Evans & Sutherland Sells REALimage Unit, Reduces Staff
Evans & Sutherland Computer Corporation (E&S) has reached an agreement to sell its REALimage business unit, which makes high-performance semiconductor chips for advanced graphics and video applications. The sale is for a maximum value of $12 million, consisting of cash plus future royalties up to $6 million for REALimage technology, other assets and support during a seven-month transition period leading to closing the transaction on April 1, 2002. The buyer of the REALimage unit is Real Vision, Inc., a Japanese company that has partnered with E&S in the development of technology for professional video applications. E&S will continue to use REALimage technology but will also use other available technologies in its ongoing businesses. To help Real Vision during the transition period, E&S will maintain a technical staff in its Salt Lake City headquarters, but will reduce REALimage staffing there and close its offices in San Jose and Seattle. In addition, E&S also announced reductions in its other business units, including the simulation business and a group that produces digital theater and planetarium systems, and other software. The total reduction in staffing at all locations is approximately 10 percent of the company's 840 employees, with over half coming from the Salt Lake City site, its largest facility. The company will create a restructuring reserve for severance and other related costs.