Printer Friendly

CIMFLEX TEKNOWLEDGE CONSOLIDATES OPERATIONS TO REDUCE COSTS

 PALO ALTO, Calif., Aug. 4 /PRNewswire/ -- Cimflex Teknowledge Corp. (NASDAQ-NMS: CMTK) today announced that it had transferred all remaining operations to its Palo Alto site in a move to reduce losses associated with its former Factory Management and Control Systems (FMCS) Division. Support for the DELTA(R) factory execution software is now provided by a team led by Cimflex's California employees and supported by a number of consultants from its former FMCS division in Pittsburgh.
 The company anticipates posting significant losses for the quarter ended July 2, 1993. The losses are attributable primarily to a write- down of capitalized software costs of the DELTA product line and an increase in a loss reserve for the discontinued Automated Factories Division (AFD) operation in Franklin, Mass. The agreement in principle to sell the AFD business was terminated in May of this year when AFD sales prospects deteriorated.
 The company is negotiating with creditors associated with its discontinued manufacturing operations in Detroit, Franklin and Pittsburgh to reduce its liabilities. Although the company has adequate resources to operate is continuing business based Palo Alto, overall company liabilities exceed assets, and thus some debt restructuring likely will be required.
 The Palo Alto organization consists primarily of the Knowledge Systems Division (KSD) which has been consistently profitable for seven years. This group specializes in software products and services for distributed, collaborative, intelligent systems, in both commercial and defense settings. Responsibility for continuing support and sales of the DELTA system was transferred to Palo Alto in the quarter ended July 2. The former FMCS division had been consistently unprofitable, and DELTA sales prospects had declined steadily since 1992. In January of this year, KSD executives Rick Hayes-Roth and Neil Jacobstein were promoted to chief executive officer and president, respectively, based on the board's recognition that continuing losses in other divisions could no longer be sustained.
 Cimflex is publicly traded on the NASDAQ National Market System under the ticker symbol CMTK.
 -0- 8/4/93
 /CONTACT: Rick Hayes-Roth, chief executive officer of Cimflex Teknowledge, 415-424-0500/
 (CMTK)


CO: Cimflex Teknowledge Corp. ST: California, Pittsburgh IN: CPR SU:

GT-JH -- SJ007 -- 9604 08/04/93 18:57 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 4, 1993
Words:357
Previous Article:U.S. EPA ANNOUNCES $49 MILLION NEWMARK SUPERFUND CLEANUP DECISION
Next Article:ZITEL CORP. CLOSES A $5 MILLION LOAN
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters