Company Website:
http://www.es.com
SALT LAKE CITY -- (Business Wire)
Evans & Sutherland ComputerCorporation (E&S) (OTCPK: ESCC)
today reported financial results in its Form 10-Q filing for the second
quarter and six months ended June 28, 2013.
Sales for the second quarter were $5.2 million, compared to sales of
$4.7 million for the second quarter 2012. Net loss for the quarter was
$0.4 million or $0.04 per share compared to a net loss for the second
quarter 2012 of $1.5 million or $0.13 per share. Sales for the six
months ended June 28, 2013 were $9.9 million, compared to sales of $12.6
million for the comparable period of 2012. Net loss for the six months
ended June 28, 2013 was $1.8 million or $0.16 per share compared to a
net loss of $1.1 million or $0.10 per share for the comparable period of
2012. Backlog as of June 28, 2013 was $21.9 million compared to backlog
of $15.5 million as of December 31, 2012. Operating expenses for the
second quarter totaled $2.0 million compared to $2.5 million for the
second quarter of 2012.
Comments from David H. Bateman, President and Chief Executive
Officer: “Sales for the second quarter of 2013 were slightly higher
than the comparable period of 2012, but still lower than average
quarterly sales in recent years. Sales for the first six months of 2013
were lower than the comparable period of 2012 and also lower than
comparable periods of recent years. The low 2013 sales are the result of
low 2012 sales bookings and the timing of customer deliveries. New
customer bookings improved in the first six months of 2013 and as a
result, the sales backlog increased to $21.9 million compared to $15.5
million as of December 31, 2012. The gross profit percentage for the
second quarter of 2013 improved as expected, but remained lower for the
first six months of 2013 than the comparable period of 2012. We expect
the gross profit percentage for the remainder of 2013 to improve with
the higher expected sales. For the long term, we believe the existing
markets we serve will yield annual sales at levels comparable to recent
years.
"Total operating expenses in the second quarter and first six months of
2013 decreased compared to the same periods in 2012 due primarily to a
decrease in pension expense. The drop in pension expense was
attributable to high settlement charges for 2012 lump sum distributions.
Since filing the application for distress termination in January 2013,
the pension plan is prohibited from making lump sum distributions.
Otherwise operating expenses were comparable to the periods presented.
"With our expectations for improved sales for the remainder of 2013, we
expect improved results that may fluctuate between the remaining two
quarters. We do not expect annual net income for 2013. For the longer
term we 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.
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| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
INFORMATION |
| (In thousands, except share and per share data) |
| (Unaudited) |
|
| Three Months Ended |
| Six Months Ended |
| | June 28, 2013 |
| June 29, 2012 | | June 28, 2013 |
| June 29, 2012 |
| | | | | | | |
|
|
Sales
| |
$
|
5,212
| | |
$
|
4,746
| | |
$
|
9,919
| | |
$
|
12,563
| |
|
Cost of sales
| |
|
3,480
|
| |
|
3,540
|
| |
|
6,877
|
| |
|
8,088
|
|
|
Gross profit
| |
|
1,732
|
| |
|
1,206
|
| |
|
3,042
|
| |
|
4,475
|
|
| | | | | | | |
|
|
Operating expenses:
| | | | | | | | |
|
Selling, general and administrative (excluding pension)
| | |
1,181
| | | |
1,279
| | | |
2,746
| | | |
2,751
| |
|
Research and development
| | |
674
| | | |
660
| | | |
1,344
| | | |
1,264
| |
|
Pension
| |
|
161
|
| |
|
554
|
| |
|
369
|
| |
|
1,109
|
|
|
Total operating expenses
| |
|
2,016
|
| |
|
2,493
|
| |
|
4,459
|
| |
|
5,124
|
|
|
Operating loss
| | |
(284
|
)
| | |
(1,287
|
)
| | |
(1,417
|
)
| | |
(649
|
)
|
|
Other expense, net
| |
|
(141
|
)
| |
|
(184
|
)
| |
|
(355
|
)
| |
|
(401
|
)
|
|
Loss before income tax provision
| | |
(425
|
)
| | |
(1,471
|
)
| | |
(1,772
|
)
| | |
(1,050
|
)
|
|
Income tax provision
| |
|
-
|
| |
|
(13
|
)
| |
|
(10
|
)
| |
|
(74
|
)
|
|
Net loss
| |
$
|
(425
|
)
| |
$
|
(1,484
|
)
| |
$
|
(1,782
|
)
| |
$
|
(1,124
|
)
|
| | | | | | | |
|
|
Net loss per common share - basic and diluted
| |
$
|
(0.04
|
)
| |
$
|
(0.13
|
)
| |
$
|
(0.16
|
)
| |
$
|
(0.10
|
)
|
| | | | | | | |
|
| Comprehensive Loss | | | | | | | | |
|
Net loss
| |
$
|
(425
|
)
| |
$
|
(1,484
|
)
| |
$
|
(1,782
|
)
| |
$
|
(1,124
|
)
|
|
Other comprehensive income (loss):
| | | | | | | | |
|
Amortization of deferred pension expense
| | |
182
| | | |
-
| | | |
364
| | | |
-
| |
|
Unrealized gain (loss) on marketable securities
| |
|
(18
|
)
| |
|
(64
|
)
| |
|
(11
|
)
| |
|
104
|
|
|
Comprehensive loss
| |
$
|
(261
|
)
| |
$
|
(1,548
|
)
| |
$
|
(1,429
|
)
| |
$
|
(1,020
|
)
|
| | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION |
| (In thousands) | | | | | | | | |
| (Unaudited) | | | | | | | | |
| | June 28, 2013 | | December 31, 2012 | | | | |
|
Assets
| | | | | | | | |
|
Cash and restricted cash
| |
$
|
3,797
| | |
$
|
2,816
| | | | | |
|
Marketable securities
| | |
464
| | | |
712
| | | | | |
|
Net receivables, billed and unbilled
| | |
5,447
| | | |
6,446
| | | | | |
|
Inventories, net
| | |
3,508
| | | |
3,125
| | | | | |
|
Prepaid expenses and deposits
| | |
484
| | | |
453
| | | | | |
|
Property, plant and equipment, net
| | |
7,471
| | | |
7,735
| | | | | |
|
Intangibles and other assets
| |
|
2,310
|
| |
|
2,963
|
| | | | |
|
Total assets
| |
$
|
23,481
|
| |
$
|
24,250
|
| | | | |
| | | | | | | |
|
|
Liabilities and stockholders' deficit
| | | | | | | | |
|
Accounts payable and accrued expenses
| |
$
|
2,131
| | |
$
|
2,471
| | | | | |
|
Customer advances and deposits
| | |
7,097
| | | |
5,711
| | | | | |
|
Pension and retirement obligations
| | |
33,479
| | | |
33,886
| | | | | |
|
Debt obligations
| | |
5,332
| | | |
5,315
| | | | | |
|
Other liabilities
| | |
1,505
| | | |
1,511
| | | | | |
|
Stockholders' deficit
| |
|
(26,063
|
)
| |
|
(24,644
|
)
| | | | |
|
Total liabilities and stockholders' deficit
| |
$
|
23,481
|
| |
$
|
24,250
|
| | | | |
|
|
|
|
|
|
|
|
|
|
| BACKLOG |
(In thousands) |
| Unaudited |
| | June 28, 2013 | | December 31, 2012 | | | | |
| | | | | | | |
|
| |
$
|
21,900
|
| |
$
|
15,511
|
| | | | |
E&S is a registered trademark of Evans & Sutherland Computer Corporation.
Contacts:
Evans & Sutherland
David H. Bateman, 801-588-1674
President
and CEO
dbateman@es.com
Source: Evans & Sutherland Computer Corporation
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