Computer firm trims net losses

Evans & Sutherland Computer Corp. said Thursday it expects to be profitable this year, reporting that it trimmed its net losses from $36 million in 2003 to $8.9 million in 2004.

The Salt Lake-based visual-imaging hardware and software maker reported a profit for the fourth quarter but a loss for the year. The per-share 2004 loss equated to 84 cents, compared with $3.44 a year earlier.

Sales during the year were down 18.3 percent, from $84.8 million in 2003 to $69.2 million.

For the fourth quarter, earnings totaled $1.4 million, or 13 cents per share, on sales of $18.7 million. That compares with $1.5 million, or 14 cents per share, on sales of $25.4 million in the 2003 fourth quarter.

"The most significant factor in 2004 was the improvement in new orders," James R. Oyler, president and chief executive officer, said in a prepared statement. "For the year, new orders were nearly $98 million, compared to sales of $69 million. With the increase in orders and backlog, we are now confident that 2004 was the low point in revenue, and that we will see revenue growth in 2005."

Oyler said deliveries of the company's new laser projector "will contribute to revenue growth in both 2005 and beyond."

Other new products and image generators have been performing well in the marketplace.

"With strong new products, higher backlog and good customer acceptance of our visual systems, we believe 2005 will allow us to return to a growth trend and to profitability," he said.

Evans & Sutherland products are used in simulation, training, engineering and other applications, including both military and commercial systems, plus planetariums and interactive theaters.

The company's stock fell 34 cents, or more than 5 percent, Thursday to close at $6.25 per share on Nasdaq. During the past year, the price has ranged from $4 to $7.99.