EX-99.1 2 a05-7092_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 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