SALT LAKE CITY, UTAH, May 13, 2015, Evans & Sutherland Computer Corporation (E&S) (OTCPK: ESCC)
today reported financial results in its Form 10-Q filing for the first quarter ended April 3, 2015.
Sales for the first quarter of 2015 were $8.0 million, compared to sales of $6.7 million for the first quarter 2014. Net income for the quarter was $0.1 million or $0.01 per share compared to a net loss for the first quarter 2014 of $0.6 million or $0.05 per share. Sales backlog as of April 3, 2015 was $34.3 million compared to $28.2 million as of December 31, 2014. Operating expenses for the quarter totaled $2.8 million compared to $2.5 million for the first quarter of 2014.
Comments from David H. Bateman, President and Chief Executive Officer:
"On April 21, 2015 the Company executed an agreement with the Pension Benefit Guaranty Corporation (PBGC) to terminate its pension plan and settle the underlying pension liabilities. This is a major milestone and completes a process that began over two years ago. The Company's goal in seeking a distress termination of the pension plan is to ensure that pension benefits of all pension plan participants are paid up to the federally guaranteed limits and that the Company continues to operate as a going concern while avoiding the costly damage and disruption to the business which would result from bankruptcy reorganization. We believe the settlement agreement has achieved that goal.
The first quarter of 2015 reported improved sales volume and $0.1 million net income compared to the first quarter of 2014 which reported a net loss of $0.6 million. The stronger sales and resulting net income in the first quarter of 2015 was attributable to stronger sales bookings over the past year. The sales backlog improved which creates an encouraging outlook for the remainder of 2015. With the improved backlog and strong sales prospects, we anticipate that sales and overall results for the remainder of 2015 will exceed the results from 2014.
We continue to expect variable but reasonable consistent future sales and gross profits from our current product lines at annual levels sufficient to cover or exceed operating expenses. With the settlement of the Pension Plan liabilities, we expect an improved financial position that may present opportunities for better results through the availability of credit and stronger qualification for customer projects. We remain positive for the success of the business. "
About Evans & Sutherland
Evans & Sutherland in conjunction with its wholly owned subsidiary, Spitz Inc., creates innovative digital planetarium systems and cutting-edge, fulldome show content. E&S has developed Digistar 5, the world's leading digital planetarium with fulldome video playback, real-time computer graphics, and a complete 3D digital astronomy package fully integrated into a single theater system. This technology allows audiences to be immersed in full-color, 3D computer-generated interactive worlds. As a full-service system provider, E&S also offers Spitz domes, SciDome, hybrid planetarium systems including Goto optical mechanical projectors integrated with Digistar 4 and a full range of theater systems from audio and lighting to theater automation. E&S markets include planetariums, science centers, themed attraction venues, and premium large-format theaters. E&S products have been installed in over 1,300 theaters worldwide.
Visit the E&S website at http://www.es.com.
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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David H. Bateman
President and CEO
Evans & Sutherland
770 Komas Drive, Salt Lake City, UT 84108