Exhibit 99.1
600 Komas Drive |
| NEWS RELEASE |
Salt Lake City, UT 84108 USA |
| For Immediate Release |
Evans & Sutherland Reports Fourth Quarter and Full Year 2004 Results
SALT LAKE CITY, UTAH, February 17, 2005—Evans & Sutherland Computer Corporation (E&S) (NASDAQ: ESCC) today reported financial results for the fourth quarter and year ended December 31, 2004.
Sales for the 2004 fiscal year were $69.2 million, down 18.3% from sales of $84.8 million in 2003. Net loss for 2004 was $8.9 million, or $0.84 per share, compared to a net loss of $36.0 million, or $3.44 per share, in 2003. For the fourth quarter ended December 31, 2004, sales were $18.7 million, compared to sales of $25.4 million for the fourth quarter of 2003. Net profit for the fourth quarter of 2004 was $1.4 million, or $0.13 per share, compared to a net profit of $1.5 million, or $0.14 per share, in 2003.
Comments from James R. Oyler, President and Chief Executive Officer
“The most significant factor in 2004 was the improvement in new orders. For the year, new orders were nearly $98 million, compared to sales of $69 million. With the increase in orders and backlog, we are now confident that 2004 was the low point in revenue, and that we will see revenue growth in 2005.
“We continue to make good progress in bringing our recently announced laser projector to market, and deliveries of this product will contribute to revenue growth in both 2005 and beyond. In addition, all of our other new products, including the EP and EPX simulation systems, the Digistar 3 digital theater system, and our full range of image generators have been performing well in the marketplace.
/…more
“With strong new products, higher backlog, and good customer acceptance of our visual systems, we believe 2005 will allow us to return to a growth trend and to profitability.”
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 at http://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 with the increase in orders and backlog, we are confident that 2004 was the low point in revenue, that we will see revenue growth in 2005, that deliveries of the laser projector will contribute to revenue growth in 2005 and beyond, and that we believe 2005 will allow us to return to a growth trend and to profitability. 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, EP, EPX, and Digistar are registered trademarks 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 |
| Twelve Months Ended |
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| December 31, 2004 |
| December 31, 2003 |
| December 31, 2004 |
| December 31, 2003 |
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Sales |
| $ | 18,671 |
| $ | 25,423 |
| $ | 69,159 |
| $ | 84,776 |
|
Cost of sales |
| 11,575 |
| 14,958 |
| 44,119 |
| 53,252 |
| ||||
Inventory impairment |
| — |
| — |
| — |
| 14,566 |
| ||||
Gross profit |
| 7,096 |
| 10,465 |
| 25,040 |
| 16,958 |
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Expenses: |
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Selling, general and administrative |
| 6,150 |
| 6,369 |
| 23,786 |
| 27,039 |
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Research and development |
| 3,338 |
| 3,930 |
| 16,621 |
| 21,730 |
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Restructuring charge (recovery) |
| — |
| (498 | ) | (491 | ) | 3,416 |
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Impairment loss |
| — |
| — |
| — |
| 1,151 |
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Operating expenses |
| 9,488 |
| 9,801 |
| 39,916 |
| 53,336 |
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Gain on sale of assets held for sale |
| — |
| — |
| 3,488 |
| 1,406 |
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Gain on sale of assets |
| 3,662 |
| — |
| 3,817 |
| — |
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Operating profit (loss) |
| 1,270 |
| 664 |
| (7,571 | ) | (34,972 | ) | ||||
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Other income (expense), net |
| 73 |
| 153 |
| (1,184 | ) | (1,987 | ) | ||||
Net income (loss) before income taxes |
| 1,343 |
| 817 |
| (8,755 | ) | (36,959 | ) | ||||
Income tax expense (benefit) |
| (22 | ) | (634 | ) | 112 |
| (971 | ) | ||||
Net income (loss) |
| $ | 1,365 |
| $ | 1,451 |
| (8,867 | ) | $ | (35,988 | ) | |
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Basic and diluted net income (loss) per share |
| $ | 0.13 |
| $ | 0.14 |
| $ | (0.84 | ) | $ | (3.44 | ) |
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Number of shares used in basic net income (loss) per share calculation |
| 10,507 |
| 10,481 |
| 10,498 |
| 10,471 |
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Number of shares used in diluted net income (loss) per share calculation |
| 10,596 |
| 10,496 |
| 10,498 |
| 10,471 |
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CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION
(In thousands)
Unaudited
|
| December 31, 2004 |
| December 31, 2003 |
| ||
Assets |
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Cash and restricted cash |
| $ | 13,561 |
| $ | 10,479 |
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Net receivables, billed and unbilled |
| 20,718 |
| 33,220 |
| ||
Inventories |
| 10,802 |
| 15,973 |
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Other assets |
| 7,937 |
| 9,595 |
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Net property, plant and equipment |
| 20,753 |
| 24,115 |
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Total assets |
| $ | 73,771 |
| $ | 93,382 |
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Liabilities and Stockholders’ Equity |
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Accounts payable and accrued expenses |
| $ | 17,486 |
| $ | 20,972 |
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Other liabilities |
| 52,522 |
| 56,844 |
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Stockholders’ equity |
| 3,763 |
| 15,566 |
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Total liabilities and stockholders’ equity |
| $ | 73,771 |
| $ | 93,382 |
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BACKLOG
(In thousands)
Unaudited
|
| December 31, 2004 |
| December 31, 2003 |
| ||
|
| $ | 84,232 |
| $ | 64,684 |
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