Evans & Sutherland reports sales drop of 40% in quarter

Salt Lake-based Evans & Sutherland Computer Corp. announced Friday that its sales for the quarter dropped 40 percent, amid a "period of enormous change" for the company.

Sales for the second quarter were $2.5 million, the company reported, down from $4.2 million in the second quarter of 2005 (adjusted on a continuing operations basis). The company also reported a a net loss for continuing operations of $3.8 million, or 35 cents per share, compared to a net loss for continuing operations of $400,000, or 4 cents per share, in the same quarter of 2005.

David H. Bateman, Evans & Sutherland's president and chief executive officer, called the second quarter "a period of enormous change for E&S."

"Activity was dominated by completion of the sale of our historical core simulation division for $71.5 million, and the acquisition of Spitz to strengthen our digital theater business," Bateman said. "Within our ongoing operations, results for the quarter were nevertheless somewhat disappointing, and reflected increased expense as we complete the development and transition to production of the laser projector."

E&S completed its acquisition of Spitz Inc. in April 2006.