Following the merger of two of its divisions, Evans & Sutherland Computer Corp. is laying off approximately 30 of its employees.
Gary Meredith, vice president of the Salt Lake company, said the layoff is the result of the recently announced merger of the company's Interactive Systems Division and the recently formed Computer Division."Companywide, we employ approximately 1,300 people, so you can see that this is a very small thing for us," Meredith said. "But it is unusual for us to lay off anyone. We just usually don't do it."
Meredith said the layoff does not result from any downturn in business.
"Business is better than ever," he said, "but when we merged the two divisions we had some duplication of jobs and activities. We had to eliminate that duplication in order to achieve greater efficiency."
Evans & Sutherland announced on July 19 that it had decided to merge the two divisions, having concluded that high-performance computing and high-performance graphics-visualization systems go hand in hand.
The Interactive System Division supplied high-performance graphics display systems and modeling-simulation computer programs to the scientific and engineering marketplace.
It placed particular emphasis on products for the molecular modeling, automotive, aerospace and petroleum industries.
The Computer Division, which was formed approximately two years ago but publicly announced in April of this year, was organized to develop general purpose supercomputers, which will be in the $3 million to $8 million price range. Its first supercomputer delivery is expected later this year.
Meredith said that everyone that will be affected by the layoff has already been informed. "And some people, we are still trying to find places for," he said.
Evans & Sutherland, for its second quarter ended June 24, reported net income of $1.35 million, or 16 cents per share, from sales of $28.54 million. For the same quarter one year earlier, the company posted a net income of $3.32 million, or 38 cents per share, from sales of $32.57 million.