UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 July 2, 2004
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)
|
Utah |
|
87-0278175 |
|
(State or Other Jurisdiction of |
|
(I.R.S. Employer |
|
|
|
|
|
600 Komas Drive, Salt Lake City, Utah |
|
84108 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
|
|
|
|
Registrant’s Telephone Number, Including Area Code: (801) 588-1000
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 July 30, 2004, was 10,499,577.
FORM 10-Q
Evans & Sutherland Computer Corporation
Quarter Ended July 2, 2004
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
Condensed Consolidated Balance Sheets as of July 2, 2004, and December 31, 2003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
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)
|
|
|
July 2, |
|
December 31, |
|
||
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash |
|
$ |
9,965 |
|
$ |
9,714 |
|
|
Restricted cash |
|
2,405 |
|
765 |
|
||
|
Accounts receivable, less allowances for doubtful receivables of $337 at July 2, 2004, and $351 at December 31, 2003 |
|
13,846 |
|
22,298 |
|
||
|
Inventories, net |
|
13,921 |
|
15,973 |
|
||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
7,925 |
|
10,922 |
|
||
|
Prepaid expenses and deposits |
|
4,760 |
|
4,731 |
|
||
|
Assets held for sale |
|
— |
|
2,463 |
|
||
|
Total current assets |
|
52,822 |
|
66,866 |
|
||
|
Property, plant and equipment, net |
|
22,814 |
|
24,115 |
|
||
|
Investments |
|
1,558 |
|
2,011 |
|
||
|
Other assets |
|
1,175 |
|
390 |
|
||
|
Total assets |
|
$ |
78,369 |
|
$ |
93,382 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Line of credit agreements |
|
$ |
884 |
|
$ |
7,685 |
|
|
Accounts payable |
|
5,975 |
|
8,446 |
|
||
|
Accrued liabilities |
|
12,309 |
|
12,526 |
|
||
|
Customer deposits |
|
2,802 |
|
3,928 |
|
||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
12,056 |
|
11,499 |
|
||
|
Total current liabilities |
|
34,026 |
|
44,084 |
|
||
|
Long-term debt, net of current portion |
|
18,015 |
|
18,015 |
|
||
|
Pension and retirement obligations |
|
16,030 |
|
15,717 |
|
||
|
Total liabilities |
|
68,071 |
|
77,816 |
|
||
|
Commitments and contingencies |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
||
|
Preferred stock, no par value; authorized 10,000,000 shares; no issued and no outstanding shares |
|
— |
|
— |
|
||
|
Common stock, $0.20 par value; authorized 30,000,000 shares; issued 10,850,971 shares at July 2, 2004, and 10,836,072 shares at December 31, 2003 |
|
2,170 |
|
2,167 |
|
||
|
Additional paid-in-capital |
|
49,639 |
|
49,575 |
|
||
|
Common stock in treasury, at cost; 352,500 shares |
|
(4,709 |
) |
(4,709 |
) |
||
|
Accumulated deficit |
|
(34,486 |
) |
(29,148 |
) |
||
|
Accumulated other comprehensive loss |
|
(2,316 |
) |
(2,319 |
) |
||
|
Total stockholders’ equity |
|
10,298 |
|
15,566 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
78,369 |
|
$ |
93,382 |
|
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)
|
|
|
Three Months Ended |
|
||||
|
|
|
July 2, |
|
June 27, |
|
||
|
|
|
2004 |
|
2003 |
|
||
|
|
|
|
|
(As restated) |
|
||
|
Sales |
|
$ |
16,816 |
|
$ |
16,010 |
|
|
Cost of sales |
|
10,955 |
|
9,924 |
|
||
|
Gross profit |
|
5,861 |
|
6,086 |
|
||
|
Expenses: |
|
|
|
|
|
||
|
Selling, general and administrative |
|
6,052 |
|
6,906 |
|
||
|
Research and development |
|
5,203 |
|
5,093 |
|
||
|
Operating expenses |
|
11,255 |
|
11,999 |
|
||
|
Gain on sale of assets held for sale |
|
3,488 |
|
1,406 |
|
||
|
Operating loss |
|
(1,906 |
) |
(4,507 |
) |
||
|
Other income (expense), net |
|
(334 |
) |
||||