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.
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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.
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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
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| Three Months Ended |
| Nine Months Ended |
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| September 30, 2005 |
| October 1, 2004 |
| September 30, 2005 |
| October 1, 2004 |
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Sales |
| $ | 21,148 |
| $ | 15,882 |
| $ | 55,433 |
| $ | 50,488 |
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Cost of sales |
| 13,691 |
| 10,681 |
| 35,499 |
| 32,544 |
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Gross profit |
| 7,457 |
| 5,201 |
| 19,934 |
| 17,944 |
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Expenses: |
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Selling, general and administrative |
| 4,836 |
| 5,498 |
| 14,501 |
| 17,636 |
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Research and development |
| 3,563 |
| 4,126 |
| 11,835 |
| 13,283 |
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Restructuring charges (recoveries) |
| — |
| — |
| 1,926 |
| (491 | ) | ||||
Operating expenses |
| 8,399 |
| 9,624 |
| 28,262 |
| 30,428 |
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Gain on sale of assets held for sale |
| — |
| — |
| — |
| 3,488 |
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Gain on sale of assets |
| — |
| — |
| — |
| 155 |
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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 |
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Net loss |
| $ | (1,404 | ) | $ | (4,894 | ) | $ | (8,811 | ) | $ | (10,232 | ) |
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Basic and diluted net loss per share |
| $ | (0.13 | ) | $ | (0.47 | ) | $ | (0.84 | ) | $ | (0.98 | ) |
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Number of shares used in net loss per share calculation |
| 10,525 |
| 10,501 |
| 10,520 |
| 10,494 |
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CONDENSED CONSOLIDATED BALANCE SHEETS INFORMATION
(In thousands)
Unaudited
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| September 30, 2005 |
| December 31, 2004 |
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Assets |
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Cash and restricted cash |
| $ | 7,226 |
| $ | 13,561 |
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Net receivables, billed and unbilled |
| 17,937 |
| 20,718 |
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Inventories |
| 12,169 |
| 10,802 |
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Net property, plant and equipment |
| 15,273 |
| 20,753 |
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Other assets |
| 10,123 |
| 7,937 |
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Total assets |
| $ | 62,728 |
| $ | 73,771 |
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Liabilities and Stockholders’ Equity (Deficit) |
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Accounts payable and accrued expenses |
| $ | 17,321 |
| $ | 17,486 |
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Other liabilities |
| 51,021 |
| 52,522 |
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Stockholders’ equity (deficit) |
| (5,614 | ) | 3,763 |
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Total liabilities and stockholders’ equity (deficit) |
| $ | 62,728 |
| $ | 73,771 |
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BACKLOG |
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(In thousands) |
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Unaudited |
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| September 30, 2005 |
| December 31, 2004 |
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| $ | 68,852 |
| $ | 84,232 |
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