Notes
Evans & Sutherland Computer. ESCC"Evans & Sutherland Computer Corporation engages in the design, manufacture, marketing, and support of visual systems for planetariums, science centers, educational institutions, and entertainment venues worldwide. It also offers image generators; and advanced displays, including laser projectors, dome projection screens, dome architectural treatments, and content. The company supplies dome projection screens and dome architectural treatments to theme parks, casinos, world expositions, and military defense contractors. Evans & Sutherland Computer Corporation was founded in 1968 and is based in Salt Lake City, Utah."
This company hasn't turned a profit in years.
23May07
This company has sold one business unit and acquired another, in the last year. So, some of the financial numbers may be non-representative of it current operations.From recent annual report (April 2007)
"We continue to maintain a significant share of the overall planetarium and digital theater market. We estimate that our market share has ranged from 35% to 70%, depending on the specific market and time period. We estimate that the size of the market for digital theater and planetarium systems is approximately $65 million annually."
The company isn't shy about making bold claims:
"E&S is unique among its competitors by virtue of its capability as a single source that can directly supply and integrate all of the equipment in the planetarium theater, including the projection system, sound, lighting, computer control system and domed projection screen. "
"We began work in 1997 to build a new generation of projection technology with specifications beyond any other technology either available or likely in the foreseeable future."
From recent quarterly report:
"Sales for the first quarter were $4.4 million, up 16% from sales of $3.8 million in the first quarter of 2006 adjusted on a continuing operations basis. There was a net loss in the first quarter of $2.9 million or $0.26 per share, compared to net loss of $5.9 million or $0.56 per share, in the same quarter of 2006. Backlog at the end of the first quarter was $28.4 million up 39% from December 31, 2006."
"Revenues for Digital Theater have been impacted by previously discussed delays in completing acceptances of our delivered laser projectors. The majority of these acceptances are expected to be realized through the second quarter."
Management discussion very upbeat.
Market cap.: 30M
Trailing P/E (ttm, intraday): 1.19
Forward P/E (fye 31-Dec-08): N/A
PEG Ratio (5 yr expected): N/A
Price/Sales (ttm): 1.96
Price/Book (mrq): 1.56
Current ratio: 1.8
No preferred stock, or warrants.
Percent held by insiders < 1% <--Bad
Thoughts: ESCC looks like a nice high risk/reward investment. Backlog is high, revenue is growing, it seems to be a major player in its niche, and management is very aggressive and upbeat. I don't like the low insider ownership. Small companies lack analyst and news following, so it is hard to get any independent opinion of company prospects. So, insider activity becomes more significant. However, institutional ownership is over 60%, very high for such a small company. There was some insider buying in SEP 06.
10NOV07 - $1.67
Market Cap (intraday): 18.52MEnterprise Value (11-Nov-07): 11.13M
Price/Sales (ttm): 0.86
Price/Book (mrq): 1.07
Enterprise Value/Revenue (ttm): 0.51
No earnings (no analyst coverage, so no estimate of future earnings). Book value almost all tangible. This is ugly:
Profit Margin (ttm): -44.09%
Operating Margin (ttm): -57.16%
Return on Assets (ttm): -14.17%
Return on Equity (ttm): -44.80%
The light at the end of the tunnel (in theory):
Qtrly Revenue Growth (yoy): 51.50%
Press release for the quarterly statement:
There was a net loss from continuing operations in the third quarter of $1.7 million or $0.15 per share, compared to net loss of $2.2 million or $0.20 per share, in the same quarter of 2006. Backlog at the end of the third quarter was $27.9 million, up 37% from December 31, 2006.
Comments from David H. Bateman, President and Chief Executive Officer: "The third quarter of this year continued the trend of improved performance in the business. The most notable factor in the quarter was the receipt of functional Grating Light Valves (GLVs). The functionality of GLVs has been the most problematic issue in the development of our laser projector products, and one which we have worked with our supplier over a long period to overcome. We are now receiving weekly deliveries of functional GLV components, which provide effective light modulation and improved image performance. We expect this improvement will lead to the successful completion of customer contracts for our laser projector systems. Several important deliveries of Digistar 3 laser systems have begun, and are in the process of being installed and tested for customer acceptance. Additionally, we are installing upgrades to previously delivered laser projectors, particularly for retrofit of GLVs. The upgrades will continue through the fourth quarter in an effort to improve customer satisfaction. As a result of these developments, we expect an increase in customer acceptances of previously delivered laser systems, as well as some acceptances for newly delivered systems in the fourth quarter. We also made significant strides in the Laser Wide projector, which is planned to be demonstrated later this year under the Laser Agreement with Rockwell Collins.
"As expected, new orders slowed for the quarter compared to the first two quarters. However, the backlog is still strong at over $27.9 million. We expect new orders for the fourth quarter to modestly increase from the third quarter.
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Held by Insiders: 6.73% (this is Yahoo's stat, which seems to be more inclusive than some others).
Held by Institutions: 52.70%
Thoughts: lots of promises that sound promising (go figure). No mention of when they expect to start making money. It looks like a turnaround story hitting the inflection point, but that is based entirely on trusting company press releases. No insider buying.
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