Evans & Sutherland Reports Third Quarter 2013 Results

SALT LAKE CITY--()--Evans & Sutherland Computer Corporation (E&S) (OTCPK: ESCC) today reported financial results in its Form 10-Q filing for the third quarter ended September 27, 2013.

Sales for the third quarter were $8.5 million, compared to sales of $5.4 million for the third quarter 2012. Net profit for the quarter was $1.0 million or $0.09 per share compared to a net loss for the third quarter 2012 of $1.1 million or $0.10 per share. Backlog as of September 27, 2013 was $22.1 million compared to backlog of $15.5 million as of December 31, 2012.

Comments from David H. Bateman, President and Chief Executive Officer: “Sales for the third quarter and first nine months of 2013 were better than the comparable periods of 2012, and the gross profit percentage also improved in 2013 compared to the comparable period in 2012. Customer bookings and the sales backlog remain strong. As a result, we expect 2013 annual results to be close to breakeven. For the longer term we continue to expect variable but reasonably consistent future sales and gross profits from our current product line at annual levels sufficient to cover or exceed operating expenses, excluding the pension expense.”

Statements in this press release which are not historical, including statements regarding E&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. The Company assumes no obligation except as required by law to update the forward-looking statements contained in this press release as a result of new information or future events or developments. You can identify these statements by the fact that they use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “should,” “plan,” “goal,” “believe,” “confident” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance together with the negative of such expressions. Among the factors that could cause actual results to differ materially are the following: the Company’s ability to successfully market both new and existing products domestically and internationally; difficulties or delays in manufacturing; results of the Board's evaluation of alternatives available to enhance value for shareholders; and market and general economic conditions. A further list and description of these risks, uncertainties and other matters can be found in the Company’s reports filed with the Securities and Exchange Commission.

Consolidated Statements of Operations (XLS)

E&S is a registered trademark of Evans & Sutherland Computer Corporation.

                             
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) INFORMATION
(In thousands, except share and per share data)
(Unaudited)                
Three Months Ended Nine Months Ended

September 27, 2013

September 28, 2012 September 27, 2013 September 28, 2012
 
Sales $ 8,509 $ 5,359 $ 18,428 $ 17,922
Cost of sales   4,981     3,299     11,858     11,387  
Gross profit   3,528     2,060     6,570     6,535  
 
Operating expenses:
Selling, general and administrative (excluding pension) 1,545 1,658 4,291 4,409
Research and development 529 662 1,873 1,926
Pension   249     590     618     1,699  
Total operating expenses   2,323     2,910     6,782     8,034  
Operating income (loss) 1,205 (850 ) (212 ) (1,499 )
Other expense, net   (185 )   (200 )   (540 )   (601 )
Income (loss) before income tax provision 1,020 (1,050 ) (752 ) (2,100 )
Income tax provision   (31 )   (21 )   (41 )   (95 )
Net income (loss) $ 989   $ (1,071 ) $ (793 ) $ (2,195 )
 
Net income (loss) loss per common share - basic and diluted $ 0.09   $ (0.10 ) $ (0.07 ) $ (0.20 )
 
Comprehensive Income (Loss)
Net income (loss) $ 989 $ (1,071 ) $ (793 ) $ (2,195 )
Other comprehensive income (loss):
Amortization of deferred pension expense 182 - 546 -
Unrealized gain (loss) on marketable securities   3     90     (8 )   194  
Comprehensive income (loss) $ 1,174   $ (981 ) $ (255 ) $ (2,001 )
 
                             
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
(Unaudited)
September 27, 2013 December 31, 2012
Assets
Cash and restricted cash $ 4,278 $ 2,816
Marketable securities 345 712
Net receivables, billed and unbilled 6,838 6,446
Inventories, net 3,914 3,125
Prepaid expenses and deposits 638 453
Property, plant and equipment, net 7,353 7,735
Intangibles and other assets   2,105     2,963  
Total assets $ 25,471   $ 24,250  
 
Liabilities and stockholders' deficit

 

Accounts payable and accrued expenses $ 3,060 $ 2,471
Customer advances and deposits 7,105 5,711
Pension and retirement obligations 33,337 33,886
Debt obligations 5,344 5,315
Other liabilities 1,509 1,511
Stockholders' deficit   (24,884 )   (24,644 )
Total liabilities and stockholders' deficit $ 25,471   $ 24,250  
                             
BACKLOG
(In thousands)
Unaudited
September 27, 2013 December 31, 2012
 
$ 22,123   $ 15,511  

Contacts

Evans & Sutherland
David H. Bateman, 801-588-1674
President and CEO
dbateman@es.com

Contacts

Evans & Sutherland
David H. Bateman, 801-588-1674
President and CEO
dbateman@es.com