[Investor News]

Evans & Sutherland Reports Second Quarter 2016 Results

SALT LAKE CITY, UTAH, August 4, 2016, Evans & Sutherland Computer Corporation (E&S) (OTCPK: ESCC) today reported financial results in its Form 10-Q filing for the second quarter and six months ended July 1, 2016.

Sales for the second quarter were $5.3 million, compared to sales of $10.3 million for the second quarter 2015. Net loss for the quarter was $1.0 million or $0.09 per share compared to a net loss for the second quarter 2015 of $2.7 million or $0.24 per share. Sales for the six months ended July 1, 2016 were $13.2 million, compared to sales of $18.3 million for the comparable period of 2015. Net loss for the six months ended July 1, 2016 was $0.7 million or $0.07 per share compared to a net loss of $2.6 million or $0.23 per share for the comparable period of 2015. Backlog as of July 1, 2016 was $25.5 million compared to backlog of $26.3 million as of December 31, 2015.

Comments from David H. Bateman, President and Chief Executive Officer: "The second quarter of 2016 produced only $5.3 million of sales. This unusually low sales volume was attributable to the timing of customer deliveries of planetarium systems and a temporary drop in backlog from low sales orders in the first quarter of 2016. The low sales volume resulted in under-absorption of fixed overhead which negatively affected gross profit. Also, considerable resources were expended on product demonstrations at a major bi-annual planetarium conference resulting in higher than normal selling expenses. As a result, we reported a net loss of $1.0 million in the second quarter of 2016 which offset first quarter net income to produce a net loss of $0.7 million for the first half of 2016. This variability in the timing of sales orders and customer deliveries are an element of our business that occasionally affect results in this way. While the results of operations are disappointing, a healthy volume of new sales orders in the second quarter of 2016 helped the sales backlog to rebound almost to the level at the beginning of the year. In addition, significant new sales orders already booked early in the third quarter of 2016 and several promising prospects, attributable to positive reactions of recent product demonstrations are expected to sustain a healthy sales backlog for the remainder of 2016.

The net loss for the second quarter of 2016 increased our stockholders deficit, but we believe this is a temporary setback and that future results will lead to elimination of that deficit toward our goal of building shareholder value. For the longer term, we continue to expect variable but reasonably consistent 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. 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