Evans & Sutherland Reports First Quarter 2013 Results

Evans & Sutherland Reports First Quarter 2013 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 first quarter ended March 29, 2013.

Sales for the first quarter were $4.7 million, compared to sales of $7.8 million for the first quarter 2012. Net loss for the quarter was $1.36 million or $0.12 per share compared to a net profit for the first quarter 2012 of $0.36 million or $0.03 per share. Backlog as of March 29, 2013 was $17.7 million compared to backlog of $15.5 million as of December 31, 2012. Operating expenses for the first quarter totaled $2.4 million compared to $2.6 million for the first quarter of 2012.

Comments from David H. Bateman, President and Chief Executive Officer: “Sales for the first three months of 2013 were lower than the comparable period of 2012 as a result of low 2012 sales bookings and the timing of customer deliveries. New customer bookings improved in the first three months of 2013 and as a result, the sales backlog increased to $17.7 million compared to $15.5 million as of December 31, 2012. Sales prospects remain strong and we believe that bookings will continue to improve for the remainder of 2013. The forecasted bookings and customer deliveries indicate that sales levels for the remainder of the year will improve with expectations that total 2013 sales will be comparable to 2012. We also expect the gross profit percentage for the remainder of 2013 to improve and be comparable to 2012 on an annual basis. We do not expect annual net income for 2013, but results for the remainder of the year could be close to break even or profitable within a quarter, depending on the timing of revenue recognition. We continue to evaluate alternative strategies that will enable us to reach our goal of sustained profitability including a reasonable settlement of its pension liabilities through the distress termination application process. We are encouraged with the progress we have made and look forward to opportunities for improvement.

“We remain positive for the success of the business.”

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.

 
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) INFORMATION
(In thousands, except share and per share data)
(Unaudited)            
            Three Months Ended
March 29, 2013 March 30, 2012
 
Sales $ 4,707 $ 7,817
Cost of sales   3,397     4,548  
Gross profit   1,310     3,269  
 
Operating expenses:
Selling, general and administrative (excluding pension) 1,565 1,472
Research and development 670 604
Pension   208     555  
Total operating expenses   2,443     2,631  
Operating income (loss) (1,133 ) 638
Other expense, net   (214 )   (217 )
Income (loss) before income tax provision (1,347 ) 421
Income tax provision   (10 )   (61 )
Net income (loss) $ (1,357 ) $ 360  
 
Net income (loss) per common share - basic and diluted $ (0.12 ) $ 0.03  
 
Comprehensive Income (Loss)
Net income (loss) $ (1,357 ) $ 360
Amortization of deferred pension expense 182 -
Unrealized gain (loss) on marketable securities   7     168  
Comprehensive loss $ (1,168 ) $ 528  
 
 
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
(Unaudited)
March 29, 2013 December 31, 2012
Assets
Cash and restricted cash $ 2,654 $ 2,816
Marketable securities 599 712
Net receivables, billed and unbilled 6,178 6,446
Inventories, net 3,438 3,125
Prepaid expenses and deposits 479 453
Property, plant and equipment, net 7,584 7,735
Intangibles and other assets   2,789     2,963  
Total assets $ 23,721   $ 24,250  
 
Liabilities and stockholders' deficit
Accounts payable and accrued expenses $ 2,547 $ 2,471
Customer advances and deposits 6,404 5,711
Pension and retirement obligations 33,730 33,886
Debt obligations 5,322 5,315
Other liabilities 1,520 1,511
Stockholders' deficit   (25,802 )   (24,644 )
Total liabilities and stockholders' deficit $ 23,721   $ 24,250  
 
 
BACKLOG
(In thousands)
Unaudited
March 29, 2013 December 31, 2012
 
$ 17,675   $ 15,511  
 

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



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

KEYWORDS:   United States  North America  Utah

INDUSTRY KEYWORDS:

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