Evans & Sutherland Reports Second Quarter 2009 Results

SALT LAKE CITY--(Business Wire)--
Evans & Sutherland ComputerCorporation (E&S) (OTCBB: ESCC) today reported
financial results in its Form 10-Q filing for the second quarter ended June 26,
2009.

Sales for the second quarter were $6.1 million, compared to sales of $9.8
million for the second quarter 2008. Net loss for the quarter was $2.3 million
or $0.21 per share compared to a net loss for the second quarter 2008 of $1.4
million or $0.13 per share. Backlog as of June 26, 2009 was $17.5 million
compared to backlog of $20.4 million as of December 31, 2008.

The Company will conduct a teleconference to discuss its 2009 second quarter
results beginning at 11 a.m. EDT, Friday, July 31, 2009. The call is being
webcast by Vcall, and can be accessed at Evans & Sutherland`s website at
www.es.com, or Investors can also access the webcast at
www.InvestorCalendar.com. Live participant dial-in for analysts and
institutional investors is 877-407-8031 (Domestic) and 201-689-8031
(International). The webcast will be available for replay through August 14,
2009 at 877-660-6853 (Domestic) and 201-612-7415 (International) using Account:
286 and Conference ID: 329108.

Comments from David H. Bateman, President and Chief Executive Officer: "The
second quarter of 2009 reflected a modest improvement in revenue and gross
profit for our digital theater and dome products compared to the first quarter
of 2009. Although the revenue backlog decreased, bidding and selling activities
for all of our products remain high, with reasonable optimism for increasing
orders for the remainder of 2009. Operating expenses for the second quarter of
2009, excluding pension expense, were reduced by 24% from the comparable period
in 2008. We continue to closely monitor our business to determine the effects of
the current unsettled global economic situation. We have seen some delays in
customer plans, along with some funding reductions. However, we also see signs
of government stimulus spending aiding our sales prospects, coupled with strong
international demand for our products particularly in China and India. We
continue to pursue actions in an effort to ensure we have sufficient financial
capacity to sustain our business through 2009.

"In June 2009, we introduced the first of our new laser projectors at the
InfoComm exhibition. We had a very positive reaction to this new projector,
along with the stunning 3D content displayed by the projector. We have a number
of follow-up actions with potential customers, and are scheduling visits and
demonstrations with a goal of securing orders later this year. We continue to
incorporate improved laser components, which we expect will facilitate
completion and acceptance of customer systems, as well as achieving acceptances
for previously delivered systems. For the remainder of 2009, we expect
continuing profits from our digital theater and dome products, with orders and
quarterly revenue improving during the rest of the year.

"We remain positive for the success of the business in 2009 and beyond."

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 ability of the Company to
successfully integrate the Spitz business; the ability to complete production
models of its laser projectors without further delays or higher costs; 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.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION
(In thousands, except share and per share data)
Unaudited
Three Months Ended Six Months Ended
June 26, June 27, June 26, June 27,
2009 2008 2009 2008

Sales $ 6,074 $ 9,843 $ 11,932 $ 18,017
Cost of sales 3,589 5,834 7,647 10,857
Loss on inventory impairment 147 11 1,292 11
Gross profit 2,338 3,998 2,993 7,149

Expenses:
Selling, general and administrative excluding pension expense 1,810 2,479 3,632 4,521
Research and development 1,980 2,527 3,797 4,826
Pension expense - general and administrative 840 386 1,680 441
Operating expenses 4,630 5,392 9,109 9,788
Operating loss (2,292 ) (1,394 ) (6,116 ) (2,639 )
Other expense (58 ) (14 ) (109 ) (40 )
Loss before income taxes (2,350 ) (1,408 ) (6,225 ) (2,679 )
Income tax benefit (expense) 1 - (57 ) 93
Net loss $ (2,349 ) $ (1,408 ) $ (6,282 ) $ (2,586 )

Net loss per common share - basic and diluted: $ (0.21 ) $ (0.13 ) $ (0.57 ) $ (0.23 )

Weighted average common shares outstanding - basic and diluted: 11,089 11,089 11,089 11,089

CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
Unaudited
June 26, December 31,
2009 2008
Assets
Cash and restricted cash $ 3,189 $ 7,399
Net receivables, billed and unbilled 6,877 7,755
Inventories, net 8,638 9,070
Other current assets 1,447 1,512
Property, plant and equipment, net 11,127 11,533
Prepaid retirement expenses 3,080 3,122
Intangibles and other assets 1,765 1,695
Total assets $ 36,123 $ 42,086

Liabilities and stockholders' deficit
Accounts payable and accrued expenses $ 6,682 $ 6,298
Customer advances and deposits 8,499 10,321
Pension and retirement obligations 24,146 22,790
Debt obligations 3,193 3,249
Other liabilities 1,849 1,829
Stockholders' deficit (8,246 ) (2,401 )
Total liabilities and stockholders' deficit $ 36,123 $ 42,086

BACKLOG
(In thousands)
Unaudited
March 27, December 31,
2009 2008

$ 17,525 $ 20,432

E&S is a registered trademark of Evans & Sutherland Computer Corporation.

Evans & Sutherland Computer Corporation, Salt Lake City
David H. Bateman
President and CEO
801-588-1674
dbateman@es.com

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