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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