EX-99.1 2 a05-18663_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 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

 

2


 

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