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) July 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):

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 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 21, 2005, Evans & Sutherland Computer Corporation (“Evans & Sutherland”) issued a press release announcing its financial results for the three and six months ended July 1, 2005.  The full text of the press release issued by Evans & Sutherland on July 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

Exhibit Number	Description of Exhibit
99.1	Evans & Sutherland Computer Corporation Press Release, dated July 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:  July 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 July 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 Second Quarter 2005 Results

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

Sales for the second quarter were $20.4 million, up 21.4% from sales of $16.8 million in the second quarter of 2004.  Net loss was $1.4 million, or $0.13 per share, compared to a net loss of $2.3 million, or $0.22 per share, in 2004.

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

“The second quarter of this year showed good improvement from the first quarter of this year, as well as improvement from the second quarter of last year.  Revenue and gross margins increased, while the net loss decreased.

“We expect the second half of this year to be substantially stronger than the first half, with especial strength in the fourth quarter.  This expectation is based on our forecast of new orders and shipments from backlog, as well as initial deliveries of our laser projector in the third quarter.”

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 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.

/…more

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 we expect the second half of this year to be substantially stronger than the first half, with especial strength in the fourth quarter, and that this expectation is based on new orders, shipments from backlog, and initial deliveries of the laser projector in the third quarter.  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.

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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						Six Months Ended
	July 1, 2005			July 2, 2004			July 1, 2005			July 2, 2004
Sales	$	20,426		$	16,816		$	34,285		$	34,606
Cost of sales	12,521			10,955			21,808			21,863
Gross profit	7,905			5,861			12,477			12,743
Expenses:
Selling, general and administrative	5,130			6,052			9,665			12,138
Research and development	3,988			5,203			8,272			9,157
Restructuring charges (recoveries)	35			—			1,926			(491		)
Operating expenses	9,153			11,255			19,863			20,804
Gain on sale of assets held for sale	—			3,488			—			3,488
Gain on sale of assets	—			—			—			155
Operating loss	(1,248		)	(1,906		)	(7,386		)	(4,418		)
Other expense, net	(141		)	(334		)	(406		)	(824		)
Loss before income taxes	(1,389		)	(2,240		)	(7,792		)	(5,242		)
Income tax expense (benefit)	26			58			(385		)	96
Net loss	$	(1,415	)	$	(2,298	)	$	(7,407	)	$	(5,338	)
Basic and diluted net loss per share	$	(0.13	)	$	(0.22	)	$	(0.70	)	$	(0.51	)
Number of shares used in net loss per share calculation	10,519			10,495			10,517			10,491

CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION

(In thousands)

Unaudited

	July 1, 2005			December 31, 2004
Assets
Cash and restricted cash	$	12,877		$	13,561
Net receivables, billed and unbilled	21,121			20,718
Inventories	11,924			10,802
Net property, plant and equipment	15,980			20,753
Other assets	10,825			7,937
Total assets	$	72,727		$	73,771
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable and accrued expenses	$	18,861		$	17,486
Other liabilities	58,080			52,522
Stockholders’ equity (deficit)	(4,214		)	3,763
Total liabilities and stockholders’ equity (deficit)	$	72,727		$	73,771

BACKLOG

(In thousands)

Unaudited

July 1, 2005		December 31, 2004
$	72,246	$	84,232