Stocks & Investing
Stocks and Investing
Stocks and Investing
Fri, November 5, 2010 Evans & Sutherland Reports Third Quarter 2010 Results
SALT LAKE CITY--([ BUSINESS WIRE ])--Evans & Sutherland ComputerCorporation (E&S) (OTCPK: ESCC) today reported financial results in its Form 10-Q filing for the third quarter ended October 1, 2010.
"Our outlook for the business remains positive."
Sales for the third quarter were $7.0 million, compared to sales of $6.0 million for the third quarter 2009. Net loss for the quarter was $0.3 million or $0.03 per share compared to a net loss for the second quarter 2009 of $1.3 million or $0.11 per share. Backlog as of July 2, 2010 was $19.8 million compared to backlog of $13.3 million as of December 31, 2009.
Comments from David H. Bateman, President and Chief Executive Officer: aThe third quarter of 2010 reflected increases in both revenue and gross profit for our digital theater and dome products compared to the same period last year. Orders for the quarter increased significantly from the second quarter. Bidding activity for new projects continues to be strong and reflects an overall improvement in the markets we pursue.
aOperating expenses were significantly reduced compared to the same period last year due to the cost reduction actions we have taken. With the increase in order backlog achieved so far this year, strong bidding activity, increased deliveries in the remainder of the year, and the actions we are continuing to take to reduce corporate overheads and other expenses wherever practicable, we expect continuing improvement in the results of operations for the fourth quarter.
aOur outlook for the business remains positive.a
Statements in this press release which are not historical, including statements regarding E&Sa™ or managementa™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 aanticipate,a aestimate,a aexpect,a aproject,a aintend,a ashould,a aplan,a agoal,a abelieve,a aconfidenta 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 Companya™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 Companya™s reports filed with the Securities and Exchange Commission.
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION | ||||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| October 1, 2010 | September 25, 2009 | October 1, 2010 | September 25, 2009 | |||||||||||||||||
| Sales | $ | 7,027 | $ | 6,034 | $ | 18,700 | $ | 17,966 | ||||||||||||
| Cost of sales | 4,195 | 3,758 | 12,138 | 11,523 | ||||||||||||||||
| Loss on inventory impairment | 65 | 46 | 1,638 | 1,220 | ||||||||||||||||
| Gross profit | 2,767 | 2,230 | 4,924 | 5,223 | ||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Selling, general and administrative excluding pension expense | 1,679 | 1,584 | 4,963 | 5,216 | ||||||||||||||||
| Research and development | 752 | 1,421 | 3,416 | 5,218 | ||||||||||||||||
| Pension expense - general and administrative | 449 | 840 | 1,345 | 2,520 | ||||||||||||||||
| Operating expenses | 2,880 | 3,845 | 9,724 | 12,954 | ||||||||||||||||
| Operating loss | (113 | ) | (1,615 | ) | (4,800 | ) | (7,731 | ) | ||||||||||||
| Other income (expense) | (210 | ) | 351 | (616 | ) | 242 | ||||||||||||||
| Loss before income taxes | (323 | ) | (1,264 | ) | (5,416 | ) | (7,489 | ) | ||||||||||||
| Income tax expense | (23 | ) | (5 | ) | (72 | ) | (62 | ) | ||||||||||||
| Net loss | $ | (346 | ) | $ | (1,269 | ) | $ | (5,488 | ) | $ | (7,551 | ) | ||||||||
| Net loss per common share - basic and diluted | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.68 | ) | ||||||||
| Weighted average common shares outstanding - basic and diluted | 11,089 | 11,089 | 11,089 | 11,089 | ||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION | ||||||||||||||
| (In thousands) | ||||||||||||||
| Unaudited | ||||||||||||||
| October 1, 2010 | December 31, 2009 | |||||||||||||
| Assets | ||||||||||||||
| Cash and restricted cash | $ | 2,055 | $ | 4,197 | ||||||||||
| Marketable securities | 2,699 | 3,248 | ||||||||||||
| Net receivables, billed and unbilled | 6,134 | 6,097 | ||||||||||||
| Inventories, net | 4,830 | 7,159 | ||||||||||||
| Prepaid expenses and deposits | 1,305 | 1,346 | ||||||||||||
| Property, plant and equipment, net | 9,784 | 10,608 | ||||||||||||
| Intangibles and other assets | 1,958 | 1,963 | ||||||||||||
| Total assets | $ | 28,765 | $ | 34,618 | ||||||||||
| Liabilities and stockholders' deficit | ||||||||||||||
| Accounts payable and accrued expenses | $ | 4,543 | $ | 5,057 | ||||||||||
| Customer advances and deposits | 5,967 | 7,150 | ||||||||||||
| Pension and retirement obligations | 22,041 | 21,165 | ||||||||||||
| Debt obligations | 5,765 | 5,784 | ||||||||||||
| Other liabilities | 1,448 | 1,432 | ||||||||||||
| Stockholders' deficit | (10,999 | ) | (5,970 | ) | ||||||||||
| Total liabilities and stockholders' deficit | $ | 28,765 | $ | 34,618 | ||||||||||
| BACKLOG | ||||||||||||||
| (In thousands) | ||||||||||||||
| Unaudited | ||||||||||||||
| October 1, 2010 | December 31, 2009 | |||||||||||||
| $ | 19,800 | $ | 13,339 | |||||||||||
E&S is a registered trademark of Evans & Sutherland Computer Corporation.
