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Exhibit 99.1
600 Komas Drive Salt Lake City, UT 84108 USA | NEWS RELEASE For Immediate Release |
Evans & Sutherland Reports Second Quarter 2004 Results
SALT LAKE CITY, UTAH, July 22, 2004—Evans & Sutherland Computer Corporation (NASDAQ: ESCC) today reported financial results for the second quarter ended July 2, 2004.
Sales for the quarter were $16.8 million, up 5.0% from sales of $16.0 million for the second quarter of 2003. The second quarter of 2004 had a net loss of $2.3 million, or $0.22 per share, compared to a net loss of $5.1 million, or $0.49 per share for the second quarter of 2003.
Comments from James R. Oyler, President and Chief Executive Officer
"Orders were stronger in the second quarter, increasing 33% from the first quarter of 2004 and contributing to an increase in backlog. However, a substantial portion of the orders came late in the quarter and consequently did not contribute to second quarter sales or gross profit. Nevertheless, our net loss for the second quarter of 2004 narrowed from the first quarter of 2004.
"We completed the sale of a building which we no longer needed for operations, and the gain on that sale was included in the second quarter results. Most of this gain was offset by expenses incurred during the quarter to begin pre-production of our laser projector. Early orders for the laser projector have recently been announced for delivery in 2005 and 2006.
"Cash on hand increased substantially during the quarter, enabling us to eliminate all short term debt just after the end of the period.
"We expect orders to increase further in the third quarter, leading to profitability in the second half of 2004."
About Evans & Sutherland
Evans & Sutherland produces professional hardware and software to create highly realistic visual 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 athttp://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 we expect orders to increase further in the third quarter leading to profitability in the second half of 2004, and that we expect early orders for our laser projector to be delivered in 2005 and 2006. 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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Contacts: | ||||
Investors Thomas Atchison Chief Financial Officer 801-588-1125 tatchiso@es.com | Media Joan Mitchell Public Relations Manager 801-588-1453 jmitchel@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 2, 2004 | June 27, 2003 | July 2, 2004 | June 27, 2003 | |||||||||||
| | (As restated) | | (As restated) | |||||||||||
Sales | $ | 16,816 | $ | 16,010 | $ | 34,606 | $ | 38,587 | |||||||
Cost of sales | 10,955 | 9,924 | 21,863 | 24,922 | |||||||||||
Inventory impairment | — | — | 14,566 | ||||||||||||
Gross profit (loss) | 5,861 | 6,086 | 12,743 | (901 | ) | ||||||||||
Expenses: | |||||||||||||||
Selling, general and administrative | 6,052 | 6,906 | 12,138 | 14,163 | |||||||||||
Research and development | 5,203 | 5,093 | 9,157 | 12,123 | |||||||||||
Restructuring charge (gain) | — | — | (491 | ) | 1,279 | ||||||||||
Impairment loss | — | — | — | 1,151 | |||||||||||
Operating expenses | 11,255 | 11,999 | 20,804 | 28,716 | |||||||||||
Gain on sale of assets held for sale | 3,488 | 1,406 | 3,488 | 1,406 | |||||||||||
Gain on sale of assets | — | — | 155 | — | |||||||||||
Operating loss | (1,906 | ) | (4,507 | ) | (4,418 | ) | (28,211 | ) | |||||||
Other expense, net | (334 | ) | (498 | ) | (824 | ) | (1,338 | ) | |||||||
Loss before income taxes | (2,240 | ) | (5,005 | ) | (5,242 | ) | (29,549 | ) | |||||||
Income tax expense (benefit) | 58 | 119 | 96 | (149 | ) | ||||||||||
Net loss | $ | (2,298 | ) | $ | (5,124 | ) | (5,338 | ) | $ | (29,400 | ) | ||||
Basic and diluted net loss per share | $ | (0.22 | ) | $ | (0.49 | ) | $ | (0.51 | ) | $ | (2.81 | ) | |||
Number of shares used in net loss per share calculation | 10,495 | 10,469 | 10,491 | 10,464 |
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CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION
(In thousands)
Unaudited
| July 2, 2004 | Dec. 31, 2003 | ||||||
---|---|---|---|---|---|---|---|---|
Assets | ||||||||
Cash and restricted cash | $ | 12,370 | $ | 10,479 | ||||
Net receivables, billed and unbilled | 21,770 | 33,220 | ||||||
Inventories | 13,921 | 15,973 | ||||||
Other assets | 7,494 | 9,595 | ||||||
Net property, plant and equipment | 22,814 | 24,115 | ||||||
Total assets | $ | 78,369 | $ | 93,382 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable and accrued expenses | $ | 18,284 | $ | 20,972 | ||||
Other liabilities | 49,787 | 56,844 | ||||||
Stockholders' equity | 10,298 | 15,566 | ||||||
Total liabilities and stockholders' equity | $ | 78,369 | $ | 93,382 | ||||
BACKLOG
(In thousands)
Unaudited
| July 2, 2004 | Dec. 31, 2003 | ||||
---|---|---|---|---|---|---|
$ | 68,952 | $ | 64,684 | |||
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Evans & Sutherland Reports Second Quarter 2004 Results