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) February 17, 2005

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):

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

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

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

o    Pre-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 February 17, 2005, Evans & Sutherland Computer Corporation (“Evans & Sutherland”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2004.  The full text of the press release issued by Evans & Sutherland on February 17, 2005, is attached hereto as Exhibit 99.1.

The information contained in this Current Report, including the exhibit, is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any filing of Evans & Sutherland, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

Exhibit Number	Description of Exhibit
99.1	Evans & Sutherland Computer Corporation Press Release, dated February 17, 2005, furnished pursuant to Item 2.02 of Form 8-K.

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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:  February 17, 2005	/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 February 17, 2005.

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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 Fourth Quarter and Full Year 2004 Results

SALT LAKE CITY, UTAH, February 17, 2005—Evans & Sutherland Computer Corporation (E&S) (NASDAQ: ESCC) today reported financial results for the fourth quarter and year ended December 31, 2004.

Sales for the 2004 fiscal year were $69.2 million, down 18.3% from sales of $84.8 million in 2003.  Net loss for 2004 was $8.9 million, or $0.84 per share, compared to a net loss of $36.0 million, or $3.44 per share, in 2003.  For the fourth quarter ended December 31, 2004, sales were $18.7 million, compared to sales of $25.4 million for the fourth quarter of 2003. Net profit for the fourth quarter of 2004 was $1.4 million, or $0.13 per share, compared to a net profit of $1.5 million, or $0.14 per share, in 2003.

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

“The most significant factor in 2004 was the improvement in new orders.  For the year, new orders were nearly $98 million, compared to sales of $69 million.  With the increase in orders and backlog, we are now confident that 2004 was the low point in revenue, and that we will see revenue growth in 2005.

“We continue to make good progress in bringing our recently announced laser projector to market, and deliveries of this product will contribute to revenue growth in both 2005 and beyond.  In addition, all of our other new products, including the EP and EPX simulation systems, the Digistar 3 digital theater system, and our full range of image generators have been performing well in the marketplace.

/…more

“With strong new products, higher backlog, and good customer acceptance of our visual systems, we believe 2005 will allow us to return to a growth trend and to profitability.”

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 with the increase in orders and backlog, we are confident that 2004 was the low point in revenue, that we will see revenue growth in 2005, that deliveries of the laser projector will contribute to revenue growth in 2005 and beyond, and that we believe 2005 will allow us to return to a growth trend and to profitability.  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, EP, EPX, and Digistar are registered trademarks 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						Twelve Months Ended
	December 31, 2004			December 31, 2003			December 31, 2004			December 31, 2003
Sales	$	18,671		$	25,423		$	69,159		$	84,776
Cost of sales	11,575			14,958			44,119			53,252
Inventory impairment	—			—			—			14,566
Gross profit	7,096			10,465			25,040			16,958
Expenses:
Selling, general and administrative	6,150			6,369			23,786			27,039
Research and development	3,338			3,930			16,621			21,730
Restructuring charge (recovery)	—			(498		)	(491		)	3,416
Impairment loss	—			—			—			1,151
Operating expenses	9,488			9,801			39,916			53,336
Gain on sale of assets held for sale	—			—			3,488			1,406
Gain on sale of assets	3,662			—			3,817			—
Operating profit (loss)	1,270			664			(7,571		)	(34,972		)
Other income (expense), net	73			153			(1,184		)	(1,987		)
Net income (loss) before income taxes	1,343			817			(8,755		)	(36,959		)
Income tax expense (benefit)	(22		)	(634		)	112			(971		)
Net income (loss)	$	1,365		$	1,451		(8,867		)	$	(35,988	)
Basic and diluted net income (loss) per share	$	0.13		$	0.14		$	(0.84	)	$	(3.44	)
Number of shares used in basic net income (loss) per share calculation	10,507			10,481			10,498			10,471
Number of shares used in diluted net income (loss) per share calculation	10,596			10,496			10,498			10,471

CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION

(In thousands)

Unaudited

	December 31, 2004		December 31, 2003
Assets
Cash and restricted cash	$	13,561	$	10,479
Net receivables, billed and unbilled	20,718		33,220
Inventories	10,802		15,973
Other assets	7,937		9,595
Net property, plant and equipment	20,753		24,115
Total assets	$	73,771	$	93,382
Liabilities and Stockholders’ Equity
Accounts payable and accrued expenses	$	17,486	$	20,972
Other liabilities	52,522		56,844
Stockholders’ equity	3,763		15,566
Total liabilities and stockholders’ equity	$	73,771	$	93,382

BACKLOG

(In thousands)

Unaudited

December 31, 2004		December 31, 2003
$	84,232	$	64,684