Evans & Sutherland Reports Third Quarter 2010 Results

SALT LAKE CITY, UTAH, November 5, 2010, Evans & Sutherland Computer Corporation (E&S) (OTCPK: ESCC) today reported financial results in its Form 10-Q filing for the third quarter ended October 1, 2010.

Sales for the third quarter were $7.0 million, compared to sales of $6.0 million for the third quarter 2009. Net loss for the quarter was $0.3 million or $0.03 per share compared to a net loss for the second quarter 2009 of $1.3 million or $0.11 per share. Backlog as of July 2, 2010 was $19.8 million compared to backlog of $13.3 million as of December 31, 2009.

Comments from David H. Bateman, President and Chief Executive Officer: "The third quarter of 2010 reflected increases in both revenue and gross profit for our digital theater and dome products compared to the same period last year. Orders for the quarter increased significantly from the second quarter. Bidding activity for new projects continues to be strong and reflects an overall improvement in the markets we pursue.

Operating expenses were significantly reduced compared to the same period last year due to the cost reduction actions we have taken. With the increase in order backlog achieved so far this year, 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 continuing improvement in the results of operations for the fourth quarter.

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.

Consolidated Statements of Operations (XLS)

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Contact:
David H. Bateman
President and CEO
Evans & Sutherland
770 Komas Drive, Salt Lake City, UT 84108
801-588-1674

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