Wave Issue 9038 4/8/99 Article 11-02

***Evans & Sutherland Reports Fourth Quarter and Year End Results
(April 6)

Evans & Sutherland Computer Corporation reported financial
results for the fourth quarter and year ended December 31, 1998.

Sales for the 1998 fiscal year were $191.8 million, up 20.3% over
sales of $159.4 million in fiscal 1997. Net income for 1998,
excluding acquisition-related restatement adjustments, was $7.5
million, or $.73 per share, compared to $5.1 million, or $.53 per
share in 1997. This represents an increase in net income of
47.1%. For the fourth quarter ended December 31, 1998, sales were
$58.4 million, an increase of 18.4% over sales of $49.4 million
for the fourth quarter of 1997. Net income for the fourth
quarter, excluding acquisition-related restatement adjustments,
was $2.8 million, or $.26 per share, compared to a net loss of
$2.1 million or a loss of $.23 per share for the fourth quarter
of 1997.

Acquisition-related restatement adjustments in 1998 arose from
the purchase of AccelGraphics and Silicon Reality in the second
quarter. The restatement adjustments included $20.8 million for
write-off of in-process research and development (IPR&D) taken in
the second quarter, and an additional total of $2.8 million (net
of income taxes) for goodwill amortization taken in the third and
fourth quarters.

In the financial statements as reported, including all
acquisition charges, the net loss for 1998 was $16.1 million, or
$1.70 per share, compared to net income of $5.1 million, or $.53
per share in 1997. Net income for the fourth quarter was $1.4
million, or $.13 per share, compared to a net loss of $2.1
million, or $.23 per share for the fourth quarter of 1997.

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