Revenue during the quarter grew 29.16 percent to $13.59 million from $10.52 million in the previous year period. Gross margin for the quarter contracted 629 basis points over the previous year period to 22.94 percent. Operating margin for the quarter stood at negative 21.42 percent as compared to a positive 6.43 percent for the previous year period.

Operating loss for the quarter was $2.91 million, compared with an operating income of $0.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $1.79 million compared with $0.75 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 13.15 percent for the quarter compared to 7.13 percent in the last year period.

"During fiscal 2016 we expanded our extensive on-road project development pipeline, which we expect to result in significant future production opportunities and substantial revenue and profitability growth," said Sevcon chief executive officer Matt Boyle. "We have more projects in the pipeline than ever before and we expect that customer enthusiasm for Sevcon's capabilities will continue. Two of the major projects in our pipeline are expected to go into production in 2017, one in 2019 and one in 2020. One manufacturer of luxury high-performance sports cars has nearly doubled the Sevcon content on its program scheduled for production in 2020. This demonstrates the success of our investments in engineering to provide high quality solutions for some of the world's largest vehicle manufacturers. In the last fiscal year we added 42 more engineers globally, which represents an 82% increase in engineering headcount alone. We attract and retain engineering talent through successful delivery on projects, and we expect that momentum to continue as a result of our planned investments.