EX-99.1 2 a05-12489_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 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.

 

###

 

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

 

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