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Sat, March 5, 2011 Evans & Sutherland Reports 2010 Results with Fourth Quarter Net Income
SALT LAKE CITY--([ BUSINESS WIRE ])--Evans & Sutherland ComputerCorporation (E&S) (OTCPK: ESCC) today reported financial results in its Form 10-K filing for the year ended December 31, 2010.
"Our outlook for the business remains positive."
Sales for the fourth quarter of 2010 were $8.8 million, compared to sales of $7.1 million for the fourth quarter of 2009. Net profit for the fourth quarter was $0.8 million or $0.08 per share compared to a net loss of $0.3 million or $0.03 per share for the fourth quarter of 2009. Sales for the year in 2010 were $27.5 million, compared to sales of $25.1 million for 2009. The net loss for the year was $0.42 per share, compared to a net loss of $0.71 per share for 2009. Revenue backlog as of December 31, 2010 was $19.1 million compared to backlog of $13.3 million as of December 31, 2009.
Comments from David H. Bateman, President and Chief Executive Officer: ?There was a marked improvement in the results of operations for the second half of 2010, most notable the net income of $0.8 million for the fourth quarter. Included in the fourth quarter was a strong contribution from the delivery and installation of a large contract in India. The delivered system included many of our proprietary planetarium products. Also contributing to these results was the benefit of our ongoing cost reduction efforts. Customer orders increased significantly in 2010 as compared to 2009. Bidding activity for new projects continues to be strong and reflects an overall improvement in the markets we pursue.
?We made significant progress in 2010, but we do not believe that the fourth quarter results will be consistently sustainable for future quarters without increased sales levels and additional cost reductions. We are pursuing both of these objectives. The progress from our cost cutting efforts is reflected in the operating expenses which were reduced significantly in 2010 as compared to 2009, even with the inclusion of a 2010 first quarter charge for termination costs related to our reduction in the workforce.
?With the increase in revenue backlog as of December 31, 2010, strong sales prospects, 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. We are encouraged with the progress we have made and look forward to opportunities for more improvement in 2011 and beyond.
?Our outlook for the business remains positive.?
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.
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| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION | |||||||||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| ? | ? | ? | ? | ? | ? | Year Ended | ? | Three Months Ended | |||||||||||||
| December 31, 2010 | ? | December 31, 2009 | December 31, 2010 | ? | December 31, 2009 | ||||||||||||||||
| ? | |||||||||||||||||||||
| Sales | $ | 27,481 | $ | 25,068 | $ | 8,781 | $ | 7,102 | |||||||||||||
| Cost of sales | ? | 18,367 | ? | ? | 17,301 | ? | ? | 4,591 | ? | ? | 4,558 | ? | |||||||||
| Gross profit | ? | 9,114 | ? | ? | 7,767 | ? | ? | 4,190 | ? | ? | 2,544 | ? | |||||||||
| ? | |||||||||||||||||||||
| Expenses: | |||||||||||||||||||||
| Selling, general and administrative excluding pension expense | 6,600 | 7,346 | 1,850 | 2,130 | |||||||||||||||||
| Research and development | 4,156 | 6,193 | 740 | 975 | |||||||||||||||||
Pension expense - general and administrative | ? | 1,827 | ? | ? | 2,160 | ? | ? | 482 | ? | ? | (360 | ) | |||||||||
| Operating expenses | ? | 12,583 | ? | ? | 15,699 | ? | ? | 3,072 | ? | ? | 2,745 | ? | |||||||||
| Operating income (loss) | (3,469 | ) | (7,932 | ) | 1,118 | (201 | ) | ||||||||||||||
| Interest expense | (687 | ) | (258 | ) | (163 | ) | (93 | ) | |||||||||||||
| Other income (expense) | ? | (415 | ) | ? | 384 | ? | ? | (110 | ) | ? | (23 | ) | |||||||||
| Income (loss) before income taxes | (4,571 | ) | (7,806 | ) | 845 | (317 | ) | ||||||||||||||
| Income tax benefit (expense) | ? | (73 | ) | ? | (44 | ) | ? | (1 | ) | ? | 18 | ? | |||||||||
| Net income (loss) | $ | (4,644 | ) | $ | (7,850 | ) | $ | 844 | ? | $ | (299 | ) | |||||||||
| ? | |||||||||||||||||||||
| Net income (loss) per common share - basic and diluted | $ | (0.42 | ) | $ | (0.71 | ) | $ | 0.08 | ? | $ | (0.03 | ) | |||||||||
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| CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | ||||||||||||||||||||
| Assets | |||||||||||||||||||||
| Cash and restricted cash | $ | 2,186 | $ | 4,197 | |||||||||||||||||
| Marketable securities | 2,376 | 3,248 | |||||||||||||||||||
| Net receivables, billed and unbilled | 8,748 | 6,097 | |||||||||||||||||||
| Inventories, net | 3,515 | 7,159 | |||||||||||||||||||
| Prepaid expenses and deposits | 1,289 | 1,346 | |||||||||||||||||||
| Property, plant and equipment, net | 9,592 | 10,608 | |||||||||||||||||||
| Intangibles and other assets | ? | 2,254 | ? | ? | 1,963 | ? | |||||||||||||||
| Total assets | $ | 29,960 | ? | $ | 34,618 | ? | |||||||||||||||
| ? | |||||||||||||||||||||
| Liabilities and stockholders' deficit | |||||||||||||||||||||
| Accounts payable and accrued expenses | $ | 4,311 | $ | 5,057 | |||||||||||||||||
| Customer advances and deposits | 5,783 | 7,150 | |||||||||||||||||||
| Pension and retirement obligations | 23,824 | 21,165 | |||||||||||||||||||
| Debt obligations | 5,950 | 5,784 | |||||||||||||||||||
| Other liabilities | 1,454 | 1,432 | |||||||||||||||||||
| Stockholders' deficit | ? | (11,362 | ) | ? | (5,970 | ) | |||||||||||||||
| Total liabilities and stockholders' deficit | $ | 29,960 | ? | $ | 34,618 | ? | |||||||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||||||||
| BACKLOG | |||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||
| Unaudited | |||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | ||||||||||||||||||||
| ? | |||||||||||||||||||||
| $ | 19,080 | ? | $ | 13,339 | ? | ||||||||||||||||
| ? | |||||||||||||||||||||
E&S is a registered trademark of Evans & Sutherland Computer Corporation.
