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CONSILIUM ANNOUNCES THIRD QUARTER RESULTS

 CONSILIUM ANNOUNCES THIRD QUARTER RESULTS
 MOUNTAIN VIEW, Calif., Aug. 25 /PRNewswire/ -- Consilium Inc.


(NASDAQ: CSIM), the leading supplier of manufacturing execution system (MES) software and services, today announced that revenues for the third quarter of fiscal 1992 ended July 31, 1992 were $7.3 million, up slightly from revenues of $7.0 million for the second quarter of 1992 and $7.0 million for the third quarter of 1991. The company had a net loss of $2,990,000, or $.43 per share, compared to a net loss of $394,000, or six cents per share, for the like period a year ago. These results include a one-time restructuring charge of $581,000 for costs associated with expense reduction activities, as well as a reversal of tax benefit of $760,000. During the quarter Consilium had significant sales of both its FlowStream and WorkStream products.
 The company attributed the quarter's loss to continued delays by manufacturers in capital spending and, as expected, higher expenses than in previous quarters. The higher expenses were due to a previously announced increase in ongoing product development expenditures in addition to the restructuring charge. The company is planning to reduce total quarterly expenses by approximately 15 percent, accomplished primarily by a reduction in development expenses for projects nearing completion. As part of these reductions, headcount has been lowered by 19, or 8 percent, and 60 contract programmers will be phased out over the next two quarters.
 During the third quarter, Consilium shifted sales resources to focus on opportunities in the pharmaceuticals and chemicals industries for its FlowStream product. The realignment results in the addition of personnel in New England, the Middle Atlantic states, Germany and France, and the closing of 5 Consilium offices elsewhere.
 "We have reached a point in our products' development that allows us to take advantage of our investment from the past two and a half years and to begin reducing development expenses," said Thomas Tomasetti, Consilium's president and chief executive officer. "Our FlowStream product is now mature enough to allow us to more actively pursue more healthy, growing industries and we continue to evolve WorkStream for Open Systems environments."
 In the third quarter, the company received a second major FlowStream development and sales contract with an international pharmaceutical corporation based in the Midwest and made a first time sale of FlowStream to Eastman Chemical Company.
 New WorkStream sales were made to a U.S. aircraft engine manufacturer following a successful pilot program; SGS-Thomson Microelectronics in Italy, a maker of semiconductors; and S.P. Reifen, a tire manufacturer in Germany. The company also made new sales to two semiconductor companies in France. In addition, WorkStream add-ons and upgrades were sold to Integrated Device Technology, SEH America and Read-Rite Corp.
 Consilium Inc. is the leading supplier of manufacturing execution systems software and services. With its WorkStream and FlowStream product lines, Consilium offers a suite of comprehensive integrated plant floor management solutions that direct the execution of the manufacturing process and allow manufacturers to achieve World Class Manufacturing. The company is headquartered in Mountain View.
 WorkStream is a registered trademark and FlowStream is a trademark of Consilium Inc.
 CONSILIUM INC.
 Condensed Consolidated Balance Sheets
 (in thousands)
 July 31, 1992 Oct. 31, 1991
 (unaudited) (restated for
 change in
 revenue
 recognition)
 Assets
 Current Assets:
 Cash and cash equivalents $ 2,952 $ 2,431
 Short term investments 11,327 12,679
 Accounts receivable, net 7,545 9,883
 Other current assets 3,231 3,159
 Total current assets 25,056 28,152
 Property & equipment (net) 2,915 3,755
 Software production costs (net) 5,216 4,489
 Other assets 924 839
 Total Assets 34,110 37,235
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts payable $ 2,338 $ 1,782
 Other current liabilities
 and accrued expenses 1,681 1,733
 Deferred revenue 3,390 3,938
 Total current liabilities 7,409 7,453
 Deferred income taxes 1,614 1,614
 Accrued lease obligation 261 328
 Deferred revenue 790 223
 Total Liabilities 10,074 9,618
 Stockholders' Equity
 Total stockholders' equity 24,036 27,617
 Total Liabilities and
 Stockholders' Equity $ 34,110 $ 37,235
 CONSILIUM INC.
 Consolidated Statements of Operations
 (In thousands, except per share data; unaudited; nine-month
 figures restated for change in revenue recognition)
 Three months ended Nine months ended
 July 31, July 31,
 1992 1991 1992 1991
 Revenues:
 Product $ 3,197 $ 3,595 $ 9,093 $ 9,119
 Maintenance 2,593 2,177 7,171 6,796
 Services 1,491 1,266 4,229 3,279
 Total revenues 7,281 7,038 20,493 19,194
 Cost of Revenue
 Product 729 485 1,550 1,535
 Services 1,194 988 3,669 2,974
 Total cost of revenue 1,923 1,473 5,219 4,509
 Gross Margin 5,358 5,565 15,274 14,685
 Expenses:
 Selling and marketing 3,654 3,294 10,348 9,439
 Research & development 2,707 1,771 7,231 5,355
 General & administrative 775 1,265 2,050 2,676
 Restructuring charge 581 -- 581 --
 Total operating
 expenses 7,717 6,330 20,210 17,470
 Loss from operations (2,359) (765) (4,936) (2,785)
 Interest income, net 129 186 466 714
 Loss before income
 taxes (2,230) (579) (4,470) (2,071)
 Provision (benefit) for
 income taxes 760 (185) -- (664)
 Net loss $ (2,990) $ (394) $ (4,470) $ (1,407)
 Loss per share $ (0.43) $(0.06) $ (0.65) $ (0.20)
 Shares used in per share
 calculations: 6,929 6,796 6,901 6,934
 -0- 8/25/92
 /CONTACT: Mark Finkel or Darby Dye of Consilium, 415-691-6100; or Joanne Marlin of Thomas Associates, 415-325-6236, for Consilium/
 (CSIM) CO: Consilium Inc. ST: California IN: CPR SU: ERN


TB-DG -- SJ006 -- 3199 08/25/92 17:18 EDT
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Date:Aug 25, 1992
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