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 MOUNTAIN VIEW, Calif., Dec. 7 /PRNewswire/ -- Consilium Inc. (NASDAQ: CSIM), the leading supplier of manufacturing execution systems (MES) software and services, announced today that revenues for fiscal 1993 ended Oct. 31 were $28,475,000, up 3 percent from revenues of $27,558,000 for fiscal 1992. The net loss for the year was $5,283,000, or $0.75 per share, compared to a net loss of $5,323,000, or $0.77 per share, from last year's figures.
 For its fourth quarter, Consilium reported revenues of $7,433,000, up 5 percent from $7,065,000 for the same period a year ago. The quarter's net loss was $1,506,000, or $0.21 per share, compared with a net loss of $854,000, or $0.12 per share last year.
 "These results reflect our investment strategy over the last three years. After building a solid foundation of product offerings, Consilium is now drawing to a close a period of intense product development, and shifting attention to sales and marketing activities," said Thomas Tomasetti, Consilium's president and chief executive officer. "One of our primary goals for the year ahead is to return the company to profitability, through a combination of lower expenses and increased revenues from our new products," he said.
 "We're encouraged as our product investments are beginning to pay off. Together, FlowStream and WorkStream Open software accounted for 49 percent of product revenue in 1993, compared to 20 percent in 1992," said Tomasetti. "Sales of FlowStream increased 134 percent in 1993, and the product is now beginning to generate repeat orders and maintenance revenue."
 Research and development expenses peaked in the fourth quarter at $2.9 million and the company expects that they will decrease significantly in 1994 with reductions anticipated throughout the year.
 Throughout its period of heavy investment, the company has retained significant cash levels and has remained debt free.
 Fourth Quarter Sales
 In the fourth quarter, the first repeat orders were received for FlowStream software, with a second sale made to Rhone-Poulenc Rorer. Also, the company sold a FlowStream upgrade to Eastman Chemical and additional product to Baxter Healthcare. WorkStream Open software was sold to Catalyst Semiconductor; Mietec, a Belgian semiconductor company; and a liquid crystal display manufacturer in Japan. WorkStream software was sold to Rocky Mountain Magnetics and a new site at the South Carolina Research Authority. WorkStream add-ons were sold to European companies Mietec, MEMC, SP Reifen and EM Microelectronics.
 1993 Highlights
 During 1993, the company's WorkStream Open software began running on its first open systems platform, Hewlett-Packard Co.'s HP-9000 systems. In addition, the company announced that WorkStream Open will be ported to two additional open systems platforms, International Business Machine Corp.'s RS/6000 and Digital Equipment Corp.'s Alpha AXP computers.
 The company also formed several alliances to strengthen its marketing and distribution capabilities. A key agreement was signed with Honeywell Industrial Automation and Control naming FlowStream as the exclusive MES component for Honeywell's TotalPlant solutions, which should result in significant sales opportunities for FlowStream software in the chemicals industry. A strategic partnership also was formed with systems integrator ITP Systems to provide complete integrated automation solutions to semiconductor manufacturers in the United States, Canada and Europe.
 The company's shift in emphasis from development to sales and marketing was initiated at the beginning of the fiscal year with the hiring of Chuck DeVita as vice president of worldwide sales and service. During the year, DeVita has developed sales productivity tools, realigned resources to better address target markets and implemented programs to better monitor sales progress.
 To further strengthen its management team and marketing focus, Consilium announced today the hiring of a new vice president of marketing, Mary Benek. Benek comes to Consilium with 15 years experience in high-tech marketing and product management.
 Consilium Inc. is the leading supplier of manufacturing execution systems (MES) software and services. With its WorkStream Open Family and FlowStream product lines, Consilium offers solutions that address key manufacturing issues, including plant floor visibility, quality control and regulatory compliance. The company is headquartered in Mountain View.
 NOTE: WorkStream Open is a trademark, and FlowStream and WorkStream are registered trademarks of Consilium Inc. TotalPlant is a trademark of Honeywell Industrial Automation and Control.
 Consolidated Statements of Operations
 (In thousands, except per share data; unaudited)
 Three months ended 12 Months ended
 Oct. 31, Oct. 31,
 1993 1992 1993 1992
 Product 3,544 2,841 12,820 11,934
 Maintenance 2,380 2,707 9,571 9,879
 Services 1,509 1,517 6,084 5,745
 Total revenues 7,433 7,065 28,475 27,558
 Cost of revenue
 Product 855 471 2,410 2,021
 Services 1,152 1,305 5,363 4,974
 Total cost of
 revenue 2,007 1,776 7,773 6,995
 Gross margin 5,426 5,289 20,702 20,563
 Selling & marketing 3,136 3,076 12,701 13,423
 Research &
 development 2,903 2,173 10,206 9,389
 General &
 administrative 946 843 3,113 2,893
 Restructuring charge -- -- -- 581
 Total operating
 expenses 6,985 6,092 26,020 26,286
 Loss from operations (1,559) (803) (5,318) (5,723)
 Interest income, net 87 111 345 562
 Loss before income
 taxes (1,472) (692) (4,973) (5,161)
 Provision for income
 taxes 34 162 310 162
 Net loss (1,506) (854) (5,283) (5,323)
 Net loss per share (0.21) (0.12) (0.75) (0.77)
 Shares used in per share
 calculations: 7,162 6,957 7,025 6,915
 Condensed Consolidated Balance Sheets
 (in thousands)
 Assets Oct. 31, 1993 Oct. 31, 1992
 Current assets:
 Cash & cash equivalents $ 7,210 $ 2,731
 Short term investments 7,208 12,806
 Accounts receivable, net 6,453 6,942
 Other current assets 1,723 2,746
 Total current assets 22,594 25,225
 Property & equipment (net) 3,041 3,517
 Software production costs (net) 5,671 5,407
 Other assets 337 357
 Total assets $31,643 $34,506
 Liabilities and
 Stockholders' Equity
 Current liabilities
 Accounts payable $ 1,530 $ 1,836
 Other current liabilities and
 accrued expenses 1,997 1,603
 Deferred revenue 5,145 4,116
 Capital lease obligation 382 316
 Total current liabilities 9,054 7,871
 Deferred revenue 949 404
 Deferred income taxes 2,334 2,334
 Capital lease obligation 313 464
 Accrued lease obligation 157 241
 Total liabilities 12,807 11,314
 Stockholders' Equity
 Total stockholders' equity 18,836 23,192
 Total liabilities and stockholders'
 equity $31,643 $34,506
 -0- 12/7/93
 /CONTACT: Darby Dye of Consilium, 415-691-6100; or Joanne Marlin of Thomas Associates, 415-325-6236, for Consilium/

CO: Consilium Inc. ST: California IN: CPR SU: ERN

TM-LW -- SJ005 -- 1410 12/07/93 16:05 EST
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Publication:PR Newswire
Date:Dec 7, 1993

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