CONSILIUM REPORTS FIRST QUARTER RESULTS
CONSILIUM REPORTS FIRST QUARTER RESULTS MOUNTAIN VIEW, Calif., Feb. 25 /PRNewswire/ -- Consilium Inc.
(NASDAQ: CSIM), the leading supplier of integrated plant floor management software and services, reported today that for the first quarter of fiscal 1992, ended Jan. 31, 1992, revenues were $6.4 million, up 3 percent from revenues of $6.2 million for the same period a year ago. The company had a net loss of $718,000, or $.10 per share, compared with a loss of $370,000, or $.05 per share, in the first quarter of fiscal 1991.
"These results are not inconsistent with our stated expectation for the quarter," said Thomas Tomasetti, Consilium's president and chief executive officer. "Although we reported a loss, we saw some positive trends in sales and other areas in the quarter." "We are encouraged by the number of sales closed this quarter to new customers in North America, which was the largest number of new domestic closes since our third quarter of 1990. Although these sales were, on the average, smaller in size, they show great potential for additional revenue opportunities as these customers increase the size of their installations. In addition, we made our first sale of FlowStream this quarter, and closed several sales of WorkStream which had been deferred from previous quarters," he added. "Although from a financial reporting viewpoint we recorded a loss during the quarter, we were cash flow positive by over $600,000," said Mark Finkel, Consilium's chief financial officer. "We are seeing positive results from an expense control program implemented in fiscal 1991 and an increase in collections of accounts receivable." Consilium stated that it continues to see the residual effects of the weak economy in the United States as manufacturers continue to delay capital expenditures. The company also experienced a softening of sales activity in Europe where some manufacturers deferred buying decisions. "We are confident that our market and our position in it is very strong. Although it remains difficult to predict results during the recession, we anticipate an increase in sales activity for WorkStream and our newest product, FlowStream, during the second half of fiscal 1992," said Tomasetti. "We will continue to support these products and invest in our future even though short-term profitability is uncertain." Customers for Consilium's first sales of its new product, FlowStream include the Absorbent and Textiles Division of Hercules Inc. in Covington Ga., and SESAM SpA, the company's distributor in Italy. The company's WorkStream software was also sold to several first-time customers, including: -- Garrett Fluid Systems Division of Allied Signal Aerospace in Tempe, Ariz., a manufacturer of metal parts for commercial and military aircraft. This sale marks the first phase of Garrett's plan to implement manufacturing execution systems. -- SEH America Inc., a silicon wafer manufacturer in Vancouver, Wash. This sale follows a successful pilot program begun in 1991. -- A German division of an international chemicals company. -- A German tire manufacturer. WorkStream sales to existing customers include National Semiconductor Corp., Read-Rite Corp., SGS Thomson, and Wacker Siltronic GmbH. Other highlights during the quarter include the appointment to the board of directors of Gerard Langeler, founder of Mentor Graphics Corp., and currently president of Mentor Graphics' Systems Group, and the signing of a new Japanese distributor, Toyo Engineering Corp., which focuses on the specialty chemicals industry. Consilium Inc. is the leading supplier of integrated plant floor management software and services. With its FlowStream and WorkStream 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. CONSILIUM INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; unaudited) Three months ended Jan. 31 1992 1991 Revenues: Product $ 2,808 $ 3,051 Maintenance 2,242 2,255 Services 1,321 875 Total revenues 6,371 6,181 Cost of Revenue Product 450 583 Services 1,164 940 Total cost of revenue 1,614 1,523 Gross Margin 4,757 4,658 Expenses: Selling and marketing 3,223 3,020 Research and development 2,038 1,882 General and administrative 767 600 Total operating expenses 6,028 5,502 Loss from operations (1,271) (844) Interest income, net 183 300 Loss before income tax benefit (1,088) (544) Income tax benefit (370) (174) Net loss $ (718) $ (370) Loss per share $(0.10) $ (0.05) Shares used in per share calculations: 6,874 6,991 CONSILIUM INC. CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) Jan. 31, 1992 Oct. 31, 1991 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 4,566 $ 2,431 Short term investments 11,158 12,679 Accounts receivable, net 13,022 15,170 Other current assets 1,855 1,386 Total current assets 30,601 31,666 Property & equipment (net) 3,576 3,755 Software production costs (net) 4,711 4,489 Other assets 936 839 TOTAL ASSETS $ 39,824 $ 40,749 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 1,668 1,782 Other current liabilities and accrued expenses 1,452 1,733 Deferred revenue 3,704 3,938 Total current liabilities 6,824 7,453 Deferred income taxes 1,614 1,614 Accrued lease obligation 301 328 Deferred revenue 223 223 TOTAL LIABILITIES 8,962 9,618 STOCKHOLDERS' EQUITY Total stockholders' equity 30,862 31,131 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 39,824 $ 40,749 -0- 2/25/92 NOTE: WorkStream is a registred trademark and FlowStream is a trademark of Consilium Inc. /CONTACT: Mark Finkel or Darby Dye of Consilium, 415-691-6100; or Joanne Marlin of Thomas Associates Inc., 415-325-6236, for Consilium Inc./ (CSIM) CO: Consilium Inc. ST: California IN: CPR SU: ERN
JL-DG -- SJ003 -- 2500 02/25/92 16:06 EST
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|Date:||Feb 25, 1992|
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