UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
ý Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934,
For the quarterly period ended September 26, 2003
or
o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934,
For the transition period from to
Commission file number 0-8771
EVANS & SUTHERLAND COMPUTER CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
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Utah |
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87-0278175 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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600 Komas Drive, Salt Lake City, Utah |
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84108 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: (801) 588-1000 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
The number of shares of the registrant’s Common Stock (par value $0.20 per share) outstanding at October 31, 2003, was 10,481,542.
FORM 10-Q
Evans & Sutherland Computer Corporation
Quarter Ended September 26, 2003
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Condensed Consolidated Balance Sheets as of September 26, 2003, and December 31, 2002 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I – FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
EVANS & SUTHERLAND COMPUTER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)
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September
26, |
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December
31, |
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Assets: |
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Cash |
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$ |
10,103 |
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$ |
7,375 |
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Restricted cash |
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830 |
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2,960 |
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Accounts receivable, less allowances for doubtful receivables of $674 at September 26, 2003, and $856 at December 31, 2002 |
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16,911 |
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22,481 |
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Inventories |
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17,825 |
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31,373 |
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Costs and estimated earnings in excess of billings on uncompleted contracts |
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16,924 |
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22,083 |
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Prepaid expenses and deposits |
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4,238 |
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4,487 |
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Assets held for sale |
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2,463 |
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5,793 |
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Total current assets |
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69,294 |
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96,552 |
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Property, plant and equipment, net |
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24,241 |
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28,288 |
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Investments |
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1,837 |
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2,002 |
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Other assets |
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450 |
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734 |
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Total assets |
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$ |
95,822 |
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$ |
127,576 |
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Liabilities and stockholders’ equity: |
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Current portion of long-term debt |
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$ |
1 |
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$ |
53 |
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Line of credit agreements |
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3,109 |
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5,213 |
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Accounts payable |
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8,978 |
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9,671 |
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Accrued expenses |
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14,520 |
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13,093 |
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Customer deposits |
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5,111 |
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1,507 |
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Billings in excess of costs and estimated earnings on uncompleted contracts |
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6,893 |
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11,022 |
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Total current liabilities |
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38,612 |
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40,559 |
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Long-term debt |
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21,715 |
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20,685 |
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Pension and retirement obligations |
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13,433 |
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12,969 |
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Total liabilities |
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73,760 |
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74,213 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Redeemable preferred stock, class B-1, no par value; authorized 1,500,000 shares; no issued and outstanding shares |
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— |
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— |
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Common stock, $0.20 par value; authorized 30,000,000 shares; issued 10,832,130 shares at September 26, 2003, and 10,806,040 shares at December 31, 2002 |
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2,167 |
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2,161 |
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Additional paid-in-capital |
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49,554 |
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49,413 |
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Common stock in treasury, at cost; 352,500 shares |
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(4,709 |
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(4,709 |
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Retained earnings (accumulated deficit) |
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(24,921 |
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6,840 |
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Accumulated other comprehensive loss |
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(29 |
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(342 |
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Total stockholders’ equity |
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22,062 |
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53,363 |
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Total liabilities and stockholders’ equity |
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$ |
95,822 |
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$ |
127,576 |
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See accompanying notes to condensed consolidated financial statements
3
EVANS & SUTHERLAND COMPUTER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
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Three Months Ended |
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September
26, |
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September
27, |
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Sales |
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$ |
23,410 |
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$ |
26,592 |
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Cost of sales |
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14,134 |
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15,324 |
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Gross profit |
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9,276 |
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11,268 |
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Expenses: |
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Selling, general and administrative |
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6,507 |
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5,868 |
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Research and development |
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5,677 |
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6,552 |
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Restructuring charges |
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2,635 |
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— |
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Operating expenses |
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14,819 |
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12,420 |
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(5,543 |
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(1,152 |
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Gain on sale of business unit |
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— |
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157 |
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Operating loss |
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(5,543 |
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(995 |
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Other expense, net |
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(802 |
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(689 |
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Loss before income taxes |
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(6,345 |
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(1,684 |
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Income tax expense (benefit) |
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(188 |
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75 |
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Net loss |
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$ |
(6,157 |
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(1,759 |
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Net loss per common share: |
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Basic and diluted |
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$ |
(0.59 |
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$ |
(0.17 |
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Weighted average common and common equivalent shares outstanding: |
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Basic and diluted |
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10,476 |
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10,431 |
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See accompanying notes to condensed consolidated financial statements
4
EVANS & SUTHERLAND COMPUTER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
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Nine Months Ended |
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September
26, |
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September
27, |
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Sales |
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$ |
68,299 |
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$ |
93,376 |
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Cost of sales |
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41,562 |
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