EX-99.1 3 a2134418zex-99_1.htm EX-99.1
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Exhibit 99.1

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600 Komas Drive
Salt Lake City, UT 84108 USA
  NEWS RELEASE
For Immediate Release


Evans & Sutherland Reports First Quarter 2004 Results

        SALT LAKE CITY, UTAH, April 22, 2004—Evans & Sutherland Computer Corporation (NASDAQ: ESCC) today reported financial results for the first quarter ended April 2, 2004.

        Sales for the quarter were $17.8 million, down 21.2% from sales of $22.6 million for the first quarter of 2003. The first quarter of 2004 had a net loss of $3.0 million, or $0.29 per share, compared to a net loss of $24.3 million, or $2.32 per share for the first quarter of 2003.

Comments from James R. Oyler, President and Chief Executive Officer

        "The first quarter was as expected. After a profit in the fourth quarter of 2003 we had projected a loss in the first quarter of 2004 because of expected lower revenue compared to the prior quarter. The lower revenue was due to the delivery pattern of our backlog as well as the timing of new orders. Compared to the same quarter of last year, both operating expenses and the operating loss are significantly reduced.

        "During the quarter we received an important new order from the US Army for visual systems used in the Close Combat Tactical Trainer, which is a simulator for tanks and other ground warfare applications. Volume deliveries on this contract will begin in the second quarter.

        "Backlog decreased slightly in the quarter. However, our new products are performing very well, and we expect higher orders and revenue in the second and subsequent quarters, leading to profitability in the second half.

About Evans & Sutherland

        Evans & Sutherland produces professional hardware and software to create highly realistic visual images for simulation, training, engineering, and other applications throughout the world. E&S visual systems are used in both military and commercial systems, as well as planetariums and interactive theaters. Visit the E&S Web site at http://www.es.com.

        Statements in this press release which are not historical, including statements regarding E&S's or management's intentions, hopes, beliefs, expectations, representations, projections, plans, or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements that volume deliveries on the CCTT contract will begin in the second quarter, that new products are performing well, that we expect an increase in orders in the second quarter, that these orders will contribute to growing revenue thereafter, and that we expect sequential increases in revenue and profitability in the second half of 2004. It is important to note that E&S's actual results could differ materially from those in any such forward-looking statements. Various factors could cause actual results to differ materially, such as the risk factors listed from time to time in E&S's SEC reports.

        E&S is a registered trademark of Evans & Sutherland Computer Corporation.

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Contacts:

Contact:

Thomas Atchison
Chief Financial Officer
Evans & Sutherland
600 Komas Drive, Salt Lake City, UT 84108
801-588-1125
tatchiso@es.com

Media

Joan Mitchell
Public Relations Manager
801-588-1453
jmitchel@es.com


SUMMARY STATEMENTS OF CONSOLIDATED OPERATIONS

(In thousands, except per share data)
Unaudited

 
  Three Months Ended
 
 
  April 2, 2004
  March 28, 2003
 
Sales   $ 17,790   $ 22,578  
Cost of sales     10,908     14,998  
Inventory impairment         14,566  
   
 
 
    Gross profit (loss)     6,882     (6,986 )
   
 
 
Expenses:              
  Selling, general and administrative     6,086     7,257  
  Research and development     3,954     7,030  
  Restructuring charge (gain)     (491 )   1,279  
  Impairment loss         1,151  
   
 
 
    Operating expenses     9,549     16,717  
   
 
 
  Gain on sale of assets     155      
   
 
 
    Operating loss     (2,512 )   (23,703 )
Other expense, net     (490 )   (840 )
   
 
 
    Loss before income taxes     (3,002 )   (24,543 )
Income tax expense (benefit)     38     (268 )
   
 
 
    Net loss   $ (3,040 ) $ (24,275 )
   
 
 
Basic and diluted net loss per share   $ (0.29 ) $ (2.32 )
   
 
 
Number of shares used in net loss per share calculation     10,488     10,459  

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
Unaudited

 
  April 2, 2004
  Dec. 31, 2003
Assets            
  Cash and cash equivalents   $ 10,568   $ 10,479
  Receivables, billed and unbilled     25,775     33,220
  Inventories     14,852     15,973
  Other assets     9,675     9,595
  Net property, plant and equipment     23,179     24,115
   
 
    Total assets   $ 84,049   $ 93,382
   
 
Liabilities and Stockholders' Equity            
  Accounts payable and accruals   $ 17,714   $ 20,972
  Other liabilities     53,723     56,844
  Stockholders' equity     12,612     15,566
   
 
    Total liabilities and stockholders' equity   $ 84,049   $ 93,382
   
 

BACKLOG

(In thousands)
Unaudited

 
  April 2, 2004
  Dec. 31, 2003
    $ 63,578   $ 64,684
   
 



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Evans & Sutherland Reports First Quarter 2004 Results