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) October 20, 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 Drive, 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 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 20, 2005, Evans & Sutherland Computer Corporation (“Evans & Sutherland”) issued a press release announcing its financial results for the three and nine months ended September 30, 2005.  The full text of the press release issued by Evans & Sutherland on October 20, 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 October 20, 2005.

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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: October 20, 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 October 20, 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 Third Quarter 2005 Results

SALT LAKE CITY, UTAH, October 20, 2005—Evans & Sutherland Computer Corporation (NASDAQ: ESCC) today reported financial results for the third quarter ended September 30, 2005.

Sales for the third quarter were $21.1 million, up 32.7% from sales of $15.9 million in the third quarter of 2004.  Net loss was $1.4 million, or $0.13 per share, compared to net loss of $4.9 million, or $0.47 per share, in 2004.

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

“The third quarter of this year continued the quarterly improvement we experienced earlier this year, with higher revenue and a smaller loss compared to the prior quarters of this year and the same quarter of last year.  The growth in orders was especially notable, increasing 98% from the second quarter of the year.”

“We expect new orders to continue to grow in the fourth quarter, and we continue to expect the fourth quarter to be profitable as previously forecasted.”

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 new orders to continue to grow in the fourth quarter, and we expect the fourth quarter to be profitable.  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						Nine Months Ended
	September 30, 2005			October 1, 2004			September 30, 2005			October 1, 2004
Sales	$	21,148		$	15,882		$	55,433		$	50,488
Cost of sales	13,691			10,681			35,499			32,544
Gross profit	7,457			5,201			19,934			17,944
Expenses:
Selling, general and administrative	4,836			5,498			14,501			17,636
Research and development	3,563			4,126			11,835			13,283
Restructuring charges (recoveries)	—			—			1,926			(491		)
Operating expenses	8,399			9,624			28,262			30,428
Gain on sale of assets held for sale	—			—			—			3,488
Gain on sale of assets	—			—			—			155
Operating loss	(942		)	(4,423		)	(8,328		)	(8,841		)
Other expense, net	(450		)	(433		)	(856		)	(1,257		)
Loss before income taxes	(1,392		)	(4,856		)	(9,184		)	(10,098		)
Income tax expense (benefit)	12			38			(373		)	134
Net loss	$	(1,404	)	$	(4,894	)	$	(8,811	)	$	(10,232	)
Basic and diluted net loss per share	$	(0.13	)	$	(0.47	)	$	(0.84	)	$	(0.98	)
Number of shares used in net loss per share calculation	10,525			10,501			10,520			10,494

CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION

(In thousands)

Unaudited

	September 30, 2005			December 31, 2004
Assets
Cash and restricted cash	$	7,226		$	13,561
Net receivables, billed and unbilled	17,937			20,718
Inventories	12,169			10,802
Net property, plant and equipment	15,273			20,753
Other assets	10,123			7,937
Total assets	$	62,728		$	73,771
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable and accrued expenses	$	17,321		$	17,486
Other liabilities	51,021			52,522
Stockholders’ equity (deficit)	(5,614		)	3,763
Total liabilities and stockholders’ equity (deficit)	$	62,728		$	73,771
BACKLOG
(In thousands)
Unaudited
	September 30, 2005			December 31, 2004
	$	68,852		$	84,232