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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