                     |   | 1,481 |   |   |   | 53 |   |   |   | 4 |   |   |   | 49 |   |
| Selling research and administrative expenses and restructuring charge: |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                               |   |                      | 2,080  |   |                                     |   | 1,767 |   |   |   | (18 | ) |   |   | 3 |   |   |   | (21 | ) |
| Capacitors                                                             |   |                      | 177    |   |                                     |   | 168 |   |   |   | (5 | ) |   |   | 2 |   |   |   | (7 | ) |
| Unallocated corporate expense                                          |   |                      | 65     |   |                                     |   | 115 |   |   |   | 44 |   |   |   | 0 |   |   |   | 44 |   |
| Total                                                                  |   |                      | 2,322  |   |                                     |   | 2,050 |   |   |   | (13 | ) |   |   | 3 |   |   |   | (16 | ) |
| Operating (loss) income:                                               |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                               |   |                      | (27    | )      |                                     |   | (461 | ) |   |   | 94 |   |   |   | 26 |   |   |   | 68 |   |
| Capacitors                                                             |   |                      | 30     |   |                                     |   | 7 |   |   |   | 329 |   |   |   | (10 | ) |   |   | 339 |   |
| Unallocated corporate expense                                          |   |                      | (65    | )      |                                     |   | (115 | ) |   |   | 44 |   |   |   | 0 |   |   |   | 44 |   |
| Total                                                                  |   |                      | (62    | )      |                                     |   | (569 | ) |   |   | 89 |   |   |   | 21 |   |   |   | 68 |   |
| Other income and expense                                               |   |                      | 199    |   |                                     |   | 73 |   |   |   | 173 |   |   |   | 178 |   |   |   | (5 | ) |
| Income (loss) before income taxes                                      |   |                      | 137    |   |                                     |   | (496 | ) |   |   | 128 |   |   |   | 50 |   |   |   | 78 |   |
| Income taxes                                                           |   |                      | (18    | )      |                                     |   | 196 |   |   |   | (109 | ) |   |   | (33 | ) |   |   | (76 | ) |
| Net income (loss)                                                      |   | $                         | 119    |   |                                     | $      | (300 | ) |   |   | 140 |   |   |   | 62 |   |   |   | 78 |   |

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|                                                                   |   | Nine months ended         |   |   |                                     |   |
|------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------------------------------------|--------|
|                                                                   |   | (in thousands of dollars) |   |   | Favorable (unfavorable) % change due to: |   |
|                                                                   |   | July 3, 2010         |   |   | June 27, 2009                            |   |   | Total |   |   | Currency |   |   | Volume |   |
| Sales:                                                                 |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Controls - to external customers                                       |   | $                         | 17,811 |   |                                     | $      | 14,531 |   |   |   | 23 |   |   |   | 2 |   |   |   | 21 |   |
| Capacitors - to external customers                                     |   |                      | 1,211  |   |                                     |   | 1,239 |   |   |   | (2 | ) |   |   | 4 |   |   |   | (6 | ) |
| Capacitors - inter-segment                                             |   |                      | 14     |   |                                     |   | 31 |   |   |   | (55 | ) |   |   | 2 |   |   |   | (57 | ) |
| Capacitors – total                                               |   |                      | 1,225  |   |                                     |   | 1,270 |   |   |   | (4 | ) |   |   | 4 |   |   |   | (8 | ) |
| Total sales to external customers                                      |   |                      | 19,022 |   |                                     |   | 15,770 |   |   |   | 21 |   |   |   | 3 |   |   |   | 18 |   |
| Gross Profit:                                                          |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                               |   |                      | 6,311  |   |                                     |   | 5,262 |   |   |   | 20 |   |   |   | 2 |   |   |   | 18 |   |
| Capacitors                                                             |   |                      | 554    |   |                                     |   | 562 |   |   |   | (1 | ) |   |   | 5 |   |   |   | (6 | ) |
| Total                                                                  |   |                      | 6,865  |   |                                     |   | 5,824 |   |   |   | 18 |   |   |   | 2 |   |   |   | 16 |   |
| Selling research and administrative expenses and restructuring charge: |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                               |   |                      | 6,018  |   |                                     |   | 6,035 |   |   |   | 0 |   |   |   | 3 |   |   |   | (3 | ) |
| Capacitors                                                             |   |                      | 487    |   |                                     |   | 485 |   |   |   | 0 |   |   |   | 4 |   |   |   | (4 | ) |
| Unallocated corporate expense                                          |   |                      | 198    |   |                                     |   | 274 |   |   |   | 28 |   |   |   | 0 |   |   |   | 28 |   |
| Total                                                                  |   |                      | 6,703  |   |                                     |   | 6,794 |   |   |   | 1 |   |   |   | (3 | ) |   |   | 4 |   |
| Operating income (loss):                                               |   |                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Controls                                                               |   |                      | 293    |   |                                     |   | (773 | ) |   |   | 138 |   |   |   | (12 | ) |   |   | 150 |   |
| Capacitors                                                             |   |                      | 67     |   |                                     |   | 77 |   |   |   | (13 | ) |   |   | 5 |   |   |   | (18 | ) |
| Unallocated corporate expense                                          |   |                      | (198   | )      |                                     |   | (274 | ) |   |   | 28 |   |   |   | 0 |   |   |   | 28 |   |
| Total                                                                  |   |                      | 162    |   |                                     |   | (970 | ) |   |   | 117 |   |   |   | (9 | ) |   |   | 126 |   |
| Other income and expense                                               |   |                      | 262    |   |                                     |   | (154 | ) |   |   | 270 |   |   |   | 256 |   |   |   | 14 |   |
| Income (loss) before income taxes                                      |   |                      | 424    |   |                                     |   | (1,124 | ) |   |   | 138 |   |   |   | 28 |   |   |   | 110 |   |
| Income taxes                                                           |   |                      | (119   | )      |                                     |   | 390 |   |   |   | (130 | ) |   |   | (22 | ) |   |   | (108 | ) |
| Net income (loss)                                                      |   | $                         | 305    |   |                                     | $      | (734 | ) |   |   | 142 |   |   |   | 31 |   |   |   | 111 |   |

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|                                    |   | (in thousands of dollars)             |   |
|-----------------------------------------|--------|---------------------------------------|--------|
|                                    |   | Expected maturity or transaction date |   |   |   |   |
|                                    |   | FY2010                                |   |   | FY2011 |   |   | Total |   |   | Fair Value |   |
| On balance sheet financial instruments: |   |                                  |   |   |   |   |   |   |   |   |   |   |
| In $ U.S. Functional Currency           |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable in British Pounds   |   |                                  | 894    |   |   |   | - |   |   |   | 894 |   |   |   | 894 |   |
| Accounts receivable in Euros            |   |                                  | 1,140  |   |   |   | - |   |   |   | 1,140 |   |   |   | 1,140 |   |
| Accounts payable in British Pounds      |   |                                  | 723    |   |   |   | - |   |   |   | 723 |   |   |   | 723 |   |
| Accounts payable in Euros               |   |                                  | 1,339  |   |   |   | - |   |   |   | 1,339 |   |   |   | 1,339 |   |
| Anticipated Transactions                |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In $ U.S. Functional Currency           |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Firmly committed sales contracts        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In British Pounds                       |   |                                  | 705    |   |   |   | 15 |   |   |   | 720 |   |   |   | 720 |   |
| In Euros                                |   |                                  | 788    |   |   |   | - |   |   |   | 788 |   |   |   | 788 |   |

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| ·   | Current or potential customers may be unable to fund purchases or manufacturing of products, which could cause them to delay, decrease or cancel purchases of our products or not to pay the Company or to delay paying for previously purchased products. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effect of continuing economic uncertainty on the Company’s and other banks may cause the Company to lose its current overdraft facilities and be unable otherwise to obtain financing for operations as needed. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  | TECH/OPS SEVCON, INC.                                 |
|-----------------------|-------------------------------------------------------|
|                  |                                                  |
|                  |                                                  |
| Date: August 11, 2010 | By: /s/ Paul N. Farquhar                              |
|                  | Paul N. Farquhar                                      |
|                  | Chief Financial Officer (Principal Financial Officer) |
|                  |

|    |                                                                                                                                                                                  |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit | Description                                                                                                                                                                      |
| 3.1     | Certificate of Incorporation of the registrant (incorporated by reference to Exhibit (3)(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004). |
|    |                                                                                                                                                                                  |
| 3.2     | By-laws of the registrant (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on September 19, 2008).                                   |
|    |                                                                                                                                                                                  |
| 31.1    | Certification of Principal Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                              |
|    |                                                                                                                                                                                  |
| 31.2    | Certification of Principal Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).                                                              |
|    |                                                                                                                                                                                  |
| 32.1    | Certification of Principal Executive Officer and Principal Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).                              |

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