EX-99.1 2 a2140496zex-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 Second Quarter 2004 Results

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

        Sales for the quarter were $16.8 million, up 5.0% from sales of $16.0 million for the second quarter of 2003. The second quarter of 2004 had a net loss of $2.3 million, or $0.22 per share, compared to a net loss of $5.1 million, or $0.49 per share for the second quarter of 2003.

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

        "Orders were stronger in the second quarter, increasing 33% from the first quarter of 2004 and contributing to an increase in backlog. However, a substantial portion of the orders came late in the quarter and consequently did not contribute to second quarter sales or gross profit. Nevertheless, our net loss for the second quarter of 2004 narrowed from the first quarter of 2004.

        "We completed the sale of a building which we no longer needed for operations, and the gain on that sale was included in the second quarter results. Most of this gain was offset by expenses incurred during the quarter to begin pre-production of our laser projector. Early orders for the laser projector have recently been announced for delivery in 2005 and 2006.

        "Cash on hand increased substantially during the quarter, enabling us to eliminate all short term debt just after the end of the period.

        "We expect orders to increase further in the third quarter, leading to profitability in the second half of 2004."

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. These include statements that we expect orders to increase further in the third quarter leading to profitability in the second half of 2004, and that we expect early orders for our laser projector to be delivered in 2005 and 2006. 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:        
Investors
Thomas Atchison
Chief Financial Officer
801-588-1125
 tatchiso@es.com		       Media
Joan Mitchell
Public Relations Manager
801-588-1453
 jmitchel@es.com

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION

(In thousands, except per share data)

Unaudited

 
   Three Months Ended
   Six Months Ended
  
 
   July 2, 2004
   June 27, 2003
   July 2, 2004
   June 27, 2003
  
 
    
   (As restated)

    
   (As restated)

  
Sales   $ 16,816   $ 16,010   $ 34,606   $ 38,587  
Cost of sales     10,955     9,924     21,863     24,922  
Inventory impairment     —     —           14,566  
   
 
 
 
 
    Gross profit (loss)     5,861     6,086     12,743     (901 )
   
 
 
 
 
Expenses:                          
  Selling, general and administrative     6,052     6,906     12,138     14,163  
  Research and development     5,203     5,093     9,157     12,123  
  Restructuring charge (gain)     —     —     (491 )   1,279  
  Impairment loss     —     —     —     1,151  
   
 
 
 
 
    Operating expenses     11,255     11,999     20,804     28,716  
   
 
 
 
 
  Gain on sale of assets held for sale     3,488     1,406     3,488     1,406  
  Gain on sale of assets     —     —     155     —  
   
 
 
 
 
    Operating loss     (1,906 )   (4,507 )   (4,418 )   (28,211 )
Other expense, net     (334 )   (498 )   (824 )   (1,338 )
   
 
 
 
 
    Loss before income taxes     (2,240 )   (5,005 )   (5,242 )   (29,549 )
Income tax expense (benefit)     58     119     96     (149 )
   
 
 
 
 
    Net loss   $ (2,298 ) $ (5,124 )   (5,338 ) $ (29,400 )
   
 
 
 
 
Basic and diluted net loss per share   $ (0.22 ) $ (0.49 ) $ (0.51 ) $ (2.81 )
   
 
 
 
 
Number of shares used in net loss per share calculation     10,495     10,469     10,491     10,464  

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CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION

(In thousands)

Unaudited

 
   July 2, 2004
   Dec. 31, 2003
Assets            
  Cash and restricted cash   $ 12,370   $ 10,479
  Net receivables, billed and unbilled     21,770     33,220
  Inventories     13,921     15,973
  Other assets     7,494     9,595
  Net property, plant and equipment     22,814     24,115
   
 
    Total assets   $ 78,369   $ 93,382
   
 
Liabilities and Stockholders' Equity            
  Accounts payable and accrued expenses   $ 18,284   $ 20,972
  Other liabilities     49,787     56,844
  Stockholders' equity     10,298     15,566
   
 
    Total liabilities and stockholders' equity   $ 78,369   $ 93,382
   
 


BACKLOG

(In thousands)

Unaudited

 
   July 2, 2004
   Dec. 31, 2003
    $ 68,952   $ 64,684
   
 

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