EX-99.1 2 a05-3790_1ex99d1.htm 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.

 

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“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

 

2



 

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