SALT LAKE CITY, UTAH, May 9, 2016, Evans & Sutherland Computer Corporation (E&S) (OTCPK: ESCC)
today reported financial results in its Form 10-Q filing for the first quarter and three months ended April 1, 2016.
Sales for the first quarter were $7.9 million, compared to sales of $8.0 million for the first quarter 2015. Net income for the quarter was $0.2 million or $0.02 per share compared to a net income for the first quarter 2015 of $0.1 million or $0.01 per share. Backlog as of April 1, 2016 was $22.3 million compared to backlog of $26.3 million as of December 31, 2015.
Comments from David H. Bateman, President and Chief Executive Officer: "The first three months of 2016 produced slightly lower sales, but improved net income compared to the same period of 2015. Weaker 2016 gross margins were more than offset by lower 2016 operating expenses compared to 2015. The 2016 weaker gross profit margins were due to variability in product mix within a normal range. Operating expenses were lower in 2016 due to cessation of expenses related to the Pension Plan which was terminated in April 2015. The revenue backlog decreased, but remained relatively healthy at April 1, 2016. The decrease in the revenue backlog was attributable to a low volume of new sales bookings due mostly to the timing of prospective customer decisions. The April 1, 2016 revenue backlog and a strong sales prospect list support an encouraging outlook for the remainder of 2016. The first quarter 2016 results continue to illustrate the profit potential of our business without the burden of the Pension Plan.
We continue to 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 and meet our obligations including the Pension Settlement Obligation. The net income for the first three months of 2016 brings us closer to the elimination of our shareholders’ deficit and our goal of building shareholder value. With the settlement of the Pension Plan liabilities, we expect our improved financial position to present opportunities for better results through the availability of credit and stronger qualification for customer projects."
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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Evans & Sutherland
770 Komas Drive, Salt Lake City, UT 84108