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)  April 21, 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):

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 April 21, 2005, Evans & Sutherland Computer Corporation (“Evans & Sutherland”) issued a press release announcing its financial results for the three months ended April 1, 2005.  The full text of the press release issued by Evans & Sutherland on April 21, 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 April 21, 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: April 21, 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 April 21, 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 First Quarter 2005 Results

SALT LAKE CITY, UTAH, April 21, 2005—Evans & Sutherland Computer Corporation (NASDAQ: ESCC) today reported financial results for the first quarter ended April 1, 2005.

Sales for the first quarter were $13.9 million, down 22.1% from sales of $17.8 million in the first quarter of 2004.  Net loss was $6.0 million, or $0.57 per share, compared to a net loss of $3.0 million, or $0.29 per share, in 2004.

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

“The first quarter of 2005 was seasonally weak as expected.  In addition, we had significant restructuring expenses in the first quarter that will lead to lower operating expenses for the remainder of the year.  Our net cash reached the highest level in five years, and backlog was nearly unchanged and remains at the highest level in three years.  The combination of high backlog and reduced operating expenses after the restructuring will drive improved results for the remainder of the year.

“We experienced high research and development expenses during the quarter as we continue to prepare the Evans & Sutherland Laser Projector (ESLP) for commercial shipments beginning in the third quarter of this year.  R&D expenses will decline as the ESLP enters production.

“Based on our continued strong backlog and lower expenses in future quarters, our overall outlook for a small profit for the year remains unchanged.”

About Evans & Sutherland

Evans & Sutherland produces professional visual systems to create highly realistic images for simulation, training, engineering, and other applications throughout the world.  E&S visual systems

/…more

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 combination of high backlog and reduced operating expenses after the restructuring will drive improved results for the remainder of the year, that R&D expenses will decline as the ESLP enters production, and that based on our continued strong backlog and lower expenses in future quarters, our overall outlook for a small profit for the year remains unchanged.  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
	April 1, 2005			April 2, 2004
Sales	$	13,859		$	17,790
Cost of sales	9,287			10,908
Gross profit	4,572			6,882
Expenses:
Selling, general and administrative	4,535			6,086
Research and development	4,284			3,954
Restructuring charge (recovery)	1,891			(491		)
Operating expenses	10,710			9,549
Gain on sale of assets	—			155
Operating loss	(6,138		)	(2,512		)
Other income (expense), net	(265		)	(490		)
Net loss before income taxes	(6,403		)	(3,002		)
Income tax expense (benefit)	(411		)	38
Net loss	$	(5,992	)	$	(3,040	)
Basic and diluted net loss per share	$	(0.57	)	$	(0.29	)
Number of shares used in net loss per share calculation	10,514			10,488

CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION

(In thousands)

Unaudited

	April 1, 2005			December 31, 2004
Assets
Cash and restricted cash	$	16,444		$	13,561
Net receivables, billed and unbilled	18,003			20,718
Inventories	11,524			10,802
Other assets	7,847			7,937
Net property, plant and equipment	20,077			20,753
Total assets	$	73,895		$	73,771
Liabilities and Stockholders’ Equity
Accounts payable and accrued liabilities	$	16,024		$	17,486
Other liabilities	59,911			52,522
Stockholders’ equity (deficit)	(2,040		)	3,763
Total liabilities and stockholders’ equity	$	73,895		$	73,771

BACKLOG

(In thousands)

Unaudited

April 1, 2005		December 31, 2004
$	83,704	$	84,232