8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) October 21, 2004

EVANS & SUTHERLAND COMPUTER CORPORATION

 (Exact Name of Registrant as Specified in Its Charter)

Utah

(State or Other Jurisdiction of Incorporation)

0-8771	87-0278175
(Commission File Number)	(IRS Employer Identification No.)
600 Komas Dr, Salt Lake City, Utah	84108
(Address of Principal Executive Offices)	(Zip Code)

801-588-1000

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 21, 2004, Evans & Sutherland Computer Corporation (“Evans & Sutherland”) issued a press release announcing its financial results for the three and nine months ended October 1, 2004.  The full text of the press release issued by Evans & Sutherland on October 21, 2004, is attached hereto as Exhibit 99.1.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

Exhibit Number	Description of Exhibit
99.1	Evans & Sutherland Computer Corporation Press Release, dated October 21, 2004.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EVANS & SUTHERLAND COMPUTER CORPORATION
Date: October 20, 2004	/s/ Kevin A. Paprzycki
	Kevin A. Paprzycki
	Chief Financial Officer and Corporate Secretary

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Evans & Sutherland Computer Corporation Press Release, dated October 21, 2004.

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EX-99.1

Exhibit 99.1

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

Evans & Sutherland Reports Third Quarter 2004 Results

SALT LAKE CITY, UTAH, October 21, 2004—Evans & Sutherland Computer Corporation (NASDAQ: ESCC) today reported financial results for the third quarter ended October 1, 2004.

Sales for the quarter were $15.9 million, down 24% from sales of $20.8 million for the third quarter of 2003.  The third quarter of 2004 had a net loss of $4.9 million, or $0.47 per share, compared to a net loss of $8.0 million, or $0.77 per share for the third quarter of 2003.

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

“Orders again increased in the third quarter, improving 25% from the second quarter of 2004 and more than doubling from the third quarter of 2003.  Third quarter 2004 revenue is expected to mark the low point for this year, as growing orders and backlog lead to higher shipments in the fourth quarter.  The third quarter of this year marked the fourth consecutive quarter with higher orders than the prior quarter.

“We announced during the quarter that we were in discussions with Video Display Corporation (VDC) to sell our older CRT-based projector assets in order to concentrate on our laser-based projectors, which are now generating significant new business.  At the time of the announcement this transaction was expected to close in the third quarter.  The sale has now been completed, but the closing occurred later than planned and will now be reported in our fourth quarter results.

“As a result of the delayed completion of this transaction, we had a loss in the third quarter, compared to an expected net profit.  However, we anticipate the fourth quarter will be profitable with the

/…more

combined effect of improved operating results on higher revenue than previous quarters this year, together with the gain from the sale of the projector assets.”

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 the third quarter is expected to mark the low point in revenue for the year, that growing orders and backlog will lead to increased shipments in the fourth quarter, and that we anticipate the fourth quarter will be profitable with the combined effect of improved operating results on higher revenue than previous quarters this year, together with the gain on the sale of projector assets.  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.

###

Contact:

Kevin Paprzycki

Chief Financial Officer

Evans & Sutherland

600 Komas Drive, Salt Lake City, UT 84108

801-588-1125

kpaprzyc@es.com

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION

(In thousands, except per share data)

Unaudited

	Three Months Ended						Nine Months Ended
	Oct. 1, 2004			Sep. 26, 2003			Oct. 1, 2004			Sep. 26, 2003
				(As restated)						(As restated)
Sales	$	15,882		$	20,765		$	50,488		$	59,353
Cost of sales	10,681			13,372			32,544			38,294
Inventory impairment	—			—			—			14,566
Gross profit	5,201			7,393			17,944			6,493
Expenses:
Selling, general and administrative	5,498			6,507			17,636			20,670
Research and development	4,126			5,677			13,283			17,800
Restructuring charge (recovery)	—			2,635			(491		)	3,914
Impairment loss	—			—			—			1,151
Operating expenses	9,624			14,819			30,428			43,535
Gain on sale of assets held for sale	—			—			3,488			1,406
Gain on sale of assets	—			—			155			—
Operating loss	(4,423		)	(7,426		)	(8,841		)	(35,636		)
Other expense, net	(433		)	(802		)	(1,257		)	(2,140		)
Loss before income taxes	(4,856		)	(8,228		)	(10,098		)	(37,776		)
Income tax expense (benefit)	38			(188		)	134			(337		)
Net loss	$	(4,894	)	$	(8,040	)	(10,232		)	$	(37,439	)
Basic and diluted net loss per share	$	(0.47	)	$	(0.77	)	$	(0.97	)	$	(3.58	)
Number of shares used in net loss per share calculation	10,501			10,476			10,494			10,468

CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION
(In thousands)
Unaudited
	Oct. 1, 2004		Dec. 31, 2003
Assets
Cash and restricted cash	$	12,767	$	10,479
Net receivables, billed and unbilled	21,590		33,220
Inventories	13,715		15,973
Other assets	6,991		9,595
Net property, plant and equipment	21,820		24,115
Total assets	$	76,883	$	93,382
Liabilities and Stockholders’ Equity
Accounts payable and accrued expenses	$	17,837	$	20,972
Other liabilities	53,585		56,844
Stockholders’ equity	5,461		15,566
Total liabilities and stockholders’ equity	$	76,883	$	93,382
BACKLOG
(In thousands)
Unaudited
	Oct. 1, 2004		Dec. 31, 2003
	$	80,736	$	64,684