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Evans & Sutherland Reports First Quarter 2011 Results

^{Published on 2011-05-07 03:41:02 - Market Wire}
 

SALT LAKE CITY--([ BUSINESS WIRE ])--Evans & Sutherland ComputerCorporation (E&S) (OTCPK: ESCC) today reported financial results in its Form 10-Q filing for the first quarter ended April 1, 2011.

"We continue to believe that results will approach close to breakeven in 2011 based on expected future sales levels. Bidding activity for new projects continues to be strong and reflects an overall improvement in the markets we pursue."

Sales for the first quarter were $5.6 million, compared to sales of $4.4 million for the first quarter 2010. Net loss for the quarter was $1.1 million or $0.10 per share compared to a net loss for the first quarter 2010 of $2.6 million or $0.23 per share. Backlog as of April 1, 2011 was $20.6 million compared to backlog of $19.1 million as of December 31, 2010. Operating expenses for the first quarter totaled $2.5 million compared to $4.0 million for the first quarter of 2010.

Comments from David H. Bateman, President and Chief Executive Officer: aThe first quarter of 2011 reflected an increase in revenue and a decrease in gross profit compared to the same period last year. The timing of deliveries and production schedules resulted in a lower absorption on overhead which had a negative impact on the overall gross profit by offsetting otherwise healthy gross profits from the management of customer projects. The low gross profit was not unexpected based on anticipated customer schedules. We expect higher quarterly revenue and improved margins for the remainder of 2011 based upon our current revenue backlog and sales prospects.

aWe continue to believe that results will approach close to breakeven in 2011 based on expected future sales levels. Bidding activity for new projects continues to be strong and reflects an overall improvement in the markets we pursue.

aWith the increase in order backlog, 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 significant improvement in the results of operations for the remainder of 2011. We remain positive for the success of the business.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.

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